Interim Results

Kerry Group PLC 31 August 2004 Press Announcement Tuesday 31 August 2004 Interim Report Half Year Ended 30 June 2004 Kerry, the global ingredients, flavours, and consumer foods group, reports interim results for the half year ended 30 June 2004. Financial Highlights • Sales increased by 8.5% to €1,955m • Operating profit* increased by 10.2% to €147m • Operating margin* up from 7.4% to 7.5% • Adjusted profit after tax* increased by 10.7% to €94.8m • Earnings per share* increased by 10.4% to 50.9 cent • Interim dividend per share up 11.1% to 4.5 cent • €674m acquisition programme • Free cash flow €85m *before goodwill and exceptionals Commenting on Kerry's performance in the first half of 2004, Chief Executive Hugh Friel said; 'In a very busy period, the Group again delivered excellent results throughout its operations, while also building important platforms for future growth and development. Kerry's consistent strategy and capability to meet consumer lifestyle, convenience, health and nutritional requirements again delivered good sales growth and further margin progression. Building on a good first half performance, the Group is confident of achieving a good outcome for the full year.' For further information please contact: Frank Hayes Director of Corporate Affairs Tel no +353 66 7182304 Fax no +353 66 7182972 Kerry Web Site: www.kerrygroup.com Chairman's Statement For the half year ended 30 June 2004 Results The Group continued to perform strongly in the first half of 2004, delivering good results throughout all core businesses. In a very busy period for the Group, Kerry invested considerable management and financial resources in the further development of its lifestyle and nutritional foods, flavours and ingredient ranges, while also extending its technology portfolio into bio-ingredients and pharma-ingredients growth sectors. Throughout all Group markets the heightened awareness of balanced dietary requirements and healthy lifestyles experienced in 2003 continued to drive consumer demand for more varied, tasteful, convenient, nutritional food and beverage products in the period under review. Total Group turnover in the first six months of 2004 grew to €1,955m, reflecting an increase of 8.5% on the same period of 2003. Acquisitions concluded primarily during the second quarter contributed €73m to this result. Adjusting for the impact of foreign exchange translation, acquisitions and divestitures, on a like-for-like basis sales increased by 3.8% compared with the first half of 2003. Operating profit before goodwill and exceptional items increased by 10.2% to €147m. Notwithstanding the busy acquisition programme in the period, the consistency of Group performance was again exemplified through the increase in the Group operating margin to 7.5% from 7.4% in the same period of 2003 and 7.1% in the same period of 2002. Adjusted profit after tax increased by 10.7% to €94.8m. Earnings per share before goodwill and exceptionals increased by 10.4% to 50.9 cent. Allowing for goodwill and exceptional items (including exceptional restructuring costs in the half year of €6.7m) basic FRS3 earnings per share was reported at 33.1 cent compared to 33.4 cent for the first half of 2003. Operating Reviews Ireland and Rest of Europe Building on the strong sales growth achieved in Ireland in 2002 and in 2003, sales originating from Irish based operations again grew satisfactorily to a level of €670m (H1 2003 : €656m). Operating profit increased to €32.2m, from €31.6m in the first half of 2003. European operations (excluding Ireland) increased sales by 11.6% to €694m and increased operating profits by 10.9% to €52.4m. Development across European markets was again fuelled by demand for more impactful flavours, new functional health and 'wellness' food and beverages, and greater convenience. Kerry continued to make good progress across European food ingredient markets. Growth continued through sauces and culinary systems for the prepared meals sector. Development through added-value food coatings applications was maintained with steady progress in the seafood and poultry sectors and into new foodservice categories. The German market showed encouraging progress overall but market conditions in France, particularly for seasonings, proved difficult due to the poor barbecue season. Development across the overall European snack sector also proved slow during the period. However, in Eastern Europe, particularly in the E.U. accession countries, seasonings and coatings continued to