Tullamore D.E.W. Producer Records Pre-Tax Loss For 2019
Tullamore D.E.W. producer William Grant & Sons Irish Management Ltd has recorded a pre-tax loss of €3.73 million for 2019.
As reported by The Irish Times, William Grant & Sons attributed its 2019 pre-tax loss, which followed a €320,000 pre-tax profit in 2018, to higher costs. The company's costs increased by 18.5% in 2019 from €42.1 million to €49.9 million.
The 2019 loss takes account of non-cash depreciation costs of €8.3 million.
The 2019 pre-tax loss came despite a 7% rise in revenues from €43.29 million to €46.35 million that year.
The number of people employed by the company increased from 70 to 78 in 2019, and staff costs rose from €3.95 million to €4.56 million.
The company's directors stated that its production levels were lower in 2019 than in 2018, and overall capital expenditure continued to focus on initiatives to improve efficiency and increase distilling, and packaging and warehouse capacity.
COVID-19 Pandemic Impact
The company said that the COVID-19 pandemic has reduced demand for its products.
The Irish Times quotes the company's directors as saying, "How demand will evolve going forward is at this time unclear. However, the impact on the wider group could be considerable in a worst-case scenario."
According to the directors, in response to the COVID-19 pandemic, the company has taken measures to help communities in which it operates, including supplying almost eight million litres to date of pure alcohol for hand sanitiser, and hand sanitiser is also being produced at the company's own bottling location.
The directors stated that the company has implemented a number of actions to preserve cash and manage expenditure, and that business's financial strength and geographical spread allow them to conclude that the company is well placed to manage its business successfully, despite the current uncertain economic outlook.
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