Callan Bacon, the Kilkenny-based pork processer, reported a 6% decline in pre-tax profits to €2.8m for its 2016 financial year. Operating profits in the business fell sharply (-47%) in 2016 to €1.6m, as profit margins narrowed from 4.8% in 2015 to 2.8% last year.

Callan, which is the largest bacon processor in Ireland with an annual capacity of 45,000t, saw sales in 2016 decline 9% to just over €57m. Ireland accounted for €31.5m, or more than half of sales, with exports to the UK, and a small amount to continental Europe, accounting for the remaining €26m in sales.

In volume terms, almost half of Callan’s business goes to the UK, which is less than 50% self-sufficient in pork. Despite the recent weakness in sterling, the UK will continue to be an important market for Callan.

In 2015, the group acquired the Stirchley Bacon company in the UK, a €20m turnover business with operations selling into the UK foodservice market.

Callan also owns the Fethard-based cooked meats and pork business Ribworld, which it bought out of receivership in 2011.