Operating profits at multi-award winning animation studio Brown Bag Films last year increased by 25 per cent to €7.2 million.
The increase in profits at Niagara Films Ireland, Brown Bag’s parent company, comes as revenue increased by 35 per cent from €42.9 million to €57.98 million in the 12 months to the end of August last.
Founded in Dublin in 1994 by Cathal Gaffney and Darragh O’Connell, Brown Bag Films was acquired by Canadian based 9 Story Media Group in 2015.
The soaring profits coincided with two Brown Bag Films productions debuting on streaming services Netflix and Disney+ last summer. Ridley Jones debuted on Netflix in July 2021 while Sadie Sparks debuted on Disney+ in June 2021.
Last October Karma’s World launched on Netflix while the studio’s Eureka debuted on Disney Junior in June of this year.
Ada Twist, Scientist, a show by Brown Bag, also launched on Netflix last year.
The firm’s pretax profits increased by 5 per cent to €5.85 million. The increase in pretax profits was lower than the rise in operating profits. This was due to an exceptional cost of €937,069 associated with the firm’s decision to shut its studio in Manchester last November consolidating its 2D production in Toronto.
On the decision to close the Manchester studio a note states that “the directors feel this will allow the group to achieve long-term objectives with one 2D studio”.
Brown Bag is also operating a studio in Bali and is recruiting for openings at the studio there.
The business’s interest costs last year, at €418,244, were more than twice the interest costs of €171,47 in 2020.
Brown Bag Films, whose work include TV hits Doc McStuffins and Henry Hugglemonster, also operates a studio in Dublin.
The business last year paid out dividends of €1.52 million after paying out dividends of €1.51 million in 2020.
Numbers employed increased by 24 from 349 to 373. Staff costs last year increased by 23.5 per cent from €17.86 million to €22 million. Directors’ pay totalled €766,713.
Shareholder funds at the end of August last year totalled €60.62 million that included accumulated profits of €20.99 million.
The company’s cash pile almost doubled from €17.08 million to €30.5 million.
The profit last year takes account of combined non-cash amortisation costs and depreciation costs of €8.35 million.
