Business

Revenue declines at Irish Continental Group

Stronger ferries division lifts earnings while container and terminal business is more challenging

The Swift, one of Irish Continental Group's ferries, leaves Dublin Port. Photograph: Cyril Byrne

Ciara O'Brien
Thu Mar 7 2024 - 08:20

Revenue at maritime transport company Irish Continental Group fell more than 2 per cent last year, but a stronger ferries division lifted earnings.

In its preliminary results for the year ended December 31st 2023, the company said revenue was €572 million, down almost €13 million. Earnings before interest, tax, depreciation and amortisation rose by €5.4 million to €132.6 million.

The company said the volumes and scale of the ferries division were “unrecognisable” from a few years prior, attributing the rise to a recovery in passenger markets, a strong position in freight markets and the introduction of duty-free, boosting revenue.

The group said its performance in the container and terminal business division had been more challenging, with volumes lower as export and import levels weakened in China, and supply chain difficulties and subsequent over-stocking hitting volumes in the earlier part of the year.

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But ICG noted that this decline in its business came after a number of years of record growth and profitability.

“Despite the reduction in activity levels and demand, the division has taken advantage of its flexible cost base to maintain strong levels of profitability,” ICG said.

The group has also completed its expansion and modernisation of its container terminals over the year.

Chairman John B McGuckian said the group had made significant progress towards maximising its opportunities.

“Last year, I described 2022 as not just a year of recovery, but of building for long-term sustainable growth and stating our ambition to turn our full attention to maximising the opportunities that have arisen for the group over the last few years. While 2023 did not yet see the maximisation of those opportunities, it did see significant progress towards it,” he said.

“2023 was another strong year for the ferries division and while the container and terminal Division experienced challenging trading conditions, the investment and modernisation of our facilities mean we are in an excellent position to capitalise on opportunities in the future.

“Capital allocation has always been a key focus in this company and our balance sheet strength allows us to take advantage of opportunities as they arise.”

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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