Cadbury-owner sees profits rise at Irish subsidiary

Cadbury-owner Mondelez, which last year cut 200 jobs in Ireland, saw profits jump sharply at one of its key Irish subsidiaries in 2014, newly-filed accounts show.

Mondelez Ireland Ltd reported pretax profits of €3.2 million for the 12 months ending December 2014, up more than 29 per cent compared to the €2.5 million recorded a year earlier.

Turnover was unchanged at €215 million, with operating profits increasing from €2.9 million to €3.7 million.

A breakdown of revenues shows confectionary accounted for €175 million of total turnover, while beverages totalled €24 million. The company also recorded €15.7 million in food products-related turnover during the year.

Net operating costs declined slightly over the 12 months to €20.2 million as against €21.3 million a year earlier.

Mondelez Ireland, which last month appointed Eoin Kellet as its new managing director in place of Louise Stigant, announced plans to cut more than 200 jobs locally last year.

The company closed its gum-base production plant in Tallaght with the loss of 45 permanent roles. It also cut 160 jobs at its other facilities in Coolock, Co Dublin, and Rathmore, Co Kerry.

Investment

Mondelez last year announced a €11.7 million investment in new chocolate-making technology at the Coolock facility to concentrate production on core chocolate brands. The move included the phasing out of production of Time Outs and pink Snack bars.

The company said its restructuring plan had no impact on the 2014 results.

Cadbury built its first Irish factory at Ossory Road, Dublin, in 1933. More than €250 million worth of Cadbury chocolate produced in Ireland is exported every year. Kraft Foods acquired Cadbury in 2010, and two years later spun-off its North American grocery division, including Cadbury, and renamed it Mondelez.

Mondelez Ireland Ltd employed 137 at the end of 2014, with staff costs, including wages and salaries, totalling €10.7 million.

Overall, the group employed over 900 in Ireland prior to its restructuring plan, with the majority of staff on the books of a separate subsidiary, Mondelez Ireland Production Ltd.

The latest available accounts for that subsidiary, which date back to the end of 2013, show it had turnover of €4.2 million and revenues of over €103 million.