Kerry first-half net profits fall 11%

Interim results for the half year ended 30 June 2009 – highlights:

• Sales revenue of €2,269m
• Like-for-like revenue reduced by 3.2%
• Group trading margin up 60 basis points to 8%
• Ingredients & Flavours trading margin up 60 basis points to 8.7%
• Consumer Foods trading margin up 30 basis points to 6.7%
• Trading profit increased by 4% on a like-for-like basis to €180m
• Adjusted earnings per share¹ up 7% to 67.2 cent
• Free cash flow of €76m (H1 2008:€51m)<
• Interim dividend per share up 11.6% to 7.7 cent.

¹ Before intangible asset amortisation and non-trading items.

Kerry Group chief executive, Stan McCarthy, said: “Kerry technologies and brands performed well in the difficult economic environment throughout global markets in the first half of 2009. Good progress was made in aligning product development, innovation, marketing and promotional strategies to the changing marketplace. Our Group trading profit margin increased by 60 basis points, with ingredients & flavours contributing a 60 basis points improvement and consumer foods achieving a 30 basis points margin improvement in a highly competitive market. We expect to maintain the positive margin momentum in the second half of the year and to increase earnings for the full year to the upper end of the range of 160 to 165 cent per share forecast at the start of the year.”

Source: Kerry Group PLC