• Kerry Group Chief Executive Stan McCarthy

  Good organic growth in all territories
• Like-for-like Group sales revenue up 6.7% to €4.8 billion
• EBITDA (Earnings before interest, taxes, depreciation and amortization)* a record €500m
• Trading profit increased by 7.4% on a like-for-like basis to €401.1m
• Trading margin up 10 basis points to 8.4%
• Profit before tax up 35% to €298m
• Adjusted EPS* up 7.4% to 143.8 cent
• Final dividend per share up 11.2% to 13.9 cent
• Free cash flow of €257m
• R&D investment increased to €145m
  
  *before intangible amortisation and non-trading items

Food group Kerry today reported pre-tax profits of €298m for the year ending December 2007, a 35% jump on the previous year despite higher raw materials costs.

Revenues for the year rose by 6.7% to €4.8 billion while adjusted earnings per share were up 7.4% to 143.8 cent. The board is recommending a final dividend of 13.9 cent per share, which will bring the total dividend payment for the year to 20 cent per share, up 11.1% on the previous year. Full Details

The group said it recorded a "solid" group wide performance and good organic growth in 2007, as significant raw material and energy related cost increases posed serious challenges for the global food and beverage industries.

It added that it has made a good start to 2008 and expects to grow earnings for the full year within a range of 151 to 155 cent per share.

Kerry said that trading profits at its ingredients and flavours business rose by 7.6% to €310m, while revenues rose by 7.8% to €3.310 billion.

Revenues at its US operations grew to €1.31 billion, up 7% on the previous year while the company reported considerable progress in broadening its "go-to-market" strategy to include all the group's food and beverage ingredients, bio-science and flavours businesses operating in American markets.

The company's European ingredients and flavours division saw sales growth of 4.6% to €1.339 billion despite substantial raw material cost inflation and an 'intensely' competitive trading environment.

Kerry said the growth in consumer demand for natural products and health ingredient lines continues to provide favourable growth opportunities for its enzymes facility in Ireland, through assisting food processors in salt, sugar, fat and allergen reduction.

The group said that the significant upturn in international dairy market conditions in 2007 led to a substantial increase in returns to milk producers and a good recovery in dairy processor margins. Increased global demand for diary products, along with low inventory levels, contributed strongly to the market improvement and the performance of Kerry's Irish milk processing operations.

Kerry said its Asia-Pacific markets showed excellent results and strong regional market development last year. Sales revenue rose by 17% to €425m.

Despite higher input cost inflation and a highly competitive Irish and UK market, Kerry's Consumer Food division delivered a strong performancer. Sales revenue grew by 5.6% to €1.819 billion while trading profits were up 6.4% to €119m.

Commenting on the results Kerry Group Chief Executive Stan McCarthy said; “Kerry achieved a good all round business performance and solid organic growth in 2007 notwithstanding the inflationary input cost environment.  Working closely with our customers we successfully managed this challenge through prudent pricing actions and business efficiency improvements.  The Group has excellent prospects for business development by leveraging its industry leading technologies and its strong geographic market and customer positioning.  By capitalising on such opportunity and exploiting its strong financial and management resources, the Group plans to grow from its current €5 billion base to €10 billion through strong organic growth and value enhancing acquisitions in the next five to six years.  Kerry has made a good start to 2008 and expects to grow earnings for the full year to a range of 151 cent to 155 cent per share.”

Kerry Group shares rose 1.37% or 28 cent to €20.63 in Dublin.