Food group Kerry has reported pre-tax profits of €298m for the year ending December 2007, a 35% increase on the previous year despite higher costs for raw materials.
Revenues for the year rose by 6.7% to €4.8 billion while adjusted earnings per share were up 7.4% to 143.8 cent. The board is recommending a final dividend of 13.9 cent per share, which will bring the total dividend payment for the year to 20 cent per share, up 11.1% on the previous year.
The group said it recorded a 'solid' group wide performance and good organic growth in 2007, as unprecedented raw material and energy related cost increases posed serious challenges for the global food and beverage industries.
It added that it has made a good start to 2008 and expects to grow earnings for the full year within a range of 151 to 155 cent per share.
Kerry said that trading profits at its ingredients and flavours business rose by 7.6% to €310m, while revenues rose by 7.8% to €3.310 billion.
Revenues at its US operations grew to €1.31 billion, up 7% on the previous year while the company reported considerable progress in broadening its 'go-to-market' strategy to include all the group's food and beverage ingredients, bio-science and flavours businesses operating in American markets.
The company's European ingredients and flavours division saw sales growth of 4.6% to €1.339 billion despite substantial raw material cost inflation and an 'intensely' competitive trading environment.
Kerry said the growth in consumer demand for natural products and health ingredient lines continues to provide favourable growth opportunities for its enzymes facility in Ireland, through assisting food processors in salt, sugar, fat and allergen reduction.
The group said that the significant upturn in international dairy market conditions in 2007 led to a substantial increase in returns to milk producers and a good recovery in dairy processor margins. Increased global demand for diary products, along with low inventory levels, contributed strongly to the market improvement and the performance of Kerry's Irish milk processing operations.
Kerry said its Asia-Pacific markets showed excellent results and strong regional market development last year. Sales revenue rose by 17% to €425m.
Despite higher input cost inflation and a highly competitive Irish and UK market, Kerry's Consumer Food division delivered a 'robust' performance last year. Sales revenue grew by 5.6% to €1.819 billion while trading profits were up 6.4% to €119m.
In Ireland, the Denny brand delivered a good overall performance. The Ballyfree range also outperformed growth in the white meats market.
Kerry said its food-to-go brands saw another strong year of growth last year. Pre-packed and deli-made sandwich markets continued to grow, with Freshways still the number one pre-packed sandwich brand here.
The company's bottled water and cheese and spread products also performed well last year, the results statement said today.
'Our focused strategy, successful business model and strong management resource gives us full confidence in the group's ability to deliver sustainable revenue and earnings growth in 2008 and beyond,' commented Kerry's new CEO Stan McCarthy. Mr McCarthy took over the reins at the company in January after the retirement of Hugh Friel.
'Kerry holds an unrivalled position as a leading ingredients and flavours supplier to the food and beverage industries globally and our consumer food business in the UK and Ireland have successfully attained leading brand positioned and consumer preference,' he added.
Kerry shares closed up 30 cent at €20.65 in Dublin.
