Offaly yogurt maker growing again after fire hit turnover

TURNOVER at Killeigh-based dairy and organic yogurt business Glenisk fell 23.5% in 2021 because of the fire at its factory.

In a report with the company's accounts for that year, the directors said the fire completely destroyed all fixed assets at the factory.

They added: “The group made swift progress in its resumption of production.”

Turnover fell from €28.8 million to €21.26 million. Nearly €20.4 million of the turnover was in Ireland and the remainder was in the UK.

Despite the drop, after-tax profits for the year ending December 31, 2021 were €5.2 million, up from nearly €1.7 million in 2020, and the company attributed this to an insurance payout.

A note in the accounts refers to a profit of €7 million on the disposal of tangible assets.

After the release of the accounts, Emma Walls, Glenisk commercial director, explained: “This relates to insurance proceeds received at the end of 2021 for plant, premises and machinery destroyed in the fire. While it’s recorded as ‘profit’ on the accounts, in fact it represents monies required to reinstate the premises and the machinery after 2021.”

The accounts also state Glenisk incurred costs related to the fire of €1.089 million.

The average number of employees in 2021 was 80, including 53 in production, 19 in distribution and eight in administration. The equivalent 2020 figure was 79.

Staff costs, including directors' salaries, amounted to €5.34 million. The remuneration for directors and connected parties was €1.96 million.

The directors with shareholdings in the company are listed as Vincent Cleary, Gerard Cleary, Mark Cleary and Brian Cleary. Brian Cleary resigned as a director in May, 2021.

Earlier this summer Glenisk announced that the Cleary family had regained 100% ownership of the company after Danone disposed of its stake.

In 2006, organic yogurt company Stonyfield Europe acquired a minority stake in Glenisk.

At the same time, French owned food giant Groupe Danone acquired a controlling stake in Stonyfield Europe.

In further comment on the latest accounts, Ms Walls said: “2020 had been a record year for Glenisk and the business was on track to achieve similar sales for 2021. A fire at the facility in September 2021 halted all yogurt production, which did not resume until February 2022.”

Yogurt constituted 90% of Glenisk’s business and the loss of yogurt sales in the fourth quarter of the year “had a particularly adverse affect on the company’s performance”.

She said 2022 was a challenging year as Glenisk reintroduced ranges in a phased manner as manufacturing capacity increased and the required machinery was reinstated.

“This phased return has continued into 2023.

“Our manufacturing facility at the Killeigh site is fully operational and we have capacity to return to 100% of volumes and beyond with new product development. We are upgrading the site on a continuous basis. We are continuing to explore all options.”

The company said in February last year that it plans to build a new carbon neutral manufacturing facility.

“We’re focused on improvements to the existing site currently but not ruling out the greenfield site.”

Referring to this year, she said Glenisk is the fastest growing brand in the yogurt category and the company has made gains of 12% in market share and is optimistic about regaining its number one spot during 2024.

“We are pleased with the growth of our Organic Greek Style Yogurt.”

The most popular flavours last year were Natural, followed by Vanilla.

Milk production was resumed first and by early 2022 Glenisk yogurts were back in the shops.

Managing director Vincent Cleary said the company was working on developing the German market at the time of the fire.

The latest accounts reveal that a new subsidiary company, registered in Germany, was incorporated during 2021.