Kellogg's falls into red as losses hit €102m
The main Irish arm of Kellogg's recorded pre-tax losses of €102m last year.
This followed revenues at Kellogg Europe Trading Ltd declining by 10pc, going from €1.11bn to €1bn in the 12 months to the end of December last. The principal activity of the firm is the marketing of Kellogg's products in Europe, Africa and the Middle East.
Kellogg's has been struggling to adapt to a shift to low-sugar foods, protein bars and yogurt for breakfast over cereals.
The losses last year arose, in part, from exceptional costs of €58.89m connected to Kellogg's 'Special K' project which is described as a "significant, multi-year, global growth and efficiency programme that will reshape the business and serve as a catalyst for growth".
The loss also arises from the firm's interest charges rising from €132.85m to €145.56m. The loss followed a pre-tax profit of €338.56m in 2016.
The directors state that the outlook for 2018 remains challenging with an expectation of little year-on-year growth in turnover or operating profit.
They said the overall cost base is expected to be lower than the previous year thanks to notable efficiencies achieved often by limited commodity price increases.
The directors said revenues for the year were satisfactory.
The firm received a corporation tax credit last year of €12.6m. On the challenges facing the business, the directors state that key risks facing the business in 2018 include commodities price increases.
Numbers employed last year fell from 197 to 174, with staff costs decreasing from €37.27m to €29.8m. Pay to directors rose from €1.7m to €2.1m.