Topline sales at the Kildare brewery grew 8.3% to €6.4 million in the year to the 31st of December 2019 from a figure of €5.9 million following a strategic focus on the domestic, European and international markets.
As a result, the report & financial statements of DP Financial, Rye River Brewing Company’s holding company, recorded a 68% reduction in pre-tax losses from €194,201 to €62,417 after charging interest payable of €333,099.
DP Financial entered a sale and leaseback agreement for its Celbridge premises in March 2020, the €3.3m proceeds of which were used to reduce debt. The related mortgage of €1.3m was settled in the same period.
The company therefore expects to generate a Net Profit in FY2020 for its four directors Thomas Cronin, Peter O’Donoghue, Michael Merrins and James Phelan.
Producing a range of beers under the flagship brand McGargles as well as supplying award-winning exclusive craft beers such as The Crafty Brewing Company, Grafters, Solas, Rye River and Rye River seasonal, the company turned in an Operating Profit of €154,934 for 2019, up 82% on 2018. On current trading projections, the company is on track to double its profit by the end of 2023 in line with its five-year strategic growth plan.
The brewery currently brews in excess of 30,000 hectolitres annually and future investment plans include the introduction of a canning line this August.
During the 2019 financial year the craft brewer saw export volumes account for over half (51%) of total sales. It also finalised and launched its new export brand under the brewery name, launching this in London and France as well as winning a national listing with Esselunga in Italy.
Rye River Brewing now exports to 27 markets.
“While Covid-19 has impacted the business since March 2020 our production facilities have remained fully operational and delivered record brewing levels,” said the brewery’s Founder and Managing Director Tom Cronin, speaking about the company’s performance and the recent Covid-19 crisis, “… demonstrating the resilience of our team and our agile production processes.
“Notwithstanding the impact and unique challenges associated with Covid-19, we’re extremely positive looking ahead to the rest of the year. Our strong retail domestic performance in the first half of 2020 and our reliable supply chain performances have meant that our revenues are still on track to reach our 2020 targets, allowing us to provide job security to our 53 employees, which we intend to grow throughout 2020”.
Payroll costs for the 37 staff involved in manufacturing (up one from the previous year) and the 15 employed in Admin & Head Office (up from 13) totalled €2,073,141 last year, up 15% on the previous year’s €1,796,825.
Rye River Brewing Company aims to become the first Irish craft beer brewery to achieve the British Retail Consortium Global Standard for Food Safety Certification, a Global Food Safety Initiative-recognised certification programme that will support Rye River’s continued expansion internationally.
Last year the company – one of Ireland’s largest craft brewers – also received international critical acclaim for its range of beers by winning an unprecedented 21 World Beer Awards, officially making Rye River Brewing the “World’s most decorated independent craft brewery” at the 2019 WBAs. Since the establishment of the brewery in 2013, Rye River Brewing has achieved a total of 154 awards. In the last three years it has won five Best in Class Awards at the World Beer Awards – meaning that Rye River Brewing now produces five of the best beers in the world.