Tic Tac maker sees profits fall in line with company expectations

The Italian confectionery giant, which produces Tic Tac sweets on the Kinsale Road in Cork said profits decreased due to production line inefficiencies resulting in a reduction in activity.

Sweet maker Ferrero recorded a profit before tax of €2.5m for the financial year ending August 31, 2022, a drop of more than €300,000 compared to the previous year.

In new accounts the Italian confectionery giant, which produces Tic Tac sweets on the Kinsale Road in Cork, said profits decreased due to production line inefficiencies resulting in a reduction in activity. However, Ferrero Ireland Ltd said the results are in line with the expectations of the directors.

Ferrero Ireland began operations in Cork on the Kinsale Road in 1975, initially as a packaging facility, with an injection molding department installed in the late 1970s. The current-day manufacturing plant has been in operation since 1995.

The accounts show the company employs 293 workers, up from 268 the previous year. Ferrero Ireland Ltd generated €32.7m in turnover related to the sale of confectionery products and related packaging to fellow subsidiary undertakings within the Ferrero Group.

According to the accounts, the directors said no dividend was paid and the company envisages continued demand for its products.

Along with sourcing suitably qualified workers and reducing the environmental impact of the business, Ferrero said other challenges include the introduction of new flavours, along with maintaining low operating costs.

"The directors are confident that the company can meet all these challenges and overcome them by growing and developing existing and new innovative processes, through the company’s ongoing and extensive commitment to broad continuous improvement projects and through research and development programmes," the directors state.