Kerry posts upbeat results for 2001

IRELAND – Irish food multinational Kerry group reported solid results for 2001 this week, with earnings up 11.7% on 2000 to 221 million euro.

Pre-tax profit was up 9.6% on 2000 to 189.7 million euro and the company’s operating margin also rose, from 8.9% in 2000 to 9.1% in 2001.

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 617 million euro on acquisitions. The company bought several European ingredients suppliers. Its major deal in Ireland was the 391 million euro purchase of dairy processor Golden Vale, which completed at the end of September. Since then, Kerry has agreed the sale of Golden Vale’s Bailieboro milk processing business for 33 million euro. Kerry is also in discussions to sell Golden Vale’s Artigarvan milk processing business in County Tyrone, Northern Ireland.

In Ireland, Kerry’s existing businesses saw 2001 sales rise 6.4% on 2000. Sales in Europe grew 2.6%.

The company continued to grow in the USA, where sales in 2001 on continuing operations were up 8.3% on 2000 to 762.3 million euro. It grew its flavouring business through the acquisition of American flavour provider the Geneva Group. Kerry also bought American soy product specialist Iowa Soy to add to its soy products for the health and nutritional foods industries in the USA.

Kerry says that its Brazilian based factories have helped it to capitalise on the trend towards convenience foods in the Brazilian and South American markets. In 2001 this was helped by growth in cheese and dairy flavouring systems, meat seasonings, coating systems and speciality lipid powders.

In the Asian and Pacific regions, Kerry saw profits for 2001 down 6.1% on 2000 at 11.4 million euro. The company blamed this on a reduced level of profitability in the Australian food industry. It also said that weak economic conditions in Asia were accentuated by the group’s capacity limitations in the first half of 2001.

Looking ahead to 2002, Kerry said that its acquisitions will bring strong growth to the group and that current trading is in line with expectations.