Mannok’s 2020 performance review shows a robust post lockdown recovery and a positive outlook for 2021, with the company posting an increase in gross earnings of 17% to €31.1 million for the 12 months ending 31 December 2020.
The strong performance comes despite the challenges presented by Covid and Brexit during the period, which included a halt on all non-essential production at the company’s multiple manufacturing plants during Q2.
The company also rebranded from Quinn to Mannok, marking the culmination of a 6-year transformation and investment programme that saw sales and employment increase by 44% and 25% respectively. The timing of the rebrand was a bold decision given the uncertainty of the aforementioned challenges, but one which has been welcomed by the industry and has been seen as a successful endeavour to date.
And in a year like no other, Mannok’s significant investment continued, to the tune of €6.7 million in the period, bringing total investment to €66 million since the acquisition of the businesses in December 2014.
Commenting on the report, Liam McCaffrey, Chief Executive Officer, said: “The safety and welfare of our staff and their families has been, and remains, of paramount importance through the pandemic. As an organisation with operations on both sides of the border, we are enormously grateful for the support and commitment of our 800+ colleagues in helping to navigate the twin challenges of Covid-19 and the Brexit transition.
“Careful resource planning and operational agility, facilitated by the significant investment we have made in our sales support, logistics and customs management infrastructure, have ensured uninterrupted supply chains for our customers across the construction and food industries on the island of Ireland and in Great Britain.
“Post the initial lockdown, trading recovered strongly in the second half of the year, supported by approximately €66m of new investment over the past six years. While the business has experienced some impact on trading activities over recent months, with a number of customer projects being delayed as a result of Covid-19, underlying demand has remained strong.
“Given our ongoing exposure to the food and construction sectors, the very positive response to our rebranding and the potential tail-wind of a vaccine-driven economic recovery, the outlook for 2021 is positive.”
Chief Financial Officer Dara O’Reilly said: “Through timely adjustment to our manufacturing levels during the initial lockdown, we succeeded in managing our cost base and resource allocation whilst ensuring seamless supplies to essential industries. We continue to monitor our markets very closely as well as the supply of key input materials for our Insulation and Packaging businesses in particular. Notwithstanding a positive outlook and good demand, we are expecting some margin compression as a result of inflationary cost pressures in 2021.”
Mannok, which has a workforce of approximately 830 employees, comprises two key divisions, Building Products and Packaging, both are robust and diversified businesses, deemed essential throughout Covid.