RESULTS: Strong growth in its consumer foods business helped foods group IAWS turn in a strong set of first-half results, with pre-tax profits before exceptional charges up 20 per cent to €21.9 million and earnings per share up 24 per cent to 14.35 cents. The results were ahead of analysts' forecasts and full-year projections have been revised upwards.
The first half of the year accounts for a minority of IAWS's business but the results show the increasing focus on consumer foods, with sales in the half-year up 23 per cent to €328 million. Sales of the group's nutrition and agribusiness products increased 7 per cent to €253 million. Food now accounts for 56 per cent of IAWS total sales compared to 53 per cent in the same period last year.
The food operations benefited from a first full six-month contribution from the La Brea bakery business in the US while, in the Republic, Cuisine de France and Pierre's continued to grow their business, as did Cuisine de France and Delice de France in Britain.
In North America, production from the new Cuisine de France bakery in Canada is set to begin in July. Finance director Mr David Martin said the bakery - the first element in the joint venture with the Tim Hortons restaurant chain - will reach full production in early 2003 when it will service the Tim Hortons restaurants in Canada and the Cuisine de France operations in Illinois, Wisconsin and Michigan.
A poor harvest and the outbreak of foot-and-mouth disease hit IAWS's fertiliser business in Britain.
Animal feed volumes were unchanged during the half-year, while the protein and oils business benefited from improved fish landings and more stable fishoil and fishmeal prices as a result of fishing bans in South America.
On the balance sheet, borrowings almost doubled to €308 million, reflecting the high level of capital investment, but interest charges in the first half were covered 3.3 times by operating profits.
The half-year results include a €5.5 million exceptional charge as a result of the closure of the Bolands flour mill and the sale of the Sheriffs grain business in Britain.
The closure of Bolands was part of an arrangement that saw IAWS take a 24.9 per cent stake in Greencore's Odlums flour business, with the transfer of Bolands production to the Odlums mills.
