IAWS profits increase by 17% to €82.2m

FULL-YEAR profits at IAWS, the last under managing director Phil Lynch, rose by 17% to €82.2 million.

It said yesterday that profits were boosted by increased sales in its core Cuisine de France range and from the contribution from its Canadian joint venture, Tim Hortons restaurants.

Turnover for the year to end July rose by just 1.3% to €1.25 billion, but stripping out currency movements, sales would have been ahead by 7% for the year. Adjusted earnings per share were ahead by 18% to 53.04c.

In the food business, which accounts for Cuisine de France, Delice France, Pierre’s and other brands, was up 9% to €693.m and by 12% when disposals and currency movement are extracted.

Mr Lynch said the La Brea bread facility in New Jersey was on stream and sales were ahead, while it was supplying 1,950 of the 2,400 Tim Hortons restaurants. Turnover in the US was up from €76 to €92m.

Although IAWS did not strip out the profitability of the Tim Hortons venture, operating profits from its associates, which includes Odlum flour and Hortons, was up from €4.2m in 2002 to €9.96m.

Sales in the remaining agri-business and nutrition units fell from €577.9m to €557m, mainly from a poor year from its British fertiliser business, which suffered from low prices and lower farm income levels. However, the closure of Irish Fertiliser Industries did allow IAWS’ Irish arm to capture market share.

Mr Lynch, who has been 20 years in the top post, will step upstairs and become chairman at the beginning of October.

He will be replaced by chief operating officer Owen Killian.

IAWS shareholders will rewarded with a 15% rise in the annual dividend to 9.03 cents per share, a rise of 15%.

Davy Stockbrokers said yesterday’s results were impressive and it has upgraded its forecasts for 2004 earnings per share to 59.4c.