Final Results
Kerry Group PLC
26 February 2002
Kerry Group plc
26 February 2002
Kerry Group plc
Final Results
Annual Results 2001
Kerry, the global ingredients, flavours and consumer foods group,
reports preliminary results for the year ended 31 December 2001.
Financial Highlights
- EBITDA increased by 11.7% to EUR331m
- Sales increased by 14.5% to EUR3 billion
- Operating margin on continuing operations up from 8.9% to 9.1%
- Profit before tax up 9.6% to EUR189.7m
- Headline earnings per share increased by 10.5% to 94.6cent
- Final dividend per share up 10.1% to 6.75cent
- EUR617m acquisition and EUR94m capital expenditure programmes
- Expenditure on research and development increased to EUR58.7m
Commenting on the results, Kerry Group Managing Director, Hugh Friel
said; 'I am pleased to report Kerry's sixteenth successive year of
double digit growth in earnings. By responding to consumer trends the
Group has performed well in its major ingredients and consumer foods
markets. This has been achieved while building the business for future
sustainable growth'.
'For the fifth consecutive year the Group delivered in excess of
EUR100m free cash flow. In 2001, we comfortably undertook
a wide range of business developments and acquisitions. With the
ongoing consolidation of the global food industry complementary
acquisition opportunities will continue to arise'.
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
__________________
KERRY GROUP PLC
PRELIMINARY STATEMENT
Results for the year ended 31 December 2001
Kerry's record of consistent profitable growth was upheld in 2001, in
a year when the Group continued to invest and achieve considerable
progress in building for the future. The operating environment proved
more challenging in the aftermath of major consolidation in global food
industry markets and on account of the relatively weaker global economic
situation. Nevertheless, benefiting from the Group's geographic and
sectoral spread, Kerry continued to realise good opportunity for business
growth and market development. Capitalising on food consumption trends,
the Group performed well in its major ingredients and consumer foods
sectors. Earnings before interest, tax, depreciation and amortisation
(EBITDA) increased by 11.7% to EUR331m. In the fifth consecutive year in
which the Group delivered in excess of EUR100m free cash flow, this
enhanced financial performance was achieved while building the business
to ensure future sustainable growth. Through EUR617m acquisition and
EUR94m capital expenditure programmes in 2001, Kerry added a range of
new technologies and considerably broadened its product offerings
and customer services in global food and beverage markets. Research &
Development expenditure increased by 11.9% to EUR58.7m.
Results
_______
Profit before tax increased by 9.6% to EUR189.7m. Consistent with
expectations, headline earnings per share increased by 10.5% to 94.6cent.
Basic FRS3 earnings per share increased by 6.1% to 81.7cent.
Total Group turnover increased by 14.5% to EUR3 billion. Like for like
sales increased by 5.2% year-on-year when account is taken of acquisitions,
divestitures and the impact of foreign exchange. Operating profits before
goodwill amortisation from continuing operations grew by 6.7% to EUR249.4m.
Including the contribution from acquisitions, operating profits increased
by 11.4% to EUR260.4m. The operating margin on continuing operations again
showed a satisfactory increase to 9.1%, compared to the 2000 margin of
8.9%. Allowing for the profile and mix of business acquisitions completed
during 2001, including the acquisition of Golden Vale which was completed
at the end of September, the Group operating margin for the year was 8.7%.
Operations Reviews
__________________
Ireland and Rest of Europe
Continuing operations in Ireland recorded a 6.4% increase in sales to
EUR687.0m and increased operating profit by 8.4% to EUR40.5m. Acquisitions
in Ireland in 2001 added EUR196.3m in turnover and EUR4.6m operating
profit.
Before acquisitions, European operations (excluding Ireland) increased
sales by 2.6% to EUR1,170.9m and operating profits by 5.6% to EUR97.1m.
Acquisitions contributed a further EUR12.9m in sales and EUR1.5m
operating profit.
Kerry's ingredients operations serving food processor and foodservice
markets throughout Europe and the Group's branded and customer branded
consumer food activities have continued to deliver good profit growth.
Consumer demand for quality and convenience continues to significantly
influence development in the food sector across Europe.
