Brennan Bakeries: Sales rose but profit declined

Dublin / IE. (bb) The Irish Joseph Brennan Bakeries Ltd. made lots of bread last year although not as much as in 2006, according to a company statement. The Irish media says that sales at the maker of sliced pan, brown and white bread, traditional batch and brown soda rose by 15 percent to 62,2 million EUR in the year to the end of December 2007 but its pre-tax profit declined to just under five million EUR from 5,4 million EUR a year earlier due to a sharp rise in administration expenses. The breadmaker´s administration costs rose by 21 percent during the year to 10,3 million EUR. In spite of the drop in profits, its tax bill rose to 845’378 EUR in 2007 from 567’251 EUR a year earlier. This was due a 237’782 EUR charge in relation to non-deductible expenses and a 136’758 EUR depreciation cost. The company´s profits are taxed at ten percent, a rate that applies to manufacturers. Accumulated profits widened to 15,7 million EUR at the end of 2007, up from 11,5 million EUR a year earlier. No dividend was paid to the Brennan family, who controls the business.