BATCHELORS Foods and Green Isle Food, the foods businesses in the Republic owned by the Northern Foods group, earned operating profits of just on £10 million sterling in the year to March 31st on turnover of nearly £118 million.
The Irish figures include maiden contributions from Green Isle Food Group following its effective acquisition a year, ago. The frozen fish to pizza business, based in Naas, Co Kildare, contributed eight months profits of £7.1 million earned on £41 million turnover.
In 1994-95, before the Green Isle acquisition, the main Irish business of Northern Foods, Batchelors Foods, earned £3 million operating profits on turnover of some £41 million and yesterday's figures showed modest improvements for Batchelors in 1995-96.
Most of the stated increase in Irish profits and turnover is due to the first time inclusion of figures from Green Isle following the £25 million purchase by Northern Foods of an additional 43 per cent stake, lifting its interest to 79 per cent.
The Irish figures from Northern Foods confirm that Green Isle remains one of the fastest growing food business in Ireland earning nearly as much in eight months as it did in the whole of the previous year. Strong growth is continuing to be projected for the business.
Mr Haskins said. "Green Isle is the cornerstone of our development plans in frozen foods". Financial results of Irish operations were unveiled by Northern Foods for the first time yesterday as part its 1995-96 financial statements when it detailed results of its European activities outside the UK.
At present, these primarily concern Batchelors and Green Isle in the Republic, together with a small biscuit plant in the Netherlands. The Northern Foods financial figures detail a return to growth after major restructuring in 1994-1995. Profits before tax and exceptional charges improved 4.1 per cent to £124 million.
Earnings per share increased 2.5 per cent to 15.69p and total dividends are 2.3 per cent higher at 9p. "The group returned to profit growth at the beginning of the second half and this trend was sustained through to the end of the year," said Mr Haskins.
"Our progress was achieved despite intense competition, the impact of hot weather in the first half and significant raw material cost pressures." The eruption of the BSE scare in March came too late to affect the group's 1995-96 figures.
But sales of beef related products are still 25 per cent lower and the BSE hit in the current year could cut profits by around £5 million. Another key uncertainty is the higher price of ex-farm milk in England and Wales compared with ex-farm prices in Ireland and most continental European prices that is putting Irish and European competitors at an advantage. "This situation must be corrected and we anticipate that it will be," said Mr Haskins. Northern Foods shares gained 3p to 194p.
