Unilever Ireland profits plunge to €5m

PROFITS before tax at consumer goods group Unilever Ireland plunged from €71 million to almost €5m last year.

The company is best known for brands like Lyons Tea and Persil washing powder.

The accounts show an exceptional gain of €50m in 2007, which would have impacted on profits that year. This was related to the disposal of land and buildings.

In 2008 the firm had exceptional costs of €2.1m and €0.9m in 2007.

Turnover was down from €312m to €296m, according to results just filed.

In the accounts, the directors said they consider that in the prevailing conditions, the development of the group’s business and its financial position at the year end were satisfactory.

They expect the present level of activity to be sustained for the foreseeable future.

They added: “The external market environment continues to be a challenge, exacerbated by the continuing weakness of sterling, but the completion of the restructuring programme and reduction in the company’s cost base leave it in a strong position to increase market share and benefit from the market conditions as the wider economic outlook improves.”

Employee numbers fell last year from 387 to 253, which reduced staff costs slightly from €39.3m to €39.2m.

The company is a subsidiary of the giant Anglo -Dutch conglomerate Unilever plc.

The group recently announced it biggest acquisition in nearly a decade, with the purchase of the soaps and personal care businesses, including the Radox and Badedas brands, from Sara Lee in the US for €1.28 billion.

Unilever chief executive Paul Polman said: “This transaction builds on our portfolio in Western Europe and also in Asia.”