In ingredients markets Kerry strengthened its position in the 'meal
solutions' sector, recording strong growth in poultry and fish
alternatives. Margin expansion was driven by efficiency improvements
in UK and German operations, supported by further progress in France
and in Eastern Europe. Kerry's leadership in the European snack
flavourings market was further consolidated, benefiting from market
expansion in new growth territories in Eastern Europe. The Mastertaste
flavour business had a strong performance in 2001, winning core supplier
status in new multinational accounts.
Kerry Foods again recorded excellent results in its branded and customer
branded consumer foods categories - with further market share gains in
sausage, premium meats, juices and mineral water. The continued growth
of Kerry's primary brands is very encouraging, while the division is
also at the forefront of development in the snack, convenience and
prepared meals sectors. In addition, the division's unique focus and
development of chilled food product distribution and services in the
UK and Ireland continues to yield strong growth, exploiting the service
requirements of the snacking or 'food to go' sectors.
To enhance the Group's position in key European strategic markets a number
of developments were undertaken in 2001, including the following
acquisitions;
Coral S.A., a specialist provider of a range of savoury and
functional ingredients to the foodservice industry in France.
San Giorgio Flavors, a leading Italian provider of food and beverage
flavours serving EU and Asian markets.
Platter Foods, a supplier of chilled salads and fresh desserts to the
Irish market.
Voyager Foods, a UK based supplier of culinary systems and ready-to-use
ingredient solutions to European prepared foods, food processor and
foodservice industries.
Aromont, based in Montcornet, France, a leading producer of high quality
authentic culinary ingredients and liquid sauces for the European ready
meals, meal solutions and foodservice industries.
Golden Vale, operating from thirteen manufacturing sites in Ireland
and the UK
- a major processor of processed and natural cheeses, dairy spreads,
prepared meals, snack products, milk, niche drinks, butter and dairy
ingredients. This acquisition, concluded at the end of September 2001,
at a total cost (including debt) of EUR391m, represents a major
expansion of Kerry's prepared meals and snack products business plus
entry to beverage growth sectors including cream liqueurs and
ready-to-drink cocktails, and the opportunity;
- to market Golden Vale products to a wider customer base with
distribution of Golden Vale cheese and dairy products through
Kerry's dedicated distribution network in the UK and Ireland,
- to add enhanced value to Golden Vale raw materials through Kerry's
global food ingredients operations,
- to grow significantly in European and Scandinavian foodservice markets
by combining Kerry and Golden Vale foodservice and quick-service
restaurant offerings.
In 2001, the Group also concluded the sale of the SPP bakery ingredients
business in the UK.
Americas
Good progress was again achieved throughout Kerry's American operations
and markets. While market conditions proved extremely competitive, the
business grew satisfactorily with sales from continuing operations
increased by 8.3% to EUR762.3m. Operating profits from continuing
operations increased by 8.8% to EUR100.5m. Against the background of
tremendous industry consolidation in the region, Kerry made significant
progress acquiring complementary businesses and new technologies.
Acquisitions in the period contributed EUR39.4m in sales and operating
profit of EUR4.8m.
In the USA, to meet the growing demand and requirements in cereal
particulates markets, a new US$5m production line was commissioned at
the New Century, Kansas facility. Strong growth was achieved in seasonings
applications for the fast growing meat snack market and prepared foods
industry. Market development initiatives capitalising on the Group's
flavour and technical capabilities in cheese and dairy technologies
achieved good results through provision of value-added ingredients in
non-powdered formats. The integration of the Armour Food Ingredients
business, acquired in October 2000, was completed with the closure of
the Springfield, Kentucky facility and transfer of operations to Kerry's
other facilities. The Group again achieved solid growth through coatings
systems for poultry and appetiser applications in the quick-serve-
restaurant and foodservice sectors. In Canada, a strong performance was
achieved through extension and commercialisation of recently acquired
North American technologies. Significant progress was achieved in Mexican
and Latin American markets in particular through cheese and dairy
ingredients. The Group's additional resourcing and focus on prepared foods,
snack and bakery markets in the region produced favourable results in 2001.
The accelerating trend towards convenience in Brazilian and South American
food consumption patterns assisted in the achievement of good growth
through cheese and dairy flavouring systems, meat seasonings, coating
systems and speciality lipid powders. Kerry's competitive advantage
through its Brazilian based manufacturing and technical facilities was
critical to growth in the added value poultry sector - in line with
developments in Brazilian poultry exports.
