Profits at Irish arm of Heinz fall 22% to €13.5m as revenue takes a hit

Pre-tax profits at the main Irish arm of US food giant Heinz last year fell 22% to £11.4m (€13.5m).

Figures returned by HJ Heinz Manufacturing Ireland Ltd show the firm recorded the drop in profits after revenues decreased by 7%, from £97.4m to £90.7m, in the 12 months to the end of Apr 28.

Operating profits declined from £12.29m to £11.4m.

During the year, Warren Buffett Berkshire Hathaway purchased the US-based Heinz corporation.

The accounts for the Irish firm show that in a post-balance sheet event, a cash dividend of £58m was paid one day after a dividend of £49m was received by HJ Heinz Manufacturing Ireland Ltd from an Irish subsidiary.

The revenues for the Irish-based firm include sales in the Irish, UK, Swedish, and French markets, and, according to the directors’ report, revenues for the Irish operation increased 5% in the period.

The company’s Irish operations — both north and south — are engaged in the sales, marketing, and distribution of all Heinz brands. The firm also manufactures frozen ready meals and pizzas under the Weight Watchers brand.

The performance of the Irish subsidiary, HJ Heinz Company (Ireland) Ltd, is consolidated into the results of HJ Heinz Manufacturing Ireland Ltd.

The directors’ report states: “While, in overall market terms, the relevant categories have declined consistent with the softness in the Irish grocery trade, we have grown market share, which, allied to average price movements, has enhanced sales value performance.”

On the future outlook for the Irish subsidiary, the directors state that the commercial environment will remain competitive.

The figures show that the group’s accumulated profits last year increased from £64m to £73.9m. Emoluments to directors totalled £756,000, the same as the previous year.