RNS Number:2222D
Kerry Group PLC
04 September 2007
Press Announcement
Tuesday 4 September 2007
Interim Report
Half Year Ended 30 June 2007
Kerry, the global ingredients, flavours, and consumer foods group, reports
interim results for the half year ended 30 June 2007 and appointment of Chief
Executive Designate.
Financial Highlights
* Sales revenue of Euro2,332m
* Like-for-like revenue growth of 5.6%
* Trading margin increased from 7.2% to 7.4%
* Trading profit growth of 6.2% to Euro172m
* Adjusted earnings per share* up 7.1% to 58.8 cent
* Interim dividend per share up 10.9% to 6.1 cent
*before intangible amortisation and non-trading items
Commenting on the results Kerry Group Chief Executive Hugh Friel said; " During
the first half of 2007, Kerry delivered solid organic growth across all Group
businesses and territories. Group food ingredients and consumer foods
businesses generated 5.6% organic revenue growth and 20 basis points margin
improvement. We have successfully managed continued input cost inflation
through cost recovery and business efficiency programmes and expect a good
outturn for the full year."
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/
Chairman's Statement
For the half year ended 30 June 2007
The Group performed strongly in the first half of 2007. Good organic growth and
margin improvement was achieved in Kerry's food ingredients and consumer foods
businesses. Building on the progress made in the second half of 2006, the Group
continued to successfully manage the inflationary input cost environment through
cost recovery and business efficiency programmes. Having divested non-core low
margin activities prior to year-end 2006, all Group operating divisions and
business regions achieved good profitable growth in the period under review.
Successful technology development and new product roll outs contributed
significantly to the achievement of strong top-line growth.
Results
In the first six months of 2007 total Group revenue amounted to Euro2,332m. This
reflects like-for-like growth of 5.6% relative to the first half of 2006 when
account is taken of acquisitions, business disposals and exchange rate effects
due mainly to the weaker US dollar.
Group trading profit increased by 6.2% to Euro172.4m despite significant input cost
increases, adverse currency rates and the impact of business disposals. Trading
margins in the period advanced by 20 basis points to 7.4%. Group profit after
taxation, finance charges and non trading items increased by 5% to Euro105.8m.
Adjusted earnings per share increased by 7.1% to 58.8 cent. The interim
dividend of 6.1 cent per share reflects an increase of 10.9% over the 2006
interim dividend.
Business Reviews
Food Ingredients
The Group's food ingredients, flavours and bio-science businesses all performed
robustly in the first six months of 2007. Total sales revenue increased by 4.1%
to Euro1,611m reflecting like-for-like growth of 5.9% when adjusted for currency
translation, acquisitions and business disposals impact. Trading profits in
ingredients markets grew by 5.8% to Euro130m. The trading margin improved by 10
basis points to 8.1%. Against a background of energy driven input cost
inflation, this performance was achieved through cost recovery programmes and
the on-going successful development of Kerry's 'go-to-market' strategy. Good
results have been achieved through this programme dedicated to the provision of
industry leading customer service through innovative product solutions and
applications developed across the Group's broad based science and technology
platforms.
In American ingredients markets sales revenue in the period reported at Euro644m
represents 6% like-for-like growth. Good progress was achieved in all market
segments of the U.S. market. The speciality dairy and lipids sector has
recovered from the challenging sectoral market conditions of 2005/2006.
Building on Kerry's leading cheese and dairy flavour technologies, good volume
growth was achieved in frozen complete sauces. Trans-fat replacement also
provided good growth opportunities. The demand for enhanced nutritional
offerings continues to drive development in the ready-to-eat cereal and
nutrition sector.
Kerry achieved strong volume growth in the granola bar sector which is
exhibiting double digit growth year-on-year. While progress continued through
sweet inclusions in the bakery market, volumes were slightly lower in the
ice-cream sector due to the impact of dairy raw material prices on sectoral
growth. Kerry's savoury technologies performed well in the U.S. and Canadian
markets in particular through meat seasonings in the red meat market and coating
systems for poultry and seafood applications.
