TIDMKYGA
RNS Number : 7690X
Kerry Group PLC
21 February 2012
news release
Tuesday 21 February 2012
Preliminary Statement of Results
for the year ended 31 December 2011
Kerry, the global ingredients & flavours and consumer foods
group, reports preliminary results for the year ended 31 December
2011.
Highlights
* Sales revenue increased by 6.9% (6.4% LFL) to EUR5.3
billion
* 3.3% increase in business volumes
* Trading profit reaches a milestone EUR501m level
* Ingredients & Flavours trading margin up 10 basis
points to 11.9%
* Consumer Foods trading margin 30 basis points lower
at 7.8%
* Adjusted EPS* up 11.1% to 213.4 cent
* Final dividend per share of 22.4 cent (Total 2011
dividend up 11.8% to 32.2 cent)
* Free cash flow of EUR279m (2010: EUR305m)
* R&D investment of EUR167m
*before brand related intangible asset amortisation and non-trading
items
Commenting on the results Kerry Group Chief Executive Stan
McCarthy said; "Kerry delivered good profitable growth in 2011
despite weak consumer confidence in many markets and significant
raw material & input cost inflation. The Group performed well
across developed and developing markets while continuing to build
our capabilities and positioning for the future. Trading profit
reached a milestone level of EUR501m in 2011. We are confident of
achieving our strategic growth objectives for 2012 and expect to
achieve seven to ten per cent growth in adjusted earnings per share
to a range of 228 to 235 cent per share (2011: 213.4 cent)".
Contacts:
Media Investor Relations
Frank Hayes, Director of Corporate Brian Mehigan, Chief Financial Officer
Affairs Michael Ryan, Head of Investor Relations
Tel: +353 66 7182304 Tel: +353 66 7182253
Email: corpaffairs@kerry.ie Email: investorrelations@kerry.ie
Kerry Web Site: www.kerrygroup.com
Chairman's Statement
For the year ended 31 December 2011
Kerry continued to develop successfully and maintain solid
earnings growth in 2011, despite the impact of significant raw
material and input cost inflation experienced during the year. The
Group performed well in all key developed markets and continued to
extend its market positions in developing markets. Good organic
growth rates were achieved despite the inflationary environment.
Raw material costs increased by over 8% year-on-year, requiring
close collaboration with customers to manage cost recovery
programmes. The continuing challenging economic landscape across
most major economies heightened the requirement for innovation and
product differentiation to meet changing consumer requirements.
The Group's ingredients & flavours businesses grew steadily
in all regions benefiting from Kerry's breadth and depth of
technology and 1 Kerry approach to market development providing
industry-leading integrated solutions. While consumer spending
remains constrained due to fiscal pressures, demands for
all-natural and clean label solutions continue to grow as does the
requirement for healthy reformulation, well-being and diet-specific
offerings.
Cost recovery in the Group's consumer foods markets in Ireland
and the UK proved more challenging due to the prevailing economic
situation and level of price promotional activity in both markets.
However, while Kerry Foods saw a moderation in volume growth as the
year progressed, profitability in the division was maintained due
to on-going business efficiency programmes and successful
innovation focused on value consumer offerings.
Results
Group sales revenue in 2011 on a reported basis increased by
6.9% to EUR5.3 billion, reflecting like-for-like (LFL) growth of
6.4% when account is taken of acquisitions and currency
translation. Business volumes grew by 3.3% whilst product
pricing/mix increased by 3.2%. Cost recovery proved successful in
ingredients & flavours markets with residual increases in some
categories secured for 2012. The lag in cost recovery in the
Group's consumer foods' businesses will be overcome through
continuing business efficiency projects and pricing actions.
Business intersegment trading has been realigned to reflect
changes in management responsibility for some European
manufacturing facilities. This does not impact Group revenue,
trading profit or trading margin. The 2010 comparatives have been
re-presented on a similar basis.
Q4 sales volumes in ingredients & flavours reflect good
growth against a strong comparative in 2010. Overall growth in the
Group's consumer foods categories was weaker in the fourth quarter
but the level of trading over the holiday period was encouraging.
Over the full year ingredients & flavours' business volumes
increased by 4% and consumer foods achieved 1.1% business volume
growth.
Group trading profit reached a milestone level of EUR501m, an
increase of 7.1% LFL. Despite the unprecedented cost inflationary
challenges, the Group maintained solid underlying business trading
margin momentum. Ingredients & flavours achieved 10 basis
points margin improvement to 11.9%. Consumer foods margin was back
30 basis points to 7.8% despite the successful business efficiency
measures undertaken during the year. Allowing for unallocated
development costs relating to the global IT ('Kerryconnect')
project and the arithmetical effect which cost recovery pricing has
on the margin calculation, the Group trading profit margin in 2011
was back 10 basis points to 9.4%.
Adjusted profit after tax before brand related intangible asset
amortisation increased by 11.2% to EUR375m (2010: EUR337m).
Adjusted earnings per share increased by 11.1% to 213.4 cent (2010:
192.1 cent). The Board recommends a final dividend of 22.4 cent per
share, an increase of 12% on the 2010 final dividend. Together with
the interim dividend of 9.8 cent per share, this brings the total
dividend for the year to 32.2 cent, an increase of 11.8% on the
prior year.
Investment in research and development increased to EUR167m
(2010: EUR156m). Capital expenditure amounted to EUR162m (2010:
EUR139m). The Group achieved a free cash flow of EUR279m (2010:
EUR305m).
Business Reviews
Ingredients & flavours
2011 Like-for-like (LFL) Growth
Revenue EUR3,706m 7.7%
Trading profit EUR439m 9.4%
Trading margin 11.9% +10bps
Kerry Ingredients & Flavours develops, manufactures and
delivers innovative technology-based ingredients & taste
solutions and pharma, nutritional and functional ingredients for
the food, beverage and pharmaceutical markets.
Kerry's 'go-to-market' strategies, capitalising on its broad
global ingredients & flavours development, technology layering
opportunities and end-use-market focus continued to deliver
stronger customer engagement and innovation in all regions in 2011.
Sales revenue increased on a reported basis by 8.5% to EUR3,706m,
reflecting 7.7% LFL growth. Business volumes grew by 4% and
pricing/mix increased by 3.8%. Trading profit increased by 9.4% LFL
to EUR439m with the division's trading margin improved by 10 basis
points to 11.9%.
