Organic yogurt maker, Glenisk, recorded a pre-tax loss of €1.38m last year as it continued to count the cost of the ‘devastating’ fire that destroyed the company’s main production plant in 2021.
New consolidated accounts filed by the Co Offaly based Cordagrove Ltd show that the Glenisk business recorded the loss despite revenues increasing by 49% from €11.67m to €17.4m.
However, the 2023 revenues are still someway off the pre-fire record Glenisk revenues of €27.8m in 2020.
Commenting on the accounts, owner and MD of Glenisk, Vincent Cleary said that 2023’s performance “is in part, the ongoing cost of returning to the market” following the “devastating” fire at the end of September 2021.
The €1.38m pre-tax loss for 2023 followed a pre-tax profit of €5.14m for 2022.
But the 2022 profit was skewed by €10.8m in ‘other operating income’ that was mainly made up of an insurance payout for the fire.
Last year the company benefited from ‘insurance related’ other operating income of €1.87m.
Asked to comment on the factors behind the 2023 loss, Mr Cleary said: “Ever since the fire, Glenisk made a commitment to its full complement of staff and milk suppliers that none would be let go, this came at a cost that Glenisk was happy to bear.”
“However, additional headwinds were experienced with post-Covid and geopolitical related super-inflationary events that Glenisk, and all others, had to contend with.”
On the 2024 performance to date, Mr Cleary said: “Glenisk endeavours to grow back to where it was pre-fire and the quest of resuming Glenisk’s position as Ireland’s favourite Yogurt brand continued through 2024 and, we expect, into 2025.”
“We have been rebuilding our factory ever since the fire and continue to do so.”
Asked does he expect Glenisk to return to profit in 2024, Mr Cleary said: “Our recovery is still ongoing and we expect to do significantly better in 2024 than 2023 but may still make a small but manageable loss.”
Last year, the then Cleary family owned Glenisk regained 100% of the business after the company redeemed Danone’s 38% shareholding by mutual consent.
The new accounts show that unspecified ‘redemption of shares’ last year cost the company €5m.
However, Mr Cleary would not be drawn on the transaction.
Mr Cleary also declined to comment on the accounts showing that this year, he assumed 100% of the business after the company purchased the shares of Gerard Cleary and Mark Cleary.
The company currently has 65 full time employees and last year staff costs increased from €4.38m to €5.17m. The company supports 30 farm families in its purchase of organic milk.
The loss last year takes account of non-cash depreciation costs of €566,597.
Accumulated profits reduced from €16.05m to €9.76m after the post tax loss of €1.25m and the €5m cost associated with the redemption of shares are taken into account.
Cash funds reduced from €16.77m to €7.75m.
– reporting by Gordon Deegan
