Strong sales growth in the likes of snack-food brand Pringles contributed to pretax profits at the main Irish arm of Kellogg’s last year increasing 56 per cent to €82.22 million.
New accounts for Kellogg Europe Trading Ltd show that the business recorded the sharp increase in profits as revenues rose by €80 million to €1.91 billion.
The Dublin Airport Central registered firm produces and markets ready-to-eat cereals for the Europe, Africa and Middle East regions. Affiliated enterprises act as consignment manufacturers and local market distributors.
The directors state that the increase in revenues “was driven by strong growth in the firm’s snack portfolio including Pringles”.
They state that the business’s turnover for the year was “satisfactory”.
The directors add that “inflationary pressures continue to affect global input costs”.
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They state that “to counter these, the company is continually seeking to improve in its manufacturing processes and organisation”.
Kellogg’s other brands include Crunchy Nut, Bran Flakes, All-Bran, Coco Pops, Frosties, Kellogg’s Corn Flakes, Rice Krispies and Special K.
The firm recorded an 8 per cent rise in operating profits to €207.33 million but interest costs reduced pretax earnings to €82.22 million.
The business paid corporation tax of €11.34 million.
On the future outlook for the business, the directors state that 2022 is expected to remain consistent with the outcome of the current financial period.
Group sales
The figures show that the bulk of the group’s sales at 60 per cent at €1.14 billion last year were recorded in Europe with €677.45 million in the UK and €87.5 million in the rest of the world.
Numbers employed by the firm increased from 235 to 256 as staff costs increased marginally to €40.7 million which include share-based payments of €1.16 million.
Eight directors served during the year and overall pay last year totalled €5.09 million made up of €4.8 million in remuneration, €215,000 in pension contributions and €72,000 in gains on share options exercised.
The profit last year takes account of non-cash depreciation and amortisation costs of €13.8 million and research and development costs of €5.23 million.
The company’s cash funds last year increased from €159.8 million to €286 million.
