C&D Foods profits rise despite job cuts

THE pet food company owned by former Taoiseach Albert Reynolds and his family increased its profits in 2006.

Newly filed accounts for C&D Foods, founded by the former Fianna Fáil leader in 1969 and now run by his son Philip, show pre-tax profits of €6.3 million, up from €2.4m in 2005.

However, the increase in profit is mainly the result of an insurance compensation of €4.2m following a fire at its canning facility in Edgeworthstown, Co Longford which, in 2006. The fire destroyed 60% of the 100,000sq ft factory and forced the company to lay off hundreds of workers.

Operating profits at the company fell to €2.36m from €3.3m reflecting the loss of production.

The company said in the accounts: “Insurance compensation received has offset the resulting cannery division loss in 2006. Some products have now been outsourced to service this part of the business.”

Group turnover fell to €60m from €92.1m following the loss of the canning site but C&D said it had seen “modest” turnover growth in dry pet food and pouched food products.

According to the accounts the company employed 333 people at the end of 2006 down from 534 in the previous year.

Staff costs for the year following the lay offs fell to €11.2m from €17m. Directors pay for the year increased to €586,913 from €435,208.