Arrow Group ready for Brexit as profits jump 53%

Pre-tax profits at one of the largest meat processors in the country, the Arrow Group, last year increased by 53% to €37.73m.

Newly-filed accounts show that the Waterford-based group achieved the sharp increase in pre-tax profits in spite of revenues dipping by 2.4% to €499m during the 12 months to January 1 this year.

The group achieved the profit boost after its administrative expenses reduced by 48.5% .

Numbers employed by the group last year increased from 1,681 to 1,790 with staff costs increasing from €67.59m to €70.25m.

In the accounts, Arrow’s directors warned of the potential effects of Brexit on their business, namely, exchange rates, labour costs/availability and particular tariffs in relation to goods and services.

“We remain flexible to redirect our business as greater clarity emerges.

“Our customer base is spread across the UK, eurozone and beyond so we as a group are well-positioned to face challenges and avail of opportunities that might arise.”

The group is controlled by brothers Peter, Michael and John Queally, who own the Dawn brand, and the group also manufactures and distributes pet foods and engages in property investment.

“2016 has built on the strong performance of the previous year. While the functional currency turnover has decreased, this is due to the impact of foreign currency with the weakening of sterling throughout the year,” the group said.

“Underlying sales have increased across all regions and, as such, group profitability increased due to an effective hedging strategy and a number of other factors,” it added.