Heinz squeezes profits from Irish business as earnings rise to €6m

Gordon Deegan

Heinz Ireland squeezed additional pre-tax profits from its Irish business last year as pre-tax profits increased by 27 per cent to €6.079 million despite inflationary pressures.

The firm, HJ Heinz Company (Ireland) Ltd, operates all Kraft Heinz brands in Ireland, and said last year it increased its share of the tomato ketchup market in the Republic of Ireland by 1.5 per cent to 59.3 per cent.

The firm’s pre-tax profits increased as revenues rose by 14 per cent from €44.02 million to €50.08 million for the 53 weeks to the end of December.

The directors stated the company grew in 2022 "due to increased pricing, distribution wins in sauces and meals, and a rebound in the food service and infant businesses due to the full removal of Covid restrictions which had impacted both in previous year".

They said the grocery trade "continues to be highly competitive with a number of strong indigenous and international brands across the various sectors in which the business operates".

The accounts noted the sectors in which the company operates "are also feeling significant inflationary pressure and the company is working collaboratively with its retail partners to help mitigate these inflationary pressures".

Directors said increased market share for core categories, including mayonnaise and wet ambient soup, primarily driven by increased price, distribution gains, and improved feature and display.

The firm added that market share declined by 1 per cent in canned beans to 33.7 per cent, and canned pasta was down 1.1 per cent to 86.7 per cent.

The company said overall they are expecting sales volume to decline as a result of elasticity impact in meals and sauces.

The US-headquartered firm paid a dividend of €4.5 million last year, which followed a dividend of €5 million paid in 2021.

The company’s operating profits were reduced by 5 per cent from €5.76 million to €5.42 million.

The company recorded post-tax profits of €5.2 million in 2022 after incurring a corporation tax charge of €867,000. At the end of December 31st, the firm had accumulated profits of €6.89 million.

Numbers employed increased by two to 17 as staff costs increased from €2.75 million to €3.1 millon. Staff costs include directors’ pay of €450,000 made up of emoluments of €431,000 and pension contributions of €19,000.