Profits at salad producer McCormack Farms falls to €1m

Revenues increased by €2.2m (13%) to over €19.3m but the firm’s cost base increased by 16% to €18.3m

McCormack Family Farms is Ireland's largest producer of baby salad leaves and also produces herbs, microgreens, and edible flowers.

Profits at the family-owned firm behind McCormack Farms, the largest producer of baby salad leaves in the country, fell last year to just over €1m.

New accounts also show that revenues increased by €2.2m, or 13%, to over €19.3m.

The fall in pre-tax profit comes as the firm’s cost base increased by 16% to €18.3m, while “other operating income” declined.

Staff numbers increased to 113 people from 104, as staff costs rose to almost €3.5m.

The directors said in the accounts that the company was facing increased competition in the sector “but has a strong foothold and is expected to maintain a strong gross profit percentage of between 15% and 25% each year”.

The company for the most part supplies fresh herbs and baby leaf produce, but also provides freshly-cut herbs, microgreens, as well as edible flowers. 

On the risks and uncertainties facing the company, the directors said that “in common with all companies operating in Ireland, within this fresh produce sector, the company faces pressure on its trading due to environmental and economic conditions”.

The directors said the company was well placed to maintain its market share.

The company, which is based in Meath, posted an after-tax profit of €894,344. That helped increase its accumulated profits to over €7.4m.

 As part of internal re-organisation, the McCormack-controlled MCFF Holdings acquired McCormack Farms Ltd in July.