IRISH SNACK-FOOD group Jacob Fruitfield recorded an after-tax loss of €22.3 million last year relating to sizable once-off costs resulting from the closure of its manufacturing plant in Tallaght and the redundancy of about 220 workers. This compared with a deficit of €9.3 million in 2007.

Accounts just filed for Jacob Fruitfield Food Group Ltd, whose brands include Chef, Silvermints, Kimberley and Mikado, show that it booked restructuring costs of €23.6 million in 2008 relating to the closure of the Tallaght plant.

This included €10.3 million for “anticipated redundancy costs to be incurred in 2009”.

Jacob Fruitfield outsourced the manufacturing of the Tallaght products last year to the UK and Portugal. It retains a sales and marketing team in Tallaght and has manufacturing facilities in Drogheda and Cork. The company now employs about 100 staff in Ireland.

The food group also recorded an actuarial loss of €21.9 million on its pension scheme to leave it with a total loss for 2008 of €41.5 million. There was a deficit in shareholders’ equity of €31.1 million at the end of 2008 compared with positive funds of €10.4 million a year earlier.

Jacob Fruitfield’s turnover was flat at just more than €90 million while its operating profit declined by 21 per cent to €2.1 million.

The operating profit was hit last year by a €7 million exceptional cost relating mostly to provisions taken in regard to “onerous leases” on its former manufacturing properties on Blessington Road and Belgard Road in Tallaght.

These sites, and its plant in Drogheda, are owned by Westport Investment Property Fund plc, which has common shareholders to Jacob Fruitfield, including executive chairman Michael Carey.

Jacob Fruitfield pays €3.9 million a year in rent to Westport.

Commenting on Jacob Fruitfield's likely financial performance in 2009, Mr Carey told The Irish Times: "The benefits of the restructuring should be reflected in the accounts. The other side is that there's downward pressure on pricing with consumers getting better value for money."

He said the food company had reduced its prices by up to 20 per cent on some brands this year.

Mr Carey said Jacob Fruitfield’s earnings before interest, tax, depreciation and amortisation (ebitda) rose to €13.1 million last year from €10.7 million in 2007. Its ebitda is expected to increase further in 2009 as a result of the restructuring.

The accounts show that Jacob Fruitfield’s net debt stood at €34.8 million at the end of 2008 – almost €7 million higher year on year. In spite of this, interest payments fell to €2.8 million from €3.9 million in 2007.

Jacob Fruitfield’s four directors, including chief executive Séamus Kearney, earned just under €1.1 million last year, a rise of 7.5 per cent on 2007.

Mr Carey said biscuit consumption in Ireland had remained steady this year at about 24,000 tonnes. Jacob Fruitfield remains the biggest player with a one-third share of the market, while its Chef brand has a 30 per cent share of the ketchup sector.