Inflation hits Mannok earnings
The company has an optimistic outlook.
Rising costs hit Mannok’s earning last year but the company saw its revenue rise by 16% over 2021.
In its performance review and business outlook, published today, shows energy costs increased by 66%, with the company forced to absorb increased costs.
Revenue increased from €233.2m to €269.9m, which the company says reflects “good growth and customer demand”.
Earnings before interest, tax, depreciation and amortisation fell by €5.3m in 2021 to €25.8m, down from €31.1m the year before. Costs included energy prices, raw materials, particularly in the insulation business and an increase in cost of carbon credits, from €33 per tonne to €80 per tonne by the end of last year.
However, Mannok says its outlook for this year and into the future is optimistic:
“Resilient demand, supported by stronger cost recovery and a levelling out of energy prices has driven stronger profitability post year end, following two challenging quarters.”
Also published today was the company’s Mannok 2030 Vision, which outlines the employers targets on its journey to reduce carbon emissions by 33% by 2030 and achieve net zero by 2050.
Over €200m is expected to be spent, with €20m to go towards the “decarbonisation of the company’s fleet” by 2024. Green hydrogen will be produced to replace the majority of the four million litres of diesel used by the company annually.
What’s described as “a large wind farm and complementary solar farm” are also planned.
A heritage and biodiversity centre will also be built at Slieve Rushen House, a historical site located on Mannok land. The company says this will be “for the benefit of the wider community”.