record good growth. In line with increasing demand for functional, high protein and low-carbohydrate ingredients, Kerry continued to make good progress through its Irish based speciality dairy ingredients and protein facilities. Fruit preparations also benefited from such trends, in particular the Kerry Ravifruit range and functional/health confectionery items from the York (UK) based sweet ingredients facilities. To maximise technical synergies across Group ingredients businesses, cross divisional business development teams have been established to lead development in the functional bar sector and in the sports/lifestyle nutrition sectors. In European flavour markets, Mastertaste Italy again significantly outperformed the market through sweet, savoury and beverage applications. Capitalising on recent acquisitions and the division's sweet and beverage flavour development capabilities, Mastertaste Europe successfully established a strong technical platform for development in such categories in Europe. In the UK and Irish consumer foods markets, Kerry Foods again recorded encouraging progress. All Kerry branded categories continued to out-perform market growth rates. Cheestrings is now the leading brand in its sector of the UK cheese snacks market. Stage 1 of the major expansion programme at the Charleville production plant to expand capacity across the Cheestrings range was completed during the half year at a cost of €5m. The second phase of this €14m investment programme will commence during the second half of 2004. Charleville Cheese also continued to build on its brand leadership position in the natural cheese market in Ireland. Denny again made good progress in the sausage, rasher and pre-packed cooked meats market in Ireland, leading market development in all categories. Performance through the new Freshways manufacturing facility in Dublin proved very satisfactory, fuelling good growth in the pre-packed sandwich sector and in 'on-the-go' salads. In response to the increasing trend towards convenient health functional foods and beverages, Dawn Dairies successfully launched Dawn Omega Milk on the Irish market in March. Available in full-fat and low-fat variants, Dawn is the first milk brand in the market to offer fresh milk as a medium to introduce essential Omega-3 fatty acids. Kerry Spring also recorded encouraging results through the launch of Kerry Spring Still Flavoured Water, adding to its reputation as the leading supplier of flavoured water on the Irish market. Despite increased margin pressure due to relative sterling and dollar exchange rates, Saint Brendan's branded cream liqueur again recorded good sales growth. In the Irish and UK poultry markets, escalating costs and competitive pressures again contributed to difficult trading conditions in the sector. In the convenience sector, the former Hibernia Foods facilities acquired prior to year-end were successfully integrated. The expanded ready meals operation performed ahead of market growth rates. Kerry Foods also recorded encouraging results in the UK chilled desserts sector from the former Hibernia chilled patisserie facility in Birmingham. The strengths of Kerry's marketing and distribution skills were again evidenced by the strong performance of the Richmond and Wall's brands. Wall's microwaveable sausage offering made excellent progress. Americas The Group's American operations performed strongly in the first half of 2004. Sales increased by 11.2% to €504m. Allowing for the impact of acquisitions and the shift in the exchange rate of the US dollar versus Euro, like-for-like sales growth of 6% in Kerry's core businesses again proved satisfactory. Operating profits grew by 13% to €55.3m, reflecting like-for-like growth of 9%. Greater awareness of dietary and health concerns accelerated the pace of new product introductions - particularly in North American markets. Kerry technologist's have led development of new formulations for managing carbohydrates in a broad range of food categories and in enhancing the nutritional value of wellness and health food and beverages. In the USA and Canada progress in the sweet sector, responding to such trends, has been very strong. Nutriant also benefited strongly through customer launches of new products with low-carb positioning containing soy isolates and soy protein systems. While overall conditions in the North American speciality ingredients markets remained challenging, again progress was achieved through nutritional lipids in the functional bar sector and in low-carb