Kerry Group posted a strong set of results for 2002 yesterday, as earnings grew by nearly 16 per cent, and it also announced its first acquisition of 2003.
The company has acquired SunPure, a Florida-based manufacturer of natural citrus flavours and ingredients, for $68 million (€63 million).
It also announced that its chairman, Mr Denis Brosnan, will retire later this year. Mr Brosnan, who only took up the post in January last year after he stepped down as managing director, will be replaced by Kerry's vice-chairman Mr Denis Buckley.
Kerry's managing director, Mr Hugh Friel, said when Mr Brosnan retired from that position he agreed with the board to stay on for a period of time to oversee the transition.
"It has been a seamless transition. It went very smoothly and now he feels it's time for him to make the final break and move on," Mr Friel said.
Meanwhile, Kerry reported a 25 per cent rise in turnover to €3.8 billion, boosted by the large number of acquisitions made in recent years.
Like-for-like sales were up by 6 per cent while operating profits before goodwill and exceptional items increased by 17 per cent to €305 million.
Kerry's Irish operations accounted for 37 per cent of turnover as sales rose by 56 per cent to €1.4 billion and operating profits jumped by 39 per cent to €62.6 million, reflecting a full-year contribution from the Golden Vale businesses acquired in 2001.
In the rest of Europe, operating profits were up by 11 per cent to €109.6 million as turnover rose by 9 per cent to €1.3 billion, despite lower economic growth in the main consumer markets.
Sales in Kerry's American markets were up by 18 per cent to €945 million, while operating profits grew by 14 per cent to €120.5 million. The Asia-Pacific region delivered a 7 per cent rise in sales to €143 million and operating profits of €12.7 million, a 10 per cent rise.
Overall, the group operating margin slipped to 8.1 per cent from 8.7 per cent a year earlier, reflecting in part the acquisition of the lower-margin Golden Vale business.
"The strong performance of the group in 2002 is most encouraging and was achieved across all businesses and territories," Mr Friel said. He added he was confident of a good outcome in the current year.
Adjusted earnings per share were up by nearly 16 per cent to 101.8 cents while the company announced a 16 per cent increase in the final dividend to 7.85 cents.
Analysts said the results were much as expected and left Kerry solidly positioned to deliver 2003 earnings forecasts.
