Food group reports profits boost

by http://news.bbc.co.uk - 08/09/2009

"The Irish food company Kerry Group has reported an increase in profits in the first half of this year."

Pre-tax profits for the first six months of 2009 were almost 137m euros compared to 132m euros in the first half of last year.

The company has plants in Coleraine and Craigavon and its brands include Denny, Golden Cow and Coleraine cheese.

It said the performance was driven by on-going focus on business efficiency and lean manufacturing programmes.

The profits were achieved on the back of falling revenue of 2.27bn euros, a like-for-like reduction of 3.2 percent.

Kerry said the economic downturn had affected food consumption trends with consumer becoming more budget conscious. This has hit sales in convenience stores and food-to-go products like pre-packaged sandwiches.

Chief Executive Stan McCarthy said it had been a good performance in a difficult economic environment.

"Good progress was made in aligning product development, innovation, marketing and promotional strategies to the changing marketplace.

"Our group trading profit margin increased by 60 basis points. We expect to maintain the positive margin momentum in the second half of the year," he added.

More Details: http://news.bbc.co.uk/1/hi/northern_ireland/8219558.stm