Innovation continues to be driven by increasing consumer demand
for 'free-from foods', reduced calorie, reduced salt, reduced fat,
higher-fibre, natural flavours and ingredients, enhanced
nutritional and dietary products, in addition to continuing trends
towards more convenient, cost-effective solutions, healthy snacking
options and affordable indulgence; favouring development through
Kerry's range of ingredients, flavours, texture, nutritional and
taste solutions.
In December the Group completed the acquisition of Cargill's
global flavours business. The business, acquired for a total
consideration of US$230m, serves a global customer base through
provision of flavour ingredients and flavour systems for beverage,
dairy, sweet and savoury applications. It has long standing
relationships with leading global food and beverage manufacturers
through its integrated flavour development and application centres
in France, the UK, South Africa, India, Malaysia, China, the USA,
Puerto-Rico, Mexico and Brazil - supported by a network of sales
representative offices in 12 other countries.
All Group technology clusters achieved satisfactory growth in
2011. Revenue grew by 7.9% in Savoury & Dairy systems, 5.4% in
Cereal & Sweet systems, 12.6% in Beverage systems, 9.1% in
Pharma, Nutritional & Functional ingredients and by 11.2% in
Regional Technologies.
Americas Region
Revenue in the Americas region grew by 7.1% LFL to EUR1,558m.
Business volumes increased by 3.3% and pricing/mix increased by
3.8%.
Savoury, Dairy & Culinary systems & flavours performed
well throughout the region. Good growth was achieved in the yoghurt
market through innovative lines in multiple product formats
including ice cream applications and smoothie kits. Progress
accelerated through formed sauces, dairy systems and dairy flavours
in the prepared meals and side dishes categories. Savoury snacks
provided good growth opportunities through regional snack
manufacturer accounts and all-natural snack product suppliers
incorporating Kerry's clean label flavouring systems. Coatings
systems recorded solid growth in the meat sector and successful
integration of new flavours into meat systems produced excellent
results in the poultry sector. Foodservice applications grew
year-on-year, as growth in particular through
quick-serve-restaurants rebounded to pre-recession levels. In Latin
American markets the meat, dairy and snack sectors saw double digit
growth in 2011 providing good opportunity for Kerry's integrated
systems & flavours.
Cereal & Sweet systems & flavours' performance improved
as the year progressed, assisted by Kerry's integrated solutions
approach. The ice cream and frozen desserts sector provided solid
Kerry innovation opportunities for bite-size snackable offerings
and frozen novelty lines. Demand for improved health and clean
label offerings in the bakery sector led to good growth in Kerry's
complete technology offering including flavours, shelf-life
extenders, bio-ingredients and functional ingredients. Demand for
particulates also grew through in-store bakery and foodservice
channels. Snacking trends and seasonal product introductions also
provided good growth opportunities in the confectionery category.
Kerry's sweet systems & flavours achieved continued strong
growth in Latin American markets benefiting from the expansion of
sweet inclusions process capabilities in Mexico and Brazil. Despite
sectoral challenges in the RTE cereal market Kerry continued to
record good progress through key accounts and the successful
introduction of infant cereal lines. The bar segment also provided
new development opportunities for Kerry's integrated solutions.
Market development in Latin America was advanced mid-year through
the acquisition of General Cereals S.A. in Argentina.
Beverage systems & flavours saw strong growth in the
nutritional, sport drinks, weight management and clinical nutrition
sectors, and in tea and coffee applications. This provided good
growth for Kerry beverage flavours and fmt(TM) flavour technology.
Syrup lines saw renewed growth through speciality coffee and
foodservice outlets. In the branded segment Da Vinci Gourmet
'Origins' line was successfully introduced and a novel non-fat
yoghurt smoothie was launched under the Jet brand. The acquisitions
of Agilex Flavors and Caffe D'Amore completed in late 2010
significantly assisted performance in North America. Kerry's
beverage systems also achieved strong growth in Latin American
markets in 2011 in particular in the nutritional beverages and soft
drinks categories in Mexico, Argentina and Brazil.
The Group's pharma ingredients business achieved excellent
growth in 2011 and significantly extended its global market
positioning. Continued investment in its manufacturing
capabilities, applications facilities and technical services in the
USA, Brazil and India delivered strong growth for Kerry's excipient
systems and tabletting technologies. The Group also significantly
expanded its cell culture media supplements product portfolio
through agreement on an exclusive global sales, marketing and
development alliance. Media supplements, hydrolysed proteins and
yeast extracts achieved solid growth in developing markets
including China, India and Brazil. Production of pharmaceutical
grade emulsifiers was successfully commissioned at the Group's
facility in Kuala Lumpur and the completion of the acquisition of
Cargill's flavours business also strengthened Kerry's position in
provision of pharmaceutical approved flavours. In September, Mumbai
based Lactose India was acquired broadening Kerry's positioning in
excipients' markets. A new tablet coating facility and application
centre was also established in India. Since year-end a US$10m
programme commenced to establish a new Cell Science facility at the
Kerry Center in Beloit (WI) to expand the Group's media enhancement
capabilities for cell culture, vaccine development, microbial
fermentation and diagnostics.
EMEA Region
Revenue in the EMEA region increased by 6.9% LFL to EUR1,475m.
Business volumes grew by 2.7% and while there was some lag in cost
recovery, the increase in input costs was substantially recovered
with pricing/mix increased by 4.2%.
Savoury & Dairy systems & flavours performed above
industry average but performance varied across end-use-markets and
regional markets due to the impact of cost recovery initiatives.
Meat coating systems performed well through added value poultry
applications for retail and quick-serve-restaurant markets. The
momentum towards clean label solutions led to increased uptake of
Kerry's SFT (TM) all-natural shelf-life extension technology in the
meat processing industry. Savoury flavours, cheese systems and
snack seasonings achieved good growth in the snack sector. Prior to
year-end the Group also acquired Durban, South Africa based
FlavourCraft - a leading developer and provider of savoury flavours
and seasonings for soup, sauce, prepared meal, snack and meat
applications serving EMEA markets in particular developing markets
in Africa. Dairy systems & flavours, proteins and enzyme
technologies experienced good growth throughout European markets in
2011. Proteins achieved solid growth in the nutrition and
confectionery sectors, in particular through hypo-allergenic
hydrolysed proteins for infant nutritional products and through
functional proteins for confectionery applications in developing
markets. Cheese systems continued to record strong growth in the
foodservice sector throughout all EMEA markets. A major investment
programme was completed at the Listowel plant in Ireland to expand
dairy flavour production capabilities and capacity.
