Tomato ketchup market leader here Heinz Ireland "squeezed" additional operating profits from its Irish business to increase to €5.72m last year despite inflationary pressures.
The firm, HJ Heinz Company (Ireland) Ltd, operates all Kraft Heinz brands on the island of Ireland and says that last year it increased its share of the tomato ketchup market in the Republic of Ireland to 58.1%.
The company's operating profits increased by 5.5% to €5.72m in the 12 months to December 25 last.
This follows revenues rising by 4.5% from €42.13m to €44.02m.
The directors state that the business in 2021 "experienced higher than expected commodity prices largely due to inflationary pressures".
"We expect this cost inflation to remain elevated through at least 2022," the directors say.
"Although we take measures to mitigate the impact of this inflation through pricing actions and efficiency gains, if these measures are not effective our financial condition, operating results and cash flows could be materially adversely affected," they add.
They also state that the company saw overall growth in 2020 "due to distribution increases in the discounter channel and a rebound in the foodservice market due to the staged re-opening of the industry following the Covid-19 pandemic in 2020".
The company's pre-tax profits declined by 19% from €5.94m to €4.79m due to interest costs rising sharply from €30,000 to €936,000.
The US headquartered firm last year paid a dividend of €5m.
The directors state that the company increased its market share of mayonnaise in the Republic by 1.8%t to 8.3% while its market share of baked beans rose by 1.2% to 34.9%.
The directors state the company's market share of canned pasta reduced by 1.2% to 87.9% "due to competitor activity".
"Canned pasta is expected to regain market share in 2022," they add.
The directors state that since February of this year the invasion of Ukraine has brought about macroeconomic instability across the globe.
"To date, we have not seen a material impact on the operations of this company; however, the directors continue to monitor the situation," they noted.
The company recorded post tax profits of €4.1m after paying corporation tax of €682,000.
At December 25 last, the firm had accumulated profits of €4.49m.
Numbers employed reduced by two to 15 as staff costs totalled €2.75m. Staff costs include directors' pay of €407,000.
Reporting by Gordon Deegan
