Irish firm Kerry reports first-half profits rise

Eurofood, Sept 27, 2001

Irish food firm Kerry has released its half-year figures, which included a 9.3% increase in its pre-tax profits to 78m [European Dollar] compared to 71.4m [European Dollar] in the first-half last year.

Group sales for Kerry stood at 1.34bn [European Dollar] compared to 1.26bn [European Dollar], with operating profits up to 107.8m [European Dollar] from 101.3m [European Dollar], an increase of 6.5%.

These improvements in Kerry's performance came about despite tight margins in the US, which accounts for 30% of growth and 40% of the Irish concern's profits.

Kerry released a statement, which read, "In a more demanding trading environment in the first half of 2001, Kerry maintained its growth momentum while continuing to improve operating margins and to invest in a range of strategic business development initiatives throughout all group core businesses."

Turnover was up in all key markets. In Ireland, operating profits increased 3.4% to 18.9m [European Dollar], in Europe up 6.4% to 404m [European Dollar], and in the Americas up 8.4% to 44.7m. In the US, profits were significantly boosted by the strength of the US dollar. Asia-Pacific was the only region in which Kerry reported no sales growth, with sales flat at 64.5m [European Dollar].

Kerry also said it now has around 88% of the share capital of Golden Vale, the Irish dairy and consumer foods group.

The two firms agreed a takeover in June valued at 238.7m [European Dollar].