Contributions from joint ventures in North America and Ireland helped boost pre-tax profits at food and agribusiness group IAWS by 20 per cent in the year to the end of July, the company reported yesterday. Barry O'Halloran reports.

Group turnover grew modestly to €1.28 billion during the year from €1.23 billion in 2003, while operating profit dipped to €81.3 million from €84.4 million.

However, a near 150 per cent increase in earnings contributions from joint ventures to €24.5 million from €10 million in 2003 boosted operating profits before interest and exceptional items by 13 per cent to €105.8 million.

Profit before tax for the year grew 20 per cent to €96 million from €80 million in 2003. Basic earnings per share increased along similar lines to 62.74 cent from 52.79 cent.

The company said the performance of its joint ventures and associated businesses were the key feature of the year. These include North American specialist bakery chain Tim Hortons, which IAWS said had increased its contribution significantly.

Swiss baker AG Hiestand, in which IAWS has a 22 per cent stake, had net income growth of 39 per cent in the six months to June, the Irish company said. Milling business Odlums and feeds supplier John Thompsons, also put in "good" performances, according to the group's statement yesterday. Overall, IAWS's food division accounted for 70 per cent of profits.

At a press conference chairman Mr Philip Lynch stressed that the Hiestand stake was strictly "strategic".

IAWS will act as the Swiss company's agent in the Republic and the UK, while it gives the Irish company a presence in central European and Asian markets.

"As far as buying out the balance of the Hiestand shares, we are not having any bad thoughts," Mr Lynch told reporters.

Chief executive Mr Owen Killian said the fall in group operating profits before the contribution from joint ventures was partly attributable to the fact that market conditions hit sales in its agricultural feeds and nutrition businesses.