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

Dungarvan, global home of Panadol, gets €8m investment

AIB flotation could net €3.4bn for State

Cork company partners to connect rural counties

New tourism minister comes at ‘pivotal’ time


Breaking Stories

Irish warned of 'disastrous' impact of Brexit

Developing countries 'to keep duty-free access to UK for imports post-Brexit

Lifestyle

Move over, David Gandy — there’s a new crew of Irish men making their mark on the catwalk

The benefit of sport is more than just winning

Dublin Cookie Co is cooking up a business

Ask Audrey: I tried tantric sex with my yoga instructor once and we managed 47 minutes before the bus arrived at Parnell Place

More From The Irish Examiner