Kerry continues to achieve excellent progress in the foodservice sector across
American markets through sweet and savoury applications. Beverage syrups and
sweet inclusions again recorded good growth through coffee house and restaurant
chains and successfully extended market development into Latin American and
Central American markets. New product lines were successfully launched during
the period in the Jet Smoothie, Jet Blended Beverage Base and Oregon Chai
product ranges.
Strong volume growth was achieved through meat seasonings and savoury
application in South American markets.
Kerry Bio-Science again grew satisfactorily in American markets in the first
half of 2007 with strong growth in culinary, cell nutrition and excipient
markets, and also continued development of dairy, meat and beverage ingredient
applications. The increased trend towards all-natural labelled products and
ingredients continues to provide good growth opportunities for Kerry Bio-Science
technologies. In addition the progressive development of key customer accounts
in Latin American markets is leading to strong double digit growth in the
sub-region.
Despite unprecedented raw material cost inflation, SheffieldTM Pharma
Excipients achieved strong first half growth through innovative anhydrous
product launches and the commencement of a global sales and marketing agreement.
In the pharma cell nutrition segment growth was in line with overall sectoral
growth rates. Innovation through novel processes for protein hydrolysis has
produced good results and patents have been submitted.
Mastertaste flavours, benefiting from growing demand for salt reduction and
calorie reduction, recorded strong development through its taste modulation
technologies in savoury and beverage applications in American markets.
Manheimer Fragrances achieved excellent results in the first half of 2007, with
significant new product launches through new and existing accounts in the home
environmental and personal care sectors.
In European markets, sales revenue increased by 4% to Euro656m, reflecting
like-for-like revenue growth of 3.6%. While cost recovery in European markets
lagged other regions, nevertheless significant progress was achieved and the
focus on cost saving programmes continues. Culinary applications again provided
good growth for Kerry's sauces, purees, bouillons and broths. In the UK market
sales increases in the chilled savoury sector proved satisfactory but the
difficulties in the frozen sector continued to impact volume and margin growth.
Supply chain efficiencies assisted business development in Germany and Italy but
market conditions in the French savoury sector proved challenging. Satisfactory
market development was achieved in Eastern European markets. The foodservice
sector throughout European markets continued to provide good growth
opportunities for Kerry's food and beverage ingredients.
In line with global dairy market developments, conditions in European markets in
the first half of 2007 improved significantly relative to the difficult market
situation in 2006. The increasing demand for dairy products and dairy
ingredients globally coupled with a reduction/elimination of inventories has led
to much improved returns to milk producers and a recovery in dairy processor
margins. Kerry Dairy Ingredients has also continued to benefit from on-going
development of milk proteins in the nutritional and functional food and beverage
sectors.
Kerry recorded a good first half performance in the European fruit and sweet
ingredients sector. Product innovation and supply chain efficiencies
contributed to satisfactory improvement in fruit applications into the yoghurt
and fruit smoothie sectors. Fruit and sweet ingredients also benefited from
increased demand in Europe for enhanced nutritional offerings in the breakfast
cereal and confectionery sectors.
In Europe, Kerry Bio-Science achieved good growth in beverage, bakery, dairy and
confectionery markets. Additional capacity arising from the major investment
programme at the Menstrie yeast production facility in Scotland facilitated good
growth in the European beverage sector and in the U.S. cell nutrition sector.
Excellent progress was achieved in the European bakery market as functional
solutions offered through the Kerry Bio-Science portfolio, including enzymes,
fermented ingredients and emulsifiers, are increasingly adopted in preference to
competitor offerings. Functional ingredients also outperformed market growth
rates in the confectionery sector as manufacturers strive to enhance product
texture and consumer appeal. Similarly in the dairy sector, due to the
increased focus on health and wellness, the Kerry Bio-Science range of SherexTM,
MyvatexTM and DurafreshTM products achieved excellent results as manufacturers
focus on production of added value products with enhanced taste, texture, shelf
life and convenience attributes.
