Sales slump 49% at Tic Tac maker Ferrero Ireland

Pre-tax profits at the Cork-based unit of Italian sweet manufacturer Ferrero fell 3% last year to nearly €2.8m, with revenues almost halving.

Newly filed accounts for Ferrero Ireland, which manufactures Tic Tac mints, show revenues fell 49%, to €28.6m, in the 12 months to the end of last August. The fall in revenue was a result of a new manufacturing contract between Ferrero Ireland and its Luxembourg-based counterpart.

Ferrero has produced Tic Tacs, which are available in over 100 countries, since 1969. The Cork plant’s principal market is Europe and its management said the latest results were in line with expectations and continued demand for the product is anticipated.

Despite the drop in income, numbers employed by the company increased from 238 to 262.

The company’s profits were hit last year by a €242,542 loss on the sale of a tangible fixed asset. The company recorded a post-tax profit of €2.46m after paying corporate tax of €299,589.

As of the end of last August, Ferrero Ireland had accumulated profits of €51.87m. Its cash pile declined from €347,901 to €538,006.

Directors’ pay, including pension costs, also declined marginally last year, going from €423,703 to €416,504.

Staff costs increased from €12m to €13.25m. This was as a result of the company increasing its numbers employed in production — from 204 to 228 — with numbers remaining static in administration at 34.