Newly filed accounts for Procter & Gamble (Manufacturing) Ireland Ltd show that the firm sustained the drop in profit in spite of revenues increasing 3.6% to €96.77m.
Numbers employed by the firm last year fell from 652 to 626 with staff costs totalling €43.73m.
The firm operates two plants at Newbridge, Co Kildare, and Nenagh, Co Tipperary, and according to the directors’ report section of the accounts “the financial year ended June 30, 2015 has been challenging for both sites with Newbridge growing by 1% and Nenagh decreasing by 7%”.
The directors added that initiatives have been taken at both sites to remain cost- competitive resulting in improved productivity at both sites.
The accounts said that cost remains a challenge with an increase in commodity prices being partially offset by internal cost savings and productivity initiatives.
The directors said that operational results for the year were satisfactory.
According to a note in the accounts, the company incurred redundancy costs at the Newbridge and Nenagh plants during the year “due to changes in headcount requirements as a result of productivity improvements”.
The total cost of these redundancies was €3.842m and a further provision of €1.25m was made for redundancies. The drop in profit also arose from the firm paying out higher interest charges last year totalling €1.8m compared to €1.4m in the previous year.
The firm’s shareholder funds at the end of June last totalled €169m.
Last July, Procter and Gamble announced an agreement with US beauty firm Coty to merge 43 of its beauty brands. The deal included the trade and assets of the Nenagh plant. The Newbridge plant was not impacted by the transaction.