The makers of Drumshanbo Gunpowder Irish Gin last year increased profits to €2.87m despite a 15% tariff on the company’s products exported to the US.
New accounts filed by PJ Rigney Distillery & International Brands Ltd show that the firm increased profits as revenues increased by 4% from €17.27m to €17.99m in the 12 months to the end of September last.
The pre-tax profits of €2.87m are a marginal increase on the pre-tax profits of €2.81m for fiscal 2024.
The directors state that the company performed strongly during the year “despite economic uncertainty, tariffs in the US, inflationary pressures, conflict in Ukraine, the Middle East and elsewhere”.
“Our brands outperformed the general drinks market by some distance on the back of substantial increased investments in newness, innovation & brand communications,” they added.
In the accounts signed off on March 30, the directors state that margins were affected by downward pressure on pricing, the weakening dollar and US tariffs of 15% on exports. However, these factors were materially offset by tight cost controls.
The directors state that they aim to maintain the management policies “which have resulted in the company’s strong performance in recent years”.
They state that the company “is confident that this world class brand led distillery based in Drumshanbo, Co Leitrim will continue to be an operational success”.
The directors say that they have a vision “to grow a highly differentiated cadre of brands in world markets”.
They state that the firm’s leading brands include Drumshanbo Gunpowder Irish Gin and its expressions, Drumshanbo Sausage Tree Pure Irish Vodka and Drumshanbo Single Pot Still Irish Whiskey’s.
“We care deeply about Drumshanbo and Leitrim communities and the social enterprise at The Food Hub where we are located,” they state.
“We aim to create profits and prosperity to sustain The Shed Distillery, our employees, the Food Hub and the Drumshanbo community,” they say.
“We are convinced that by staying true to these commitments we will create value that will sustain the business into the future,” they add.
On the market risk facing the business, the directors state that “the economic uncertainty, tariffs in the US, the weaker dollar and the war in Ukraine has caused cost increases and disruptions in the Irish and global energy, economic and financial markets, with the drinks industry significantly impacted as a result of the increase in input costs, over supply, depressed pricing, lower consumer demand and stubborn overstock issues in the USA”.
“We are closely monitoring the potential impact of these developments on our 2025/26 financial results and cash-flows and have prepared a risk assessment and revised projections for the business,” they say.
“The company has supercharged its innovation pipeline and taken other measures to defend and advance its brands in key markets,” they add.
A note attached to the accounts states that the directors expect the company to continue to generate profits and positive cash-flows in the financial year 2026.
They state that furthermore, the company has very strong liquidity at the date of approval of the financial statements and has no debt obligations.
The profits take account of non-cash depreciation costs of €477,575, €144,459 in foreign exchange losses of and €193,071 in operating leases.
Numbers employed increased from 85 to 88 as staff costs reduced from €2.72m to €2.69m. Directors’ pay remained at €150,000.
Reporting by Gordon Deegan