As outlined in the interim statement, having already gained market
leadership in seasonings, coatings, speciality ingredients and sweet
ingredients, in 2001 the Group also focused considerable financial and
management resources on capitalising on this broad food technology base
through expansion in global flavours markets and in the fast growing
nutrition sector.
In line with the Group's global flavour business expansion and development
programme and complementing Kerry's other flavour businesses including
Mastertaste based in the UK, San Giorgio Flavors in Italy (also acquired
in 2001) and the former Burns Philp flavours business in Australia, the
following flavour company acquisitions were also completed in 2001;
- The Geneva Group; comprising Flavtek Inc., Geneva Flavors Inc., and
Gilette Food Flavorings LLC, with technical and product development
facilities based in Madison, Los Angeles and New Jersey, USA. The
Geneva Group is a leading flavours provider for savoury and sweet
applications to foodservice and processed food manufacturers in the
US market.
- Hickory Specialties; a leading producer of liquid smoke flavours for
application in sauces, marinades, glazes, smoked meats, snack
seasonings, smoked seafood, soups, coatings and prepared meals. The
business, with manufacturing facilities in Crossville, Tennessee and
Greenville, Missouri, has a well-established customer base in the US
market and a strong international sales network in Japan, Brazil and
Europe.
In the nutritional sector Iowa Soy, based in Vinton, Iowa was acquired,
adding new product lines to Kerry's speciality soy product offerings for
use by the health and nutritional foods industries in the USA. Combined
with the Solnuts business acquired in 2000, the NutriantTM division is
targeting development in the fast growing nutrition and organic
ingredients sectors.
Further development in American markets in 2001 included the acquisition
of;
- Creative Seasonings & Spices, based in Sturtevant, Wisconsin,
strengthening the Group's position in the development of seasoning
blends and flavour systems for application in the prepared foods,
processed meats, snack and dairy industries in the US market.
- Alferi Laboratories, also based in Wisconsin, strengthening Kerry's
position as a leading supplier of meat seasonings to the US foodservice
and prepared foods markets.
- SPI Foods, located in Fremont, Nebraska, a leader in the development
of speciality extruded ingredients for application in ready-to-eat
cereals, energy bars and confectionery markets.
- Nutrir Productos Alimenticios, based in Belo Horizonte, a leading
supplier of branded dehydrated convenience blends to the cappuccino,
breakfast cereal, milk shake and chocolate beverage sectors in Brazil.
- Siber, located near Sao Paulo, a leading branded supplier of sweet
flavour and texture delivery systems to the ice cream, bakery and
confectionery industries in Brazil.
Asia Pacific
Kerry's Asia Pacific business performed satisfactorily in a challenging
economic environment. Difficulties associated with the reduced level of
profitability in the Australian food industry and the relatively weaker
economic conditions in Asia, were exacerbated by capacity limitations in
Group facilities in the first half of 2001. As a result turnover from
continuing operations in the region was broadly static at EUR132.9m,
with operating profits reduced by 6.1% to EUR11.4m. In Australia good
progress was again recorded through coatings and savoury flavours in
prepared foods and poultry markets. Kerry Pinnacle strengthened its
position as the leading supplier of bakery ingredients, expanding its
product range to in-store bakeries in major retail outlets. Pinnacle was
also acclaimed 'Supplier of the Year' to the largest retail group in
Australia. Kerry New Zealand continued to grow satisfactorily through
coatings applications to the quick-service-restaurant market.
Kerry continued to develop its presence in Asia where good progress was
recorded through cheese and dairy flavourings in the snack and biscuit
sectors. In the nutritional sector market development continued in North
East Asia through Kerry's speciality lipid technologies.
Major developments in Asia-Pacific markets in 2001 included;
- commissioning of the Murarrie, Queensland processing facility.
- completion of major upgrade of Kerry Australia's second major
processing plant in Altona, Victoria.
- completion of a new headquarters and Research & Development facility
at Newington, Sydney.
- commissioning of new ingredient processing facilities in Malaysia.
Post Balance Sheet Events
_________________________
Since year-end, in line with its strategy to develop leading positions
in foodservice markets, the Group announced the proposed acquisition of
Stearns & Lehman Inc., a leading manufacturer of coffee-house chain,
foodservice and branded Italian-style flavoured syrups, beverage
flavourings and toppings for the speciality coffee and beverage industries.
