THE easing of inflationary pressures and benefits from carbon reduction investments have seen Mannock's earnings increase 74 per cent to €44.9m in 2023.  

Mannok Holdings DAC (‘Mannok’) recently published an overview of its 2023 operating performance, which showed margins recovering from the previous year, when the company absorbed inflationary price increases to "support customers". 

However, last year's sales price deflation for insulation and plastic packaging products caused turnover to decrease by 1.8 per cent to €311.9m, but overall earnings before interest, taxes, depreciation, and amortisation still increased significantly. 

With operations straddling North and South of the Border, Mannok continues to comprise two key divisions - Building Products, and Packaging - with approximately 780 locally-based staff employed last year. 

According to the performance review, given the energy-intensive nature of Mannok's manufacturing operations, investment in sustainability is now a "number-one priority" in 2023. 

This investment, to date, was described by the company as "strongly margin enhancing". 

This includes the final commissioning of the Fuel Flex installation at the cement plant, designed to reduce coal consumption, which was completed in March.  

Of the world-first deployment of the technology, Mannok said: "The system has performed very well since install and has assisted the business greatly in achieving its sustainability goals."

Meanwhile, in Northern Ireland, Mannok has also now completed the tender process for Phase One of its Mannok Energy Valley project, which will start with the production of Green hydrogen for use in its transport fleet. 

'Management' 

The year 2023 also seen some changes in senior management.

Liam McCaffrey (61) will retire as CEO on June 30, while remaining involved as a Non-Executive Director. 

He will be succeeded by Dara O’Reilly (51), currently Mannok’s CFO, with Brenda Rennick (47), Mannok’s Finance Director, replacing Dara as Chief Financial Officer.

Reflecting on 2023, Mr. McCaffrey said the easing of inflationary pressures had a positive impact on Mannok as a whole. 

“Having supported our customers through several years of oppressive inflationary pressures, Mannok was pleased to see margin recovery during 2023 as cost absorption pressures eased somewhat," he said. 

"Investments in excess of €100m in the business over the past nine years has seen a doubling of turnover ... while also increasing employment by more than 150 employees in the same period. 

"This is important progress as we embark on substantial investment in decarbonisation measures during the coming years.” 

Similarly, Mr. O’Reilly, said that lower input costs in 2023 were beneficial for both the company and its customers. 

“We saw a mixed pricing environment in 2023 with price reductions in insulation and plastic packaging, driven by lower input costs which helped offset some of the inflationary pressures of recent years," he said. 

"Investment in decarbonisation initiatives over recent years has resulted in continuing displacement of fossil fuels.
 
"Trading, post-year end, has been challenging, to date, as a result of the extremely inclement weather. 

"However, the general outlook is positive, with the underlying market on the island remaining relatively robust, and signs of recovery in the GB market starting to emerge."