Profits drop at Skea Eggs despite increase in sales
Profits are down at Northern Ireland egg giant Skea Egg Farms despite an increase in sales, its latest accounts show.
The firm which trades as ‘Skea Eggs’ is well-known for it’s distinctive ‘Big 10’ packs. It supplies all of Tesco NI’s eggs and produces the most popular brand of eggs in the North.
Pre-tax profits for the firm dropped more than 20% – from more than £3.9 million to just under £3 million – for the financial year ending December 31, 2016.
However, over the same period, turnover increased from £61.7 million to £63.3 million – up more than £1.5 million on the year before.
However, market prices, foreign exchange risk and credit risk with new customers were all highlighted as risks going forward.
Skea Eggs is one of the region’s largest egg companies – each year processing the eggs of around 1.6 million hens.
Despite its size, the firm is still a family-run buisness based in Pomeroy, Co. Tyrone. The firm was founded in the early 1970s by its current managing director, Matthew Hayes.
Its eggs were initially sold to the wholesale market and were supplied by family-run farms.
But today, Skea Eggs supplies most of the main supermarkets in Britain and Northern Ireland including Asda, Co-op, Marks & Spencer’s, Musgrave Retail Partners, Sainsbury’s and Tesco – both own-brand and Skea-branded packs.
Now the firm is one of the largest companies in Northern Ireland, turning over in excess of £60 million each year and employing around 120 people.
In 2014, the firm invested in renewable energy and installed 50kW solar panels on the roofs of its sheds.
Skea’s range of products include: free range, barn, organic, Omega-3 enriched eggs, as well as standard eggs.
It’s ‘Good Egg’ range – free-range eggs enriched with Omega-3 – is one of its latest products and aims to help customers maintain a healthy diet.
Research shows that the Omega-3 can boost heart health, maintain healthy eyes and brain function. Omega-3 enriched eggs are produced by feeding hens a diet high in Omega-3 sources, such as flax seed.