Kildare-based Rye River Brewing Company has released its 2019 results, showing that its domestic performance grew by 21% for the year despite stagnant growth in the Irish craft beer industry overall.
The craft brewer produces beers under the flagship brand McGargles, as well as supplying award-winning exclusive craft beers, The Crafty Brewing Company, Grafters, Solas, Rye River and Rye River seasonal.
An operating profit of €154,934 was recorded for 2019, an uplift of 82% on 2018, signifying good progress following the company’s business transformation in recent years. Top line sales saw a growth of 8.3% which delivered an EBITDA of €743,345 in 2019 following a strategic focus on the domestic, European and international markets.
On current trading projections, the company is on track to double its profit by the end of 2023 in line with its five-year strategic growth plan.
During the 2019 financial year the company saw export volume account for 51% of total sales. Rye River finalised and launched its new export brand under the brewery name launching in London and France as well as winning a national listing with Esselunga in Italy. Rye River Brewing is now exporting beer to 27 markets.
The company currently brews in excess of 30,000 hectolitres annually. In 2019 the brewery continued to invest in brewing capacity and capabilities, adding three new 10,000L vessels. The brewery now has 21 fermentation vessels and 6 Bright beer tanks. Future investment plans include the introduction of a canning line in August of this year.
The company entered a sale and leaseback agreement for their Celbridge premises in March 2020, the €3.3m proceeds of which were used to reduce the organisation’s debt. The related mortgage of €1.3m was settled in the same period. The loss for the 2019 financial year after taxation amounted to €62,417 after charging interest payable of €333,099. However, the company expects to generate a net profit in FY2020 and in the 12-month period to the end of December 2020.
Tom Cronin, Founder and Managing Director of Rye River Brewing, commented: “While COVID 19 has impacted the business since March 2020, our production facilities have remained fully operational and delivered record brewing levels, demonstrating the resilience of our team and our agile production processes ensuring we continue to consistently deliver great beer.”
Rye River Brewing Company is aiming to become the first Irish craft beer brewery to achieve the British Retail Consortium Global Standard for Food Safety Certification, a global food safety initiative recognised certification programme that will support Rye River’s continued expansion internationally.