Cereal & Sweet technologies saw good growth in the dairy
& cereal bar markets and also through foodservice applications.
Sweet systems recorded strong development in the ice cream market
through successful innovation in the premium segment incorporating
Kerry's cluster technologies and coating capability. The
acquisition of SuCrest in October significantly expanded the
Group's sweet ingredients & flavours business in the EMEA
region. With production and product development facilities located
in Hochheim, Germany and Vitebsk, Belarus and a sales
representative office in Moscow, SuCrest is a leading provider of
sweet ingredients to the bakery, ice cream, confectionery, cereal
and snack sectors in European markets.
Kerry's integrated technology approach incorporating sweet
systems, dairy systems, fermented ingredients and emulsifiers
continued to provide good opportunity for growth in the bakery
sector. Demand for indulgence applications in the fine bakery
category was adversely impacted by restrained consumer spending.
Market development in the RTE cereals sector was also weaker as
manufacturers reconfigured brand portfolios in response to the high
level of promotional activity and changing consumption
patterns.
Beverage systems & flavours benefited from increased demand
for more cost-effective solutions as beverage producers sought to
mitigate raw material inflationary trends. Demand for lower
calorie/reduced sugar provided solid growth through Kerry's fmt(TM)
flavour technology. As consumers increasingly choose personalised
beverage offerings, Da Vinci flavoured syrups recorded good growth
in the European coffee chain market.
Primary Dairy markets benefited from strong demand from key
importing countries in 2011. Despite higher output in major
production zones pricing remained firm for most of the year buoyed
by the level of international demand. Pricing weakened slightly in
Q4 in line with the expansion in global supplies. The Newmarket
cheese facility acquired in late 2010 was integrated into Kerry's
dairy portfolio.
Asia-Pacific Region
Revenue in the Asia-Pacific region grew by 12% LFL to EUR605m.
Business volumes increased by 10% despite a series of natural
disasters which impacted the region. Pricing/mix increased by
2.8%.
Savoury & Dairy technologies recorded strong organic growth
throughout Asia-Pacific markets. Dairy systems performed well in
the snack and bakery markets in Malaysia and the Philippines.
Cheese systems continued to grow in Japan and China, in particular
for snack and biscuit applications. Lipid systems grew
satisfactorily in the infant nutrition sector but the significant
sectoral input cost increases adversely impacted performance in the
tea & coffee end-use-market. China continued to provide a
strong platform for growth in the infant nutritional sector.
Culinary systems performed well throughout Asia, with good progress
in the growing snack markets in Indonesia, the Philippines and
Vietnam, and excellent growth through sauce applications in
China.
Meat technologies grew strongly in Australia and New Zealand
with good growth in the QSR sector and through added value poultry
applications. The acquisition of EBI Cremica during the year has
provided a platform for growth through coating systems in the food
processing and foodservice sectors in India. A new applications
centre was opened in Delhi to support savoury, culinary and
beverage development. An infant nutrition spray drying facility was
also commissioned at the Penang plant in Malaysia.
Beverage applications performed solidly with double digit growth
in all end-use-markets supported by increased layering of the
Group's beverage technologies. Successful innovation and extension
of speciality beverage offerings continues to drive growth through
specialist chain accounts and QSR's. Growth of the nutritional
beverage market in China has continued to provide excellent
opportunities for Kerry technologies including proteins, flavours
and lipids. Da Vinci branded syrups and sauces again achieved solid
double digit growth in the region. Brewing ingredients also
recorded good progress in Australia and South East Asia. A
dedicated Kerry Beverage applications centre was established in
Kuala Lumpur, Malaysia to support regional market development.
Sweet technologies performed satisfactorily in the bakery
sector. Good volume growth was achieved through Kerry's
technologies in the bread sector in Thailand, China and the
Philippines. Japan and Korea also provided increased opportunities
for sweet systems, functional ingredients and bakery premix
technologies. Kerry Pinnacle benefited from the Van den Bergh's and
Croissant King branded bakery business acquired in late 2010 -
forging closer relationships with key bakery customers in the
franchise sector and bringing new frozen dough and pastry
technology to the foodservice sector. The acquisition of the IJC
Fillings business in Australia from the Windsor Farm Foods Group
prior to year-end also significantly expands Kerry's sweet
technology capabilities for the ice cream and bakery
end-use-markets.
Functional ingredients performed well across the region.
Emulsifiers & texturants recorded double digit growth with a
strong performance through bakery, confectionery and tea &
coffee applications.
Consumer Foods
2011 Like-for-like (LFL) Growth
Revenue EUR1,674m 3.2%
Trading profit EUR130m 1.0%
Trading margin 7.8% -30bps
Kerry Foods is a leading manufacturer and marketer of
added-value branded and customer branded chilled foods to the UK
and Irish consumer foods markets.
Further tightening of household budgets in Ireland and the UK
has continued to drive value consumption and increased market
promotional activity. This has heightened competition across
branded and private label offerings and limited cost recovery
pricing actions in some categories. While volume growth in Kerry
Foods' business moderated during the year, a satisfactory
performance was achieved in particular in the UK. Divisional
profitability was maintained through an increased focus on business
efficiency programmes.
Sales revenue increased to EUR1,674m reflecting 3.2% LFL growth.
Overall business volumes grew by 1.1%, reflecting 2.6% volume
growth in the UK and a decline of 2.6% in Ireland. Trading profit
showed 1% LFL growth at EUR130m. Despite gains through business
efficiency programmes, difficulties in cost recovery particularly
in private label categories meant that the divisional trading
margin was 30 basis points lower at 7.8%.
In the UK market Kerry Foods' UK Brands again achieved a strong
performance. Richmond maintained good brand share growth in the
sausage sector. While Wall's continues to establish brand
leadership in sausage rolls it lost brand share in the fresh
sausage market.
Mattessons continued to grow the meat snacking sector but
'Fridge Raiders' margins were adversely impacted by increased raw
material costs. Mattessons 'Rippa Dippa' range introduced in late
2010 recorded good progress.
Cheestrings maintained leadership in the children's cheese snack
sector despite heavy promotional activity in the category. The
'Cheestrings Spaghetti' variant launched in H2 2010 consolidated
its market positioning. Low Low has repositioned its market focus
to the cheese spreads and slices segments targeted towards taste
and health offerings.
