Kerry confident of meeting expectations

Food group Kerry in an Interim Management Statement released to coincide with its AGM in Tralee today said it was "confident" of meeting its forecasts for the year despite a reduction in group revenue.

The company said trading volumes for the first four months of 2009 were "slightly weaker than anticipated", down 3.5% on the previous year.

However the company said its group trading profit margin "reflects an increase of 40 basis points over the same period of 2008" and it was confident of delivering earnings growth in 2009 to a range of 160 to 165c per share as guided at the start of the year.

Kerry bought of Breeo Foods, a subsidiary of Reox Holdings plc, on March 25 for €140m, also paying a total of €98m for Dera Holding NV, Prima S.A. and G. Adams Pastry.

"The Group has achieved good financial and operational progress year-to-date in 2009 despite challenging conditions across global markets arising from the progressively weaker economic situation," said chief executive Stan McCarthy, speaking at the AGM.

"As signalled at year-end 2008, consumers have become increasingly budget conscious."

Nonetheless, Kerry insisted that despite the prevailing economic conditions it was "progressing solidly" towards its long-term growth targets.