Mannok Publishes Robust 2020 Performance Review

– Robust recovery post Covid 19 lockdown; net debt reduced by over €19m
– Positive outlook for 2021 despite cost inflation challenges

Thursday, 8th April 2021: Mannok Holdings DAC [‘Mannok’], formerly Quinn Industrial Holdings DAC, today publishes an overview of its 2020 operating performance for the 12 months ended 31 December 2020, during which EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) in the period increased by 17 per cent to €31.1m.

In September 2020 the business was renamed Mannok, marking the culmination of a 6-year transformation and investment programme that saw sales and employment increase by 44 per cent and 25 per cent respectively.

…6-year transformation and investment programme that saw sales and employment increase by 44 per cent and 25 per cent respectively.

Performance Highlights:

EBITDA increased from €26.6m to €31.1m. Revenue remained materially consistent at €233m, demonstrating strong resilience to the impact of Covid 19 on trading during the year.
2020 saw good sales and margin increases across Cement and Packaging, partly offset by higher raw material costs for Insulation products.
Covid 19: Safety was the No. 1 priority in 2020 with extensive measures put in place to protect staff and customers.
Positive response internally and externally to new identity with rebranding ongoing across Mannok’s entire fleet, premises and product range.
Cash generation from operating activities improved by over 44 per cent from €21.7m to €31.3m which aided a reduction in net debt in the period of €19.4m.
Investment of €6.7m in the period, primarily in manufacturing technology and capacity enhancement, bringing total investment to €66m since the acquisition of the businesses in December 2014, with a further €6.1m of investment already in train for 2021.

Investment of €6.7m in the period, primarily in manufacturing technology and capacity enhancement…with a further €6.1m of investment already in train for 2021.

Commenting, Liam McCaffrey, Chief Executive Officer said:

“The safety and welfare of our staff and their families has been, and remains, of paramount importance through the pandemic. As an organisation with operations on both sides of the border, we are enormously grateful for the support and commitment of our 800+ colleagues in helping to navigate the twin challenges of Covid 19 and the Brexit transition. Careful resource planning and operational agility, facilitated by the significant investment we have made in our sales support, logistics and customs management infrastructure, have ensured uninterrupted supply chains for our customers across the construction and food industries on the island of Ireland and in Great Britain.

“Post the initial lockdown, trading recovered strongly in the second half of the year, supported by approximately €66m of new investment over the past six years. While the business has experienced some impact on trading activities over recent months, with a number of customer projects being delayed as a result of Covid 19, underlying demand has remained strong. Given our ongoing exposure to the food and construction sectors, the very positive response to our rebranding and the potential tail-wind of a vaccine-driven economic recovery, the outlook for 2021 is positive.”

Liam McCaffrey, Mannok CEO

Commenting, Chief Financial Officer, Dara O’Reilly said:

“Through timely adjustment to our manufacturing levels during the initial lockdown, we succeeded in managing our cost base and resource allocation whilst ensuring seamless supplies to essential industries. We continue to monitor our markets very closely as well as the supply of key input materials for our Insulation and Packaging businesses in particular. Notwithstanding a positive outlook and good demand, we are expecting some margin compression as a result of inflationary cost pressures in 2021.”

Dara O’Reilly, Mannok CFO

Given our ongoing exposure to the food and construction sectors, the very positive response to our rebranding and the potential tail-wind of a vaccine-driven economic recovery, the outlook for 2021 is positive.

Having successfully transitioned 100 per cent of its Packaging products to being fully recyclable, Mannok’s key sustainability focus has now shifted to carbon reduction across all company operations.

Mannok comprises two key divisions, Building Products and Packaging, both are robust and diversified businesses, deemed essential throughout Covid. Its key activities are the manufacture, of cement, concrete, quarry, insulation materials and products, as well as the manufacturing of packaging products, mainly for the food industry.

With a locally based workforce of approximately 830 employees, corporate and social responsibility remains an important element of the company’s business agenda. Community related initiatives in 2020 included ongoing support for biodiversity initiatives, expanding its sponsorship and engagement with local schools, as well as becoming a partner in the Innovating Communities initiative which provides free training and mentoring to empower local people and groups to work together and overcome challenges facing their area.

Across both its divisions, the company has continued to enhance its Environmental, Health and Safety credentials. Sustainability is a key focus of recent and future investment by Mannok. Future business-wide activity in this area will be coordinated by a newly appointed Sustainability Manager who will lead our biodiversity and carbon-reducing initiatives and refine the long-term sustainability strategy for the business.

Having successfully transitioned 100 per cent of its Packaging products to being fully recyclable, Mannok’s key sustainability focus has now shifted to carbon reduction across all company operations. Initiatives currently underway in this area include collaboration with Enterprise Ireland and Invest NI, as well as feasibility support from Innovate UK. Mannok has already approved investment of over €6m for sustainability initiatives including research and development of reduced carbon cement, alternative fuels for mobile plant and fleet assets and an enhanced emissions filtration system for the business’ cement plant.

Mannok has already approved investment of over €6m for sustainability initiatives including research and development of reduced carbon cement, alternative fuels for mobile plant and fleet assets and an enhanced emissions filtration system for the business’ cement plant.