Business Irish

Monday 11 December 2017

Fizz goes out of Coke Ireland as pre-tax profits fall by 12pc

Coca-Cola first established a base in Ireland in 1952. Photo: Bloomberg
Coca-Cola first established a base in Ireland in 1952. Photo: Bloomberg

Gordon Deegan

The fizz went out of the Irish arm of Coca-Cola's pre-tax profits here last year as they declined by more than €1m or 12pc to €7.14m.

New figures show that Coca-Cola HBC recorded the drop in profits as revenues remained flat at €167m.

Some of the firm's best-known brands include Coca-Cola, Diet Coke, Fanta, Sprite and Powerade. The firm last year paid a dividend of €7m and this followed a €5m dividend payout in 2014.

The group now offers almost 20 brands encompassing more than 40 products and the directors state that the group continues to expand the reach of established brands to consumers through the launch of new brand extensions and continued package innovation.

Numbers employed at the firm last year increased from 302 to 206 with staff costs reducing from €21m to €20m.

The workforce at the firm has reduced from 382 at the start of 2013.

The firm's headcount last year was made up of 222 in sales and marketing; 58 in administration, 25 in warehousing and distribution and one in production.

The profit takes account of non-cash depreciation costs of €1.9m and operating lease costs of €2.2m.

Directors' emoluments, including pension payments, for the directors reduced from €995,000 to €818,000.

The firm's revenues are made up exclusively from the sale of soft drinks in Ireland.

Accumulated profits at the firm last year totalled €10m. The firm's cash increased from €21,000 to €2.19m.

The filings show that the firm recorded an actuarial loss of €954,000 on its pension scheme last year. The company's cost of sales last year remained static at €104m.

The firm recorded a post tax profit of €6.1m after paying tax of €973,000.

The firm's operating profits reduced by 15pc from €8.5m to €7.23m.

Coca-Cola first established a base in Ireland in 1952, while globally, Coca-Cola is sold in over 200 countries. Coca-Cola is one of the most recognisable brands in the world and the firm's gross profit last year dropped marginally going from €63m to €62m.

Distribution costs increased marginally going from €12.5m to €12.63m while administrative expenses increased from €11.6m to €12.59m.

The firm's profits were hit by €98,000 in finance costs. Shareholder funds totalled €13.33m.

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