Kerry, the global food ingredients, flavours and consumer foods group, has announced six new acquisitions in Mexico, the US, Britain and the Republic.
But following the group's annual general meeting in Tralee yesterday, managing director Mr Hugh Friel refused to comment on reports that Kerry was interested in acquiring Haarmann and Reimer, the Bayer-owned manufacturer of flavours, fragrances and aromachemicals.
"I don't know where the process is," he said. "Traditionally, Kerry has been involved only in the food business."
Mr Friel told shareholders that the group expected a good out-turn for 2002, with overall performance in line with market expectations. Market analysts have projected earnings per share of between 13.5 and 14.5 cent.
"To date, trading is in line with targets. There is never a year that goes by when everything goes right in the same year but, on average, we are quite confident about achieving our targets and quite comfortable with the market expectations that are out there. The acquisition integration programme, in regard not just to Golden Vale but all of the other acquisitions, will cost €52 million in the current year. This will be a one-off," he said.
Golden Vale's integration would account for €35 million of the total, he added.
The bolt-on acquisitions disclosed yesterday were completed since year-end. They are Industrial Deshidratadora, the largest producer of convenience blends in Mexico; Ringger Foods Inc, in Gridley, Illinois, a leader in the development and manufacture of speciality extruded food ingredients; Roskam Cereal & Agglomerates in Grand Rapids, Michigan; Deli Products Ltd in Ireland; and Northern Foods' Van Sales Service in Britain. The latter, Mr Friel said, would make Kerry "the only national chilled distributor in the UK".
He also reported the completion of the acquisition of Stearns & Lehman Inc, a leading manufacturer of coffeehouse grains and one of the largest flavouring syrup manufacturers with facilities in several locations in the US and Canada.
Declining to disclose the combined turnover of the acquired companies, Mr Friel would say only that "for every dollar of turnover, it will cost you a dollar".
Looking to the future, he said Kerry was building a quality flavours business with global ambitions.
Asked by a shareholder if Kerry would stop acquiring companies at some stage, he replied: "The answer is 'no'. There is a whole bundle of companies going to pass you out."
World food companies had consolidated to a huge extent, he said.
"It means we cannot stop. You can't stand still. To stand still is to go into decline or reverse.
"We have done a bit of catching up on our peer group. We are tiny in relation to Nestlé, but in the field in which we operate, we are of significant strength."
He said predictions had been fulfilled in relation to world dairy markets where prices are extremely weak.
"It's difficult to see prices increasing back again in the short to medium term - one year, maybe one year and three-quarters.
"The full impact of the marketplace isn't being reflected in Ireland and most people will want to cushion it until there is a clearer picture emerging as to where the market is going.
"Countries like Ireland, New Zealand and Australia will be impacted more than EU countries or the US where only maybe 10 per cent is exported, whereas in Ireland, New Zealand and Australia 84 per cent is exported."
The sale of the Artigarvan milk processing business in Co Tyrone, acquired as part of Golden Vale last year, was progressing, according to Mr Friel.
"We're working with one buyer. Exclusivity has been given to one. They are working out due diligence," he said but declined to name the buyer for the plant.
The meeting approved a final dividend of 6.75 cents, bringing the total dividend for the year to 10 cents after an interim dividend of 3.25 cents in November.
