Quinn Industrial Holdings DAC (‘QIH’) today publishes an overview of its 2018 operating performance. Performance highlights include:
- Turnover up 15% from €209m to €240m (up 50% since acquisition*)
- EBITDA up 10% from €23.9m to €26.4m (a more than 4-fold increase since acquisition)
- Investment of €21.7m (over €45m since acquisition)
*QIH shareholders acquired the businesses from Quinn Group share receiver in December 2014
QIH delivered its fourth successive year of strong double digit growth in 2018, with turnover up 15% from €209m to €240m, mainly driven by volume growth on the Island of Ireland. This represents an increase of almost 50% from that achieved in 2014 prior to the acquisition of the businesses by QIH.
Despite significant cost inflation, particularly related to energy and distribution in the latter part of the year, EBITDA (Earnings Before Interest, Tax Depreciation & Amortisation) increased by a further 10% during the period to €26.4m, helped by further volume growth and improved distribution efficiencies. The 2018 outturn reflects a more than four-fold increase in EBITDA, from €6.2m in 2014.
Capital expenditure of €21.7m in 2018 marked the group’s most significant investment to date, bringing total investment since acquisition to over €45m, with further investment planned in 2019 and beyond. Investment priorities in 2018 included further fleet and mobile plant replenishment, as well as the acquisition of additional raw material reserves, sufficient to meet its expected raw material requirements for the next generation.
During 2018, QIH employment numbers increased to 830 staff, representing a cumulative increase of 28% (180 staff) since QIH acquired the businesses in 2014. This increase in employment has taken place alongside significant enhancement of the Group’s staff development and training programmes including Lean and multi-skilling based initiatives.
Commenting on the performance, Liam McCaffrey, Chief Executive Officer of QIH said
“Our growth trajectory since December 2014 has continued apace in 2018 with turnover, EBITDA and investment up strongly. Having stabilised and substantially re-invested our building products and packaging businesses and sustained and grown local employment, our focus has now shifted to future development and expansion opportunities.
“Our Building Products division is currently planning to enter the ready-mix concrete market in the greater Dublin area to meet rising demand from the expanding construction and housing markets. On the Packaging front, recent investment by Quinn Packaging has given rise to a new manufacturing process, “Detecta by Quinn”, for black plastic food trays to address long standing recyclability concerns around black PET food trays. This latest innovation provides an opportunity to divert thousands of tonnes of black plastic from ending up in landfill each year.
“Despite the continued uncertainty of Brexit, we are focussed on growing the business in both the UK and the Republic of Ireland. Trading for both our Building Products and Packaging businesses is strong year to date and based on a continuation of these trends we are confident of further growth for both divisions during 2019."
Commenting on the 2018 performance Chief Financial Officer, Dara O’Reilly said
“Despite currency and Brexit uncertainty we saw continued strong earnings growth and investment in 2018. Notable headwinds in the period included a relatively weak sterling exchange rate and significant cost inflation in the latter part of the year, mainly driven by energy and fuel costs. Given a time lag in cost recovery from clients, these inflationary pressures had some short-term margin impact in 2018 which we expect to see reversed in 2019. Additionally, efficiency measures, including investment in an IT platform to optimise loading and delivery, is expected to drive both margin growth and customer satisfaction levels.
“Capital expenditure over the past four years at QIH has amounted to over €45m, including €21.7m in 2018, and we are currently in the process of finalising orders for additional fleet and mobile plant assets to further enhance growth capacity and operational efficiency."
QIH comprises two key divisions, Quinn Building Products and Quinn Packaging. Quinn Building Products, which provides a wide range of building materials including insulation, cement, aggregates and quarry products had a very robust performance. It continued to benefit from the ongoing building recovery in the ROI as well continued strong exports to the UK where the introduction of its new plastic bagged cement product at the start of 2018 allowed it to expand its market presence.
Quinn Packaging, a manufacturer of rigid plastic packaging for major food producers, saw further growth in sales during the period from a mixture of increased sales with existing customers as well as the expansion of its customer book.