The proposed acquisition, due to be completed in early March, has
manufacturing facilities in the US and in Canada, serving foodservice
markets in the US, Canada, Europe and the Pacific Rim.
The Group has also agreed, subject to due diligence to sell the Bailieboro
milk processing business, acquired as part of the acquisition of
Golden Vale, for a consideration of EUR33m. In addition, the Group is in
discussion with a number of interested parties in connection with the sale
of the Artigarvan milk processing business in County Tyrone, Northern
Ireland, which was also acquired as part of the Golden Vale transaction.
Finance
_______
Operating cash flow (EBITDA) increased by 11.7% to EUR330.9m. After net
cash expenditure on capital projects of EUR89m, interest payments of
EUR45.7m, tax of EUR44.3m and dividends of EUR16.6m, free cash flow
available to the Group was EUR101.3m. Over the past five years free
cash flow generated by the Group has amounted to EUR544m.
The total consideration, including debt, arising from Group acquisitions
in 2001 amounted to EUR617m, of which EUR163m was raised by way of issued
share capital in respect of the offer to Golden Vale shareholders. Net
debt at year-end amounted to EUR818.9m compared to the year earlier level
of EUR478.3m. Accordingly debt to EBITDA stood at a comfortable 2.5 times,
while the level of debt expressed as a percentage of market capitalisation
stood at 32%.
Interest charges in 2001 increased by EUR2m to EUR47.6m, with EBITDA to
interest covered 7.0 times (2000 : 6.5 times). The tax charge for the
period was EUR46.3m (2000 : EUR40.6m) reflecting a slight increase in the
Group's effective tax rate to 24.4%.
Integration of acquisitions, including the Golden Vale businesses,
commenced in the final quarter at a cost in the period of EUR8.1m. Since
year-end the Board has approved an integration plan for businesses
connected with 2001 acquisitions, principally Golden Vale. The plan at
a cost of EUR52m is expected to be completed in 2002 and the Group is
confident that the benefits of this programme in terms of business
development and efficiencies will be significant.
At year-end capital and reserves stood at EUR830m compared to the previous
years level of EUR529m. The basic weighted average number of ordinary
shares in issue for the period was 175,674,473 (2000 : 172,149,130). The
number of shares in issue at year-end was 184,998,845 and the Kerry Group
share price was quoted at EUR13.65 (2000 : EUR13.60). Market capitalisation
amounted to EUR2.53 billion compared to the 2000 year-end level of
EUR2.34 billion.
Dividend
________
The Board has declared a final dividend of 6.75cent per share, an increase
of 10.1% on 2000. Together with the interim dividend of 3.25cent per share,
this raises the total dividend payment for the year to 10cent per share,
an increase of 10.5% on the 2000 dividend. The final dividend will be paid
on 31 May 2002 to shareholders registered on the record date 3 May 2002.
Euro
____
The Group successfully completed the conversion of its commercial and
reporting systems to cater for the introduction of the Euro currency on
1 January 2002.
Board and Management Changes
____________________________
On 1 January 2002, Mr. Denis Brosnan, formerly Managing Director, was
appointed Non-Executive Chairman succeeding Mr. Michael Hanrahan who
retired as a Director and Chairman at year-end.
Mr. Hugh Friel, formerly Deputy Managing Director, was appointed
Managing Director with effect from 1 January 2002. Mr. Denis Cregan,
currently Deputy Managing Director was also appointed C.E.O. of Kerry
Ingredients. Mr. Brian Mehigan, formerly Group Controller, was appointed
Finance Director on 25 February 2002.
Dr. Ivor Kenny retired from the Board on 29 May 2001. The Board co-opted
Mr. Kevin Kelly as Non-Executive Director on 1 June 2001.
Mr. Cathal Foley and Mr Walter Costelloe were appointed to the Board as
Non-Executive Directors on 25 February 2002, replacing Mr. John O'Connor
and Mr. Roger O'Rahilly who retired from the Board in October 2001.
Annual Report and Annual General Meeting
________________________________________
The Group's Annual Report will be published at the beginning of May and
the Annual General Meeting will be held in Tralee on 27 May 2002.
Future Prospects
________________
The Group has established a quality business which is well diversified
both sectorally and geographically. In the past year from operational,
management and financial perspectives, underlining the strength of the
Group, we have comfortably gained considerable advantage through a range
of acquisitions and business opportunities which augur well for future
profitable growth.
