Ireland’s two largest dairy processors, Glanbia and Kerry, have both posted strong results for 2001.
Both companies attributed some of their success to operations in the USA, where Glanbia saw turnover for its ingredients division soar 33% on 2000 to e553.8 million. Kerry’s turnover in the Americas grew 14% on 2000 to e801 million.
Glanbia also said that its Irish operations helped it achieve strong results. Turnover for the company’s Irish operations was up 11.4% on 2000 to e792.8 million. The group saw turnover for 2001 at e2.6 billion, up 9.3% on e2.4 billion for 2000.
Pre-tax profit for the period was up 24% on 2000 at e66.6 million.
However, Glanbia said it was held back in 2001 by its meat and foodservice businesses. Presenting the results, Glanbia managing director John Moloney did not rule out selling the meat business. He said that a new contract for the foodservice division would see it return to profitability in 2002.
Speaking to Dairy Industries International, Moloney set out Glanbia’s targets for 2002. He said that the company was looking to further reduce its borrowings, which in 2001 dropped 17.5% to e242.6 million. He also said that the company was seeking to increase its profit margin from 3.6% for 2001 to 4% for 2002.
Kerry’s group turnover rose 14.5% to e3 billion in 2001, withthe company seeing its operating margin rise to a healthy 9.1% in 2001 from a level of 8.9% in 2000.
In a statement, Kerry Group managing director Hugh Friel said: “In 2001, we comfortably undertook a wide range of business developments and acquisitions. With the ongoing consolidation of the global food industry complementary acquisition opportunities will continue to arise”.
In 2001, Kerry spent e617 million on acquisitions. Its major deal in Europe was the e391 million purchase of Irish dairy processor Golden Vale, which was completed in September. Since then, Kerry has agreed the sale of Golden Vale’s Bailieboro milk processing business for e33 million. It is also in discussions to sell Golden Vale’s Artigarvan milk processing business in Northern Ireland.
The company continued to grow in the USA, where sales in 2001 on continuing operations were up 8.3% on 2000 to e762.3 million.