Profits up 44% at Kellogg's

THE IRISH subsidiary of cereal giant Kellogg’s increased its pre-tax profits by 44 per cent to €31.3 million in 2007.

According to accounts recently returned to the Companies Office, Kellogg Europe Trading Ltd recorded sales of €1.46 billion in 2007.

Kellogg’s established its Irish base in Swords, Co Dublin, in 2004 to serve the company’s European operation. The principal activity of the Irish subsidiary is production and marketing of ready-to-eat cereals and related foodstuffs in Europe, Africa and the Middle East.

The accounts show the firm’s operating profit increased from €106 million to €110 million in 2007 as it reduced the cost of sales by €24 million to €986 million.

The directors anticipate mid-single-digit growth in turnover in 2008 and high-single-digit growth in operating profit, generated via improving pricing and product mix, with increased marketing support to generate more sales.

The accounts show that the UK accounts for the largest proportion of the company’s sales – €780 million, or 53 per cent – compared to €682 million or 46 per cent in Europe.

The company employed 101 staff during 2007, with staff costs coming to €36 million. The accounts show that directors’ emoluments came to €2.54 million.

Kellogg’s is headquartered in Michigan, and was established in 1906. Today it employs almost 32,000 people, manufacturing in 19 countries.