BELFAST-based animal nutrition company Devenish returned to profit last year after selling off its North American business and cutting jobs.
New accounts for the agri-tech group show it registered a pre-tax profit of £22 million in the year ending May 31 2024.
It marked a significant turnaround from the disappointment of the previous year, when the Belfast-based company suffered a pre-tax loss of £14m.
It prompted a major review of its operations, leading to the sale of its research farm in Dowth, Co Meath to the Irish state in December 2023.
It also resulted in a number of redundancies, according to a director’s report, published alongside its latest annual accounts.
The group’s headcount was cut by around 50 to 506 in 2024.
Perhaps more significantly, Devenish sold its North American division to South Korea’s Easy Bio Corporation in February 2024.
It’s understood Easy Bio paid just over 88 billion Korean won for Devenish Nutrition LLC, the equivalent of around £49m.
It included all North American assets, including five manufacturing facilities in the USA and Mexico, as well as six research facilities.
According to its latest annual accounts accounts, the overall turnover for Devenish (NI) Limited was down by around £39m (14%) to £231m for the year to May 31 2024, mainly due to the sale of its North American arm.
In a review of it operations, signed by chief executive Tony McEntee, Devenish said the return to profit was the result of an 18-month effort to address the group’s challenges and debt.
“Since the last year end, the group has executed a strategy of eliminating term debt and improving the working capital position through increased profitability in the core animal nutrition business; exiting non-core activities; the disposal of the research farm in Dowth, Co Meath and the North American business.
“Simultaneously, the operating costs of the business were reviewed, resulting in a number of redundancies.”
The directors said the return to profitability was also assisted by the recovery of raw material prices and “operational efficiencies”.
The group said it has continued to review its cost base in the current financial year, with a number of “strategically important hires” completed.
“All of the actions carried out by the group have put the group in a very strong operational and financial position, with a positive cash position at year end versus a prior year net debt position of £40m.”
The directors said the group is now in a much stronger financial footing, with plans to further develop the group’s manufacturing and research facilities.
“Trading post year end has continued its upward momentum in both the British and Irish markets along with significant growth and their international markets, which will result in improved operational profitability, reduced funding costs, and increased investment in the long-term development of the business, both domestically and internationally.”