Mastertaste flavours made solid progress in Europe. Strong growth was achieved
in UK chilled savoury markets in particular through core supplier accounts in
the culinary sector. Strong gains were also achieved through major branded
product launches in the Italian confectionery market. Mastertaste natural
products division also continued to successfully advance its market positioning
in the European beverage sector.
In Asia Pacific markets Group ingredients businesses continue to achieve
excellent results in food and beverage applications. Sales revenue increased by
14.3% (like-for-like 14.6%) to Euro199m. Kerry's branded flavoured beverage
offerings achieved steady growth throughout the region's fast growing consumer
and foodservice markets. Progress in development of speciality nutritional
products for 'growing diets', in particular for the Chinese market, again
achieved double digit market growth rates. The rate of growth in regional
savoury markets slowed - most notably in Australia.
Kerry Bio-Science also grew steadily in Asia Pacific markets, particularly in
Japan, China and India, through its range of beverage, meat, dairy, bakery and
confectionery technologies. The Esterol emulsifier facility in Malaysia
continues to make excellent progress despite increased input cost pressures.
Considerable growth was also achieved through SheffieldTM Pharma Excipients due
to the expansion of regional pharmaceutical manufacturing coupled with
manufacturing shifts by major branded pharmaceutical companies into the region.
Kerry's Pinnacle bakery business unit achieved strong growth in Australia
boosted by the successful introduction of speciality lifestyle bakery offerings
for in-store, franchise bakery and foodservice outlets.
Consumer Foods
Kerry's consumer foods businesses performed strongly in a competitive UK and
Irish market environment in the first half of 2007. Divisional revenue
increased to Euro882m which reflects like-for-like growth of 4.5% relative to the
same period of 2006. Trading profits increased by 6.6% to Euro56m assisted by the
success of new product launches and investment in the division's brands -
leading to a 30 basis points improvement in the operating margin to 6.3%.
Significant progress was also made in maximising production and supply chain
efficiencies in the face of a challenging input cost environment.
All Kerry Foods' brands continued to achieve satisfactory development and lead
category growth. In Ireland Denny and Ballyfree again achieved excellent
progress in premium sliced meats categories benefiting from successful new
product development and marketing support. Denny sausage and bacon product
ranges also performed satisfactorily. Freshways maintained double digit growth
in the period through its range of premium convenience 'food to go' offerings.
The Freshways sandwich range achieved strong market development at retail level
and a range of Heat n'Eat baguettes and ciabattas was successfully launched in
convenience and foodservice channels. Dawn health juice offerings and smoothies
achieved wider market penetration and Kerry Spring recorded solid growth in
flavoured and non-flavoured segments of the Irish market.
Kerry Foods continued to outperform market growth rates in the UK and Irish
cheese and spreads business through its branded and private label offerings.
Charleville cheese and the fast growing Low Low cheese offering continued to
grow market share in the Republic of Ireland market whilst rebranding of the
Coleraine brand in Northern Ireland achieved a strong market response.
Cheestrings again achieved satisfactory growth in the UK cheese snacks sector
whilst Ficello achieved strong double digit growth in France. Strong gains were
also achieved in the foodservice and retail cheese slices markets. However
margins in the cheese category were impacted by the spike in raw material
pricing.
In the UK market Kerry Food's leading savoury sector brands all advanced market
positioning. Richmond and Wall's continued to grow market shares in the chilled
sausage sector as the frozen segment contracts. In the meat snacking sector
Mattessons Fridge Raiders continues to drive category growth at encouraging
levels.
The fresh ready meals market grew steadily during the first six months of 2007.
Kerry Foods grew sales in line with market growth rates across all market
segments. Its 'healthily balanced' innovative lines introduced in H2 2006
achieved good results as consumers seek the assurance of high quality,
nutritional fresh ingredients.
In the frozen ready meals segment, while overall sales volume continued to
decline year-on-year, the market has restored stability and Rye Valley Foods has
consolidated its strong market positioning due to its lowest cost producer
status.
