Saturday 21 July 2018

Cadbury owner sweetens bottom line by turning loss into €1m profit

Eoin Kellett, Mondelez Ireland MD.
Eoin Kellett, Mondelez Ireland MD.
John Mulligan

John Mulligan

The Irish arm of Cadbury owner Mondelez sweetened its performance last year, posting a €1m operating profit as it reversed a €3m loss in 2015.

But Mondelez, which also owns Kraft, continued to be downbeat on the outlook for the Irish market.

"The market continues to be challenging in all the categories we operate in - confectionery, cheese and grocery - due to the weak economy impacting consumer spending," Mondelez directors noted in the accounts for 2016.

They said that the unit is also battling commodity and foreign exchange headwinds.

It received a €52m cash injection from Switzerland-based Kraft Foods this year.

The company makes and sells more than half of all the chocolate that is consumed in Ireland.

Mondelez Ireland's bottom line benefited last year from the winding up of four pension schemes and the associated benefits transferred to a single new superannuation scheme.

That resulted in a pension curtailment of €8.2m, which was credited to the income statement. That saw Mondelez Ireland report a €9.2m pre-tax profit for 2016.

Turnover at the business, whose managing director is Eoin Kellett, fell from €208.1m to €190.1m in 2016, the accounts note. Mondelez said that was a result of the discontinuation of its coffee business during 2015.

Mondelez Ireland employed an average of 103 sales people last year.

But the wider operation, including production in Dublin and Kerry, employs about 700 people.

As well as producing bars for the UK, Mondelez Ireland exports products to the Middle East and other regions.

Indo Business

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