REVENUES AT the main Irish arm of consumer products group Procter & Gamble almost halved last year as the company recorded a €4.5 million pretax loss.
Procter & Gamble (Manufacturing) Ireland Ltd closed its Carlow plant last August with the loss of 167 jobs. The closure was the chief factor in revenues declining by 41 per cent from €91.7 million to €53.3 million in the 12 months to the end of June 2010.
The directors’ report states that the Carlow plant was shut down following a study that concluded it was no longer viable with its current level of activity.
The accounts show that the company paid out €8.5 million in redundancy costs last year which followed €18.6 million in redundancy costs in 2009.
The move to transfer its Carlow business to sister plant at Newbridge secured 103 jobs – in total, 468 are employed at the Newbridge plant. The company’s Newbridge plant is the group’s European, Middle East and Africa source of choice for manual oral care.
The directors confirm that an additional 82 temporary staff have been taken up at the Newbridge plant where operations are running seven days a week with productivity up on last year.
The directors also confirm that the Newbridge plant successfully bid last year for P&G’s heritage toothbrushes from a sister plant in Germany.
The chief factor behind the pretax loss last year was €7.5 million written off in an investment in a connected company. The pretax loss last year of €4.5 million followed a pretax profit of €2.2 million in 2009.
The company had budgeted €28.6 million for the closure of its Carlow manufacturing plant in 2009, but it recorded a €4 million credit in the restructuring last year following a detailed review of the €28.6 million provision.
The drop in revenues was attributed to the wind-down of the Carlow operation where, in 2009, revenues generated totalled €39 million, compared to €4 million last year.
Accumulated losses last year stood at €43.5 million with shareholder funds standing at €165.5 million, following a capital contribution of €158.2 million and a share premium of €46.7 million.
Staff costs totalled €27 million compared to €26.7 million in 2009.
The figures show that 464 people are employed in production, 18 in administration, 13 in management and three in distribution.
The directors state: “The management of the company continue to bid for additional business and find opportunities for ongoing cost reduction to increase competitiveness and to maintain the 468 existing jobs in Newbridge.”
The Carlow site is currently for sale. “However, due to the downturn in the local Irish economy, there is a risk that we will not secure the asking price of the lands and buildings or that a sale will take some time to secure,” according to the report.
“In addition, a recent environmental study carried out on the Carlow facility indicated remediation work was required on the underground soil, which could have a significant cost impact to the company,” they add.
The company has provided for site costs of €1 million in 2010, this following a provision of €400,000 in 2009.
