Shareholders told of solid performance
However he pointed out it took the excellent performance in the ingredients wing of the business to offset a decline in the group’s core convenience foods division, which is centred on Britain. The reported adjusted EPS of 24.1 cents was ahead of FY07 by 1.2% on a constant currency basis, but it was 2 cents, or 7.7%, behind the FY07 adjusted EPS of 26.1 cents, after currency losses were taken into account.
During questions Mr Sullivan was quizzed about the decision to close Drummonds, the grain merchants, and also asked to address the issue of pension entitlements.
One shareholder said the company had deserted grain growers in the northeast who were left without anywhere to store or dry their grain. There were also complaints about the price of grain last year.
Mr Sullivan responded that “international markets dictate the price the group can pay to growers”.
On the closure of the group he said the decision was irreversible, adding that the company had been making a loss over the previous four years, despite efforts to cut costs.
Some growers feel aggrieved at the decision and suspect the group exaggerated the performance failure of the group simply because it wanted out of a low margin business, the Irish Examiner understands.
In the case of pensions — a perennial topic at the group’s AGMs — Mr Sullivan said historically pensions had been awarded cost of living increases with the exception of just one year.
“The company has always honoured its pension promises and would continue to do so,” he said.
He also said the e69 million shortall in one of the eight pensions operated by the group would be dealt with without any fallout for those involved.
It was pointed out from the floor that many widows who were reduced to just half of their spouses pension were suffering hardship and Mr Sullivan promised also to address that question.
After the meeting chief executive Patrick Coveney said the group had no plans to withhold a dividend for this year as suggested recently in a brokers report.
If however, unforeseen circumstances came along, then that policy would have to be reviewed, he said.
On future strategy he acknowledged the exposure to the British market and a weak sterling was a major weakness and said it was being addressed with the move in the US last year.
The plan is to have America contributing as much in turnover and profits in five years, he said which will see the US delivering sales of between $750m and $1bn (e582m-e777m) over that time frame, he said.
