Redundancy costs hurt P&G’s Irish profits

Redundancy costs at the main Irish arm of consumer healthcare giant, Procter & Gamble last year contributed to pre-tax profits decreasing by 9% to €11.8m.

Redundancy costs hurt P&G’s Irish profits

According to accounts just filed by Procter & Gamble (Manufacturing) Ireland Ltd, the company sustained the decline in profit in spite of revenues increasing marginally from €92.17m to €93.3m in the 12 months to the end of June last. The directors state that “operational results for the year were satisfactory”.

The figures show that the firm made a provision of €1.6m towards redundancy costs at the firm’s Newbridge facility due to changes in headcount as a result of productivity requirements.

The firm’s directors state that the key risk facing the ongoing business in Ireland is that there are manufacturing locations in lower cost areas with increasing technical capabilities.

“Investment in improved processes and technology enables the company to remain competitive in this environment,” the report states.

The directors state in the report that cost remains a challenge, with an increase in commodity prices being partially offset by internal cost savings and productivity initiatives.

The firm last year received a dividend of €35m from Braun Oral-B (Ireland Ltd) and this was off-set by a write-down of €34.95m in a financial asset. Overall numbers employed by the firm — including another plant in Nenagh — last year increased from 648 to 652.

P&G’s personal care and oral care operations are carried out at the firm’s Newbridge plant while P&G’s beauty care operations are carried out at the Nenagh plant which has continued to focus on being the strategic hub for the company’s European colour cosmetics production during the year.

The directors state that production increased at Newbridge by 7% and Nenagh by 3%.

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