UK Customer Brands food categories remained highly competitive.
Cost recovery proved challenging in some of Kerry's selected
categories resulting in some loss of business in cooked meats and
frozen meals. However Kerry Foods continued to record good growth
in chilled ready meals and dairy spreads. In the chilled ready
meals sector successful innovation contributed to further growth in
Kerry Foods' major retailer accounts. In the frozen meals category,
Headland Foods was acquired to consolidate Kerry's market
positioning and assist in restoring stability to the frozen meals
category. Due to the level of input cost increases impacting the
category in 2011, the integrated Kerry Foods frozen meals business
has had to forego loss making sales so as to maintain profitability
in the category.
Kerry's Brands Ireland business has been realigned to reflect
the current market environment as consumers remain challenged by
the recessionary economic situation. The division's brands are now
focussed on innovation to meet the needs of value conscious
consumers without compromising on quality. Kerry Foods added value
meat brands lost some market share in 2011 due to the level of
promotional activity in the marketplace and low pricing from
private label and discounter offerings. Since year-end Denny has
brought significant product innovation to the sliced meats market
with the launch of Ireland's first 100% Natural Ingredients Denny
Deli Style ham. Dairygold maintained its number one brand position
in the Irish spreads market. In the cheese sector brand leader
Charleville grew market share in the first half of 2011 but lost
share to heavily discounted offers in the second half of the year.
Cheestrings continues to achieve good progress in Belgium and
Holland and was successfully introduced to the German market in
2011. The Ficello brand maintained good growth in France.
Financial review
Reconciliation of adjusted* earnings % 2011 2010
to profit after taxation Change EURm EURm
Continuing Operations
Revenue 6.4% (LFL) 5,302.2 4,960.0
--------- ---------
Trading profit 7.1% (LFL) 500.5 470.2
Trading margin 9.4% 9.5%
Computer software amortisation (5.4) (4.3)
Finance costs (net) (46.0) (60.5)
--------- ---------
Adjusted* profit before taxation 10.8% 449.1 405.4
Income taxes (excluding non-trading (74.6) (68.7)
items)
--------- ---------
Adjusted* earnings after taxation 11.2% 374.5 336.7
Brand related intangible asset (13.9) (11.8)
amortisation
0.1 (0.7)
Non-trading items (net of related
tax)
--------- ---------
Profit after taxation and attributable
to equity shareholders 11.3% 360.7 324.2
--------- ---------
EPS EPS**
Cent Cent
Adjusted* EPS 11.1% 213.4 192.1
Brand related intangible asset (7.9) (6.7)
amortisation
- (0.4)
Non-trading items (net of related
tax)
--------- ---------
Basic EPS 11.1% 205.5 185.0
--------- ---------
(LFL) Like-for-like basis excluding the impact of acquisitions,
disposals and foreign exchange translation
* Before brand related intangible asset amortisation and non-trading
items (net of related tax)
** 2010 re-presented to treat computer software amortisation as
a cost in calculated adjusted EPS
Exchange Rates
Group results are impacted by fluctuations in exchange rates
versus the Euro, in particular movements in US dollar and sterling
exchange rates. In 2011 movements in exchange rates negatively
impacted revenue by (1.8%) (2010: 4.5% positive impact) and trading
profit by (1.6%) (2010: 3.0% positive impact). The average and
closing rates for US dollar and sterling used to translate reported
results are detailed below.
Average Rates Closing Rates
2011 2010 2011 2010
USD 1.40 1.33 1.29 1.34
STG 0.87 0.86 0.84 0.86
Finance Costs
Finance costs for the year decreased by EUR14.5m to EUR46.0m
(2010: EUR60.5m) as the impact of lower interest rates more than
offset the impact of acquisition spend and capital investment. The
Group's average interest rate for the year was 4.0%, a decrease of
70 basis points from the prior year (2010: 4.7%).
Taxation
The tax charge for the year, before non-trading items, was
EUR74.6m (2010: EUR68.7m) representing an effective tax rate of
17.1% (2010: 17.5%).
Adjusted EPS
Adjusted EPS increased by 11.1% to 213.4 cent (2010: 192.1
cent). Basic EPS also increased by 11.1% from 185.0 to 205.5
cent.
From 2011 computer software amortisation is treated as a cost in
calculating adjusted EPS. This represents a change in the way
adjusted EPS is calculated and is due to the increase in computer
software amortisation attributable to the Kerryconnect project
which the Group is currently undertaking. Adjusted EPS for prior
periods has been calculated and re-presented on this new basis.
Free Cash Flow
In the year under review the Group achieved a free cash flow of
EUR278.8m (2010: EUR304.8m) having spent EUR162.2m on non-current
assets, EUR3.8m on working capital, EUR34m on net pension plan
payments, EUR46.6m on finance costs and EUR75.9m on tax.
The free cash flow of EUR278.8m generated during the year was
utilised as follows:
-- Expenditure on acquisitions net of disposals, including
deferred consideration on prior year acquisitions of EUR359.2m
(2010: EUR157.6m)
-- Expenditure on non-trading items of EUR13.9m (2010: EUR26.4m)
-- Equity dividends paid of EUR52.4m (2010: EUR45.7m).
Financial Position
Net debt at the end of the year was EUR1,287.7m (2010:
EUR1,111.9m). In April 2011 the Group negotiated a 5 year EUR1bn
revolving credit facility with a syndicate of banks which provides
a committed line of credit until April 2016 and significantly
extends the maturity profile of committed facilities to the Group.
Undrawn committed and undrawn standby facilities at the end of the
year were EUR560m (2010: EUR655m).
At 31 December the key financial ratios were as follows;
2011 2010
Covenant TIMES TIMES
Net debt: EBITDA* 2.0 1.8
EBITDA: Net interest* Maximum 3.5 13.5 10.1
Minimum 4.75
* Calculated in accordance with lenders facility agreements
The Group's balance sheet is in a healthy position and with a
net debt to EBITDA* ratio of 2.0 times the organisation has
sufficient headroom to support its future growth plans.
Shareholders' equity increased by EUR218.3m to EUR1,845.3m
(2010: EUR1,627.0m) as profits generated during the year, together
with the positive impact of retranslating the Group's net
investment in its foreign currency subsidiaries, more than offset
the negative impact of actuarial losses on defined benefit
schemes.
