Rye River Reports Revenue And Profitability Increase, Despite 'Particularly Challenging' Year
Rye River Brewing Company has reported an increase in revenue and profitability in a 'particularly challenging' year.
According to the independent craft brewery, total revenue for the year grew by 12% from €6,351,742 in 2019 to €7,102,066 for the year ended 31 December 2020.
The groups operating profit increased by 80% from €154,934 in 2019 to €279,650 during 2020, its latest financial results show.
The kildare-based company said it continued to strengthen its status as the number one domestic retail independent brewer with overall volume growth of 10% in 2020 in the face of significant reductions in export and on-premise sales.
The world-class reputation of its beers and the retail presence of its brands enabled the business to react to the changing market dynamics as sales of beer shifted from the on-trade to large retailers and independent off-licences in the wake of COVID-19, it added.
This led to domestic retail performance growth of 65% year-on-year.
Brands such as McGargles, Rye River Seasonal, Solas, Grafters and Crafty Brewing Company performed strongly, offsetting a reduction in on-trade volumes of 75% and a fall in core brand exports of 89% respectively.
Commenting on the company’s 2020 results, Tom Cronin, founder and managing director of Rye River Brewing Company said, “2020 was an exceptionally challenging year for the hospitality sector at home and abroad."
"The work done in recent years in having a more diversified channel strategy together with the hard-earned world-class reputation for the highest quality Irish craft beer meant our brands were able to respond successfully to the increased reliance on large retailers and independent off-licences during COVID-19," he said.
A reduction of 44% in the company’s interest payments following the sale and leaseback of its Celbridge brewery executed in March 2020 contributed to an overall net profit of €156,398 for 2020 from a net loss of €62,617 recorded in 2019, the company noted.
Rye River now employs 56 staff members (an increase of four on the prior year) in its eight-year of operation.
The brewer has recently announced the appointment of Neil Everitt, renowned UK drinks industry executive, as Chairman and former Deloitte Partner, David O’Flanagan, to the board of the company.
Peter O’Donoghue, having served a five-year term as Chairman, will remain on the board as a non-executive director.
"The strong results have enabled further investment in the business which, together with recent board additions, leaves Rye River well placed to increase sales as Ireland and our export markets emerge from COVID-19 and ultimately achieve the ambitious growth plans for the business,” Cronin added.