Irish food group Greencore has reported profit before tax for the six months to the end of March up 38% to €35.4m, despite higher costs.
Overall turnover increased 8.2% to €478m compared to the same six months last year.
Greencore said its convenience foods division, which accounted for 80% of group operating profit in the first half, continued to perform well despite an 'inflationary environment'.
It said it maintained first half half profit margins (6.7% compared to 6.9% last year) despite 'significant raw material, packaging and labour wage inflation'.
Also going against the group are continuing lower sales prices and a fire in December at its largest manufacturing facility in Manton Wood, which resulted in lost production and significant disruption.
CEO David Dilger said the results reflect the 'significant momentum' evident in every part of the business.
He said the group's Malt business was bouncing back strongly, with the group adding real value to its 'significant' property assets in the six months.
'We are confident that Greencore will deliver a strong performance for the full year', he added.
The group said it expects continued progress in convenience foods, with 'acceptable' levels of profitability and beyond at Greencore Malt, in the second half.
Continuing adjusted earnings per share was up 32% to 12.1 cent and full year adjusted earnings per share is expected to exceed the currency market forecast by around 10%, Greencore said.
Speaking on RTE Radio, Mr Dilger said he would not want to overstate cost difficulties as the company had growth in all parts of the business, compared to the overall food market.
He said there was 20% growth in the firm's agri ingredients business and 8% growth at its convenience unit.
He said the company was making progress on its old Irish Sugar properties at Carlow and Mallow, and was developing mixed use developments that would transform the local community, although it is in the middle of a long drawn out political process.
Greencore shares closed up 13 cent at €4.87 in Dublin.
