Monaghan Mushrooms profits slide

MONAGHAN Mushrooms, one of the largest producers of fresh and processed mushrooms in Europe, says it has experienced another difficult year, with profits dropping once again in 2006.

The company, a joint venture between the Wilson family and Donegal Creameries and the Connacht Gold Co-op, recorded pre-tax profits of €1.6 million in 2006, down from €1.8m in 2005, according to accounts just filed at the Companies Registration Office.

Turnover for the year was up from €121m to €128.9m, though this was due to growth at the company’s British operations.

Sales in Ireland were flat at €22m. In Britain, sales increased to almost €107m compared to €98.7m in the previous year.

Monaghan said its compost division performed to expectation, with sales increasing to €18m from €14.9m. But it said the division faces a number of challenges and will require investment.

The mushroom marketing and growing division also increased its turnover, from €106.1m to €110.8m.

“The growing division should see the benefit of investment made during the year and the changes to the nature of compost input at out UK farms,” Monaghan said in a note with the accounts, but it added that the mushroom marketing business suffered towards the second half of 2006 due to strong competition and this trend continued in 2007.

Administration and distribution costs rose, pushing the operating profit margin down to 1.1% from 1.4% in 2005. Staff numbers were up slightly to 891 in Ireland and Britain. No dividend was paid to its owners.