Kerry can spend €250m a year on acquisitions

KERRY Group’s strong cash flow gives it the scope to spend a minimum of €250 million a year on acquisitions without increasing borrowings, according to chief executive Stan McCarthy.

Kerry Group reported better than expected half year results yesterday. Its shares rose on the news and the company has improved its 2009 earnings growth target. The company said it expects annual earnings to be at the “upper end” of its forecast range.

The shares in Ireland’s third largest listed company traded up by close to 3% yesterday but closed up 1.12% at €18.05, giving the company a market value of €3.16 billion. The shares have has gained 38% this year.