products. In the food coatings sector, the restructuring of operations initiated in 2003 across Kerry manufacturing plants contributed to an improved business performance in the sector in the period. Product price increases and greater business efficiencies helped to offset higher sectoral raw material costs. In seasonings, good progress continued through the meat industry and regional snack producers. In the U.S. and Canadian markets, the Group's customised and branded food and beverage foodservice solutions business will form a new 'Food and Beverage Creations' division. Embracing Kerry's foodservice beverage brands (including Da Vinci Gourmet, JetTea, JetCafe and Oregon Chai), its food sector brands (Golden Dipt, Alferi and Aromont) and foodservice chains' business, development through this dedicated foodservice solutions division will be driven by an industry-leading culinary team based at the new Kerry Innovation Centre in Dallas. Satisfactory growth and development was achieved throughout all foodservice applications in the first half of 2004, particularly in the specialty coffee sector and the Group's recently acquired complementary flavoured beverage businesses. In Mexican and Central American ingredients markets satisfactory business development continued, with further progress through seasonings and nutritional beverage applications. The foodservice sector in the region also exhibited encouraging prospects and activity in the speciality coffee sector appears promising. Kerry also recorded good growth in the Colombian and Venezuelan markets. Kerry's Brazilian based ingredients businesses recorded good growth in the artisinal ice-cream sector and through seasonings in the meat industry. In line with dietary trends and increased demand for high impact flavours and natural authentic flavours, Kerry's Mastertaste flavour division made excellent progress in sweet and beverage sectors in American markets. Development in the nutritional, nutraceutical and healthy beverages categories was driven through the SunPure and Crystals businesses acquired in 2003. Flavour business development in the region continued with the completion of three further acquisitions based in the USA and Mexico. Mastertaste also made an important first step into the specialist international fragrance market. Asia Pacific An excellent business performance was achieved in Asia Pacific markets in the first half of 2004. Sales increased by 22% to €87.3m and operating profits increased by 28% to €6.9m. In line with the pace of development in major Asian economies, Kerry has made good progress in providing ingredient technologies to match the requirements of global food and beverage manufacturers now successfully established in Asia's fast growing consumer markets. Development through Kerry's speciality branded flavoured beverage applications was most encouraging. In Asia sales growth also increased through nutritional ingredients cheese systems, seasonings, food coatings and speciality lipids. Kerry also recorded continued growth in its Australian and New Zealand businesses. Seasonings benefited from the expansion of the poultry sectors. Natural sauces were successfully introduced to the Australian prepared meals and foodservice sectors. The Kerry Pinnacle bakery division in Australia also recorded further growth through major supermarket chains. Development In the first half of 2004, the Group invested considerable resources in providing for future growth and development in line with evolving consumer nutritional, health, lifestyle and convenience requirements. The acquisition programme completed during the period, at a cost of €674m, has extended the Group's food ingredients platform to bio-ingredients and pharma-ingredients applications, significantly broadened the Group's flavour development technical and regional base, and also expanded the Group's interests in the U.S. branded beverage foodservice and natural foods sectors. Acquisitions concluded during the period comprised: (a) Ingredients Businesses Quest Food Ingredients, a leader in innovation and applications of bio-ingredients and pharma-ingredients, serving pharmaceutical, culinary, snack, bakery, dairy, beverage and confectionery markets worldwide. The acquisition completed on 30 April 2004, establishes a new Kerry Bio-Science division, operating from nine major manufacturing units located in Utrecht, Netherlands; Norwich NY, USA; Rochester MN, USA; Zwijndrecht, Netherlands; Esterol, Malaysia; Brantford, Canada; Cebu, Philippines; Cork, Ireland; and