The French owner of Irish Biscuits today confirmed it is in talks over a possible sale of the unit.
Announcing a first-half year net profit today, food group Danone said in a statement that: "These discussions may or may not lead to an agreement but are advanced enough for the group to adjust the value of its assets in its accounts."
Danone said a further statement would be made once these talks reach conclusion. Irish Biscuits, which produces the Jacob's brand of biscuits, was formed following the merger of Jacob's and Boland's Biscuits.
Despite being the world's second-largest producer of biscuits, Danone is thought to be considering a sale of the Irish Biscuits because of a strategic review of its biscuit operation in all markets.
Irish biscuits employs 450 people in Tallaght, Co Dublin.
Danone's biscuit division has been performing poorly recently. Danone reported an 8.2 per cent rise in first-half net profit this morning, sustained by sturdy mineral water and dairy food sales, and reaffirmed its full-year outlook.
Nonetheless, earnings came in below consensus forecasts. Danone reaffirmed its aim for a 40 basis point increase in its operating margin and nudged up its expectations for underlying sales growth to "the upper part" of its 5-7 per cent forecast range.