Acquisitions boost Kerry in first half
business into prepared foods, foodservice and sepciality
ingredients contributed to a strong rise in first half sales and
profits at Ireland's Kerry group.
Irish consumer foods and ingredients group Kerry has reported a solid first half performance, helped by the addition of the Golden Vale business in Ireland which it acquired in September last year and byother interantional acquisitions.
Turnover for the half grew by 34.3 per cent to €1.8 billion, with like-for-like sales ahead 5 per cent. Operating profit before exceptional items was up 18.7 per cent to €128 million, while net profits after exceptionals were €77.4 million, up 23.4 per cent.
Sales by the group's Irish operations almost doubled to €627.1 million, boosted primarily by the acquisition of Golden Vale. European operations excluding Ireland increased sales by 10.5 per cent to €628.3 milion. The Kerry Foods division in Ireland was boosted by strong performances from pre-packed sliced meats, rashers, cheese and cheese-snacks, while the foodservice arm continued to improve since its launch last year.
The sale of two Irish dairies was completed during the half, but dairy margins remained under pressure because of the general downturn in international markets -a situation highlighted by Kerry's compatriot Glanbia earlier in the week.
New acquisitions and a shift towards the consumer foods market helped the European ingredients business to a excellent performance in the half, while solid growth in Eastern Europe helped the snack business to further growth.
Outside Europe, Kerry showed 22 per cent growth in the Americas where sales reached €473.5 million, boosted by a number of acquisitions in both the North and the South of the continent. In Asia, sales grew 9.9 per cent to €70.9 million after recovery in Australia and New Zealand, but the situation there remained difficult, the company said, because of the economic conditions. Despite this, the group continued to develop its business in the Philippines, China, Vietnam and Thailand.
The group said it was confident of a good outturn for the full year, with the integration of acquisitions continuing well and with growth opportunities in its core operations in prepared foods, snack and convenience products, culinary systems, food and beverage flavours, nutritional products and foodservice.
