Restructuring played part in Unilever's €9.8m loss-report

RESTRUCTURING COSTS at the Irish arm of consumer food giant, Unilever last year contributed to a €9.8 million loss, new figures show.

Accounts just filed with the Companies Office by Unilever Ireland (Holdings) Ltd, show the company recorded the loss after taking account of an exceptional charge of €7.1 million relating to restructuring, including severance payments.

Sales slipped marginally over the year to €247.7 million from €248.4 million in 2009.

Overall, the figures show that the company recorded the pre-tax loss of €9.8 million, slightly better than the €10.6 million figure recorded in 2009.

Directors reported that the company “saw decline in underlying turnover for the third consecutive year” and “In order to ensure the future success of the business, we announced a significant restructure”.

The numbers employed last year dropped from 238 to 210, with staff costs decreasing by 10 per cent to €20.1 million.

In their report, the directors state that the restructuring programme included significant redundancies across all functions as well as structural changes to distribution in the ice cream business.

“As a result of these changes, we delivered significant improved profitability in 2010,” the report stated. Unilever’s brands include HB ice-cream, Ben & Jerry’s, Carte D’Or, Hellman’s, Bovril, Flora, Lyons Tea, Slim Fast, Knorr, Lynx, Sure, Dove, Radox, Vaseline, Timotei, Persil, Surf, Comfort and Domestos.

The company says that the “local economic outlook remains challenging but the continued ability of the company to adapt to these conditions remains firmly positive”.

The accounts also confirm that Unilever Ireland (Holdings) Ltd paid a €171 million dividend to its most immediate parent, Unilever Overseas Holding Ltd last year.

The figures show that the company received dividends of €51.6 million from Lyons Irish Enterprises Ltd; €33.6 million from Unilever Ireland Ltd and €9.9 million from Lyons Irish Holdings Ltd.

Shareholder funds at the end of 2010 stood at €184.1 million.

The figures show that 87 per cent of the company’s revenues are generated in Ireland.

Directors’ remuneration for management services last year dropped from €756,000 to €415,000.