The Irish division of Anglo-Dutch consumer goods giant Unilever has reported a 22 per cent drop in operating profits to €27.5 million.
The decline in profitability marks tough trading for some of the best known branded consumer goods in the market. In addition to food brands such as Flora, Knorr, Bird's Eye, HB and Lyons Tea, Unilever owns a range of cleaning brands including Dove and Lux soap and Persil washing powder.
Newly-filed accounts for Unilever Ireland (Holdings) Ltd, which owns the conglomerate's Irish interests, show that overall sales rose last year to €374.23 million from €318.12 million. But while food sales rose to €257.96 million from €196.48 million, the sale of detergents and personal products fell to €116.27 million from €121.64 million.
The group's consolidated operating profit margin fell to 7.35 per cent from 11.06 per cent. A spokeswoman said this was due to pressure on Unilever in the frozen food and personal care markets.
She also pointed to an exceptional charge of €7.12 million. This related to the sale last year of Unilever's European pizza interests, including the Gino Ginelli brand in Ireland.
The pretax profit for 2004 was €32.23 million, down from €48.17 million a year earlier. The company paid out no dividend. Its retained profit of €26.45 million brought its retained profit at the start of 2005 to €75.03 million.
"The directors consider that in the conditions prevailing during the year, the development of the group's business and its financial position at year-end were satisfactory," stated the board's report which was filed with the accounts.
"They expect the present level of activity to be sustained for the foreseeable future."
The accounts show that Unilever's Irish business was reorganised in January 2004. The holding company issued shares worth €190 million to acquire the interests of its Unilever Ireland subsidiary, formerly Knorr Bestfoods. This resulted in a €171.1 million increase in the goodwill attributed to the holding company.