Menstrie, UK. Technology and innovation is driven from two Centres of Excellence located in Naarden, Netherlands and Chicago, USA - complemented by satellite development centres across major markets. The acquired business significantly expands Kerry's technological base and has well established leading global positions in bio-ingredients and pharma-ingredients - including protein hydrolysates, emulsifiers, yeast flavourings, enzymes, hydrocolloids, cultures and fermentation products. Cremo Ingredients, based in Glamsbjerg, Denmark, a leading supplier of dairy ingredients and flavourings to an extensive customer base in the savoury, convenience and snack food sectors throughout Europe and Asia. (b) Foodservice Businesses Oregon Chai, a leading U.S. branded supplier of natural Chai Tea Lattes and Chai Tea Latte mixes, concentrates and ready-to-drink products. Serving specialist foodservice beverage chains, grocery, club and natural food store channels throughout the U.S. and Canada, Oregon Chai is the recognised brand leader in both natural and organic segments of the speciality Chai tea market. Extreme Foods, a leader in developing and marketing branded ready-to-use ice blended flavoured beverages for the U.S. foodservice industry. Serving independent coffeehouses, national coffeehouse chains and department store in-house cafes, Extreme Foods produces unique ice-blended fruit smoothies and coffee frappes marketed under the JetTea and JetCafe brand names respectively. Available in nine different flavours, JetTea Smoothies are market leading premium quality, pre-packaged, shelf stable, fat-free, fruit based smoothies. JetCafe is the world's only super-premium all natural ice-blended coffee frappe. (c) Flavour Businesses Manheimer, a leading formulator and supplier of natural flavours for the beverage, confectionery, meat and soup industries from its state-of-the-art facilities based in New Jersey, USA. The Manheimer Fragrances division develops and markets innovative fragrances for application in home environmental, personal care, household and industrial products. Flavurence, based in Los Angeles, specialising in natural fruit flavours, a major flavour supplier to food and beverage producers in the west coast of the USA. Laboratorios Krauss, based in Mexico, a supplier of sweet flavours to the food industry in Mexico, Latin America and the Caribbean. Fructamine, based in Mozzo, Bergamo in Northern Italy, a leading Italian producer of naturally extracted flavours, serving European savoury, bakery and soft drink markets. Finance At the end of the half year Group borrowings amounted to €1,334m, compared to €852m at the end of the first half of 2003, notwithstanding record expenditure of €668m on acquisitions in the period. Kerry's businesses continue to generate a strong free cash flow which will ensure a speedy reduction in Group indebtedness. The ratio of debt to EBITDA increased to 2.9 times (H1 2003 : 2.3 times), while debt to EV (Enterprise Value) increased from 26% at the end of the first half of 2003 to 29% at the end of the first half of 2004. Interest charges for the period were €23.3m compared to €22.3m in the first half of 2003, with EBITDA to net interest covered 12.0 times (H1 2003 : 8.6 times). Dividend The Board has declared an interim dividend of 4.5 cent per share, an increase of 11.1% on the 2003 interim dividend of 4.05 cent per share. The interim dividend will be paid on 29 November 2004 to shareholders registered on the record date 29 October 2004. Current Trading and Outlook The Group has demonstrated a strong capability to respond to evolving consumer trends through provision of flavour and ingredient technologies, and consumer food and beverage offerings which meet consumer lifestyle, convenience, health and nutritional requirements. This consistent strategy and clarity of focus in the organisation continues to deliver good results. Furthermore through the Group's recent acquisitions, including global flavour, food ingredients and bio-science technologies, important platforms have been established for future profitable growth and market development. In particular through the Kerry Bio-Science division the Group has established an important science foundation and significantly enlarged its food technology research capability. As part of Kerry's global operations - with the opportunity to leverage research results and technical development through Kerry's complementary businesses - this science platform will deliver strong commercial