Positive statement by Kerry Group

KERRY GROUP said yesterday that it expected to overcome "challenging economic conditions" and the negative effects of a weak sterling on its earnings to record "a good out-turn" for 2008.

The publicly-quoted food ingredients, flavours and consumer food company released an upbeat interim management statement to the stock market, beating analyst expectations and prompting an upgrade from Davy Research.

The company's share price finished yesterday's trading session flat, closing at €16.80.

Kerry said the performance of its global ingredients and flavours businesses remained solid in the four months to the end of October, and would deliver mid-single-digit like-for-like growth in revenue and trading profit.

Despite the impact of a further 7 per cent increase in raw-material and energy-related input costs, the trading margins were held at the previous year's level.

Notwithstanding the weakening economy and sterling/euro exchange rate, which it said would affect reported revenues and profits for the period, revenue from its UK and Ireland consumer foods division grew 4 per cent in the four-month period since the end of June. During the period under review, Kerry filed a notice of appeal in the High Court against the Competition Authority's decision to prevent its proposed acquisition of Breeo Foods.

Kerry said it expected earnings for the full year to increase to the upper end of the 151-155 cent per share range it forecast at the start of the year.