A strong performance from its US food business, and a full-year contribution from the French-based Groupe Hubert, helped boost full-year profits at IAWS by 15 per cent.

The food group, which produces the Cuisine de France range of goods, reported a pretax profit of €123.5 million in the year to July 31st as turnover rose by 11 per cent to €1.56 billion.

The group's agribusiness, under pressure in recent years, also recovered on the back of increased demand for animal feed ingredients and fertiliser.

Despite rising costs, Mr Killian said IAWS was confident about its growth prospects. "In particular, the lifestyle foods market opportunity remains strong, notwithstanding increased costs within the food industry."

The company, which recorded a 13.5 per cent increase in earnings per share to 81.6 cent, will pay a final dividend of 6.78 cent per share. This brings the total dividend for the year to 13.49 cent, an increase of 13.5 per cent.

Shares in IAWS lost 69 cent, or 4.4 per cent, to €14.86 amid some profit-taking after a strong recent performance, although dealers said volume in the stock was light.

The group, which announced plans earlier this month to invest €180 million in a new greenfield site at Grangecastle in west Co Dublin, also said it had entered into an option to dispose of its current operating site in Tallaght in 2009 for a minimum of €48 million.

A breakdown of the results shows that IAWS' food division reported sales of €975.4 million, a 15 per cent rise year-on-year, as operating profits grew by 16 per cent to €87.8 million.

Within this, the European food business delivered profit growth of 13 per cent to €71.2 million while the US business, described by one analyst as "the star turn in the results", enjoyed growth of 31 per cent to €16.6 million.

During the year, the company completed the third phase of expansion at its La Brea bakery in New Jersey at a cost of €50 million, a move IAWS said would provide "a strong platform for further growth".

In agribusiness, sales rose by 3 per cent to €582 million as operating profits rose by 5 per cent to €24 million.

The contribution from associates and joint ventures, including the group's 32 per cent stake in Swiss baker Hiestand, rose by 19 per cent to €25.7 million.

IAWS said that free cashflow, excluding disposals, rose by 21 per cent to €100.7 million, while net borrowings stood at €216.5 million against €219.9 million a year earlier.