Finance
The Group delivered free cash flow of Euro75m (H1 2006: Euro20m) in the first half
having spent Euro39m on fixed assets, Euro64m on seasonally affected working capital,
Euro35m on finance costs and Euro12m on tax.
In the first half of 2007, the Group used its share buy-back programme
authorisation to purchase 10.8m shares at a total cost of Euro232m. Allowing for
dividend and share buy-back cashflows of Euro230m, net debt at the end of the half
year increased to Euro1,357m compared to Euro1,338m at the end of the first half of
2006. Net debt to EBITDA at 2.8 times was similar to the prior half year level.
Finance costs were Euro38m, compared to Euro35m in the same period of 2006
(reflecting an increase in interest rates) with EBITDA to net interest covered
6.0 times (H1 2006 : 7.0 times).
Dividend
The Board has declared an interim dividend of 6.1 cent per share, an increase of
10.9% on the 2006 interim dividend of 5.5 cent per share. The interim dividend
will be paid on 23 November 2007 to shareholders registered on the record date
19 October 2007.
Board and Management Changes
The Board announces that Mr Hugh Friel, who became Chief Executive of the Group
in January 2002, will retire as Chief Executive and Director of the Group on 31
December 2007.
The Group is pleased to announce that Mr Stan McCarthy has been appointed Chief
Executive Designate to succeed Mr Friel on his retirement.
Mr Stan McCarthy (age 49), who has been an Executive Director of the Group since
1999, is currently President and CEO Kerry Ingredients Americas. Mr McCarthy
joined Kerry's Graduate Recruitment Programme in Ireland in 1976 and worked in
Finance until his appointment as Financial Controller in the USA on
establishment of Kerry's Representative Office in Chicago in 1984. Following
the Group's acquisition of Beatreme in 1988 he was appointed Vice President of
Materials Management and Purchasing. In 1991 he was appointed Vice President of
Sales and Marketing and was named President of Kerry North America in 1996.
Prior to his appointment as Chief Executive of the Group in 2002, Mr Hugh Friel
(age 63) served as Joint Deputy Managing Director of the Company since the
formation of Kerry Group in 1986. He has been with the Kerry organisation since
its foundation in 1972, overseeing its growth as Director of Finance.
Current Trading and Outlook
Building on the first half outcome, the Group expects a good performance
throughout all businesses and geographic markets for the full year -
notwithstanding the challenging input cost environment and currency headwinds.
Driven by positive trends towards new product development favouring Kerry's
broad base of food and beverage ingredients technologies and applications, and
Kerry Foods' capability to meet consumer demand for quality, convenient healthy
foods, the Group expects to achieve continued solid organic growth. Kerry will
continue to seek acquisition opportunities which will enhance shareholder value.
