Profits increase by 88 per cent at Heinz Ireland to €10.19m
Gordon Deegan
Pre-tax profits at the Irish unit of tomato ketchup maker, Heinz, last year almost doubled to €10.19 million.
New accounts show that increased sales of the brand’s tomato ketchup contributed to revenues at H.J. Heinz Company (Ireland) Ltd, which increased by 7 per cent from €58.13 million to €62.26 million in the 12 months to the end of December 28th last.
The pre-tax profits of €10.19 million are an 88 per cent increase on the pre-tax profits of €5.39 million in 2023.
The firm - which is engaged in the sale, marketing and distribution of food products on the island of Ireland - paid out dividends of €5 million on the back of the strong company performance.
The directors state that the company’s €62.26 million in revenues increased on 2023 “due to investment in pricing and marketing driving volume growth in sauces in the retail channel".
The directors also said that revenues increased due to improved performance in oriental and pasta sauces driven by distribution wins and innovation along with strong performance in Northern Ireland in the Away From Home channel.
According to the directors, 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 directors also said that the company had a good performance in 2024 and during the year, the company’s value share in the Republic of Ireland market increased in core categories including canned beans and tomato ketchup whilst improved pricing competitiveness saw volume share grow in mayonnaise and ambient soup but with a small decline in value share.
The directors state that the Away From Home channel continued to grow, driven by tomato ketchup, beans and other sauces, albeit at a slower rate than recent years, as mayonnaise declined on 2023.
They said: "We also saw positive results in profit driven by operational savings in procurement, general cost reductions and sales mix."
The directors said that they are expecting to grow Ireland net sales in value this year on 2024 through volume increase and optimisation of pricing and promotional plans.
They said: "Volume growth will come from investment in price and marketing as well as innovation in core business and new adjacent categories like pasta sauces as well as whitespace opportunities in the Away from Home channel.
"Overall, we expect to deliver volume and value share growth with beans, soup, mayonnaise and ketchup as the main drivers."
The company’s operating profits increased by 80 per cent from €4.99 million to €8.97 million and more than a doubling in interest payments received of €1.2 million resulted in the pre-tax profit of €10.19 million.
The company recorded post tax profits of €8.84 million in 2024 after incurring a corporation tax charge of €1.35 million. The profits take into account a foreign exchange loss of €1 million.
At the end of December 28th last, the firm had accumulated profits of €10.95 million.
Numbers employed increased by seven to 24 as staff costs decreased from €3.76 million to €3 million. Staff costs include directors’ pay of €622,000 made up of emoluments of €583,000 and pension contributions of €39,000.
