DUBLIN: The Irish business of games giant Hasbro has reported increased profits for 2014 despite a substantial fall in sales.
The US firm’s Waterford manufacturing plant makes games largely for the group’s European market. It also acts as a contract manufacturer providing services for other smaller games companies.
Sales last year slid 15 per cent to €16.74 million from €19.7 million a year earlier, according to accounts. But the company still reported profit before tax of €1.34 million, up almost 10 per cent on the previous year.
The 2013 sales figure was itself dramatically up on the €15.9 million in sales secured in 2012.
Despite the improved profitability of the plant, accumulated losses jumped almost 50 per cent to €13.75 million as the company struggles with a deficit in its defined benefit pension schemes.
Hasbro operates two defined-benefit schemes for Irish staff. However, a decision was made to close both schemes to future accrual from the end of 2013.
An independent actuarial assessment of the schemes conducted for the company shows although the value of the pension assets rose more than 14 per cent last year to €52.7 million, they cover just 85.6 per cent of the benefits built up by Hasbro staff.
As a result the net deficit in the schemes rose to €7.7 million last year from €2.35 million in 2013, leading to a balance sheet actuarial loss of €6.5 million.
