Unilever books once-off profit of €50.23m on plant closure

CONSUMER GOODS giant Unilever has booked a once-off profit of €50.23 million on the closure of a manufacturing plant in Inchicore, Dublin, which resulted in the loss of about 125 jobs last year.

The profit on the sale of the plant to businessman David Kennedy contributed to a rise in pretax profit to €71.06 million, from €26.62 million. The Irish business did not pay a dividend to its parent last year.

The producer of Lyon's tea, Knorr soup, HB ice cream and Hellmann's mayonnaise reported an operating profit of €6.47 million for 2007. This was in contrast to an operating loss of €12.39 million the previous year, a figure which took account of exceptional charges linked to the sale in 2006 of its Birds Eye unit.

Unilever Ireland (Holdings) introduced an average price increase of around 4 per cent this year on foot of rising prices for oil and raw materials.

Ronald Drieduite, managing director of the Irish unit, said the company will decide before the end of March next year whether prices will be increased again, but said such a move looked "less likely" at present.

"If we need to take it and there is a clear cost price increase, then we will increase prices," Mr Drieduite said.

In addition to its food brands, Unilever's portfolio of consumer products also includes deodorant brands Sure and Lynx, skincare brands Dove and Vaseline and household products Persil and Domestos.

The company is the biggest Irish advertiser, with an annual spend of some €22 million. The business will continue that level of spending as the economy goes through recession, Mr Drieduite said.

Turnover from continuing operations rose to €312.23 million in 2007, from €311.75 million.

Following a number of restructuring initiatives in recent years, the Irish business has seen the number of staff in employment fall from 707 in 2004 to 387 at the end of 2007.

This included the elimination of 55 jobs when the company outsourced its field sales operation to McCurrach Selling, which employs 61 staff in its Unilever business.

"The transfer of activities to the outsourced company is progressing according to plan," Unilever said.