THE west Belfast-based operation of Finnish packaging giant Huhtamaki saw turnover fall 11 per cent in 2021 due a significant drop in sales of its PPE gear.
But the continued drive by companies to cut back on plastic packaging ensured the paper and cardboard specialist’s profits came in at double pre-pandemic levels.
Huhtamaki Foodservice Delta experienced a boom in its business following the outbreak of Covid-19, as the north's hospitality sector pivoted to takeaways and home deliveries.
The Kennedy Way Industrial Estate factory also developed face shields in response to the pandemic.
That pushed turnover beyond £100 million for the first time in 2020, producing a profit before tax of £18m.
The latest accounts for the west Belfast-based business show sales dropped sharply to £89.4m the following year (ending December 31 2021).
The report from Huhtamaki Foodservice Delta’s directors said sales of PPE were “significantly lower” during 2021.
That resulted in a corresponding decline in the use of agency workers in 2021.
The company had 533 people on its books in 2021, including 150 agency staff, which was down from 196 in 2020. However, Huhtamaki recruited 25 production staff and six managers in the same period.
While pre-tax profits fell 62 per cent in 2021, the £6.9m recorded for the 12 months was more than twice that of 2019.
A report accompanying the firm's latest accounts indicate the fall in demand for PPE was partially offset by the growth in the ‘food to go’ sector and the move away from plastic.
Huhtamaki's food service division in the north was significantly expanded during 2019 with the opening of a new Antrim factory, which makes paper straws for clients including McDonald's.
“The company continues to see growth in our core business and expect to see an increase in demand in the next few years due to the move away from plastic packaging,” said the directors.
“The ‘food to go’ market was a growth market in 2021 and we continue to develop new products to fulfil customer demands.
“The coronavirus pandemic has tested the global food supply chain like never before, putting a spotlight on the importance of food safety and availability.
“We offer a sustainable, safe option to the end consumer and this is more important than ever in the current climate.”
Huhtamaki Oyj bought Delta Print and Packaging from Belfast businessman Terry Cross for £80m in 2016. The deal also included a manufacturing facility in Poland.
The packaging firm's latest annual report also details some of the steps it has taken in response to Brexit.
The company secured additional warehouse space to build up its stock of raw materials as part of a strategic decision to carry a minimum of one month’s worth of stock sourced from within the EU.
“We have engaged extensively with Belfast port to understand any current risk in material movements as a result of increased paperwork.
“We also have a contingency option to utilise Dublin port for eaw material coming from the EU (to avoid port delays).”
