Devenish (NI) Ltd. has recorded a “positive” financial performance despite trading being impacted by macro-economic factors.
The group’s annual report and financial statements for the year ended May 31, 2021 show pre-tax profits stood at £1.56 million (€1.7 million) compared to a loss of £5.8 million in 2020.
Operating profit, before exceptional costs, was just over £6 million (€7 million), up from £1.3 million in 2020.
Net assets at the end of the financial year were just over £23 million.
However, turnover was down by 4% or around £10 million to £216 million (€253 million).
The report noted the trading challenges posed by the Covid-19 pandemic, uncertainty surrounding the terms of the UK’s decision to leave the European Union and the fire at a distribution centre in Belfast in November 2019.
It also pointed to a drop in sales, particularly in North America and other international markets due to the pandemic.
“These factors have slowed the growth and profitability of the group in the short-term, but through continued investment in innovation, research and development, along with investment in factories in the US and UK, the directors are satisfied in the longer-term outlook,” the report stated.
Directors said that risks such as Covid-19, tariffs and inflation are subject to regular review.
Consumer demand
Devenish outlined that consumer demand for healthy, safe and nutritious food, produced in a transparent and environmentally conscious manner continues to increase.
To reflect this, the group maintained investment in innovation, research and development and “has continued to develop its capability to exploit the opportunities ahead of it”.
Along with operations in the Republic of Ireland and the UK, Devenish has companies in the United States, Denmark, Mexico, Turkey, Kenya and Uganda.
The report shows that employee numbers have grown from 521 in 2019 to 578.
