Food group Kerry has reported pre-tax profits of €175.2m for the first six months of this year, up 8% from the same period last year.
Underlying sales rose by 8.4% to €2.6 billion, while adjusted earnings per share rose by 9.7% to 86.8 cent and the interim dividend has been increased by 11.4% to 9.8 cent.
Chief executive Stan McCarthy described the performance as 'solid', as it came despite significant increases in the group's raw materials costs. He said Kerry was sticking to an earlier target of 8% to 12% growth in adjusted earnings per share for the full year.
Kerry said, however, that the UK and Irish consumer foods markets remained tough, due to strong retail competition.
The group said it managed to make savings and pass on some increased costs to its customers. Raw materials costs rose by 11% from a year earlier.
The ingredients and flavours business maintained a margin of 9.2%, but the margin in the consumer foods business fell to 6.8% as competition in the Irish and UK food sector limited price rises to customers.
Revenue in the ingredients and flavours business rose by 9.6% to €1.97 billion, with strongest growth in the Asia-Pacific market, while profits increased by 9.7% to €181m.
Consumer foods revenue was up 5.3% to €944m, with profits climbing by 6% to €64m. Sales volumes were up 2%, with 3% growth in the UK but a 1% drop in Ireland.
Kerry said it made a number of small acquisitions in the US, UK, Argentina and India during the first half at a total cost of €40m.
