KERRY GROUP SEEING COMPETITION FROM OWN BRAND PRODUCTS - Kerry Group has reported pre-tax profits of €335.8m for 2009, up 6% on the previous year despite what the company called the challenging economic conditions. Annual revenues at the company fell by 4.8% on a like-for-like basis to €4.5 billion. However lower raw material costs and restructuring initiatives meant that business volumes showed a gain of 2.2%. Kerry said it is increasing its final dividend by almost 11% to 17.3 cent.
Kerry Group chief executive Stan McCarthy says the competition its brands face from offerings from Aldi and Lidl is substantial. He says the recession has hit Irish consumers, but adds that the group has invested in repositioning its brands in the Irish market.
He says the company's ingredients and flavours business is truely a global business, stretching from the Americas, Asia, Europe and Ireland. He says the company has had great success with the unit, which is essentially a technology-based business. He says the unit has seen some challenging conditions, and have divested some of the non-contributing elements.
On Ireland, Mr McCarthy says the big brands like Denny and Shaws lost out to private label offerings in a very challenging market. He says the firm had a lot going on with the integration of Breeo, which has changed as year progressed. He also says that Kerry Group faced challenges on the currency front during the year.
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MORNING BRIEFS - Toyota has said it is facing a criminal investigation in the US, into its handling of the safety problems that led to millions of its best selling models being recalled. The admission follows disclosure of documents in the US which show Toyota sought to thwart a safety investigation in 2007. Toyota's chief executive has travelled to Washington where he is due to testify before the US House Oversight and Government Reform Committee tomorrow. Toyota faces a host of US lawsuits linking its defects to more than 30 deaths in class action suits that could cost it billions of dollars in damages.
*** Independent News & Media's Australian subsidiary APN has reported after tax profits of A$94.2m for 2009 - a fall of 34% - for 2009. Revenues fell by 14% to A$1.03 billion. The results were in line with expectations. The Indo group has a 32% stake in the Australian firm.
*** On the currency markets, the euro is worth $1.3624 US cents and 87.75 pence sterling.
