Kerry Group pretax profits rise 35%

Food company Kerry Group said pretax profits last year rose 35 per cent after higher sales of ingredients and price increases…

Food company Kerry Group said pretax profits last year rose 35 per cent after higher sales of ingredients and price increases offset higher costs for raw materials.

Net income climbed to €246.1 million, or €1.37 a share, from €177.7 million, or €95.2 cents, a year earlier, the company said this morning.

Kerry shares were €20.56 at 10.15am, up 21 cents or just over 1 per cent in Dublin this morning.

Sales increased 3 per cent to €4.79 billion. Revenue from ingredients, Kerry's largest unit, advanced 7.8 per cent, excluding the impact of acquisitions and disposals, to €3.31 billion.

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Kerry's consumer foods division had sales of €1.82 billion, up 5.6 per cent. The company also took a once-off charge of €73 million linked to business disposals and plant closures in 2006.

Raw Material Costs Kerry expects earnings of between 151 cents and 155 cents per share this year, chief executive officer Stan McCarthy said.

Mr McCarthy took over on December 31st when former CEO Hugh Friel retired.

Almost 30 per cent of Kerry revenues came from the United States last year.