The Company's shares traded in the range EUR23.67 to EUR30.10
during the year. The share price at 31 December was EUR28.28 (2010:
EUR24.97) giving a market capitalisation of EUR5.0 billion (2010:
EUR4.4 billion). Total Shareholder Return for 2011 was 14.4% and
for the last 5 years was 58%.
Retirement Benefits
At the balance sheet date, the net deficit for all defined
benefit schemes (after deferred tax) was EUR212.5m (2010:
EUR144.6m). The increase year-on-year reflects higher estimated
liabilities as a result of lower discount rates which is partially
offset by an increase in the market value of pension schemes'
assets. The net deficit expressed as a percentage of market
capitalisation at 31 December was 4.3% (2010: 3.3%). The charge to
the income statement during the year, for both defined benefit and
defined contribution schemes was EUR34.8m (2010: EUR32.8m).
Acquisitions
The Group completed a number of acquisitions during the year at
a total cost of EUR386.4m. The majority of acquisitions were
completed by the Ingredients and Flavours division strengthening
the Group's capabilities across a range of technologies and
expanding Kerry's footprint into new geographies. The most
significant acquisitions in the year were Cargill's flavours
business which closed in December and SuCrest acquired in October.
The acquisition of Headland Foods in January by the Consumer Foods
division was cleared by the UK Competition Authority prior to year
end. A number of bolt on acquisitions in Ingredients & Flavours
were also completed during the year.
dIVIDEND
The Board recommends a final dividend of 22.4 cent per share (an
increase of 12% on the 2010 final dividend) payable on 11 May 2012
to shareholders registered on the record date 13 April 2012. When
combined with the interim dividend of 9.8 cent per share this
brings the total dividend for the year to 32.2 cent, an increase of
11.8% relative to the previous year.
annual report and annual general meeting
The Group's Annual Report will be published in early April and
the Annual General Meeting will be held in Tralee on 2 May
2012.
board changes
The Board of Directors were deeply saddened at the passing of
Board colleague Kevin Kelly whose death occurred on 4 January
2012.
On 11 January 2012, Ms Joan Garahy was appointed as a
non-executive Director of the Company. Ms Garahy is Managing
Director of ClearView Investments & Pensions Ltd. She is a
qualified Financial Advisor and Investment Specialist.
Mr Michael J Fleming retired from the Board. On 11 January 2012,
Mr Michael Teahan, a Director of Kerry Co-operative Creameries Ltd,
was appointed to the Board.
On 20 February 2012, Mr Philip Toomey was appointed as a
non-executive Director of the Company. Formerly a Global Chief
Operating Officer at Accenture, Mr Toomey has wide ranging
international consulting experience. He is a fellow of the
Institute of Chartered Accountants of Ireland and a member of the
Board of United Drug plc.
future prospects
In a challenging business environment, Kerry has continued to
perform robustly while investing in our capabilities and
positioning for the future. The Group has made significant progress
in design and early implementation of 1 Kerry business
transformation programmes and the 'Kerryconnect' business
enablement project, embedding a culture of continuous improvement
throughout the global Kerry organisation. The Group will continue
to invest towards achieving business excellence across all its
operations and functional areas - leveraging Kerry's global
expertise and capabilities, whilst optimising manufacturing, scale
and efficiency benefits.
We are well focused on capitalising on the layering
opportunities across Kerry's global technology portfolio -
delivering industry-leading innovative ingredient & taste
solutions and pharma, nutritional and functional ingredients for
food, beverage and pharmaceutical markets. Our consumer foods
business has strong branded and customer branded positions in the
UK and Irish markets, which coupled with Kerry Foods' ongoing
business efficiency programmes and product differentiation through
innovation, will sustain the profitable growth of the business.
The Group is confident of achieving its strategic growth
objectives in 2012 and expects to achieve seven to ten per cent
growth in adjusted earnings per share to a range of 228 to 235 cent
per share (2011: 213.4 cent).
results for THE YEAR ENDED 31 December 2011
Kerry Group plc
Consolidated Income Statement
for the year ended 31 December 2011
2011 2010
Notes EUR'm EUR'm
Continuing operations
Revenue 1 5,302.2 4,960.0
_________ _________
Trading profit 1 500.5 470.2
Intangible asset amortisation (19.3) (16.1)
Non-trading items 2 (1.8) (0.8)
_________ _________
Operating profit 479.4 453.3
Finance income 0.9 0.9
Finance costs (46.9) (61.4)
_________ _________
Profit before taxation 433.4 392.8
Income taxes (72.7) (68.6)
_________ _________
Profit after taxation and attributable to equity
shareholders 360.7 324.2
_________ _________
Earnings per A ordinary share Cent Cent
- basic 3 205.5 185.0
- diluted 3 205.4 184.7
_________ _________
Kerry Group plc
Consolidated Statement of Recognised Income and Expense
for the year ended 31 December 2011
2011 2010
EUR'm EUR'm
Profit for the year after taxation 360.7 324.2
Other comprehensive (expense)/income:
Fair value movements on cash flow hedges (7.1) 22.0
Exchange difference on translation of foreign operations 11.5 57.3
Actuarial losses on defined benefit post-retirement schemes (112.5) (30.3)
Deferred tax on items taken directly to reserves 18.6 2.0
___________ ___________
Net (expense)/income recognised directly in other comprehensive income (89.5) 51.0
Reclassification to profit or loss from equity:
Cash flow hedges (2.5) 1.2
Available-for-sale investments - 7.4
___________ ___________
Total comprehensive income 268.7 383.8
___________ ____________
Kerry Group plc
Consolidated Balance Sheet
as at 31 December 2011 2011 2010
EUR'm EUR'm
Non-current assets
Property, plant and equipment 1,208.7 1,107.2
Intangible assets 2,294.6 1,998.9
Financial asset investments 19.3 8.2
Non-current financial instruments 84.0 42.7
Deferred tax assets 10.2 8.9