Results for the half year ended 30 June 2007
Kerry Group plc
Consolidated Income Statement
for the half year ended 30 June 2007
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Notes Euro'000 Euro'000 Euro'000
Revenue 1 2,331,652 2,265,336 4,645,920
___________ ___________ ___________
Trading profit 172,389 162,249 383,688
Intangible asset amortisation (6,133) (5,433) (12,093)
Non-trading items 2 4,067 3,223 (73,425)
___________ ___________ ___________
Operating profit 170,323 160,039 298,170
Finance costs (37,827) (34,772) (76,930)
___________ ___________ ___________
Profit before taxation 132,496 125,267 221,240
Income taxes (26,693) (24,534) (43,491)
___________ ___________ ___________
Profit after taxation and attributable to equity 105,803 100,733 177,749
shareholders
___________ ___________ ___________
Earnings per ordinary share (cent)
- basic 3 57.6 53.8 95.6
- fully diluted 3 57.4 53.6 95.2
Kerry Group plc
Consolidated Balance Sheet
as at 30 June 2007 30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Non-current assets
Property, plant and equipment 996,901 1,061,266 1,010,343
Intangible assets 1,679,040 1,679,400 1,684,756
Financial asset investments 15,872 14,131 19,866
Other non-current assets 54,418 4,168 10,856
___________ ___________ ____________
2,746,231 2,758,965 2,725,821
___________ ___________ ____________
Current assets
Inventories 569,459 573,469 495,313
Trade and other receivables 663,017 623,276 597,073
Cash and cash equivalents 123,366 101,235 188,844
Financial assets 1,646 7,378 4,485
Assets classified as held for sale 2,696 - 2,696
___________ ___________ ____________
1,360,184 1,305,358 1,288,411
___________ ___________ ____________
Total assets 4,106,415 4,064,323 4,014,232
___________ ___________ ____________
Current liabilities
Trade and other payables 921,021 886,117 836,550
Financial liabilities 49,525 205,185 27,261
Tax liabilities 61,380 50,501 51,909
Deferred income 2,224 4,226 2,726
___________ ___________ ____________
1,034,150 1,146,029 918,446
___________ ___________ ____________
Non-current liabilities
Financial liabilities 1,445,089 1,233,889 1,356,296
Retirement benefits obligation 148,048 178,561 180,269
Other non-current liabilities 91,046 103,767 87,368
Deferred tax liabilities 147,380 126,721 131,252
Deferred income 16,812 19,147 17,434
___________ ___________ ____________
1,848,375 1,662,085 1,772,619
___________ ___________ ____________
Total liabilities 2,882,525 2,808,114 2,691,065
___________ ___________ ____________
Net assets 1,223,890 1,256,209 1,323,167
___________ ___________ ____________
Capital and reserves
Share capital 21,790 23,419 23,445
Share premium account 387,603 381,022 383,341
Other reserves 11,348 (31,826) (32,089)
Retained earnings - cancelled shares (280,292) - -
- retained income 1,083,441 883,594 948,470
___________ ___________ ____________
Shareholders' equity 1,223,890 1,256,209 1,323,167
___________ ___________ ____________
Kerry Group plc
Consolidated Statement of Recognised Income and Expense
for the half year ended 30 June 2007
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Fair value movements on available-for-sale investments (3,994) 1,689 7,424
Fair value movements on cash flow hedges (4,206) 7,248 (2,608)
Exchange difference on translation of foreign operations 2,283 (15,258) (13,389)
Actuarial gains on defined benefit pension schemes 65,024 64,640 61,924
Deferred tax on items taken directly to reserves (12,712) (12,987) (12,251)
___________ ___________ ____________
Net income recognised directly in equity 46,395 45,332 41,100
Transfers
Cash flow hedges to profit or loss from equity (2,143) (564) 160
Profit for the period after taxation 105,803 100,733 177,749
___________ ___________ ____________
Total recognised income and expense for the period
attributable to equity shareholders 150,055 145,501 219,009
___________ ___________ ____________
Kerry Group plc
Consolidated Reconciliation of Changes in Shareholders' Equity
for the half year ended 30 June 2007
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Notes Euro'000 Euro'000 Euro'000
At beginning of period 1,323,167 1,177,684 1,177,684
Total recognised income and expense for the period 150,055 145,501 219,009
Dividends paid 4 (23,144) (20,597) (30,757)
Purchase of shares 3 (231,850) (48,442) (48,442)
Long term incentive plan expense 1,350 - 1,265
Shares issued during the period 4,312 2,063 4,408
