A post pandemic retreat from outdoor activities to the indoors contributed to revenues stalling at €27m at the firm behind one of the country's best known brands, Dubarry last year.
New accounts filed by Galway-based Dubarry holding company Glentawn Investments Ltd show that pre-tax profits declined by 8% from €6.02m to €5.54m in the 12 months to the end of November last.
This followed revenues at the footwear and clothing business increasing only marginally from €27.31m to €27.62m.
The firm during the year paid out a dividend of €3m to immediate parent FLWG Holdings Ltd that followed a dividend payout of €9m in 2021.
According to the directors' report, "the spike in sales in late 2021, as retailers replenished their depleted stocks, did not carry into 2022 leading to a flat year".
They state that "the pandemic shift to outdoor activity, which suited our business, eased considerably as occasions, socialising and return to work resumed".
They add that the significant shift to online sales during lockdowns "did not hold its new level as widely predicted by reversing considerably as bricks and mortar retail re-opened".
The directors also point out that "supply chain difficulties have continued into 2022, compounded by relentless inflationary pressures on all costs leading to a fall back in profitability".
In their report, the directors also stated "that the difficulties in trading with the UK brought about by Brexit continue, although the same difficulties have reduced competition from the UK leading a strong year in the domestic market".
Glentawn directors Eamonn Fagan, Michael Larkin and Michael Walsh also state that "the very late arrival of Winter weather delayed Autumn trading."
On 2023, the directors state that they anticipate a challenging trading environment in 2023 with "many headwinds including continued inflation forcing pricing reviews, trading with weaker economies with resulting currency fluctuations and continued supply chain difficulties particularly from the Far East."
Numbers employed by the business last year increased from 116 to 123 and "Irish staff costs" increased to €3.1m while "other staff costs" totalled €1.97m.
A breakdown of those employed show that 60 were employed in marketing, 29 in administration, 29 in production and five in research and development.
Directors' pay, including pension contributions, last year totalled €425,095,
The pre-tax profit last year takes account of non-cash depreciation costs of €427,270.
Glentawn Investments Ltd last year recorded post tax profits of €4.88m after paying corporation tax of €662,407.
At the end of November last, the firm had shareholder funds of €21.62m that included accumulated profits of €18.62m. The company's cash funds decreased from €4.34m to €3.42m.
