Hibernia Foods, the Dublin-based manufacturer of frozen desserts, ready-made meals, and savoury products, has incurred a net loss of £7.9 million (€10 million) in the year ended March 31st 1999, compared with a net profit of £438,000 (€556,000) the previous year.
Several factors are deemed responsible: the seasonal losses during the first two quarters of an acquired company, the contribution from higher margin products - which were to have increased margins - was only available in the second half, the costs associated with development expenditure were absorbed but the benefits will not be felt until next year, and costs incurred in strengthening management. The benefits from these would be reflected this year, Hibernia said. Hibernia has a share quotation on Nasdaq. It has manufacturing facilities in north-east and southwest England.
Sales rose from £41 million to £64.2 million. This reflected the acquisitions. Operating costs increased from £5.29 million to £12.2 million. The operating loss amounted to £2.2 million compared with a profit of £1.6 million. The net assets were reduced from £13.7 million to £8.05 million.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)