Streamlined Kerry accelerates onwards

SUCCESSFUL integration of the former Golden Vale business was one of the ingredients for Kerry Group's 22% jump in 2002 profits after tax to 189 million.

Golden Vale's former Bailieboro and Artigarvan businesses have been sold, and dairy processing streamlined between the Listowel and Charleville plants.

However, integrating Golden Vale and some other 2001 acquisitions cost Kerry Group €56.6 million last year.

Meanwhile, a former Golden Vale chairman, Denis Wallis, has been co-opted onto the Kerry Group Board, where vice-chairman Denis Buckley takes over from retiring chairman Denis Brosnan later this year.

Mr Buckley is chairman of Kerry Co-operative Creameries, which still holds 31% of the group shareholdings.

Solid worldwide performance boosted 2002 group sales by 25% to €3.8 billion.

The €670 million acquisition of Golden Vale in late 2001 also contributed to a fall in group operating margins, from 8.7% in 2001 to 8.1%. However, the group reported record cash flow of 232 million, exceeding 200 million for the first time.

Kerry Group have announced a final dividend per share of 7.85 cent, up 16.3% on the previous year.

Hugh Friel, Managing Director, said the trading outlook for 2003 is good, and he was confident of meeting market expectations.

No significant acquisitions are now on the cards; Finance Director Brian Mehigan said Kerry would "continue to address areas where we think there are opportunities".