Pre-tax profits at the family owned horticulture firm behind McCormack Farms based in Co. Meath, last year decreased by 42% to €1.02 million.
McCormack Farms is the largest producer of baby salad leaves in the country and new accounts show that profits last year decreased despite revenues increasing by €2.2 million or 13% from €17.1 million to €19.3 million.
The profits decreased as the firm’s cost base increased by 16% or €2.57 million from €15.72 million to €18.29 million.
Another factor behind the decrease in profits was the firm’s income from ‘other operating income’ declining from €517,776 in 2021 to €87,241 last year.
Meath horticulture company
Numbers employed by the firm last year increased from 104 to 113 as staff costs rose from €3.12 million to €3.49 million.
The directors state that the company is facing increased competition in the sector “but has a strong foothold and is expected to maintain a strong gross profit percentage of between 15% and 25% each year”.
The main activity of the company is the supply of fresh herbs and baby leaf produce and the directors state that they are satisfied with the level of reserves at year end.
The firm also specialises in fresh cut herbs, microgreens and edible flowers.
On the risks and uncertainties facing the company, the directors state that “in common with all companies operating in Ireland, within this fresh produce sector, the company faces pressure on its trading due to environmental and economic conditions”.
The directors added that they are satisfied the company is well positioned in the sector to maintain its market share.
Finances
The Co. Meath-based company recorded operating profits of €1.1 million and after paying out €89,810 in interest payments, its pre-tax profits stood at €1.02 million.
After paying corporation tax of €129,719, the firm recorded post-tax profits of €894,344.
The post-tax profits last year contributed to accumulated profits increasing to €7.43 million. The company’s cash funds increased from €2.7 million to €2.87 million.
Pay to directors last year increased from €407,014 to €459,895.
A breakdown of revenues shows that Irish revenues increased from €15.6 million to €17.6 million while ‘Europe’ revenues rose from €1.48 million to €1.75 million.
The profit last year takes account of non-cash depreciation costs of €583,811.
The firm’s workforce is made up of 84 in production, 15 in distribution and 14 in management. Pay to key management personnel totalled €225,392 last year.
The directors of the firm are listed as Laura McCormack, Edward McCormack and Stephen McCormack. The accounts state that the ultimate controlling parties are Edward McCormack and Stephen McCormack.
The firm received a government grant of €229,517 towards the purchase of new machinery. The grant was made under the 2022 Scheme of Investment Aid for the development of the commercial horticulture sector.
As part of internal reorganisation of the business, the McCormack-controlled MCFF Holdings acquired McCormack Farms Ltd., in July of this year.