___________ ___________ ____________
At end of period 1,223,890 1,256,209 1,323,167
___________ ___________ ____________
Kerry Group plc
Consolidated Cash Flow Statement
for the half year ended 30 June 2007
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Operating activities
Trading profit 172,389 162,249 383,688
Adjustments for:
Depreciation (net) 52,597 53,450 102,923
Change in working capital (65,460) (98,909) (45,893)
Exchange translation adjustment 669 (615) (484)
___________ ___________ ____________
Cash generated from operations 160,195 116,175 440,234
Income taxes paid (11,729) (13,466) (35,056)
Finance costs paid (net) (34,912) (35,015) (76,581)
___________ ___________ ____________
Net cash from operating activities 113,554 67,694 328,597
___________ ___________ ____________
Investing activities
Purchase of non-current assets (41,886) (56,450) (103,066)
Proceeds from the sale of non-current assets 2,995 7,937 13,886
Capital grants received 229 974 1,687
Net expenditure on acquisitions and disposals of businesses (10,471) (86,435) (95,712)
Payment of deferred payables (2,457) (1,253) (2,781)
Expenditure on non-trading items (583) (3,457) (30,903)
Consideration adjustment on previous acquisitions (70) - (63)
___________ ___________ ____________
Net cash used in investing activities (52,243) (138,684) (216,952)
___________ ___________ ____________
Financing activities
Dividends paid (23,144) (20,597) (30,757)
Purchase of shares (207,341) (4,314) (48,442)
Issue of share capital 4,312 2,063 4,408
Net movement on bank borrowings 113,207 89,967 (4,958)
Decrease in bank overdrafts (13,237) (55,336) (1,694)
___________ ___________ ____________
Net cash (used in) / from financing activities (126,203) 11,783 (81,443)
___________ ___________ ____________
Net (decrease) / increase in cash and cash equivalents (64,892) (59,207) 30,202
Cash and cash equivalents at beginning of period 188,844 163,903 163,903
Exchange translation adjustment on cash and cash equivalents (586) (3,461) (5,261)
___________ ___________ ____________
Cash and cash equivalents at end of period 123,366 101,235 188,844
___________ ___________ ____________
Reconciliation of Net Cash Flow to Movement in Net Debt
for the half year ended 30 June 2007
Net (decrease) / increase in cash and cash equivalents (64,892) (59,207) 30,202
Cash (inflow) / outflow from debt financing (99,970) (34,631) 6,652
___________ ___________ ____________
Changes in net debt resulting from cash flows (164,862) (93,838) 36,854
Fair value movement on interest rate swaps (2,729) - (5,998)
Exchange translation adjustment on net debt 5,006 31,642 50,146
___________ ___________ ____________
Movement in net debt in the period (162,585) (62,196) 81,002
Net debt at beginning of period (1,194,356) (1,275,358) (1,275,358)
___________ ___________ ____________
Net debt at end of period (1,356,941) (1,337,554) (1,194,356)
___________ ___________ ____________
Kerry Group plc
Notes to the Interim Report
for the half year ended 30 June 2007
1. Analysis of results
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Segment Segment Segment Segment Segment Segment
Revenue Result Revenue Result Revenue Result
Euro'000 Euro'000 Euro'000 Euro'000 Euro'000 Euro'000
By business segment:
Ingredients 1,610,908 130,404 1,547,769 123,206 3,134,288 293,131
Consumer foods 882,242 55,537 874,768 52,075 1,818,733 117,528
Unallocated and Group eliminations (161,498) (13,552) (157,201) (13,032) (307,101) (26,971)
_________ ________ _________ ________ _________ ________
2,331,652 172,389 2,265,336 162,249 4,645,920 383,688
_________ _________ _________
Intangible asset amortisation (6,133) (5,433) (12,093)
Non-trading items 4,067 3,223 (73,425)
________ ________ ________
Operating profit 170,323 160,039 298,170
________ ________ ________
Segment Segment Segment
Revenue Revenue Revenue
Euro'000 Euro'000 Euro'000
By destination:
Europe 1,488,288 1,455,739 3,007,511
Americas 644,386 635,480 1,275,879
Asia Pacific 198,978 174,117 362,530
_________ _________ _________
2,331,652 2,265,336 4,645,920
_________ _________ _________
2. Non-trading items
Non-trading income in 2007 relates mainly to profit on sale of properties, plant
and equipment offset partly by restructuring costs related to the continuation
of the restructuring programme of manufacturing plants in Europe, Americas and
Asia Pacific, which was announced in 2006.