applications. In terms of nutrition and diet, Kerry Bio-Science research has already led to a deeper understanding of satiety control and new methodologies to regulate insulin and glucagon excretion. In addition, building on its relationship with major global pharmaceutical companies, Kerry Bio-Science, through its hydrolysed protein technologies, has a strong pipeline of development projects in cell tissue culture, diagnostics and production of 'smart' drugs for targeted therapy. All core businesses and recently acquired businesses are performing well. Building on the good first half performance, the Group is confident of achieving a good outcome for the full year. Kerry Group plc Consolidated Profit and Loss Account for the half year ended 30 June 2004 Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited Notes €'000 €'000 €'000 Turnover Continuing operations 1,882,158 1,802,092 3,693,410 Acquisitions 73,186 - - _____________ ____________ ____________ 1 1,955,344 1,802,092 3,693,410 _____________ ____________ ____________ Operating profit before goodwill amortisation and exceptional items Continuing operations 140,605 133,155 308,519 Acquisitions 6,167 - - _____________ ____________ ____________ 146,772 133,155 308,519 Goodwill amortisation 30,335 24,661 48,103 Exceptional restructuring costs 4 6,720 - - _____________ ____________ ____________ Operating profit 109,717 108,494 260,416 Profit on sale of fixed assets 1,643 1,017 942 Interest payable and similar charges 23,266 22,281 37,356 _____________ ____________ ____________ Profit before taxation 88,094 87,230 224,002 Taxation 26,570 25,297 63,025 _____________ ____________ ____________ Profit after taxation and attributable to ordinary 61,524 61,933 160,977 shareholders Dividends 8,446 7,520 23,610 _____________ ____________ ____________ Retained profit for the period 53,078 54,413 137,367 _____________ ____________ ____________ Earnings per ordinary share (cent) - basic before goodwill amortisation and exceptional 2 50.9 46.1 112.1 items - basic after goodwill amortisation and exceptional items 2 33.1 33.4 86.7 - fully diluted after goodwill amortisation and 2 32.9 33.3 86.4 exceptional items Kerry Group plc Consolidated Balance Sheet as at 30 June 2004 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited €'000 €'000 €'000 Fixed assets Tangible assets 979,896 843,264 844,701 Intangible assets 1,314,377 821,433 837,301 ______________ _____________ _____________ 2,294,273 1,664,697 1,682,002 Current assets Stocks 530,011 427,453 383,899 Debtors 652,434 550,994 482,955 Cash at bank and in hand 50,695 32,013 56,862 ______________ _____________ _____________ 1,233,140 1,010,460 923,716 Creditors: Amounts falling due within one year (1,060,679) (877,751) (709,872) ______________ _____________ _____________ Net current assets 172,461 132,709 213,844 ______________ _____________ _____________ Total assets less current liabilities 2,466,734 1,797,406 1,895,846 Creditors: Amounts falling due after more than one year (1,398,794) (858,223) (899,024) Provisions for liabilities and charges (53,223) (57,197) (48,333) ______________ _____________ _____________ 1,014,717 881,986 948,489 ______________ _____________ _____________ Capital and reserves Called-up equity share capital 23,307 23,211 23,234 Capital conversion reserve fund 340 340 340 Share premium account 370,377 363,574 365,229 Profit and loss account 591,730 465,266 531,149 ______________ _____________ _____________ 985,754 852,391 919,952 Deferred income 28,963 29,595 28,537 ______________ _____________ _____________ 1,014,717 881,986 948,489 ______________ _____________ _____________ Kerry Group plc Consolidated Cash Flow Statement for the half year ended 30 June 2004 Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited €'000 €'000 €'000 Operating profit before goodwill amortisation and exceptional 146,772 133,155 308,519 items Depreciation (net) 46,873 43,174 83,827 Change in working capital (374) (79,160) 9,138 Exchange translation adjustment (309) 84 (1,176) ______________ _____________ _____________ Net cash inflow from operating activities 192,962 97,253 400,308 Return on investments and servicing of finance (21,107) (21,633) (40,774) Taxation (22,860) (13,549) (40,476) Capital expenditure Purchase of fixed assets (50,252) (38,670) (101,632) Proceeds on the sale of fixed assets 2,275 1,923 7,683 Development grants received 233 236 1,194 Acquisitions and disposals Purchase of subsidiary undertakings (668,431) (124,896) (207,376) Proceeds on the sale of