Organic yogurt maker, Glenisk recorded a pre-tax profit of €5.7m 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 the Cleary family owned Glenisk sustained a €5.4m 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 €28.8m to €21.26m "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 €5.7m profit chiefly as a result of a profit of €7m on the disposal of fixed assets.
Commercial Director with Glenisk, Emma Walls explained that the €7m profit on asset disposal "are the insurance proceeds received in 2021 for plant, premises and machinery".
Ms Walls stated that the funds received are "earmarked to reinstate the premises post 2021".
Ms Walls commented: "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."
The €5.7m profit was a 196% increase on the pre-tax profit of €1.92m for 2020.
Ms Walls cautioned that the €5.7m pre-tax profit isn't 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 €1.94m in 'other operating income' and Ms 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 €1.08m in exceptional costs concerning 'fire related costs’.
On last year's performance, Ms 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."
Ms Walls stated that "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."
On the possibility of a new plant on a greenfield site, Ms Walls stated: "We are continuing to explore all options."
The brand's most popular flavours for 2023 and 2022 are 'Natural' followed by Vanilla.
In June, the Cleary family re-assumed 100% ownership of the business after Danone sold its 38% share in the business.
Ms Walls stated: "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."
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 €5.3m in 2021. Nine directors served during the year and directors’ pay totalled €1.96m including pension contributions of €167,470.
At the end of 2021, the firm’s shareholder funds totalled €16.55m that include accumulated profits of €11.47m. Cash funds increased from €5.6m to €9.45m.
Glenisk works with just under 50 small family farms including organic cows’ milk and goats’ milk farmers.
On the firm's 2023 performance, Ms Walls said: "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 #1 spot in the category during 2024.
Reporting by Gordon Deegan
