By Gordon Deegan

Pre-tax profits at one of the largest meat processors in the state, the Arrow Group, last year declined by 44% to €15.79 million due to higher costs.

New consolidated accounts filed by the family-owned Arrow Group Ltd show that the business sustained the drop in profits despite revenues rising by 6% from €748 million to €794.12 million.

The group's cost of sales increased at a higher rate, rising by 9% from €642.16 million to €698.05 million.

The pre-tax profits of €15.79 million follow pre-tax profits of €28.38 million in 2024.

The group is owned by the Queally family, which also owns shares in Dawn Meats.

The directors for the Waterford-headquartered business stated that 2025 "has delivered a positive trading year for the group".

They stated that "the performance is attributable to continuing activity with existing customers and the onboarding of new customers along with new product lines across all key markets".

They said that "this was offset somewhat by varied protein, transport and commodity price fluctuation on the world markets; however, the group continues to benefit from positive customer sentiment and maintenance of market share".

On its future developments, the directors stated that the group "will continue its focus on the control of costs, working capital optimisation and broadening its customer base across all regions".

Along with its work in the international food industry through pork and meat processing and meat trading, the directors said that the group also produces a range of food and beverage value added products, and manufactures and distributes pet foods.

They said that, in addition, "the group holds certain property investments, elements of which it intends to develop in the future".

The group recorded a post-tax profit of €11.38 million last year, after incurring a corporation tax charge of €4.4 million.

The group paid out a dividend of €1.8 million last year that followed a similar dividend payout in 2024.

The group was on the acquisition path this year, with post balance sheet events showing that the group purchased the remaining shareholding in Rennard Pig Farms Ltd to acquire 100% ownership.

The group purchased the remaining shares in Kilkenny Nutritional Beverage Co Ltd, Topjak Properties Ltd, and Hazelmark Developments Ltd, to acquire 100% ownership of each company, and the group purchased a 50% shareholding in Palco Ltd.

Numbers employed by the group last year decreased slightly from 2,217 to 2,213, made up of 1,806 in production, along with 407 in administration and sales.

Staff costs at Arrow Group last year increased from €107.55 million to €112.39 million.

Six Queallys sit on the board - John, Michael, Marie, Ivor, Liam and Irene Queally.

Aggregate pay, including pension contributions to directors and connected persons, increased from €2.18 million to €2.37 million.

Key management personnel, including directors and certain senior employees, shared €3.9 million in salaries, pension contributions and other expenses.

The profit last year takes account of non-cash depreciation and amortisation costs of €21.9 million.

The profit also takes account of foreign exchange losses of €2.38 million; research and development costs of €2.94 million; a €900,000 impairment of a financial asset; and interest costs of €3.64 million, offset by a gain of €2.34 million on the revaluation of investment property.

Shareholder funds at the end of December last totalled €281 million, which included €258.96 million in accumulated profits. Cash funds decreased from €55.46 million to €34.9 million.