Kerry Group posted a 9.3 per cent rise in first-half pre-tax profits to euro 78 million today and said its impending takeover of Golden Vale would spur growth.
The Irish food company said it was confident of achieving its targets for the full year and that it could exploit the forecast significant sectoral growth opportunities.
The company said the first half of 2001 had seen "a more demanding trading environment" but the group maintained growth and continued to improve operating margins.
Kerry Group managing director Mr Denis Brosnan said the company saw the takeover of Golden Vale, which has yet to be approved by Irish regulators, as a "win-win" deal for both companies. "There are synergies everywhere . . . across three or four different areas," he said.
The company said its operations in Ireland, Europe and US markets all showed increased turnover and a rise in operating profits in the first half.
These were up 3.4 per cent in Ireland to euro 18.9 million, up 6.4 per cent to euro 404 million in Europe and up 8.4 per cent to euro 44.7 million in the Americas.
But the company said investments in new facilities in Australia and expansion of a Malaysian manufacturing plant had been commissioned or were near completion in the review period, meaning capacity limitations were not overcome during the half year .
This resulted in broadly static turnover of euro 64.5 million, with a slight rise in operating profits to euro 3.9 million, the company said.