The Irish National Stud has made "significant progress" in becoming less financially dependent on stallion, Invincible Spirit who was once responsible for generating 70% or €5.5m of the national stud's annual revenues.
That is according to the 2022 annual report for Irish National Stud DAC, which shows that pre-tax losses more than tripled to €2.17m last year.
The losses at The Irish National Stud DAC increased as revenues dipped by 5% from €6.2m to €5.9m.
Providing an insight into the company's finances and progress in becoming less dependent on the performance of stallion, Invincible Spirit, chairman, Matt Dempsey states that the significant risk associated with the inevitable decline in income from Invincible Spirit "has long been at the forefront of our thinking".
In his chairman’s report, Mr Dempsey states that "in 2017, he was responsible for approximately 70% of the entire company's revenues".
In 2017, revenues at the Irish National Stud DAC totalled €7.9m and Invincible Spirit once commanded a €120,000 fee per nomination.
Mr Dempsey said: "To overcome this challenge, our strategy, over a number of years, has been to enhance and diversify income streams while simultaneously managing costs, retaining full service delivery and maintaining cash flows".
He says: "Significant progress has been made. Since 2019, bloodstock income has doubled."
Mr Dempsey said that in 2022, Invincible Spirit "was responsible for a still significant but greatly reduced 5% of company revenues. So while we have not yet reached the further shore, we are now within touching distance".
Mr Dempsey states that the National Stud "has acquired six stallions in the past six years providing a stable pipeline of potential successors over the coming years, but this investment takes time to bear fruit".
He said that in 2022, two new stallions joined the roster and both were very well received, - Lucky Vega covered 151 mares and Nando Parrado 130.
Mr Dempsey further states that "319 foals were born in our foaling unit in 2022, another year on year increase".
Mr Dempsey states that the goal of National Stud's business plan 2022 to 2026 is to ensure that activities from the commercial activities of stallions, bloodstock services and tourism "generate income streams sufficient to deliver profit and a consistent dividend return to the shareholder in years to come".
The National Stud's revenues last year were made up of stud and farm revenues of €4.29m and tourism revenues of €1.6m exceeding the pre-pandemic levels of 2019.
The loss last year takes account of non-cash depreciation losses of €1.5m and a €375,323 impairment loss from trade debtors.
Numbers employed increased from 60 to 81 as staff costs increased from €2.24m to €2.73m.
Pay to the CEO remained static at €138,068 made up of €110,568 in salary and other short term benefits and €27,500 in post employment benefits.
The National Stud’s total equity last year increased from €19.13m to €23.66m due mainly to a 'capital injection' of €6.23m.
The National Stud's cash funds increased from €2.53m to €8.08m.
