Food ingredient and dairycompany Kerry Group today reported a 22 per cent jump in2002 profits after tax to €189 million ($203.2 million) onthe back of buoyant sales growth. Total sales grew by 25 per cent last year to €3.8 billion, reflecting a solid performance in the Americas as well asIreland. Like-for-like sales growth came in at 6.0 per cent.
The Tralee-based company also reported a strong performancein Europe, "despite lower economic growth in the main consumermarkets".
Kerry said the trading outlook for 2003 was good and it wasconfident of meeting market expectations.
This morning, Kerry shares traded up 0.88 per cent at €11.50in a generally sluggish market.
"The results are as solid and reliable as ever," said Mr LiamIgoe of Goodbody Stockbrokers.
Over the course of 2002, Kerry continued its strategy ofpurchasing small bolt-on companies, spending €273 millionin total, including the leading US manufacturer of naturalcitrus flavours and ingredients, SunPure.
"This gives Kerry a good position in the beverage segment ofthe flavours market, which is the largest," Mr Igoe said.
Although no significant acquisitions are now on the cards,Finance Director Mr Brian Mehigan said Kerry would "continue toaddress those areas where we think there are opportunities".
Pre-tax profits dropped 16.3 per cent to €159 million,hit by a €55 million exceptional charge relating torestructuring costs after the spate of acquisitions.
Operating profit increased by 17 per cent to €305 million, while adjusted earnings per share increased by 15.8percent to €101.8 cents, in line with market expectations.
Group operating margins fell to 8.1 per cent from 8.7 per centin 2001, largely due to the acquisition of Golden Vale in late2001. And the company also reported record cash flow of €232million.
Kerry also announced a final dividend per share up 16.3per cent at €7.85 cents.