Tallaght-based Jacob Fruitfield Food Group plans to increase the prices of its biscuits, sauces and jams by 10-12 per cent in November to recover some of its expenses from rising input costs.
The increases will apply to all its products with the exception of tins of biscuits and other items that are produced specially for the Christmas market.
Chief executive Michael Carey said the price increases were the result of steep increases in wheat, sugar and certain dairy items, which have risen in price by up to 50 per cent over the past year or so. "We haven't succeeded in recovering our cost increases, and we have no choice but to raise our prices," Mr Carey said.
Accounts just filed for Jacob Fruitfield show that it made a loss of €10.1 million in the year to the end of December 2006.
This was the result of an exceptional charge of €12.3 million relating to voluntary redundancies and other once-off costs.
The company has vacated its 11-acre site on the Blessington Road in Tallaght, and has consolidated its activities at its factory in nearby Belgard Road.
"The integration is now complete and has made us a more efficient business," Mr Carey said.
Turnover at the food group rose by 1 per cent last year to €89.7 million, although the cost of sales increased by 7.8 per cent to €48.2 million.
As a result, Jacob Fruitfield's gross margins declined to 46.3 per cent from 49.7 per cent a year earlier.
When distribution costs of €19.9 million, administration expenses of €16.8 million and the exceptional items are added in, Jacob Fruitfield made an operating loss of €7.3 million in 2006. This compared with an operating profit of €4.9 million a year earlier.
Jacob Fruitfield paid €4.7 million in interest charges. Its debt burden declined during the year by €5.2 million to stand at €69.9 million at the end of December.
Jacob Fruitfield's brands - Chef, Fruitfield, Old Time, Little Chip, Kimberly and Mikado - have had a strong run this year, aided by the poor summer weather.
It had a 34.8 per cent share of the total biscuit market in August, a five percentage point increase on its figure in June.
The increase follows a significant increase in advertising and the launch of new products.
Mr Carey said its core brands have performed "very well", while the company was no longer distributing products for other food groups.
Jacob Fruitfield earlier this year outsourced its warehousing operation to a company called Ross Castle.
As a result, 34 staff left the company on voluntary redundancy terms.
The food group currently employs about 400.
