By Gordon Deegan
Organic yogurt maker Glenisk recorded a pre-tax profit of €5.7 million in 2021, chiefly as a result of a net insurance payout arising from a fire which destroyed the firm’s main production facility.
New accounts show that Glenisk, which is owned by the Cleary family, sustained a €5.4 million hit to 2021 revenues due to the fire that destroyed its main production plant in September 2021.
The accounts for Cordagrove Ltd. show that 2021 revenues reduced by 23.5% from €28.8 million to €21.26 million “due to disruption caused by a fire at the group’s factory which completely destroyed all fixed assets held there”.
The group based at Killeigh, Tullamore, Co. Offaly recorded the €5.7 million profit chiefly as a result of a profit of €7 million on the disposal of fixed assets.
Commercial director with Glenisk, Emma Walls explained that the €7 million profit on asset disposal is “the insurance proceeds received in 2021 for plant, premises and machinery”.
She stated that the funds received are “earmarked to reinstate the premises post 2021”.
“2020 had been a record year for Glenisk and the business was on track to achieve similar sales for 2021.
“The fire at the facility in September 2021 halted all yogurt production, which did not resume until February 2022,” Walls said.
The €5.7 million profit was a 196% increase on the pre-tax profit of €1.92 million for 2020.
Glenisk
Glenisk works with just under 50 small family farms including organic cow’s milk and goat’s milk farmers.
Walls cautioned that the €5.7 million pre-tax profit is not an accurate reflection of Glenisk’s 2021 business performance as the funds received through insurance in 2021 are used post 2021 to reinstate the premises.
The yogurt maker’s profits were also boosted by €1.94 million in ‘other operating income’ and Walls stated that this figure “relates to insurance compensation for the loss of stock in hand, business interruption insurance and grant income”.
The group’s profits were hit by €1.08 million in exceptional costs concerning “fire-related costs”.
On last year’s performance, Walls stated: “2022 was a challenging year as we reintroduced ranges in a phased manner as our manufacturing capacity increased and the required machinery was reinstated. This phased return has continued into 2023.
“Our manufacturing facility at the Killeigh site is fully operational and we have capacity to return to 100% of volumes and beyond with new product development.
“We are upgrading the site on a continuous basis,” she added.
On the possibility of a new plant on a greenfield site, Walls commented: “We are continuing to explore all options.”
The brand’s most popular flavours for 2023 and 2022 are natural, followed by vanilla.
Ownership
In June, the Cleary family re-assumed 100% ownership of the business after Danone sold its 38% share in the business.
“It had been an ambition for the Clearys to resume full ownership of Glenisk.
“The 2021 fire naturally resulted in a review of operations and strategy and it was determined by mutual agreement that 2023 was a good time to make that happen,” Walls said.
Four members of the Cleary family serve as directors while a further five members of the family are employees.
Numbers employed totalled 80 and staff costs amounted to €5.3 million in 2021.
Nine directors served during the year and directors’ pay totalled €1.96 million, including pension contributions of €167,470.
At the end of 2021, the firm’s shareholder funds totalled €16.55 million which included accumulated profits of €11.47 million. Cash funds increased from €5.6 million to €9.45 million.
“The business is naturally the fastest growing brand in the yogurt category as recovery continues and we have made gains in terms of market share achieving 12%.
“We are optimistic about regaining our number one spot in the category during 2024,” Walls said.