Food group Kerry has reported pre-tax profits of just under €298m for last year, up from €268.6m in 2004, as sales grew by 7% to €4.4 billion. Chief executive Hugh Friel described the performance as solid, saying 2005 had been a challenging year for the global food industry as raw material and energy costs jumped.
Adjusted earnings per share rose by 7% to 131.6 cent and a 15.8% higher final dividend of 11 cent has been declared. Excluding acquisitions, sales were up 4%, while trading profits increased by 7% to €380m.
Sales in the food ingredients business rose by 9% to €3 billion, with profits also up 9% to €284m. This reflected sales growth of 9% in Europe, 8% in the Americas and 16% in Asia.
In the consumer foods division, profits increased by 4% to €123m on 4% higher sales of €1.7 billion. Kerry said this was achieved against a background of static food prices and further consolidation of the grocery market in the UK. The company also said the overall UK frozen ready meals market shrank by 15% 'due to consumer concerns regarding quality issues'.
Kerry said it expected its 2006 results to be in line with market expectations.
Kerry shares closed nine cent lower at €18.56 in Dublin this evening.