___________ ___________
3,616.8 3,165.9
___________ ___________
Current assets
Inventories 658.5 531.6
Trade and other receivables 709.8 618.7
Cash and cash equivalents 237.9 159.3
Other current financial instruments 1.4 4.7
Assets classified as held for sale 5.6 5.4
___________ ___________
1,613.2 1,319.7
___________ ___________
Total assets 5,230.0 4,485.6
___________ ___________
Current liabilities
Trade and other payables 1,136.9 1,017.9
Borrowings and overdrafts 39.0 181.3
Other current financial instruments 16.5 12.2
Tax liabilities 25.2 34.4
Provisions 26.1 18.3
Deferred income 2.3 2.5
___________ ___________
1,246.0 1,266.6
___________ ___________
Non-current liabilities
Borrowings 1,559.9 1,123.2
Other non-current financial instruments 10.7 -
Retirement benefits obligation 277.5 194.7
Other non-current liabilities 63.1 55.3
Deferred tax liabilities 173.0 166.4
Provisions 33.1 30.7
Deferred income 21.4 21.7
___________ ___________
2,138.7 1,592.0
___________ ___________
Total liabilities 3,384.7 2,858.6
___________ ___________
Net assets 1,845.3 1,627.0
___________ ___________
Issued capital and reserves attributable to equity holders of the parent
Share capital 21.9 21.9
Share premium account 398.7 398.7
Other reserves (94.3) (98.2)
Retained earnings 1,519.0 1,304.6
___________ ___________
Shareholders' equity 1,845.3 1,627.0
___________ ___________
Kerry Group plc
Consolidated Statement of Changes in Equity
for the year ended 31 December 2011
Share Share Other Retained
Capital Premium Reserves Earnings Total
Notes EUR'm EUR'm EUR'm EUR'm EUR'm
At 1 January 2010 21.8 395.2 (187.4) 1,054.4 1,284.0
Total comprehensive income - - 87.9 295.9 383.8
Dividends paid 4 - - - (45.7) (45.7)
Long term incentive plan expense - - 1.3 - 1.3
Shares issued during year 0.1 3.5 - - 3.6
________ ________ ________ ________ ________
At 31 December 2010 21.9 398.7 (98.2) 1,304.6 1,627.0
Total comprehensive income - - 1.9 266.8 268.7
Dividends paid 4 - - - (52.4) (52.4)
Long term incentive plan expense - - 2.0 - 2.0
Shares issued during year - - - - -
________ ________ ________ ________ ________
At 31 December 2011 21.9 398.7 (94.3) 1,519.0 1,845.3
________ ________ ________ ________ ________
Other Reserves comprise the following:
Long
Capital Term Available-
Capital Conversion Incentive for-sale
Redemption Reserve Plan Investment Translation Hedging
Reserve Fund Reserve Reserve Reserve Reserve Total
EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm
At 1 January
2010 1.7 0.3 2.1 (7.4) (158.0) (26.1) (187.4)
Total
comprehensive
income - - - 7.4 57.3 23.2 87.9
Long term
incentive
plan expense - - 1.3 - - - 1.3
________ ________ ________ ________ ________ _______ ________
At 31 December
2010 1.7 0.3 3.4 - (100.7) (2.9) (98.2)
Total comprehensive
income/(expense) - - - - 11.5 (9.6) 1.9
Long term incentive plan
expense - - 2.0 - - - 2.0
________ ________ ________ ________ ________ _______ ________
At 31 December
2011 1.7 0.3 5.4 - (89.2) (12.5) (94.3)
________ ________ ________ ________ ________ _______ ________
Kerry Group plc
Consolidated Cash Flow Statement
for the year ended 31 December 2011
2011 2010
Notes EUR'm EUR'm
Operating activities
Trading profit 500.5 470.2
Adjustments for:
Depreciation (net) and impairment 100.8 148.4
Change in working capital (3.8) (21.5)
Pension contributions paid less pension expense (34.0) (41.1)
Expenditure on non-trading items (13.9) (26.4)
Exchange translation adjustment (2.8) (1.5)
___________ ___________
Cash generated from operations 546.8 528.1
Income taxes paid (75.9) (54.2)
Finance income received 0.9 0.9
Finance costs paid (47.5) (58.5)
___________ ___________
Net cash from operating activities 424.3 416.3
___________ ___________
Investing activities
Purchase of property, plant and equipment (144.3) (149.2)
Purchase of intangible assets (29.7) (1.8)
Proceeds from the sale of property, plant
and equipment 9.9 7.2
Capital grants received 1.9 4.4
Purchase of subsidiary undertakings (net of
cash acquired) 5 (361.6) (150.7)
Proceeds/(payments) due to disposal of businesses
(net of related tax) 5.6 (2.7)
Payment of deferred consideration on acquisition
of subsidiaries (4.3) (7.8)
Consideration adjustment on previous acquisitions 1.1 3.6
___________ ___________
Net cash used in investing activities (521.4) (297.0)
___________ ___________
Financing activities
Dividends paid 4 (52.4) (45.7)
Issue of share capital - 3.6
Net movement on bank borrowings 233.0 (201.8)
___________ ___________
Net cash movement due to financing activities* 180.6 (243.9)
___________ ___________
Net increase/(decrease) in cash and cash equivalents 83.5 (124.6)
Cash and cash equivalents at beginning of
year* 152.1 268.1
Exchange translation adjustment on cash and
cash equivalents 1.4 8.6
___________ ___________
Cash and cash equivalents at end of year 237.0 152.1
___________ ___________
Reconciliation of Net Cash Flow to Movement
in Net Debt
Net increase/(decrease) in cash and cash equivalents 83.5 (124.6)
Cash (inflow)/outflow from debt financing (233.0) 201.8
___________ ___________
Changes in net debt resulting from cash flows (149.5) 77.2
Fair value movement on interest rate swaps
recognised in shareholders' equity (4.6) 19.4
Exchange translation adjustment on net debt (21.7) (49.1)
___________ ___________
Movement in net debt in the year (175.8) 47.5
Net debt at beginning of year (1,111.9) (1,159.4)
___________ ___________
Net debt at end of year (1,287.7) (1,111.9)
___________ ___________
*The 2010 cash and cash equivalents balances have been
re-presented to include bank overdrafts of EUR7.2m in the
Consolidated Cash Flow Statement which continue to be included in
borrowings and overdrafts in the Consolidated Balance Sheet.
Kerry Group plc
Notes to the Financial Statements
for the year ended 31 December 2011
1. Analysis of results
The Group has two operating segments: Ingredients & Flavours
and Consumer Foods. The Ingredients & Flavours operating
segment manufactures and distributes application specific
ingredients and flavours spanning a number of technology platforms
while the Consumer Foods segment manufactures and supplies added
value brands and customer branded foods to the Irish and UK
markets.
