In an overview of the company's operating performance for 2021, ending December 31, 2021, Mannok has revealed that while they have increased their revenue inflation costs have impacted profitability.

Revenue went from €233.3million to €269.9million which the company said reflected "good growth and customer demand".

However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) fell to €25.8million from €31.1million in 2020.

This was a result of substantial cost absorption by Mannok in areas such as energy prices which rose by 66 per cent, carbon credits - increasing from almost €33 per tonne at the beginning of the year to over €80 at year-end – and raw material costs for our PIR insulation business - as a result of a temporary global shortage of raw materials.  

In their outlook, Mannok said resilient demand, supported by stronger cost recovery and a levelling out of energy prices has driven stronger profitability post-year-end, following two challenging quarters.

The company have also invested €78.5million to date with €12.7million in 2021 and a further €8million already planned for 2022.

A €200million Green Investment is also planned.

Commenting, Liam McCaffrey, Chief Executive Officer said: “Mannok has undergone a quiet but determined transformation over recent years, growing and sustaining employment, driving profitability and investing for the future. 2021 saw another strong performance despite unprecedented energy price hikes, a near tripling of the cost of carbon credits, as well as temporary global supply chain issues, most notably for our insulation business. Lean production and investment of over €78.5m over recent years have mitigated these short-term impacts and the outlook for 2022, based on trading to date and resilient demand, is positive.

“However, what these cost pressures in 2021 show is that decarbonising our operations is a commercial, as well as an environmental, imperative. I am pleased to say we have now developed ambitious plans to entirely decarbonise our fleet and to develop and utilise wind and solar energy as well as hydrogen and oxygen generation and deployment solutions, to power our manufacturing plants. This will result in circular, self-sustaining manufacturing sites that will transform the production of cement, and construction products in particular, and underpin shareholder value. Over the coming years, we plan to invest over €200m in our local facilities, becoming a sector decarbonisation trailblazer in the process.”    

Commenting, Chief Financial Officer, Dara O’Reilly said “Notwithstanding resilient demand, we saw substantial margin compression as a result of cost inflation in the latter half of 2021 following a series of energy price hikes. An assessment of these cost risk factors, coinciding with our long-term sustainability planning, has contributed to the development of a highly commercial sustainability investment plan. This plan has been developed in collaboration with a number of state agencies and third-level institutions including Innovate UK and Enterprise Ireland. In addition, the company is a participant in Project Hylight which is headed by academics from NUIG and DCU.

“The Mannok Board has approved this strategy and advisers have been appointed to assess how best to finance this investment whilst also ensuring a capital structure that can accommodate changes to the group’s shareholder base over time. These plans represent a huge vote of confidence and a deepening commitment to the region and to local employment and prospects.”

Commenting, Mannok Operations Director, Kevin Lunney who oversees Mannok 2030 Vision said: “The goals we have set are very ambitious, with a total of 36 detailed targets to achieve by 2030. Our plans will require significant innovation and technological development over the next number of years and will involve a very significant collaborative effort with all our people, our academic and business partners and the local community. We are confident that planned investment will make a significant contribution to the long-term sustainability of our sector and our region.”

Mannok also published a sustainability roadmap - Mannok 2030 Vision - setting out a series of ambitious targets for the company with a commitment to reduce carbon emissions by 33 per cent by 2030 and achieve net-zero by 2050. 

This commitment will require a +€200m Green Investment that will transform Mannok’s production and distribution processes into one of the cleanest in its industry, an industry traditionally categorised as ‘hard to abate’ given its carbon emissions and energy use intensity.