While continuing to build and consolidate the Group's strong positions in
consumer foods and ingredients markets, we have also focused on developing
leadership positions in the global flavour and nutrition sectors, while
selectively growing our culinary and foodservice businesses. Current
trading is in line with expectations and the Group is well placed to
capitalise on complementary acquisition opportunities which will
inevitably arise due to the ongoing consolidation of the global food
industry.
KERRY GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2001
Pre
Exceptional Exceptional
Items Items Total
2001 2001 2001 2000
EUR'000 EUR'000 EUR'000 EUR'000
Turnover (note 1)
Continuing operations 2,753,024 - 2,753,024 2,621,913
Acquisitions 249,757 - 249,757 -
_________ ______ __________ _________
3,002,781 - 3,002,781 2,621,913
========= ====== ========== =========
Operating profit before
goodwill amortisation and
exceptional items (note 1)
Continuing operations 249,446 - 249,446 233,747
Acquisitions 10,999 - 10,999 -
________ _____ _________ ________
260,445 - 260,445 233,747
Goodwill amortisation 23,367 - 23,367 15,364
Exceptional restructuring
costs (note 4) - 8,097 8,097 -
_______ _______ _______ _______
Operating profit (note 1) 237,078 (8,097) 228,981 218,383
Profit on sale of
businesses (note 4) - 6,205 6,205 1,194
Profit/(loss) on sale of
fixed assets (note 4) - 2,187 2,187 (744)
Interest payable and
similar charges 47,644 - 47,644 45,680
______ ______ ______ ______
Profit before taxation 189,434 295 189,729 173,153
Taxation 46,541 (275) 46,266 40,649
______ ______ ______ ______
Profit after taxation and
attributable to
ordinary shareholders 142,893 570 143,463 132,504
Dividends - paid 6,004 - 6,004 5,033
- proposed 12,487 - 12,487 10,570
______ ____ ______ ______
18,491 - 18,491 15,603
_______ ____ _______ _______
Retained profit for the year 124,402 570 124,972 116,901
======= ==== ======= =======
Earnings per ordinary share (cent) (note 5)
- basic before goodwill
amortisation & exceptional items 94.6 85.6
- basic after goodwill
amortisation & exceptional items 81.7 77.0
- fully diluted after goodwill
amortisation & exceptional items 81.1 76.4
KERRY GROUP PLC
CONSOLIDATED BALANCE SHEET
as at 31 December 2001
2001 2000
EUR'000 EUR'000
Fixed assets
Tangible assets 885,773 671,821
Intangible assets 685,941 290,139
_________ _______
1,571,714 961,960
Current assets
Stocks 362,173 285,351
Debtors 515,063 332,035
Cash at bank and in hand 19,794 27,995
_______ _______
897,030 645,381
Creditors: Amounts falling due
within one year (775,579) (579,448)
_________ _________
Net current assets 121,451 65,933
_________ _________
Total assets less current liabilities 1,693,165 1,027,893
Creditors: Amounts falling due after more
than one year (857,674) (495,807)
Provisions for liabilities and charges (5,080) (3,001)
__________ _________
830,411 529,085
========== =========
Capital and reserves
Called-up equity share capital (note 6) 23,125 21,553
Capital conversion reserve fund 340 340
Share premium account 357,873 193,651
Profit and loss account 412,271 289,470
________ _______
793,609 505,014
Deferred income 36,802 24,071
________ _______
830,411 529,085
======== =======
KERRY GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2001
2001 2000
EUR'000 EUR'000
Operating profit before goodwill
amortisation and exceptional items 260,445 233,747
Depreciation (net) 70,438 62,422
Change in working capital (34,473) 14,750
Exchange translation adjustment 453 (1,945)
_______ _______
Net cash inflow from operating activities 296,863 308,974
Returns on investments and
servicing of finance
Interest received 1,882 1,353
Interest paid (47,614) (48,937)
Taxation (44,298) (42,107)
Capital expenditure
Purchase of tangible fixed assets (95,647) (100,837)
Proceeds on the sale of fixed assets 5,641 3,425
Development grants received 993 1,733
Purchase of intangible fixed assets - (45)
Acquisitions and disposals
Purchase of subsidiary undertakings (599,422) (115,619)
Proceeds on the sale of businesses 22,049 97,732
Deferred creditors paid (30) (1,867)
Exceptional restructuring costs (8,097) (6,810)
Consideration adjustment on
previous acquisitions 475 -
Equity dividends paid (16,574) (14,203)
________ ________
Cash (outflow)/inflow before the use of liquid
resources and financing (483,779) 82,792
Financing
Issue of share capital 165,794 3,004
