Glenisk, the Cleary family-owned yogurt maker, experienced a loss of €5.4 million in revenue in 2021 due to a fire that destroyed its main production plant in September.
The accounts for Cordagrove Ltd, the parent company, reveal a 23.5% decrease in revenues from €28.8 million to €21.26 million as a result of the fire, which led to the complete destruction of all fixed assets at the factory.
Despite this setback, the group still managed to record a profit of €5.7 million, largely due to a €7 million profit from the disposal of fixed assets.
Emma Walls, the Commercial Director of Glenisk, explained that the €7 million profit came from insurance proceeds received in 2021 for the damaged plant, premises, and machinery. She also mentioned that these funds are earmarked for reinstating the premises after 2021.
Walls highlighted the impact of the fire, stating that it halted all yogurt production until February 2022. Despite the impressive pre-tax profit of €5.7 million, she cautioned that it does not accurately reflect Glenisk’s actual business performance in 2021, as the insurance funds are intended for post-2021 purposes.
In addition to the insurance proceeds, Glenisk’s profits were boosted by €1.94 million in “other operating income.” Walls clarified that this figure includes compensation for lost stock, business interruption insurance, and grant income.
While the fire-related costs negatively impacted the group’s profits by €1.08 million, Walls expressed optimism about the future. She stated that the manufacturing facility is fully operational, and Glenisk has the capacity to resume full production and even expand with new product development.
The Cleary family regained full ownership of Glenisk in June 2021 after Danone sold its 38% share in the business. The company employed 80 individuals in 2021, with staff costs amounting to €5.3 million.
During the year, nine directors served, and their pay totaled €1.96 million, including pension contributions of €167,470. Glenisk’s shareholder funds stood at €16.55 million, including accumulated profits of €11.47 million, at the end of 2021. Cash funds increased from €5.6 million to €9.45 million.
Looking ahead, Walls expressed confidence in Glenisk’s growth potential. She mentioned that the business is the fastest-growing brand in the yogurt category and has gained a 12% market share. The company aims to reclaim its position as the top brand in the category by 2024.
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