businesses - - 1,264 Deferred creditors paid (28,767) (2,027) (5,532) Exceptional restructuring costs (1,761) (8,892) (16,575) Consideration adjustment on previous acquisitions (895) (97) (248) Equity dividends paid (16,041) (14,571) (22,196) ______________ _____________ _____________ Cash outflow before the use of liquid resources and financing (614,644) (124,923) (24,360) Financing Issue of share capital 5,221 609 2,287 Increase / (decrease) in debt due within one year 148,856 43,703 (123,860) Increase in debt due after one year 454,400 66,040 156,211 ______________ _____________ _____________ (Decrease) / increase in cash in the period (6,167) (14,571) 10,278 ______________ _____________ _____________ Reconciliation of Net Cash Flow to Movement in Net Debt for the half year ended 30 June 2004 (Decrease) / increase in cash in the period (6,167) (14,571) 10,278 Cash flow from debt financing (603,256) (109,743) (32,351) ______________ _____________ _____________ Change in net debt resulting from cash flows (609,423) (124,314) (22,073) Exchange translation adjustment on net debt (19,315) 35,910 80,677 ______________ _____________ _____________ Movement in net debt in the period (628,738) (88,404) 58,604 Net debt at beginning of period (705,200) (763,804) (763,804) ______________ _____________ _____________ Net debt at end of period (1,333,938) (852,208) (705,200) ______________ _____________ _____________ Kerry Group plc Statement of Total Recognised Gains and Losses for the half year ended 30 June 2004 Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited €'000 €'000 €'000 Profit attributable to ordinary shareholders 61,524 61,933 160,977 Exchange translation adjustment on foreign currency net 7,503 (7,159) (24,230) investments _____________ ____________ ____________ Total recognised gains and losses relating to the period 69,027 54,774 136,747 _____________ ____________ ____________ Reconciliation of Movements in Share Capital and Reserves for the half year ended 30 June 2004 Capital Share Capital Conversion Profit & Loss and Premium Reserve Fund Account Total €'000 €'000 €'000 €'000 At beginning of period 388,463 340 531,149 919,952 Retained profit - - 53,078 53,078 Share issue 5,221 - - 5,221 Exchange translation adjustment - - 7,503 7,503 ___________ ____________ ____________ ____________ At end of period 393,684 340 591,730 985,754 ___________ ____________ ____________ ____________ The Profit & Loss Account figures comprise the following: Intangible Assets Retained Profit & Loss Written Off Profits Account €'000 €'000 €'000 At beginning of period (527,802) 1,058,951 531,149 Retained profit (30,335) 83,413 53,078 Exchange translation adjustment - 7,503 7,503 _____________ ____________ ____________ At end of period (558,137) 1,149,867 591,730 _____________ ____________ ____________ The exchange translation adjustment arises on the retranslation of the Group's opening net investment in its overseas subsidiaries. Kerry Group plc Notes to the Interim Report for the half year ended 30 June 2004 1. Analysis of results by region Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited Operating Operating Operating Turnover Profit Turnover Profit Turnover Profit €'000 €'000 €'000 €'000 €'000 €'000 By geographical market of origin: Ireland 669,992 32,191 655,641 31,640 1,331,879 69,078 Rest of Europe 693,596 52,395 621,373 47,225 1,265,001 111,516 Americas 504,451 55,274 453,499 48,904 939,104 113,441 Asia Pacific 87,305 6,912 71,579 5,386 157,426 14,484 __________ __________ __________ __________ _________ __________ 1,955,344 146,772 1,802,092 133,155 3,693,410 308,519 Goodwill amortisation - (30,335) - (24,661) - (48,103) Exceptional restructuring costs - (6,720) - - - - __________ __________ __________ __________ __________ __________ 1,955,344 109,717 1,802,092 108,494 3,693,410 260,416 __________ __________ __________ __________ __________ __________ Turnover Turnover Turnover €'000 €'000 €'000 By destination: Ireland 356,681 351,298 725,879 Rest of Europe 934,178 862,449 1,764,163 Americas 538,246 487,501 984,808 Asia Pacific 126,239 100,844 218,560 __________ __________ __________ 1,955,344 1,802,092 3,693,410 __________ __________ __________ Turnover and operating profit as presented above, are stated net of intra Group transactions. 