Chocolate Kimberley, Fig Rolls, Mikado and Club Milk all combined to boost W & R Jacob operating profit by 27 per cent to £5.1 million (€6.5 million) in 1998. Sales grew by 5 per cent to £92.8 million (€117.8 million).

Mr Bill McConnell, managing director, Irish Biscuits - Jacob's operating subsidiary - said home market sales, accounting for 65 per cent of group sales, increased by over 4 per cent "as we recovered market share lost in the preceding two year". Its market share is now just under 50 per cent compared with 48 per cent, he told The Irish Times.

Last year's growth was achieved in a fairly static market, he added. The recovery in the market share, he said, was due to the marketing initiatives put in place to revitalise its key brands, all of which showed volume gains. "Sales volumes also benefited from our strategy of increasing investment in advertising across our core range of products". Sales to Northern Ireland increased marginally. Exports were particularly strong and grew by 16 per cent. This was helped by the successful launch of a specially formulated Chocolate Kimberley product under the LU brand in France, according to Mr McConnell. Exports accounted for 35 per cent of sales, up from 30 per cent. The most striking ratio gleaned from the group's figures is the increase in the operating margin from 4.5 per cent to 5.5 per cent. This reflects the benefit from the three-year rationalisation programme which is designed to get its cost base lower. Restructuring costs amounted to £2.9 million (€3.7 million) in 1998 and follow costs of £3.36 million (€4.27 million) in the previous year. These costs in 1999 will be about half 1998's levels, said Mr McConnell.

After the rationalisation costs and interest, the profit before tax rose from £0.66 million (€0.84 million) to £2.14 million (€2.72 million). Around 80 per cent of the net profit goes to its parent, Group Danone. W & R Jacob employs 700 people at its Tallaght plant.

On the future, Mr McConnell said the group was budgeting for continued sales and profit growth. It will continue "to strive for productivity gains across all areas of the business to ensure that we maintain our competitive edge"

Mr McConnell is to retire on March 31st, after almost 29 years with the company. He will be succeeded by Mr Neil Murphy who joined the group in 1978 as human resources manager.