Rye River Brewing Company, makers of the McGargles brand of beers as well as an extensive range of private label beers, has returned to profitability in 2018 with a doubling of European sales.
The positive financial returns for the year follows a refocusing of the business to brewing its own portfolio of beers, as well as concentrating on developing export markets.
During the 2018 financial year Rye River Brewing Company more than doubled its sales across Europe from €1.3m in 2017 to over €2.7m. Growth is continuing apace in 2019, with expansion planned beyond the 25 export markets that are currently served.
EBITDA of €782,667 was recorded in 2018, an increase of 27% year-on-year. As the business continued its exit from third-party agency brand contracts, overall sales in the Republic of Ireland fell by 5.5%. However, with a strategic focus on the domestic, European and international markets, Rye River Brewing sales of own-produced beers grew by 34% in 2018. This result comes on the back of 45% own-produced sales growth in 2017.
The export focus contributed to a return to operating profit of €85,317 for the financial year ended 31st December 2018. The loss for the 2018 financial year after taxation amounted to €194,201 after charging interest payable of €461,284 – this is compared to a loss of €797,313 in 2017.
2018 saw further investment in its brewing capacity with capital expenditure amounting to €634,710 in 2018, including the addition of three new fermentation vessels and two new bright beer tanks. On current trading projections, the company expects to deliver a net profit in 2019 and is on track to deliver its five-year strategic growth plan by the end of 2023.
Tom Cronin, Founder and Managing Director of Rye River Brewing, commented: “2018 saw further progress in implementing our strategic plan to focus on becoming an exclusive craft beer producer with no agency brands and allowing our brewing capacity to be totally dedicated to our own portfolio of beers.”
During 2018 the company also received international awards for its range of beers by winning an unprecedented 19 World Beer Awards (WBAs), making Rye River Brewing Europe’s most decorated brewery at the 2018 WBAs. In the past two years Rye River Brewing has won five Best in Class Awards at the WBAs.