Tipperary drinks group M&J Gleeson back in profit as revenues climb to €234m

Co Tipperary drinks group M&J Gleeson Investments Ltd returned to profit in 2014 as revenues climbed to €234m.

The C&C Group completed the purchase of M&J Gleeson for €12.4m in 2013.

New accounts show Gleeson recorded a pre-tax profit of €3.26m in the 12 months to the end of February 2014.

The profit in 2014 followed the firm recording a pre-tax loss of €38m in 2013 due to a number of exceptional costs.

Revenues rose 47% from €159.7m to €234.86m but based on a prior period of eight months only.

M&J Gleeson’s brands include Tipperary Mineral Water, the Finches range of soft drinks and the Estrella beers.

The accounts show a dividend of €8.3m was paid out in 2014 year. Numbers employed by the firm fell from 625 to 565.

Gleeson’s gross profit in 2014 increased 55% from €23.69m to €36.8m.

Distribution costs of €10m and administrative expenses of €23m resulted in an operating profit of €3.7m, which compared with an operating loss of €3.3m in 2013.

Interest payable of €451,186 reduced the Gleeson’s group’s profits to €3.26m in 2014.

The directors’ say in their report that the company will continue to seek new growth avenues by developing new and existing products and markets as it integrates with the Irish business of C&C.

At the end of February 2014, the group had a shareholders’ deficit of €575,137 arising chiefly from the dividend payout.

Gleeson’s cash pile totalled €11.5m.

Directors’ pay rose from €301,809 to €660,172.