Increase/(decrease) in debt due within one year 36,590 (30,820)
Increase/(decrease) in debt due after one year 273,194 (40,242)
_______ ________
(Decrease)/increase in cash in the year (8,201) 14,734
======= ========
KERRY GROUP PLC
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
for the year ended 31 December 2001
(Decrease)/increase in cash in the year (8,201) 14,734
Cash flow from debt financing (309,784) 71,062
_________ ________
Change in net debt resulting from cash flows (317,985) 85,796
Exchange translation adjustment (22,592) (19,611)
_________ _________
Movement in net debt in the year (340,577) 66,185
Net debt at beginning of year (478,347) (544,532)
_________ _________
Net debt at end of year (818,924) (478,347)
========= =========
KERRY GROUP PLC
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2001
2001 2000
EUR'000 EUR'000
Profit attributable to the Group 143,463 132,504
Exchange translation adjustment on foreign currency
net investments (2,171) (17,274)
________ ________
Total recognised gains and losses relating
to the year 141,292 115,230
======== ========
KERRY GROUP PLC
RECONCILIATION OF MOVEMENTS IN SHARE CAPITAL AND RESERVES
for the year ended 31 December 2001
Capital
Share Capital Conversion P&L
& Premium Reserve Fund Account Total
EUR'000 EUR'000 EUR'000 EUR'000
At beginning of year 215,204 340 289,470 505,014
Retained profit - - 124,972 124,972
Share issue 167,551 - - 167,551
Share issue costs (1,757) - - (1,757)
Exchange translation
adjustment - - (2,171) (2,171)
________ ____ _______ ________
At end of year 380,998 340 412,271 793,609
======== ==== ======= ========
The Profit & Loss Account figures comprise the following:
Intangible
Assets Retained Profit & Loss
Written Off Profits Account
EUR'000 EUR'000 EUR'000
At beginning of year (414,931) 704,401 289,470
Retained profit (23,367) 148,339 124,972
Exchange translation adjustment - (2,171) (2,171)
_________ ________ _________
At end of year (438,298) 850,569 412,271
========= ======== =========
KERRY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2001
1. Analysis of results by region
_____________________________
2001 2000
Operating Net Operating Net
Turnover Profit Assets Turnover Profit Assets
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
By geographical market of origin:
- Continuing
operations 686,995 40,455 107,463 645,874 37,306 126,880
- Acquisitions 196,272 4,620 383,438 - - -
Ireland 883,267 45,075 490,901 645,874 37,306 126,880
- Continuing
operations 1,170,870 97,073 573,337 1,140,934 91,900 579,822
- Acquisitions 12,904 1,451 82,476 - - -
Rest of Europe 1,183,774 98,524 655,813 1,140,934 91,900 579,822
- Continuing
operations 762,304 100,541 301,666 703,869 92,422 251,846
- Acquisitions 39,424 4,783 130,913 - - -
Americas 801,728 105,324 432,579 703,869 92,422 251,846
- Continuing
operations 132,855 11,377 69,411 131,236 12,119 48,884
- Acquisitions 1,157 145 631 - - -
Asia Pacific 134,012 11,522 70,042 131,236 12,119 48,884
_________ ______ _________ _________ _______ ________
3,002,781 260,445 1,649,335 2,621,913 233,747 1,007,432
Goodwill amortised - (23,367) - - (15,364) -
Exceptional
restructuring costs - (8,097) - - - -
Group borrowings(net) - - (818,924) - - (478,347)
_________ _______ _________ _________ _______ _________
3,002,781 228,981 830,411 2,621,913 218,383 529,085
========= ======= ========= ========= ======= =========
2001 2000
Turnover Turnover
EUR'000 EUR'000
By destination:
- Continuing
operations 424,909 418,261
- Acquisitions 95,798 -
Ireland 520,707 418,261
- Continuing
operations 1,321,390 1,274,588
- Acquisitions 101,606 -
Rest of Europe 1,422,996 1,274,588
- Continuing
operations 840,743 768,613
- Acquisitions 32,693 -
Americas 873,436 768,613
- Continuing
operations 165,982 160,451
- Acquisitions 19,660 -
Asia Pacific 185,642 160,451
_________ _________
3,002,781 2,621,913
========= =========
2. Accounting policies
___________________
The audited accounts have been prepared using the same accounting
policies as detailed in the 2000 annual financial statements except
that the Group has adopted Financial Reporting Standard 18 (FRS 18)
'Accounting Policies' and the transitional provisions of Financial
Reporting Standard 17 (FRS 17) 'Retirement Benefits'. The adoption
of FRS 17 and FRS 18 has had no effect either on the results for the
current year or on results reported in prior periods.
