Food and agricultural group IAWS said today that its pre-tax profits rose 21% to €27.6m in the six months to the end of January - slightly beating market forecasts.
IAWS, which includes specialty breads, ready to go meals and fertilisers among its various products, said its underlying sales rose by 6%, while adjusted earnings per share rose 23% to 17.6 cent. The group's dividend has been increased by 15% to 4.3 cent per share.
The group said the growth was driven by its food businesses, which recorded strong first half trading in the US, UK and Ireland. 'There has been significant growth in the markets for premium food products and IAWS is well positioned to exploit this potential,' IAWS Managing Director Philip Lynch said.
He added that the company's North American joint venture with Tim Hortons and the new La Brea bakery in New Jersey are now on stream and additional production capacity will be added in both facilities over the coming year.
IAWS said today that its Irish food business is trading well. The Cuisine de France range has been enhanced by increased specialisation, while Shamrock Foods had a 'very satisfactory' first six months with higher returns from the Roma and Shamrock food brands.
Its UK businesses, Cuisine de France and Delice de France, also performed well. IAWS said Cuisine de France continues to capitalise on opportunities in the £20 billion sterling a year UK convenience food market. IAWS said the focus for Delice de France going forward is to increase its penetration levels outside the Greater London area.
IAWS said its US strategy has been designed to ensure minimum risk while optimising the huge opportunities which exist in the $80 billion US food and beverage industry. The joint venture with the Tim Horton chain will make its first profit contribution in the second half of the year, in line with expectations. The company also said that its La Brea division is performing in line with expectations as demand continues to outstrip production capacity.
The group's UK fertiliser business had a difficult first half with the overall market suffering the effects of low pricing and income pressure at farm level. But with reduced product availability, prices are expected to increase substantially in the second half of the year.
The Goulding business delivered a 'satisfactory performance' during the six months, while the protein and oil business and feed businesses delivered similar results.
'This has been a satisfactory start to the second half of the year and the Board is confident of another good result for the full year,' Chairman JC Moloney said in the results statement.
IAWS shares closed up two cent at €6.95 in Dublin.