Double digit pre-tax profit growth for IAWS
Highlight of the year was the performance of the group’s investment in associates and joint ventures in Canada and Switzerland.
These contributed 14% to the increase of €109m in total operating profits before goodwill. In 2003, the figure was €95.7m
One negative in the overall results was reported and it led to a fall in the operating profits, excluding non-associates.
That was the poor showing in the nutrition/agri division, comprising animal feed ingredients, fertiliser blending and marine proteins.
Profits at the operating level in that division fell by over €4m year-on-year due to a variety of factors, including rising commodity prices, such as soya bean, which rose form €200 to €400 a tonne and back again during the year.
Demand for fish meal was also weak in the second-half of the year.
At this stage, the group is now 70% driven by its renamed Lifestyle Food division, including its flagship Cuisine de France, Delice de France, La Brea in the US and other recent add-ons.
They now account for over two-thirds of operating profits and the outlook in the US and Canada, where the group is in joint ventures with the Tim Horton’s café chain, is very good.
Commenting on the 2004 outturn, group chief executive Owen Killian said: “This is a good set of results with double digit pre-tax profit growth in a challenging environment”.
Mr Killian, who was reporting his first set of figures since taking over from Philip Lynch, said the strong figures showed a robust performance from the continuing businesses, as well as the impressive outturn from the joint venture and associate businesses.
Among the group’s significant associates is Hiestand Holding Ag of Switzerland, which gives to group access to eastern Europe and more far flung markets, such as Japan, where the Swiss company has a good niche market presence.
Since the purchase, the share price in the group has doubled, while its profits and sales in the first-half of this year rose by 20% and 39% respectively.
Would IAWS buy the company outright? “My late mother would not even ask me that question,” said Mr Killian.
The issue of lifestyle foods was addressed by the group at the press conference.
Mr Killian said that, in the quality market, IAWS was well placed to gain from the more-aware eating habits emerging globally.
