Profits dip to €2.7m at Irish unit of sweet manufacturer Ferrero
Pre-tax profits at the Cork- based unit of sweet manufacture Ferrero last year decreased by 3pc to €2.7m.
Revenues fell by 49pc from €55.5m to €28.6m in the 12 months to the end of August last at Ferrero Ireland Ltd, the maker of Tic Tac sweets.
The figures show that in spite of the firm's income dropping, numbers employed last year increased from 238 to 262.
The directors said that the revenues decreased as a result of a new manufacturing contract between Ferrero Ireland Ltd and Ferrero Trading Lux SA coming into operation.
The directors' report said income is entirely as a result of toll manufacturing. The firm's principal market is Europe and the directors said the results are in line with their expectations.
Ferrero has produced the global brand of Tic Tacs - which are available in over 100 countries - since 1969. The global company produces well-known brands, including Ferrero Rocher, Nutella and Kinder.
The Cork plant continues to be profitable with pre-tax profits of €2.76m last year, following pre-tax profits of €2.85m in 2015.
On future developments, the directors said the company envisages continued demand for its products and no change in the toll manufacturing agreement. The firm's profits were hit last year by a €242,542 loss on the sale of a tangible fixed asset last year.
At the end of August last, the company had accumulated profits of €51.87m. The firm's shareholder funds totalled €55.99m. The profits take account of non-cash depreciation costs of €3.64m. Staff costs at the company last year increased from €12m to €13.25m.