Sales of takeaways and eggs are continuing to drive revenue and profits at Finnish packaging giant Huhtamaki’s operations in the north, new accounts show.
The company, which operates in Northern Ireland as the west Belfast-based Huhtamaki Foodservice Delta and the Dollingstown-based Huhtamaki (Lurgan) Ltd, recorded combined sales of £162 million across both businesses last year, producing a total pre-tax profit of £11.7m.
The latest financial reports from the businesses show a combined workforce of 757 in 2023, with a payroll contribution of just over £31m in the year ending December 31 2023.
Huhtamaki originally entered the Northern Ireland market in 1999 by acquiring its fibre packaging plant in Dollingstown, Co Armagh.
The Huhtamaki (Lurgan) business, which makes fibre and pulp-based packaging for fresh food and beverages, includes a paper recycling plant in Lisburn.
The Finnish packaging giant expanded its northern presence in 2016, paying £80m to acquire Delta Print & Packaging in west Belfast from Terry Cross.
The factory in the Kennedy Way industrial estate is a major supplier to the foodservice industry, with McDonald’s among its biggest clients.
Huhtamaki’s Lurgan business also supplies McDonald’s with cup carriers and produces the majority of egg cartons in the UK and Ireland.
The latest accounts for Huhtamaki Foodservice Delta Limited show an 11% annual increase in revenue to £106.7m, with pre-tax profit rising 36% to £7.86m.
The larger of the two Huhtamaki-owned operations, the Belfast business had 485 staff on its books last year, slightly down on 2022, mainly due to a small reduction in agency workers.
Its directors said sales of home deliveries and takeaways continued at strong levels in 2023, with raw material costs increasing “significantly” last year, “driving an increase in sales value”.
Looking ahead, they said the company is well placed to seize opportunities in paper based packaging driven by plastic packaging legislation and consumer trends towards sustainability.
Meanwhile in Dollingstown, turnover increased 10% last year to £55.3m.
Profit-before-tax fell by £1.4m (27%) year-on-year to £3.85m, with an ‘exceptional’ cost of £2.84m, linked to moulded fibre machinery, eating into the profit for 2023.
In a brief summary of the Co Armagh operation, its directors said: “The company has maintained its overall market share within the egg packaging market, which is expected to grow by 3.5% per annum.
“Cup carrier production continues to meet demand with projected market growth of 5% per annum.
“Strategic plans for the next three years are being reviewed by the executive team of the company’s ultimate parent undertaking Huhtamaki Oyj.”