C&D Foods doubles its operating profit

LONGFORD-BASED pet food manufacturer C&D Foods doubled its operating profit last year as sales moved back towards levels achieved before a fire in 2006 closed a large part of its operation.

Accounts just filed for C&D Foods Ltd show that its operating profit in 2007 was just under €4.5 million. This compared with about €2.4 million in 2006.

Its turnover rose by 45 per cent to €87.9 million from €60 million in the previous year.

Before the fire it had annual sales of more than €100 million.

"The group increased its capacity in pouch manufacturing in 2007 and, in January 2008, commenced work on a new factory to further increase capacity and reduce operating costs," its directors' report said.

The expansion is expected to be completed during the first quarter of next year, the report adds.

C&D Foods is now jointly owned by Philip Reynolds, a son of former taoiseach Albert Reynolds, and beef baron Larry Goodman following a deal agreed this year.

In terms of its 2007 pretax profit, C&D's surplus for the year declined to €4.3 million from €6.3 million in 2006, when it booked a €4.4 million exceptional gain.

According to the accounts, the operating profit included a "business interruption insurance compensation" gain of €1.9 million in 2007. This was after the deduction of redundancy and other costs. The equivalent figure in 2006 was €3.4 million.

In addition, a "fire insurance compensation in excess of book value of assets destroyed" of €49,431 was booked in 2007. The equivalent figure in 2006 was €4.3 million.

"Further fire insurance compensation of €2.5 million may be received if certain conditions are met," say the accounts. "The receipt of this additional sum is considered to be probable but not certain. Accordingly, it has not been recognised as an asset in these financial statements."

No dividend was paid by the company in 2007. It had accumulated profits of €29.5 million at the end of last December.

C&D Foods employed 322 staff last year, a reduction of 11 on 2006. Its total staff costs amounted to €12.4 million, up from €11.3 million in 2006.