3. Earnings per ordinary share
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
EPS EPS EPS
Notes cent Euro'000 cent Euro'000 cent Euro'000
Basic earnings per share
Profit after taxation and attributable to
equity shareholders 57.6 105,803 53.8 100,733 95.6 177,749
Intangible asset amortisation 3.4 6,133 2.9 5,433 6.5 12,093
Non-trading items (net of related tax) 2 (2.2) (4,033) (1.8) (3,342) 31.8 59,163
_____ _______ _____ ________ _____ ________
Adjusted earnings* 58.8 107,903 54.9 102,824 133.9 249,005
_____ _______ _____ ________ _____ ________
Diluted earnings per share
Profit after taxation and attributable to
equity shareholders 57.4 105,803 53.6 100,733 95.2 177,749
Adjusted earnings* 58.5 107,903 54.7 102,824 133.4 249,005
* In addition to the basic and diluted earnings per share, an adjusted earnings
per share is also provided as it is considered more reflective of the Group's
underlying trading performance. Adjusted earnings is profit after taxation
before intangible asset amortisation and non-trading items (net of related tax).
Number Number Number
of Shares of Shares of Shares
30 June 30 June 31 Dec.
2007 2006 2006
000's 000's 000's
Unaudited Unaudited Audited
Basic weighted average number of shares 183,648 187,271 185,949
Impact of executive share options outstanding 713 760 715
_________ _________ ________
Diluted weighted average number of shares 184,361 188,031 186,664
_________ _________ _________
Actual number of shares in issue 174,321 184,560 184,762
_________ _________ _________
In the first half of 2007 the Company continued its share buy back programme,
purchasing 10,841,400 A ordinary shares at a total cost of Euro232 million.
All purchases conducted under the programme were in accordance with the
Company's general authority to repurchase securities as approved at the 2007 and
2006 Annual General Meeting of the Company and in accordance with the Listing
Rules of the Irish Stock Exchange and the Listing Rules of the UK Listing
Authority.
4. Dividends
Half year ended Half year ended Year ended
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Amounts recognised as distributions to equity shareholders in the period:
Final 2006 dividend of 12.50 cent per A ordinary share paid 25 May
2007 (Final 2005 dividend: 11.00 cent per A ordinary share paid 26
May 2006) 23,144 20,597 20,597
Interim 2007 dividend of 6.10 cent per A ordinary share payable 23
November 2007 (Interim 2006 dividend: 5.50 cent per A ordinary
share paid 24 November 2006) - - 10,160
______________ _____________ ___________
23,144 20,597 30,757
______________ _____________ ___________
Since the end of the period, the Board has declared an interim dividend of 6.10
cent per share. The payment date for the interim dividend will be 23 November
2007 to shareholders registered on the record date 19 October 2007. These
consolidated interim financial statements do not reflect this dividend payable.
5. Retirement benefits
The Group's net defined benefit pension schemes' deficit which has been
recognised in the Consolidated Balance Sheet, was as follows:
30 June 2007 30 June 2006 31 Dec. 2006
Unaudited Unaudited Audited
Euro'000 Euro'000 Euro'000
Net deficit in plans before deferred tax at end of period (101,933) (178,561) (180,269)
Net related deferred tax asset 42,764 57,386 58,122
______________ _____________ ___________
Net deficit in plans after deferred tax at end of period (59,169) (121,175) (122,147)
______________ _____________ ___________
6. Events after the balance sheet date
Other than the approval of the interim dividend (see note 4 above) there have
been no significant events, outside the ordinary course of business, affecting
the Group since 30 June 2007.
7. Accounting policies and general information
These unaudited consolidated interim financial statements for the half year
ended 30 June 2007 have been prepared in accordance with the accounting policies
detailed in the 2006 Annual Report.
These financial statements are not full financial statements and except where
indicated are unaudited. Full consolidated financial statements to 31 December
2006 which received an unqualified audit report, have been filed with the
Registrar of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Kerry (LSE:KYGA)
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From Jul 2023 to Jul 2024