3. Basis of preparation and reporting currency
___________________________________________
The financial information set out in this document does not constitute
full statutory accounts for the years ended 31 December 2001 or 2000
but is derived from same. The 2001 and 2000 accounts have been audited
and received unqualified audit reports. The 2001 financial statements
were approved by the Board of Directors on 25 February 2002.
The financial statements are prepared under the historical cost
convention. The 2001 financial statements and the 2000 comparative
figures are presented in Euro.
4. Exceptional items
_________________
2001 2000
EUR'000 EUR'000
Exceptional restructuring costs (8,097) -
Profit on sale of businesses 6,205 1,194
Profit/(loss) on sale of fixed assets 2,187 (744)
_______ ______
295 450
Taxation effect of exceptional items 275 -
_______ ______
Total as per note 5 570 450
======= ======
The exceptional restructuring costs relate to the integration of Golden
Vale plc and other acquisitions completed by the Group. The costs arose
from the rationalisation of manufacturing facilities, restructuring of
administration and management functions, and the integration of systems
and processes.
During the year the Group disposed of a number of businesses including SPP
Bakery Ingredients in the UK.
The profit on sale of businesses in 2000 relates to the sale of the Group's
DCA Bakery business in the US and Canada and the sale of part of the
business and assets of Dawn Dairies Limited in Ireland.
5. Earnings per share
__________________
EPS 2001 EPS 2000
cent EUR'000 cent EUR'000
Profit after taxation,
before goodwill amortisation
& exceptional items 94.6 166,260 85.6 147,418
Goodwill amortisation 13.2 23,367 8.9 15,364
Exceptional items (net) (note 4) (0.3) (570) (0.3) (450)
______ ________ _______ _______
Profit after taxation,
goodwill amortisation
& exceptional items 81.7 143,463 77.0 132,504
Share option dilution 0.6 - 0.6 -
______ _______ ______ _______
81.1 143,463 76.4 132,504
====== ======= ====== =======
The basic weighted average number of ordinary shares in issue for the year
was 175,674,473 (2000: 172,149,130). The diluted weighted average number of
ordinary shares in issue for the year was 176,870,079 (2000: 173,500,688).
The dilution arises in respect of executive share options outstanding.
In addition to the basic and diluted earnings per share, a pre goodwill
amortisation and exceptional items earnings per share calculation is also
provided, as it more accurately reflects the Group's underlying trading
performance.
6. Share capital
_____________
2001 2000
EUR'000 EUR'000
Authorised:
At beginning of year (A ordinary shares of
12.5cent each (2000:10 pence each)) 25,000 25,395
Redenomination and renominalisation of share
capital - (395)
At end of year (A ordinary shares of 12.5cent ________ ________
each) 25,000 25,000
________ ________
Allotted, called-up and fully paid:
At beginning of year (A ordinary shares of
12.5cent each (2000:10 pence each)) 21,553 21,846
Transfer to capital conversion reserve fund - (340)
Shares issued during year 1,572 47
At end of year (A ordinary shares of 12.5cent ______ ______
each) 23,125 21,553
______ ______
Shares issued during year
As part consideration for the acquisition of Golden Vale plc during
the year, 11,957,632 A ordinary shares, each with a nominal value of
12.5cent, were issued to shareholders of Golden Vale plc at a price
of EUR13.60 each. Also during 2001, 616,000 A ordinary shares, each
with a nominal value of 12.5cent, were issued at EUR8.0 per share to
executives in the Group under share option schemes. The total number
of shares in issue at 31 December 2001 was 184,998,845
(2000:172,425,213).
This information is provided by RNS
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