Pre-tax profits at the Irish unit of tomato ketchup maker Heinz last year almost doubled to €10.19m.
New accounts show that increased sales of the brand's tomato ketchup contributed to revenues at H.J. Heinz Company (Ireland) Ltd increased by 7% from €58.13m to €62.26m in the 12 month to the end of December 28 last.
The pre-tax profits of €10.19m are an 88% increase on the pre-tax profits of €5.39m in 2023.
The firm - which is engaged in the sale, marketing and distribution of food products on the island of Ireland - paid out dividends of €5m on the back of the strong company performance.
The directors state that the company’s €62.26m in revenues increased on 2023 "due to investment in pricing and marketing driving volume growth in sauces in the retail channel".
The directors also state that revenues increased due to improved performance in oriental and pasta sauces driven by distribution wins and innovation along with strong performance in Northern Ireland in the "Away From Home" channel.
The directors state that the grocery trade "continues to be highly competitive with a number of strong indigenous and international brands across the various sectors in which the business operates".
They also state that the company had a good performance in 2024 and during the year, the company’s value share in the Republic of Ireland market increased in core categories including canned beans and tomato ketchup whilst improved pricing competitiveness saw volume share grow in mayonnaise and ambient soup but with a small decline in value share.
The "Away From Home" channel continued to grow, driven by tomato ketchup, beans and other sauces, albeit at a slower rate than recent years, as mayonnaise declined on 2023, they said.
"We also saw positive results in profit driven by operational savings in procurement, general cost reductions and sales mix," they add.
In 2025, the directors are expecting to grow Ireland net sales in value on 2024 through volume increase and optimisation of pricing and promotional plans.
They state that "volume growth will come from investment in price and marketing as well as innovation in core business and new adjacent categories like pasta sauces as well as whitespace opportunities in the Away from Home channel".
"Overall, we expect to deliver volume and value share growth with beans, soup, mayonnaise and ketchup as the main drivers," they add.
The company’s operating profits increased by 80% from €4.99m to €8.97m and more than a doubling in interest payments received of €1.2m resulted in the pre-tax profit of €10.19m.
The company recorded post tax profits of €8.84m in 2024 after incurring a corporation tax charge of €1.35m. The profits take into account a foreign exchange loss of €1m.
At the end of December 28 last, the firm had accumulated profits of €10.95m.
Numbers employed increased by seven to 24 as staff costs decreased from €3.76m to €3m. Staff costs include directors’ pay of €622,000 made up of emoluments of €583,000 and pension contributions of €39,000.
Reporting by Gordon Deegan
