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Building materials firm Mannok profits plunge, blaming energy price hike and carbon credits costs


Mannok Holdings (Credit: Facebook)

Mannok Holdings (Credit: Facebook)

Mannok Holdings (Credit: Facebook)

Mannok Holdings, formerly Quinn Industrial Holdings, today reported decreased profits and earnings, blaming sharply increased energy, raw material prices, and carbon credit costs.

The building products and packaging firm, which has operations on both sides of the border, announced a 16% increase in revenue from €233.2m (£198m) to €269.9m (£229m), which the directors said reflected good volume growth and customer demand.

But its profits before tax dropped to €6.7m (£5.71m) from €13.6m (£5.71m) on earnings of €25.8m in the year to the end of December 2021, down from €31.1m the previous year. 

The company also reiterated its commitment to reduce its carbon emissions by 33 per cent by 2030 and achieve net zero by 2050. This will require a €200m investment, the company said.

Its key activities are the manufacture of cement, concrete, quarry and aggregate products, insulation materials, as well as the manufacturing of packaging products, mainly for the food industry. 

Earnings were down due to an increase in energy costs by 66%, carbon credits — which rose from almost €33 per tonne at the beginning of the year to over €80 at year end — and raw materials, particularly for its insulation business. 

The company added: “Resilient demand, supported by stronger cost recovery and a levelling out of energy prices has driven stronger profitability post year end, following two challenging quarters.”

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“Mannok has undergone a quiet but determined transformation over recent years, growing and sustaining employment, driving profitability and investing for the future,” said Liam McCaffrey, chief executive officer.

“2021 saw another strong performance despite unprecedented energy price hikes, a near tripling of the cost of carbon credits, as well as temporary global supply chain issues, most notably for our insulation business.”

He added: “What these cost pressures in 2021 show is that decarbonising our operations is a commercial, as well as an environmental, imperative.

“I am pleased to say we have now developed ambitious plans to entirely decarbonise our fleet and to develop and utilise wind and solar energy as well as hydrogen and oxygen generation and deployment solutions, to power our manufacturing plants.”

Employment at Mannok — over 800 staff — remained largely unchanged during the period.

Mannok Operations Director, Kevin Lunney, charged with leading the €200m decarbonisation plan, said:  “The goals we have set are very ambitious, with a total of 36 detailed targets to achieve by 2030.

“Our plans will require significant innovation and technological development over the next number of years and will involve a very significant collaborative effort with all our people, our academic and business partners and the local community.

“We are confident that planned investment will make a significant contribution to the long-term sustainability of our sector and our region.”