SHAREHOLDERS IN Irish whiskey maker Cooley Distillery must have been clinking glasses at its recent agm following the publication of its annual report, which showed that profits had more than doubled to €3.3 million in 2008.
That said, there is no dividend to keep them warm this winter as the cash-hungry business continues to invest in its three distilleries – about €3.5 million is being spent on refurbishment – and marketing activities.
Chairman John Teeling told investors that the group’s profits had been boosted by a “serious scarcity of Scotch” worldwide, which Cooley helped to fill from its “substantial stocks” of aged whiskies.
Cooley, a niche player in the Irish whiskey market, recorded sales of €18 million in 2008, a 61 per cent jump on the €13 million in the previous 12 months. The jump in revenues was largely the result of an increase in bulk unbranded sales.
“We’ve had a good 18 months in terms of profitability,” Teeling told me earlier this week.
The Clontarf-based businessman, who is better known as a serial investor in listed resource companies, said 2009 would be marginally less profitable – probably about €3 million – and turnover would be down. This is largely due to a retrenchment from Russia, eastern Europe and South Africa, where the credit crunch is biting.
Cooley is unwilling to provide “open account credit” in these markets and, with no export credit insurance available from the Irish Government – or likely, given the budget constraints – the company has decided to withdraw from these territories for now.
“The lack of export credit insurance is terrible,” lamented Teeling, adding that Cooley’s rivals in Northern Ireland and Scotland are not similarly constrained. “We’re tired talking to the Government about it.”
Cooley’s 68 staff got an average 3.5 per cent pay rise in 2008 and in spite of the dip in profits and sales this year, Teeling said wages have not being cut or frozen. How many manufacturers in Ireland can say that right now?