Group Group
Eliminations Eliminations
Ingredients Consumer and Ingredients Consumer and
& Flavours Foods Unallocated Total & Flavours Foods Unallocated Total
2011 2011 2011 2011 2010* 2010* 2010* 2010*
EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm
External
revenue 3,638.1 1,664.1 - 5,302.2 3,351.7 1,608.3 - 4,960.0
Inter-segment
revenue 68.3 9.4 (77.7) - 64.7 14.9 (79.6) -
_________ _________ _________ _________ _________ _________ _________ _________
Revenue 3,706.4 1,673.5 (77.7) 5,302.2 3,416.4 1,623.2 (79.6) 4,960.0
_________ _________ _________ _________ _________ _________ _________ _________
Trading profit 439.3 130.4 (69.2) 500.5 402.4 130.9 (63.1) 470.2
Intangible
asset
amortisation (13.6) (1.4) (4.3) (19.3) (12.0) (1.6) (2.5) (16.1)
Non-trading
items 6.2 (8.0) - (1.8) (0.5) (0.3) - (0.8)
_________ _________ _________ _________ _________ _________ _________ _________
Operating
profit 431.9 121.0 (73.5) 479.4 389.9 129.0 (65.6) 453.3
_________ _________ _________ _________ ________ _________
Finance income 0.9 0.9
Finance costs (46.9) (61.4)
_________ _________
Profit before taxation 433.4 392.8
Income taxes (72.7) (68.6)
_________ _________
Profit after taxation and attributable to equity
shareholders 360.7 324.2
_________ _________
Segment assets and liabilities
Segment assets 3,267.7 1,114.3 848.0 5,230.0 2,738.2 1,107.5 639.9 4,485.6
Segment
liabilities (820.4) (472.4) (2,091.9) (3,384.7) (671.5) (440.3) (1,746.8) (2,858.6)
_________ _________ ___________ _________ _________ _________ ________ _________
Net assets 2,447.3 641.9 (1,243.9) 1,845.3 2,066.7 667.2 (1,106.9) 1,627.0
_________ _________ ___________ _________ _________ ________ _________ _________
Other segmental information
Property,
plant and
equipment
additions 111.4 31.0 - 142.4 127.5 24.9 - 152.4
Depreciation
(net) and
impairment 71.0 29.8 - 100.8 87.4 39.3 21.7 148.4
Intangible
asset
additions 0.5 0.1 29.1 29.7 0.3 0.1 1.4 1.8
_________ _________ ___________ _________ _________ ________ _________ _________
Information about geographical areas
Asia Asia
EMEA Americas Pacific Total EMEA Americas Pacific Total
2011 2011 2011 2011 2010 2010 2010 2010
EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm
Revenue by location
of external
customers 3,139.2 1,557.7 605.3 5,302.2 2,972.2 1,479.0 508.8 4,960.0
Segment assets by
location 3,329.7 1,494.9 405.4 5,230.0 2,882.7 1,251.9 351.0 4,485.6
Property, plant and
equipment additions 70.6 56.6 15.2 142.4 58.8 76.3 17.3 152.4
Intangible asset
additions 29.3 0.3 0.1 29.7 1.7 0.1 - 1.8
_________ _________ __________ _________ _________ _________ _________ ________
Kerry Group plc is domiciled in the Republic of Ireland and the
revenues from external customers in the Republic of Ireland were
EUR548.3m (2010: EUR581.5m). The segment assets located in the
Republic of Ireland are EUR1,309.0m (2010: EUR1,206.0m).
Revenues from external customers include EUR1,706.0m (2010:
EUR1,606.0m) in the United Kingdom and EUR1,202.0m (2010:
EUR1,143.0m) in the USA.
*The 2010 segmental analysis has been re-presented to reflect
the change in management responsibility during the year.
2. Non-trading items
2011 2010
EUR'm EUR'm
(Loss)/profit on disposal of non-current assets (8.4) 0.2
Profit/(loss) on acquisition/disposal of businesses 17.3 (1.0)
Acquisition related costs (10.7) -
_________ _________
(1.8) (0.8)
Tax 1.9 0.1
_________ _________
0.1 (0.7)
_________ _________
Loss on disposal of non-current assets
This loss relates primarily to the disposal of property, plant
& equipment in the US, UK and Brazil.
Profit/(loss) on acquisition/disposal of businesses
The Group acquired the controlling interest of previously held
investments and as required under IFRS 3 (2008) 'Business
Combinations', these were fair valued with the resulting gain of
EUR22.5m taken to the Consolidated Income Statement. This has been
partially offset by losses on the sale of the Dawn Dairies business
in Co. Limerick, Ireland and other non-core businesses in the US
and Ireland.
Acquisition related costs
Acquisition related costs include transaction expenses incurred
in completing the 2011 acquisitions such as professional service
fees and due diligence. In addition, the Group incurred costs in
integrating the acquisitions into the Group's operations and
structure.
2010 Non-trading items
The loss on disposal of businesses relates primarily to the sale
of the non-core Kerry Spring business in Co. Kerry, Ireland and the
sale of the Dawn Dairies business in Co. Galway, Ireland.
3. Earnings per A ordinary share
EPS 2011 EPS 2010**
Notes cent EUR'm cent EUR'm
Basic earnings per share
Profit after taxation and attributable to equity shareholders 205.5 360.7 185.0 324.2
Brand related intangible asset amortisation 7.9 13.9 6.7 11.8
Non-trading items (net of related tax) 2 - (0.1) 0.4 0.7
_______ _______ _______ _______
Adjusted earnings* 213.4 374.5 192.1 336.7
_______ _______ _______ _______
Diluted earnings per share
Profit after taxation and attributable to equity shareholders 205.4 360.7 184.7 324.2
Adjusted earnings* 213.3 374.5 191.8 336.7
_______ _______ ________ ________
*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 brand related
intangible asset amortisation and non-trading items (net of related
tax). These items are excluded in order to assist in the
understanding of underlying earnings.
**In previous years the Group had calculated adjusted earnings
per share after adding back all intangible asset amortisation
including computer software amortisation. However from 2011, with
2010 re-presented, computer software amortisation is being treated
as a cost in arriving at adjusted earnings per share. This is due
to the significance of the Kerryconnect programme the Group is
currently undertaking.
