Crisp maker Keogh’s Crisps is planning to invest “towards €10 million” on a new greenfield production facility next year as demand for its products grows. The business expects to use 18 million potatoes to make its crisps this year.
Tom Keogh, chief executive of the north Dublin-based, family-owned business said on Thursday that the spend on the new facility “will be heading towards €10 million”.
“I am investing here for future generations,” he said, noting that the farm business had been in existence for two centuries.
Mr Keogh forecast revenue growth of 20 per cent for this year, following a rise of 30 per cent last year. He said the US export market was “the standout performer” last year, with revenues there nearly doubling. He noted however that US growth had a knock-on impact on profitability due to “huge increases in transport costs”.
Exports now account for about a quarter of revenues at Keogh’s, Mr Keogh said, adding that the crisp maker’s market share in Ireland is 12 per cent. He was commenting on new accounts showing that the business recorded post-tax profits of €118,406 in the 12 months to the end of March last. This compared to €113,408 for the prior year.
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Mr Keogh said that a €3 million investment in the business’s current facilities is due to come on line this week, allowing for a 50 per cent increase in production capacity. The expansion project was delayed by nine months due to a global shortage of vital parts for new equipment.
Keogh’s has supply deals with Ryanair, Singapore Airlines, Aer Lingus, Lufthansa and Emirates.
Mr Keogh said that the airline deals give the company “global distribution of the brand”. The business employs 100 people.
He noted that since Covid-19 lockdowns, the business has enjoyed a “huge recovery” in its impulse or small crisp bag sales, which were up 50 per cent last year.
The company’s crisp ‘share-bag’ revenues account for around 65 per cent of company revenues.
The new accounts show that at the end of last March, the firm was sitting on accumulated profits of €1.46 million. Its cash funds increased from €849,772 to €1.06 million.
