Wexford Creamery recorded losses of €9.3 million in 13 months
Published 13/02/2016 | 00:00
Wexford Creamery recorded losses of €9.3 million between April 2014 and May 2015 according to its most recent accounts.
The previous year the company had a restated profit of €14,233.
The company was bought by Glanbia in the latter half of 2014 for €20 million after a long and protracted deal which only received the backing of 57 per cent of Wexford Milk Producers' (WMP) in December 2013.
The decision to sell the local company proved extremely divisive with almost 50 milk suppliers transferring their supply to Northern Ireland's Stathroy Dairies in protest. In its final year of operation, the business posted a turnover of €75.7 million and had assets including pensions of €13 million.
After the takeover by Glanbia, the creamery's director decided not the recommend a dividend to shareholders.
The deal saw Glanbia Ingredients Ireland buy 70 per cent of Wexford Creamery from farmer co-op Wexford Milk Producers.
The deal saw WMP, which owned 70 per cent of Wexford Creamery, pay €3m for the 30 per cent of the business owned by UK's DairyCrest. Glanbia then paid €20m for the business in its entirety. WMP received a cash payment of €3.7m to fund the DairyCrest buyout.
Despite the controversy it provoked, WMP chairman Marty Murphy insisted that the Glanbia Ingredients Ireland purchase of Wexford Creameries was a good deal for WMP's shareholders.