Sunday 19 November 2017

Profits plunge 22pc at Irish arm of Heinz

Gordon Deegan

PRE-TAX profits at the main Irish arm of US food giant Heinz plunged 22pc last year.

New figures from HJ Heinz Manufacturing Ireland Ltd (HJHML) show profits fell to £11.4m (€13.5m) after revenues slid 7pc to £90.7m in the 12 months to the end of April.

The falls came in the same year that US investor Warren Buffett Berkshire Hathaway purchased the US-based Heinz corporation.

The accounts for the Irish firm show that in a post balance sheet event, a cash dividend of £58m was paid one day after a dividend of £49m was received by HJHML from an Irish subsidiary.

The revenues for the Irish-based firm include sales in the Irish, UK, Swedish and French markets and, according to the directors' report, revenues for the Irish operation increased by 5pc in the period.

The company's Irish operation -- north and south -- is engaged in the sales, marketing and distribution of all Heinz brands.

The firm also manufactures healthy frozen ready meals and pizzas under the Weight Watchers brand, and sells former brands of HP Foods.

The performance of the firm's Irish subsidiary, HJ Heinz Company (Ireland ) Ltd is consolidated into the results of HJ Heinz Manufacturing Ireland Ltd.

ICONIC

The company is the producer of iconic brands, Heinz Ketchup and Heinz Baked Beanz, and the directors' report states: "While, in overall market terms, the relevant categories have declined consistent with the softness in the Irish grocery trade, we have grown market share, which allied to average price movements, has enhanced sales value performance."

In relation to future outlook for the Irish subsidiary, the directors state that the commercial environment will remain highly competitive in the period ahead.

Irish Independent

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