Bread and pastries maker IAWS posted a better than expected 19.8 per cent rise in first-half earnings today and said growth at its food unit was satisfactory despite a tough market and rising costs.
Excluding separately reportable items and amortisation, earnings in the six months to the end of January rose to 33.13 cents a share from 27.65 cents last year, easily beating the average 31.38 cent forecast of four analysts polled by Reuters.
Predictions had ranged from 31.0 to 31.8 cents.
Earnings benefited from the 2004 acquisition of France's Groupe Hubert, which contributed to the full six months for the first time, but the company said its other food operations were also experiencing strong growth.
"Strong underlying growth was evident across all food markets, particularly in the USA where a strong performance was delivered on the back of increased investment in production capacity," chief executive Owen Killian said in a statement.
IAWS said in late January that it was satisfied with trading in the five months to the end of December but that it was too early to make predictions about the full year, given that almost two-thirds of its operating profit comes in the second half.
"Food operations continue to record satisfactory growth notwithstanding a highly competitive market landscape and increasing costs including energy," the company said.
Shares in IAWS have risen 17 per cent so far this year, versus a 6.6 per cent gain for the broader Irish market index.