25% sales hike at Kerry Group

SATISFACTION with a year of solid performance was tinged with emotion at the imminent departure of chairman Denis Brosnan, who was accorded a standing ovation, at the annual general meeting of Kerry Group plc, in Tralee, yesterday.

Mr Brosnan, who spearheaded the growth of the group from humble beginnings in Listowel, in 1972, to a top global food company, said he would “slip away quietly” in a few months.

The meeting was a tame affair, attended by more than 200 shareholders, who were told that sales rose by 25% to €3.8 billion and operating profits by 17% to €305 million.

The group has also sold $650m worth of bonds to refinance its debts.

Managing director Hugh Friel reported that the ever-expanding group has a “good pipeline” of add-on acquisitions coming through, especially in the US, but there are no major acquisitions coming down the line, for the moment at least.

Since the start of 2001, the group has made 28 acquisitions, the largest being Golden Vale at around €392m, and Mr Friel said they are in a position to continue ongoing growth.

To date, this year, Kerry has made three, strategic acquisitions, all in the US, for a total of $135m in the flavouring and ingredients sectors.

Mr Friel also said the expected out-turn by the group for the full year would be in line with market forecasts.

“We’re recognised as the world leader in application specific ingredients,” he said.

“It’s our task to ensure that the skills and knowledge are transferred from one end of the world to the other to ensure that we continue to be number one and to grow from the position of strength that we have.”

He described the group’s Listowel plant, which employs 700 in peak season, as a terrific example of the transfer of technology from the US.