Main Kellogg’s unit pays no Irish tax

The main Irish arm of breakfast cereal giant Kellogg’s last year paid zero corporation tax for the second year running as revenues topped €1.28bn.

Accounts filed by Kellogg European Trading show it recorded a 27% jump in operating profits, to €49.36m, in the 12 months to January 2.

However, interest of €137.45m on loans from other group firms pushed the firm into the red to record losses of €75.5m. 

The firm reduced its losses in 2015 to €65.6m with a deferred tax asset of €9.8m.

Kellogg’s has been based in Ireland since 2005 and employs 250 people here, including the head of its European cereal business unit and a number of senior cereal functional leaders for Europe.

As well as Kellogg European Trading, Kellogg’s operates a number of other subsidiaries here.

A breakdown of revenues of Kellogg European Trading’s show that €526.72m was generated in the UK with €747m in the rest of Europe and the remaining €9.8m in the rest of the world.

Numbers employed at the firm last year rose by four to 215 with staff costs of €39.8m. That included €1m in equity share-based payments.

Four directors served on the board last year and they shared pay of €2.22m.

Included in that amount is €258,000 paid to the firm’s ultimate parent for the provision of director’s services.

“The outlook for 2016 remains challenging with an expectation of little year-on-year growth in turnover or operating profit,” management said in the accounts.

“Marketing support/pressure for our brands will be in line with the previous year in real terms.

“The overall cost base is expected to be lower than the previous year thanks to notable efficiencies in this area offset by commodity price increases,” it said.

The principal activity of the firm is the production and marketing of cereals.


© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Trump in new sanctions on trade with North Korea

EU tax plan for online giants

Key agri-food industry has to plan for uncertain times

Google snares HTC talent


Breaking Stories

Pound down to daily low against dollar and euro amid Theresa May's Brexit speech

Norwegian Air eyes Monarch Airlines deal, sources say

Over 48k more people employed since this time last year - CSO

Uber will not be issued with new operating licence in London

Lifestyle

Getting clean and lean: James Duigan on the simplicity of changing your food habits

Ask Audrey: You’re 9 on the Crazy Scale, where 1 is sane and 10 is flying with Ryanair

Get out and enjoy: What's on offer for Culture Night?

Upper crusts: Eight sourdough breads tested

More From The Irish Examiner