Profits rise to €2m at Irish arm of Cadbury owner Mondelez
Profits at the Irish arm of Cadbury-owner Mondelez almost tripled to more than €2m in 2013, according to new accounts filed by the company.
The after-tax profit of €2.07m in the year to the end of 2013 compares to an after-tax profit of €752,000 in 2012.
In February Mondelez Ireland said more than 60 jobs are to be lost with the closure of a chewing gum factory in Tallaght, Dublin, while another 160 people are to lose their jobs with the restructuring of chocolate operations in Coolock, north Dublin and Rathmore, Kerry. A consultation process on the proposals is ongoing between the company and unions.
Sales were down in 2013, dropping from €217.5m in 2012 to €215.8m, but a reduction in operating expenses helped to boost profitability. Net operating expenses fell from €25.5m in 2012 to €21.4m in 2013. The directors noted a decline in demand for products based in Ireland after 2013 and flagged the "restructuring process" announced in February. They said: "It is not anticipated that this announcement will have an impact on the trade of Mondelez Ireland."
A spokeswoman said the rise in profits showed that "measures taken by the company, such as centralisation of some administrative functions, had some impact in strengthening profitability and sustainability from 2012."
"However, intense competition, ongoing downward pressure on costs and weakening consumer demand during this timeframe has resulted in Mondelez Ireland bringing proposals forward to restructure and streamline its businesses to ensure longer-term sustainability in Ireland."