Thursday, 6 April 2017: Quinn Industrial Holdings DAC (‘QIH’) today publishes an overview of its 2016 operating performance. Performance highlights include:
- EBITDA up 10% from €16.6m to €18.2m
- Group Operating Profit up 64% to €10.0m
- Profit Before Tax increases 62% to €6.8m
- Employment up 8% to 777 (at year end)
- €11.5m Capital investment
2016 was a year of solid progress for QIH which increased its EBITDA (Earnings Before Interest, Tax Depreciation & Amortisation) by 10% to €18.2m. This was achieved despite the currency headwinds of a weaker sterling.
The underlying performance of both the Construction Industry Supply (‘CIS’) and Packaging divisions was strong with increased volumes in most product lines. Revenue in constant currency increased, albeit sales on a reported basis of €194.5m, were 4% lower, reflecting the strength of sterling in 2015 and the deflationary impact of weaker currency translation post the Brexit vote mid-year.
Operating Profit increased by 64% to €10.0m from €6.1m in 2015, a robust performance given that more than 70% of QIH’s turnover was generated in the UK where sterling translation was 11.4% weaker than in 2015.
Commenting on the results, Liam McCaffrey, Chief Executive Officer of QIH said:
"We are very pleased to have delivered a strong underlying performance in 2016 and to have continued our capital investment programme underpinning competitiveness, efficiency and our export route to market. This progress was facilitated by supportive and engaged staff and a unified sense of purpose to deliver sustainable growth to the benefit of all stakeholders."
“As an organisation whose core operations straddle both sides of the border on this island, we see Brexit as presenting challenges which we will continue to assess as a clearer picture emerges from upcoming trade negotiations. Whatever the outcome of discussions between the EU and the UK our focus is on those factors which fall within our control and ensuring an efficient supply chain to the UK mainland which accounts for some 50% of our sales."
Commenting Chief Financial Officer, Dara O’Reilly said:
“2016 was a strong year for the business with underlying growth across all our divisions leaving QIH well positioned to take advantage of the upturning economic cycle. Capital Expenditure in the period included further upgrading of fleet and mobile plant, as well as increased production capacity in our Packaging division. This, coupled with export focussed investment in storage facilities at Warrenpoint and Rochester, leaves the Group well placed to meet increasing customer requirements."
“The current year has commenced positively for both the CIS and Packaging businesses with robust trading evident in all of our key markets, providing QIH with a firm platform for continued growth and development.”
Employment numbers continued to increase during the year with the average number of employees increased from 721 to 756 during the year as QIH added production shifts across a number of its operations to meet strong customer demand.
During 2016 the Group continued its capital investment programme, which included investment in the replacement of fleet and mobile plant as well as adding cement storage capacity at its import facility in Rochester, Kent. In addition, the Packaging business installed and commissioned a new sheet extrusion machine which increased Quinn Packaging’s extrusion capacity significantly.
Total capital investment during 2016 was €11.5m. Further investment is planned in 2017 focussed on delivering process improvements and operational efficiency to ensure the business maintains its competitive cost base while also delivering to the requirements of its customer base.
The first quarter of 2017 has seen the Group continue to improve its position with sales revenue and volumes increasing year-on-year for both CIS and Packaging divisions. Despite BREXIT, the Group remains optimistic about its future performance, based on its market position and its experience of operating on a cross-border basis since its original formation almost 45 years ago.
Pat Walsh / Doug Keatinge, Murray
Tel: +353 (0)1 4980300
M: +353(0)87 2269345 (Pat) / +353 (0)86 0374163 (Doug)
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