'Ireland's favourite food brand' Flahavan's took in nearly €20m last year
But the Waterford-based group is worried about what Brexit will do to its business.
REVENUE AT THE company behind Irish food brand Flahavan’s came close to topping €20 million last year.
The Waterford-based food manufacturer, recently declared ‘Ireland’s favourite food brand’, has been in operation for over 200 years.
The firm started out as an oats mill at Kilmacthomas in the late 1700s and now produces a range of oat-based products. It is led by managing director John Flahavan.
New accounts for Finegrove Holdings – the parent company for Edward Flahavan & Sons – show income hit a new high of nearly €19.9 million in the year to the end of June 2016. The figure was up from the €18.1 million in trade it did the previous year.
However despite the increase in turnover, overall profits dipped to €1.8 million at the group – down around €300,000 on the previous year. The decrease came as operating expenses jumped nearly €1 million for the latest 12-month period.
A directors’ note attached to the accounts also warned of possible issues ahead for the group, citing the UK’s vote to leave the EU last year as a particular concern.
“The directors note the impact of the Brexit vote in late June 2016, and the resulting currency fluctuations that have occurred to date,” it stated.
“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 accounts also noted that the company had committed to a programme of research and development which, it said, would help secure its market position in cereals production.
Staff
The average number of people employed by the company rose to 77 during the latest period, compared to the 66 on its books in 2015. Staff costs also increased from €3.3 million to €3.9 million.
The majority of staff at the company are involved in the production process, with eight employees listed as sales staff and the remainder involved in administration.
Earlier this year, Flahavan’s was voted Ireland’s favourite food brand in a Love Irish Food survey of over 2,000 people. An earlier Bord Bía report said the brand had a more than-50% share of the ‘hot cereals’ market, making it the dominant player in the category.