2. Earnings per share Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 Dec. 2003 Unaudited Unaudited Audited EPS EPS EPS cent €'000 cent €'000 cent €'000 Adjusted earnings * 50.9 94,766 46.1 85,577 112.1 208,183 Goodwill amortisation 16.3 30,335 13.3 24,661 25.9 48,103 Exceptional items (net of tax) 1.5 2,907 (0.6) (1,017) (0.5) (897) _______ ________ _______ ________ _______ ________ Profit after taxation, goodwill amortisation 33.1 61,524 33.4 61,933 86.7 160,977 and exceptional items Share option dilution 0.2 - 0.1 - 0.3 - _______ ________ _______ ________ _______ ________ 32.9 61,524 33.3 61,933 86.4 160,977 _______ ________ _______ ________ _______ ________ The basic weighted average number of ordinary shares in issue for the period was 186,087,228 (half year ended 30 June 2003: 185,631,612; year ended 31 December 2003: 185,707,545). The diluted weighted average number of ordinary shares in issue for the period was 186,993,765 (half year ended 30 June 2003: 186,224,863; year ended 31 December 2003: 186,418,117). The dilution arises in respect of executive share options outstanding. In addition to the basic and diluted earnings per share, an earnings per share before goodwill amortisation and exceptional items calculation is also provided, as it more accurately reflects the Group's underlying trading performance. * Adjusted earnings is calculated as profit after taxation, before goodwill amortisation and exceptional items. Adjusted earnings per shares is the adjusted earnings divided by the weighted average number of ordinary shares. 3. Businesses acquired The Group completed a number of acquisitions during the period at a total cost of €674m. The acquisition of Quest Food Ingredients from the ICI Group was completed at the end of April 2004. The acquired business has operations in The Netherlands, USA, Malaysia, Canada, Philippines, Ireland and the UK and also has two Centres of Excellence driving technology and innovation in The Netherlands and USA. Quest Food Ingredients has leading global positions in bio-ingredients and pharma-ingredients and has well established global customer relationships across the pharmaceutical, culinary, bakery, dairy, brewing and confectionery industries. In May 2004, the Group acquired Manheimer. With state-of-the-art research and development facilities and manufacturing facilities in New Jersey, Manheimer is a leading formulator and supplier of natural flavours for the beverage, confectionery, meat and soup industries, while Manheimer Fragrances develops and markets innovative fragrances for application in home-environmental, personal care, household and industrial products. The Cremo dairy ingredients and flavourings business was also acquired in May 2004. Based in Glamsbjerg, Denmark, the business has state-of-the-art manufacturing and product development facilities and has established an extensive customer base throughout Europe and Asia within the savoury convenience and snack food industry. The acquisitions of Flavurence, Laboratorios Krauss, Fructamine, Oregon Chai and Extreme Foods were also completed in the period. Flavurence, based in Los Angeles, is a major flavour supplier to food and beverage producers in the West coast of the USA and specialises in natural fruit flavours. Laboratorios Krauss has a strong market presence through sweet flavours particularly in the bakery sector and is headquartered in Mexico City with flavour development facilities based in Pachuca, Mexico. Fructamine, based in Bergamo in Northern Italy, is a leading Italian producer of naturally extracted flavours and has a well established position across European savoury, bakery and soft drinks markets. Oregon Chai, a leading US-branded supplier of natural Chai Tea Lattes and Chai Tea Latte mixes, concentrates and ready-to-drink products based in Oregon and Extreme Foods, a developer and marketer of blended flavour beverages based in Nevada, hold leading positions in the fast-growing niches of the US-branded beverage foodservice sector. 4. Exceptional restructuring costs The exceptional restructuring costs in the period relate to the rationalisation of new and existing businesses arising from the integration of Quest Food Ingredients and other acquisitions made in 2004 and 2003. 5. Accounting policies These accounts have been prepared using the same accounting policies detailed in the 2003 annual financial statements. 6. Interim accounts These accounts are not full accounts and except where indicated are unaudited. Full accounts to 31 December 2003, which received an unqualified audit report, have been filed with the Registrar of Companies. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Kerry Group 'A' Shares (CDI) (KYGA)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today