Food group Kerry has reported pre-tax profits of €240m for the year ending December 2008, down from the figure of €298m in 2007.
The company posted a 7% rise in earnings and said it expected more growth this year despite consumers becoming more budget conscious. Earnings per share before intangible amortisation and non-trading items for 2008 rose to 153.9 cent, in line with average forecasts.
Like-for-like sales revenues rose by 6.3% to €4.8 billion despite 'the tremendous cost pressures and trends towards more value conscious food and beverage consumption' and taking account of currency movements, acquisitions and business disposals.
Kerry said its profit before tax and non-trading items rose by 2.3% to €317m, while profits after tax before amortisation and non-trading items rose by 4.4% to €269m.
The company said that it is recommending a final dividend of 15.6 cent per share, up 12.2% on 2007. Along with the interim dividend of 6.9 cent per share, this raises the total dividend for the year to 22.5 cent per share, up 12.5% on the total 2007 dividend.
Kerry said its ingredients and flavours unit performed well with revenues up 7.5% to €3.39 billion as trading profits rose by 8.9% to €320m. In American markets, the unit again achieved strong growth with sales revenue up 6.7%. Despite significant input cost pressures, the unit in Europe saw sales revenue increase by 4%.
The weakening economic landscape last year and the depreciation of the sterling/euro exchange rate resulted in trading conditions in the UK and Irish consumer foods markets become increasingly challenging as the year went on. Its consumer foods unit saw revenues grow by 5.4% to €1.77 billion, while trading profits grew by 5.1% to €120m.
Kerry said that as the credit crunch began to impact consumer spending, a significant contrast in consumption patterns quickly emerged as shoppers become ever more price and value conscious.
'We are confident of delivering earnings growth in 2009 to a range of 160 to 165 cent per share,' Kerry CEO Stan McCarthy said.
He said that the firm is well positioned from a technology and consumer understanding standpoint to lead industry product development needs in this time of change. 'In addition the group is well resourced financially to benefit from the business expansion opportunities which will inevitably emerge,' he added.
Shares in the firm closed up 10 cent at €14.70 in Dublin.
