Despite posting record sales, Flahavan's fears Brexit fallout
Turnover at the Waterford-based oat company topped €20 million last year.
THE COMPANY BEHIND Irish food brand Flahavan’s achieved turnover of more than €21 million last year.
New accounts for Finegrove Holdings – the parent company of Edward Flahavan & Sons – and its subsidiaries show that revenue hit a new high of €21.1 million for the year ending 30 June 2017.
This marked an increase from the €19.9 million turnover it recorded in the previous year.
Profit at the company, which produces porridge oats, oat-based snacks and cereals, also rose from €1.8 million to €2.2 million, despite increases in costs and operating expenses.
Based in Kilmacthomas, Co Waterford, the business has been in operation for more than 200 years and is currently led by managing director John Flahavan.
The average number of staff employed by the firm increased from 77 to 79 last year, with three-quarters of roles based in the production side of the business.
Total wages and salaries also rose from €3.2 million to €3.6 million, representing an average annual salary of €46,000.
Business concerns
In the directors’ report attached to the accounts, the company said that its financial position at the end of the year was “satisfactory” and that it will “seek to sustain the present level of activity which will allow the company to trade successfully for the foreseeable future”.
However, it added that “substantial capital expenditure” will be required in the short-term to maintain production capacity.
With less than a year to go until the UK is due to leave the EU, the company also noted that Brexit remains a concern for the oat business.
“The potential impact of this issue on the business, such as in respect of margin earned on export sales, is being closely monitored by the board,” the report said.
It added that the group is committed to a programme of research and development activities to “secure its market position in cereals production”. Expenditure in this area amounted to just over €93,000 – down from €167,000 the previous year.
Last year, a Bord Bia report said that Flahavan’s has secured a more than 50% share in the hot cereals category, making it the market leader.
However, it warned that new competition from international food companies and supermarket brands could threaten this position.
