Edward Dillon report drop in profits

DRINKS distributor Edward Dillon & Co recorded a further fall in annual profits in 2005, the company’s latest accounts show.

The company, which is owned by a number of international drinks firms, booked pre-tax profits of €5.2m in the year-to-end September 2005, down from €6.8m in 2004.

Sales for the year were down by €16m to €120.7m.

The company gave no reason for the dip in profits, the second consecutive year of decline.

In a note to the accounts the company said that it continued to “make progress” and is seeking opportunities to “strengthen the business”.

Reflecting the fall in profits, the dividend to its shareholders will be cut from almost €5m to €3.8m. After the payout, the company had shareholders’ funds of €1.9m compared to €1.4m in 2004.

Despite a cut in the company’s workforce over the year to 109 people, the wages and salary bill for the year was up by €94,000 to €6.9m.

The company did not say why the cuts were made.

Payments to the directors decreased by €21,000 to €369,000.

Dublin-based Edward Dillon is now owned by three shareholders after Diageo sold its 30% stake three years ago.

Luxury goods and drinks conglomerate Moët Hennessy has a 40% stake as does Bacardi.

Brown Forman, the maker of Jack Daniels whisky, holds the remaining shares.