P&G doubles Irish profit to €13m

The main Irish arm of consumer healthcare giant, Procter & Gamble almost doubled pre-tax profits to €13m last year, as revenues increased to €92.17m.

Procter & Gamble (manufacturing) Ireland increased its revenues by 5% from €87.4m to €92.17m in the 12 months to the end of June 30, 2013.

In new accounts just filed by the company, the directors state that operational results for the year were “satisfactory”.

The firm increased its profits after cutting back on its cost of sales, decreasing from €79.4m to €74.4m. Pre-tax profits were €6.69m in 2012.

The figures show that the firm’s profits take account of restructuring costs last year of €2.185m.

The €2.185m cost is made up of €1.78m in legacy costs from the 2010 closure of the firm’s Carlow plant and €400,000 in redundancy costs at the firm’s Newbridge plant last year.

The company’s other Irish plant is located at Nenagh.

Last year was challenging, according to the directors’ report, with flat production volumes at the Nenagh plant and a 2% decline at the Newbridge plant.

The accounts disclose that in a post-balance sheet event, the company received a dividend of €35m from Braun Oral-B (Ireland Ltd).

P&G’s personal care and oral care operations are carried out at the firm’s Newbridge plant, while P&G’s beauty care operations are carried out at the Nenagh plant which has continued to focus on being the strategic hub for the company’s European colour cosmetics production.

The report states: “Initiatives have been taken at both sites to remain cost competitive, resulting in improved productivity metrics.”

The directors said that cost remains a challenge, with an increase in commodity prices being partially off-set by internal cost savings and productivity initiatives.

The directors point out that the key risk facing the ongoing business in Ireland is that there are manufacturing locations in lower-cost areas with increasing technical capabilities.

The report said: “Investment in improved processes and technology enables the company to remain competitive in this environment.”

The report also states that management at the company continues to bid for additional business and find opportunities for ongoing cost reduction to increase competitiveness at both sites.

The filings show that the numbers employed by the company last year declined from 682 to 648.

The firm’s Carlow plant closed down with the loss of 167 jobs in 2010 and the plant “remains on the market for sale”.

The firm had shareholder funds totalling €176.45m at the end of June last.