Glen Dimplex slumps to €7.7m pre-tax loss as demand for heat pumps slows
's main Irish unit slumped to a pretax loss last year as the heating and electrical goods manufacturer announced an overhaul of its operations amid a slowdown in demand for heating pumps in Europe.
New accounts filed by Glen Dimplex Europe Holdings reveal a more than 9 per cent slide in turnover to €875.2 million in the 12 months to the end of September last.
In a report attached to the accounts, the directors said the drop in revenues related to a 'decrease in the sale of heat pumps'.
Market demand for heating pumps fell by 35 per cent in Europe, the directors said, and by more than 40 per cent in 'major markets' including France and Germany.
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'The demand for heat pumps was adversely impacted by a decrease in the support for heat pump installation by public authorities in core markets,' the company said. 'It is expected that the slowdown in state support for heat pump installation is temporary and that it will regain its momentum.'
Glen Dimplex Europe Holdings swung to a €15.5 million operating loss over the period, compared to a €23.8 million profit in the previous financial year.
The Naughton family-owned company reported a pretax loss of €7.7 million, down from a €120.9 million profit in 2023. The company accounts note that the 2023 profits figure was inflated by a €170.7 million gain on the sale of intellectual property.
Glen Dimplex incurred restructuring costs of more than €26 million in the year, according to the filings, more than twice the €12.4 million cost a year earlier. The costs relate to the company's 'transformation programme', the directors said, including the 'simplification' of its flame and consumer appliances businesses.
Despite the challenging year, the company more than trebled its divided payment to €13.2 million compared to €3.8 million in each of the previous two years.
In February 2024, the group announced an overhaul of its Irish operations, including moving production of its gas and electrical fire products from Dunleer, Co Louth, to a partner business in China, ending manufacturing by the company in the town.
Glen Dimplex has entered a consultation process with workers at the site, where it is seeking around 70 redundancies.
The group had previously said it planned to relocate a distribution centre from north Dublin to Dunleer and locate a research and development unit in the town, where it currently has two sites, but that one of those sites would close.
In all, some 300 jobs were expected to be lost as the company sought to reduce its production footprint in Ireland.
Glen Dimplex Europe Holdings employed 4,509 people on average in the year to September last, down from 4,595 in the previous financial period.
The company made donations of €200,000 to the Naughton Foundation charity over the period, down from €3 million in 2023.
Late last year, Glen Dimplex founder
Martin Naughton
was named 'chairman emeritus' of the group's supervisory board, with his son, Fergal Naughton, moving into the executive chairman role.
Fergal Naughton
was subsequently named chief executive, succeeding
Fergal Leamy
after 18 years at the helm of the group.
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