Happy Pear projects return to profit in 2025 following three years of losses
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The Flynn brothers’ Happy Pear food group is projecting to return to profit in 2025 on the back of its UK expansion following three years of losses.
New abridged accounts show that last year, David and Stephen Flynn's Flynn & Flynn Global Trade Ltd recorded post-tax losses of €958,742 with the unprecedented global price increase of olive oil in 2023 cited as one of the factors behind the loss-making year.
The post-tax losses of €958,742 last year were a 65% increase on the post-tax losses of €581,003 in 2022. The 2023 loss takes account of combined non-cash depreciation and amortisation costs of €295,903.
A spokesman for the business said on Friday: "2023 was a challenging year for The Happy Pear, reflecting the complexities of operating in a turbulent macroeconomic environment. “The loss recorded for 2023 reflects both external pressures and internal adjustments.”
Global prices for olive oil increased by 50% last year and the spokesman said: “One of the primary factors was the unprecedented global increase in the cost of olive oil, due to extreme weather conditions in major production regions, which significantly impacted production costs in our core chilled dips range.
“Although the business has made meaningful improvements to its production line and membership platform, it is projected to remain in a loss-making position in 2024.”
The spokesman said that it remains a "very challenging environment for raw materials" which continue to put pressure on their margins.
“However, a robust plan is being delivered aimed at restoring profitability through operational efficiencies, cost management, and targeted revenue growth initiatives."
The principal activities of the company are the purchase, production and sale of vegetarian and vegan food and drink products, both wholesale and through a network of retail outlets and the sale of online health and wellness courses and membership plans.
Numbers employed increased from 74 to 79 last year and the company also engages in the provision of on-site and virtual health and wellness talks and cooking demonstrations and brand partnership services.
The Happy Pear has commenced sales in the UK and the spokesman said: "The recently commenced trading in the UK market is expected to drive sales in the latter part of 2024 and significant growth into 2025, leveraging the company’s strong brand and product offerings in this new territory."
He said that the group expects sales figures in the UK for 2025 “to reach six figures”. He said: "Combined with these plans, the company is projected to reach run-rate profitability in 2025.”
The group last year raised €2.59m from an equity crowd investment campaign and the spokesman said that the €2.59m raised “has provided critical funding to support the business during a period of transformation and has enabled us to develop our international expansion plans, particularly in the UK, where we anticipate strong growth”.
He said: “While challenges remain, we believe the steps taken in 2023 and 2024 have laid a solid foundation for recovery and growth. We are deeply grateful to our shareholders, customers, and team for their continued support and remain committed to delivering on our vision of creating a healthier and happier world.”
Five directors, including the Flynn twins, served last year and their aggregate pay was slashed by 28% from €502,736 to €361,512.