Cereal giant Kellogg's made more than €12m (US$14.1m) from it's Irish operations in 2004, a rise of 28%, according to the Irish Business World website.

At the same time, the group's new European headquarters in Dublin incurred a deficit of €23.19m before tax in respect of start-up costs in the six months after its incorporation in June 2004, it said, citing a report in the Irish Times.

The Kellogg Company of Ireland, which employs 37, reported that its turnover rose €75.82m in 2004 from €74.62m. This represents the overall value of its cereal sales to wholesalers throughout the Republic.

The company's profitability was helped by a reduction in the cost of sales to €46.06m from €48.71m.

The company paid tax last year of €1.63m, bringing its post-tax profit for the year to €10.33m.

It had €28.28m in retained profits at the end of the year.