Annual Report 2016

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Business Reviews

Fuels

Bord na Móna is the leading manufacturer and distributor of solid fuel products within the residential heating market in Ireland and continues to maintain its No.1 Brand position in the Irish market. Our portfolio includes the iconic Bord na Móna Peat Briquette, Black Diamond Coal and a range of packaged fuel products such as the Firelog and Firepak. New product innovation is a critical component of our commitment to moving towards a more sustainable future. In keeping with this, we have introduced a range of new products, including our Wood and Stove range, and we are developing our smokeless coal offering.

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€85.8m Turnover
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Sales of briquettes and coal 315k tonnes
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800,000 consumers
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68% of fuels sold were smokeless/biomass
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FY16 at a glance

The decline in the market price of oil, at its lowest point in ten years, has adversely affected solid fuels sales volumes;


The business made significant progress on its plans for the construction of a smokeless coal facility at Foynes and we are awaiting the final outcome of our planning application;


FY16 saw a strong marketing campaign that reinforced Bord na Móna’s position as the brand leader in the market; and,


We invested in the development of innovative renewable products to meet future market demands and consumer needs in an ever changing regulatory environment.

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Outlook

The solid fuel industry is facing significant challenges from a number of sources including increased regulation and competitive pressures. The imposition of carbon tax on solid fuel has added significantly to the retail prices of coal and briquette products, adversely affecting sales.

Following the introduction of a ban on smokey coal, proper enforcement is essential to regulate the market and enable key market players to compete on a level playing field. Bord na Móna is fully supportive of appropriate regulation and believe it needs to be consistently applied.

As the No. 1 Brand and largest producer and importer of solid fuel products in Ireland, the Fuels business is committed to developing sustainable and competitive alternatives to traditional fuels that are market-leading.

Eddie Scaife, Head of Fuels