Musgrave releases results and signs €80m deal with Oliver Carty Ltd
Musgrave has proved resilient despite Ireland's current economy difficulties and has helped boost the country's pig farming industry through its latest deal
20 May 2011
Musgrave announced its results for 2010 and revealed overall sales of €4.4 billion, down 3% on 2009 with profit before tax of €72 million, an increase of 3%.
The company eliminated its start of the year debt of €59 million to close the year with net cash of €21 million.
Commenting on the results, Chris Martin, group chief executive officer, Musgrave Group, said: “Despite the economic crisis in Ireland and a very tough trading environment in all our markets, we delivered a good set of results in 2010.”
The company partners with more than 3,300 retailers across Ireland, the UK and Spain.
“In Great Britain, more than 200 retailers joined the Londis brand, bringing the total number of stores to 1,784 at year end. We opened a new store every month under the Budgens brand and last December we divested to independent ownership the first of 13 Somerfield stores acquired in 2009,” said Martin.
“In Northern Ireland, the Mace brand was re-launched with more than 50 re-branded stores and 20 new store openings leading to the creation of 110 jobs. In Spain, we successfully divested eight stores to independent retailers and at the end of 2010 only 26 stores remain in Musgrave ownership.”
For the year ahead he said that they are now facing into the next phase of the recession with rising fuel prices, higher taxes and uncertain employment prospects.
“We are anticipating that the rest of this year will be tough for the grocery market and the trading environment will remain difficult,” said Martin.
On the back of promising to continue growing the business, the company has just announced a new two and a half year deal with Oliver Carty Limited to supply 100% Irish bacon and ham for its SuperValu and Centra stores.
Oliver Carty Limited began trading with Musgrave in 1995 and since then the company has grown from having a turnover of €792,000 with 11 employees to an annual turnover of €44 million with 130 employees. The new deal will enable Carty’s to expand its capacity significantly.
The Minister for Agriculture, Food and the Marine, Simon Coveney, said that this was a welcome boost to the Irish pigmeat sector.