Kerry hits earnings target despite weak dollar

Food company  Kerry Group met its target of double-digit earnings growth for 2003 despite the negative impact on profits from…

Food company  Kerry Group met its target of double-digit earnings growth for 2003 despite the negative impact on profits from the weak dollar.

Kerry, which has undertaken a number of successful bolt-on acquisitions over the past year, reported a 10.1 per cent jump in adjusted earnings per share to 112.1 cents.

"Currency was the big issue and there were no surprises here," said Mr Liam Igoe, analyst at Goodbody Stockbrokers.

"In terms of sterling transactions there was some impact on the poultry and ready meals business Kerry has in Ireland," he added.

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The Tralee-based company, which operates in the three main areas of specialized food ingredients, food flavourings and chilled fresh food, earns just over a third of group profits in the United States.      It said dollar and sterling weakness had "significantly impacted" profits and sales in the US and British markets when translated back into euros.

"Market development continues through a strong pipeline of acquisition opportunities and, at current currency exchange rates, we are confident of meeting market earnings expectations in 2004," managing director, Mr Hugh Friel, said in a statement.

Analysts said the possibility of further purchases could boost earnings momentum this year.

Kerry, which spent over €200 million on acquisitions last year, reported a 10.3 per cent rise in adjusted profits after tax to €208 million .

Like-for-like sales growth came in 4.6 per cent higher than the previous year and the company raised its dividend per share by 10 per cent to 12.65  cents.