The firm that operates the Flynn brothers' Happy Pear business last year recorded losses of €581,003 in "a challenging year for the business".
New accounts for Flynn and Flynn Global Trading Ltd show that the post tax loss followed a post tax profit of €175,993 in 2021.
Twins, Stephen and David Flynn, are two of the best known names in the Irish food industry and their plant based cooking and lifestyle business recorded the losses after revenues declined by 9% from €5.5m to €5m for 2022.
Finance Director with the business, Paul Murphy, said that during the year, the Happy Pear re-opened a café at the Shoreline Leisure Centre in Greystones "but regrettably we were forced to close this later in the year as it was not viable".
He said: "Within our wholesale production business, we encountered cost inflation in our ingredients cost base which put significant pressure on our margins."
Mr Murphy added that "there was a fall off in digital sales in 2022 as the Covid-boom in online courses tapered off".
Asked does the Happy Pear expect to return to profit this year, Mr Murphy said: "The business is not expected to return to profit in 2023."
The business - which includes the Happy Pear café and shop at Church Rd, Greystones - currently employs 74 people, which is at the same level as last year.
The loss last year takes account of combined non-cash amortisation and depreciation costs of €261,322. The loss also takes account of €142,033 in operating lease costs while the business did receive €65,817 in Covid-19 wage subsidy payments.
However, despite the 2022 loss, Mr Murphy is upbeat about the Happy Pear’s prospects after raising €2.59m from an equity crowd investment fund-raising round earlier this year.
The new funds are to finance the brand’s expansion of Happy Pear products into the UK and beyond and enable growth and improvement to the Happy Pear App and digital business.
"The company is very excited about the future and the ability of the business to utilise the fundraise to deliver strong growth in 2024 and beyond," Mr Murphy said.
"The company is making investments in equipment to enable scaling of its productions for its international expansion and has partnered with a distributor in the UK".
"We have had some initial positive conservations with London based retailers and are excited to launch our product range into the London area in early 2024 and plan to expand the presence of our range across the UK following this."
Mr Murphy said that the Happy Pear "will look to expand its retail presence in the medium term".
He said that in early 2024 with improvements to the Happy Pear App "we will introduce further improved functionality which will enable us to bring this inspirational and educational service to a much wider audience".
Mr Murphy said that from the crowd investment fund-raising, the €2.59m in shares represent 19.68% of the company.
He added that the directors "were delighted to welcome 1,068 new shareholders to the company."
Mr Murphy stated that it includes six new shareholders who invested between €50,000 and €250,000 while the majority at 734 comprises small investors who acquired shares to the value of up to €1,000.
He noted that "the majority of the new shareholders are female". Cash funds at the Flynn & Flynn Global Trading Ltd last year reduced from €333,565 to €164,457.
- reporting Gordon Deegan
