One of two Mondelez units in Ireland made an operating profit of €1.1 million in the year ending on 31 December 2016, The Irish Times reported.
Mondelez Ireland, which is the Irish subsidiary of Cadbury owner Mondelēz International, returned to profit last year after recording a loss of €3.1 million the year before.
In the year ending in December 2016, the company cut its administrative expenses by €6.5 million, reducing them from €24.5 million in 2015 to €18 million last year. Cost of sales also came down from €174 million to €171 million.
Staff Cuts
The company also cut back its staff from 120 to 103, and reduced its spending on wages and salaries from €8.5 million to €6.3 million.
The Irish subsidiary’s workforce has been declining dramatically over the last years. It closed its gum-base production plant in Tallaght in 2014 with the loss of 45 permanent jobs. It also cut 160 jobs at its other facilities in Coolock, Co Dublin, and Rathmore, Co Kerry.
The company announced a €11.7 million investment in new cholocate-making technology at the Coolock facility to focus production on core chocolate brands at the same time.
Turnover decreased from €208.1 million to €190.2 million, driven by the ending of the company’s coffee business in July 2015. The sale of its coffee business to Jacobs Douwe Egberts in 2015 generated a profit of €8.9 million.
Kraft Food Schweiz Holding, the parent company, subscribed for the allotment of 1,000 ordinary shares of €1.27 each at an aggregate price of €98 million. The company recapitalised its balance sheet in 2015 to address its pension scheme deficit.
Challenging Conditions
The company’s two directors, Eoin Kellett and Stephen Dillion received aggregate pay of €475,000, which was down from €616,000 the previous year.
The directors said that market conditions continue to be challenging in all categories, including confectionary, cheese and groceries. They both cited the weak economy and a knock on effect on consumer spending.
“The business looks to drive performance by launching new product innovation, building brand awareness through media campaigns, increasingly using new social media platforms, and working with customers in building the categories we work in,” according to the directors.
Cadbury operated its first Irish factory at Ossory Road, East Wall, Dublin, from 1933 to 1964, after which the Coolock factory opened. Kraft Foods acquired Cadbury in 2010, and two years later spun-off its North American grocery division, including Cadbury, and renamed it Mondelez.
© 2017 - Checkout Magazine by Kevin Duggan
