Home business Profits down at Cork-based firm behind Cully & Sully due to higher costs

Profits down at Cork-based firm behind Cully & Sully due to higher costs

Profits down at Cork-based firm behind Cully & Sully due to higher costs

Pre-tax profits at the Cork based food firm that operates the Cully & Sully brand declined by 25 per cent to €3.55 million last year.

New accounts filed by Hain Celestial Ireland Ltd show that the business recorded the drop in profits in spite of revenues increasing by 1.6 per cent from €27.36 million to €27.8 million in the 12 months to the end of June 2022.

The firm’s profits declined as the company’s cost base rose by 7 per cent or €1.6m from €22.63 million to €24.29 million.

‘Cully & Sully’ co-founders, Colum O’Sullivan and nephew of Ballymaloe’s Darina Allen, Cullen Allen – shared a multi-million euro windfall from selling their business to the New York-based organic products group, Hain Celestial in April 2012.

Hain Celestial has confirmed that it paid €10.46 million in cash for Cully & Sully and a further €4.5 million was to be paid based upon the achievement of specified operating results during the period through to June 30th, 2014.

Mr O’Sullivan and Mr Allen are directors of Hain Celestial Ireland and Cully & Sully soup is just one of a number of brands the company sells -others include Linda McCartney frozen meals, Cadbury spreads, jam and jelly under the Hartley brand and Dream non-dairy rice plant based drinks.

The directors state that one of the key brands, Cully & Sully soup is manufactured exclusively in Ireland.

They state that “the company has maintained its performance of recent years”.

Addressing the company’s going concern status, the directors state that the company has considerable financial resources and a good business model including strong relationships with its customer and supplier base.

They state that “as a consequence, the directors believe that the company is well-placed to manage its business risks successfully”.

The firm paid out no dividend last year after paying out a dividend of €2.2 million in the prior year.

The firm’s balance sheet continued to strengthen last year with accumulated profits rising from €18.66 million to €21.78 million.

The company’s cash funds increased from €6.84 million to €9.05 million.

Numbers directly employed by the firm last year increased from 13 to 14 as staff costs increased marginally from €1.2 million to €1.26 million.

Seven directors served during the year and directors’ pay increased from €416,304 to €421,314.

Globally, Hain Celestial recorded revenues of $1.89 billion (€1.76 billion) in 2022 and recorded pre-tax profits of $103.49 million.