The Irish division of Anglo-Dutch consumer goods group Unilever recorded a small decline in operating profit last year, a performance it described as "satisfactory", given the competitive marketplace.
The company, which counts HB ice cream, Lyons tea and Dove soap among its brands, saw its operating profit slip 1.8 per cent, to €24.4 million in 2005, the most recent accounts filed with the Companies Office show.
Sales meanwhile were down 5.2 per cent on the previous year at €350.4 million, a drop the company attributed in most part to the disposal of certain products. In 2004, Unilever disposed of its European pizza interests, including the Gino Ginelli brand in Ireland.
The board said it expects the present level of activity to be sustained for the foreseeable future, but added that the increasingly competitive environment was putting pressure on price and margins and could adversely impact the rate of sales growth in the long term.
According to the accounts, the company recorded an exceptional gain of €15.6 million in 2005, compared with only €2.6 million in 2004. Unilever said this relates to the sale of certain assets and products, but didn't give any further details.
Pretax profit for 2005 was €45.3 million, a 41 per cent increase on the €32.2 million recorded in 2004. The company did not pay out a dividend.
Since the end of 2005, Unilever has secured the sale of its Birds Eye frozen foods business to Permira Funds for €1.5 billion. The UK buyout group beat off Irish food group Kerry in the race to buy the well-known food brand.
In September, Unilever Ireland said it would close its Inchicore plant in Dublin with the loss of 125 jobs. The closure is part of a Europe-wide restructuring, which will also see a reorganisation of the group's distribution network. In the accounts, Unilever said the Inchicore facility will be closed by March but that it wasn't expected to have a significant impact.
During 2005, Unilever Ireland employed on average 651 people, down from 707 in 2004. Employment costs, including the money paid out to executive directors, declined by 7.4 per cent, to €37.1 million. Just over €30 million of this amount went on wages, with the remainder going on welfare benefits and pension costs.
