FOOD GROUP Jacob Fruitfield increased operating profit, before exceptionals, last year by 16 per cent to €5.7 million, reflecting the benefits of a restructuring of the Tallaght-based food business.
Accounts just filed show that its turnover was flat at €90.6 million while after-tax losses narrowed to €9.3 million from €10.1 million in 2006.
The company booked an exceptional charge of €11.2 million last year, compared with €12.3 million in 2006. These related to redundancy costs and finance charges.
Jacob Fruitfield's interest bill for 2007 was €3.9 million, down from €9.3 million a year earlier.
Speaking to The Irish Times, Jacob Fruitfield chairman and majority shareholder Michael Carey said its plans to end manufacturing at its Belgard Road plant in Tallaght were on track. Production will end in April next year with the loss of 220 jobs.
"We've agreed a package with the employees of in excess of €10 million," he said.
Production of its Fig Rolls and Mallows will be outsourced to joint venture operations in Britain, Portugal and Malta.
Jacob Fruitfield will continue to employ 100 staff in Ireland. It will retain a head office in Tallaght, a jams and sauces facility in Drogheda and a biscuit plant in west Cork. Mr Carey said he was confident that Irish shoppers would continue to support the company's brands, even though most will soon be produced abroad.
"The fact that we are maintaining control of the manufacturing process and that they will be our recipes means that the products will continue to be the traditional ones that consumers have enjoyed.
"We are not walking away from Ireland. We are still an Irish business. Unfortunately, the reality is that we had an inefficient, under-utilised manufacturing facility in Tallaght.
"We are probably one of 15 companies that has rationalised its manufacturing facilities here in recent years.
"At the end of the day, the Irish consumer won't overpay for their products . . . we have to be efficient."
Jacob Fruitfield was split into two companies in January 2007, with its property assets spun out into an entity called Westport. Both businesses are owned by the same shareholders. This move reduced Jacob Fruitfield's debt by €41 million and left it owing €30 million.
Westport now owns two sites in Tallaght - 11 acres at Blessington Road, which is rented to a third party, and 20 acres at Belgard Road. It also owns property in Drogheda, Cork and Donegal.
