Stronger euro may hurt food firms

EARNINGS of publicly quoted Irish food companies could come under pressure next year, a new analysis of the sector has warned.

Bloxham Stockbrokers believes the growing weakness of sterling and the US dollar will hurt earnings of key publicly quoted food companies next year. Since June, the dollar is down 16% on the euro while sterling has declined by 9%.

Agrifood companies face this hurdle for translated and transaction-driven profits during 2011, with the most exposed being Greencore (95% of sales), Kerry (68%), Glanbia (62%) and Aryzta (50%).