Brokers say recession will hit earnings at quoted food companies
Higher input costs, price inflation and a squeeze on consumer spending are hitting consumer choices, said analysts Liam Igoe and Killian Murphy of Goodbody Stockbrokers.
They have reviewed prospects for four Irish publicly quoted food companies. Basing their views mainly on anecdotal evidence, company comments, consumer habits and market developments, they have reduced their 2009 earnings forecast by 3.8% for Aryzta (the global leader in speciality bakery formed last August when IAWS Group plc merged with Hiestand Holding AG of Switzerland). But the brokers “remain positive” on fresh produce provider Total Produce, which grows, sources, distributes and markets fresh fruit and vegetables in 13 European countries.
