Asset sale helps boost Nestle profits

FOOD group Nestle returned to the black last year making a pre-tax profit of almost €6.5 million.

Nestle Ireland, which makes Kit Kat chocolate bars and Nescafe coffee, had a loss of €14 million in 2002 in 2002, though this was mainly due to the sale of its sauces business in Dublin.

Accounts filed recently at the Companies Registration Office show the bulk of the profits came from the sale of a fixed asset, which added €4.9 million to earnings for the years.

Excluding the exceptional item, the company saw a 25% fall in operating profits to €1.7 million.

Group turnover of the year was also down, falling €3.6 million to €176 million. Most of the drop in sales came from its Irish businesses, where turnover dipped €13m to €124m.

The number of people employed by the company fell from 284 to 230. Production staff were the hardest hit, with the numbers here falling from 122 to 67. The decrease helped lower the sales and salary bill by nearly 30% to €7.6 million. This gives an average annual salary of just over €33,000.

The company's directors saw their pay fall from €1.1 million to €913,000. Five directors were on the board of Nestle Ireland during the year, though one resigned.

The company said in the accounts that it does not expect any more restructuring of its business here this year and intends to focus on its core food, beverages, and pet food brands.

In mid-2002 Nestle Ireland sold its Tallaght manufacturing plant and local brands produced to Premier International Foods.

During the year Nestle moved from its base to a complex in the Citywest Business Park.

The company also has a factory in Mallow, where around 50 people are employed.

The company is owned by the Nestle Corporation of Switzerland, one of the world's largest food groups.