Number Number
of Shares of Shares
2011 2010
m's m's
Basic weighted average number of shares for the year 175.5 175.3
Impact of share options outstanding 0.1 0.2
_______ _______
Diluted weighted average number of shares for the year 175.6 175.5
_______ _______
Actual number of shares in issue as at 31 December 175.5 175.5
_______ _______
4. Dividends
2011 2010
EUR'm EUR'm
Amounts recognised as distributions to equity shareholders in
the year
Final 2010 dividend of 20.00 cent per A ordinary share paid
13 May 2011
(Final 2009 dividend of 17.30 cent per A ordinary share paid
14 May 2010) 35.2 30.3
Interim 2011 dividend of 9.80 cent per A ordinary share paid
11 November 2011
(Interim 2010 dividend of 8.80 cent per A ordinary share paid
12 November 2010) 17.2 15.4
________ _________
52.4 45.7
________ _________
Since the year end the Board has proposed a final 2011 dividend
of 22.40 cent per A ordinary share. The payment date for the final
dividend will be 11 May 2012 to shareholders registered on the
record date as at 13 April 2012. These consolidated financial
statements do not reflect this dividend.
5. Business combinations
During 2011, the Group completed 14 bolt on acquisitions, all of which are 100% owned by the
Group.
Acquirees' Carrying Amount before Combination Fair Value Adjustments
__________________________________________ _____________________________
Cargill Alignment of
Flavour Accounting
Systems Other Total Revaluations Policies Total
2011 2011 2011 2011 2011 2011
EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm
Recognised amounts of identifiable assets acquired and liabilities assumed:
Non-current assets
Property, plant and
equipment 31.7 37.3 69.0 (0.7) - 68.3
Brand related
intangibles - - - 123.2 - 123.2
Computer software 0.3 0.3 0.6 (0.2) - 0.4
Current assets
Inventories 25.3 17.1 42.4 - (2.5) 39.9
Trade and other
receivables 22.4 16.7 39.1 - - 39.1
Current liabilities
Trade and other
payables (26.9) (5.2) (32.1) 9.1 (1.0) (24.0)
Non-current
liabilities
Deferred tax
liabilities - - - (5.6) - (5.6)
Other non-current
liabilities - (8.1) (8.1) 8.1 - -
________ ________ ________ ________ ________ ________
Total identifiable
assets 52.8 58.1 110.9 133.9 (3.5) 241.3
________ ________ ________ ________ ________
Goodwill 145.1
________
Total consideration 386.4
________
Satisfied by:
Cash 172.6 189.0 361.6 - - 361.6
Contingent
consideration - 1.2 1.2 - - 1.2
Deferred payment - 1.1 1.1 - - 1.1
Fair value gain on
previously held
interest - 22.5 22.5 - - 22.5
________ ________ ________ ________ ________ ________
172.6 213.8 386.4 - - 386.4
________ ________ ________ ________ ________ ________
The acquisition method of accounting has been used to
consolidate the businesses acquired in the Group's financial
statements. Since the valuation of the fair value of assets and
liabilities recently acquired is still in progress, the above
values are determined provisionally. There have been no material
revisions of the provisional fair value adjustments since the
initial values were established for each of the acquisitions
completed in 2010. The cash discharged figure above includes
EUR5.3m of net debt taken over at the date of acquisition.
The goodwill is attributable to the expected profitability,
revenue growth, future market development and assembled workforce
of the acquired businesses and the synergies expected to arise
within the Group after the acquisition. EUR24.1m of goodwill
recognised is expected to be deductible for income tax
purposes.
Transaction expenses related to acquisitions of EUR3.9m were
charged against non-trading items in the Group's Consolidated
Income Statement during the year.
The contingent consideration arrangements require specific
contractual obligations to be met before a settlement is made.
These contractual obligations vary in relation to the acquisitions
to which they relate. The estimated fair value of these obligations
at the acquisition date was EUR1.2m. The potential amount of all
future payments which the Group could be required to make under
these arrangements is approximately between EUR1.2m and
EUR2.3m.
The fair value of the financial assets includes trade and other
receivables with a fair value of EUR39.1m and a gross contractual
value of EUR41.2m.
The principal acquisitions completed during 2011 are summarised
as follows:
In January 2011, the Group acquired the following:
- the Unilever Frozen Savory Foodservice business based in Texas
and North Carolina USA, which develops and markets a variety of
frozen soups, frozen sauces and meal solutions;
- the business and assets of UK based Headland Foods. Headland
Foods is a leading manufacturer of frozen customer branded ready
meals supplying major retailers in the UK. The Competition
Commission in the UK formally cleared the completed acquisition of
Headland Foods in December 2011; and
- EBI Cremica, a provider of food coating systems to the food
processor and foodservice sectors in India.
The Group acquired General Cereals S.A. in June 2011, based in
Argentina the acquired company manufactures extruded cereals for a
range of customers.
The Group acquired the business and assets of Lactose India in
September 2011, which manufactures lactose based products for the
pharmaceutical market.
In October 2011 the Group acquired SuCrest GmbH, a leading
provider of sweet ingredients to the bakery, ice-cream,
confectionery, cereal and snack sectors in European markets.
Production and product development facilities are located in
Germany and Belarus.
In December 2011, the Group acquired the following:
- the Cargill Flavour Systems business (CFS). This business has
well-established flavour technology development expertise serving a
global customer base from its integrated flavour development
centres in France, the UK, South Africa, India, Malaysia, China,
the USA, Puerto Rico, Mexico and Brazil;
- the business and assets of FlavourCraft, the acquired business
based in South Africa, is a provider of flavourings and food
formulations to regional savoury and food markets; and
- the business and assets of IJC, which was part of the
Australian Windsor Farms Foods sweet ingredients business. The
business supplies sweet ingredients to the bakery and confectionery
end-use markets.
In addition, the Group acquired the remaining controlling
interest in Esterol Sdn. Bhd which is a manufacturer of food
emulsifiers. The initial investment was acquired by the Group as
part of a previous business combination. The interest not
controlled was not material and was held in non-current
liabilities. On acquiring control the Group, as required under IFRS
3 (2008) 'Business Combinations', re-measured its existing interest
at fair value with the resulting gain recognised in the
Consolidated Income Statement. The Group also completed a number of
smaller acquisitions in the UK, Canada and Central America.
The main acquisitions contributed revenue of EUR56.6m to the
Group in 2011. If these acquisitions had been completed on 1
January 2011, total Group revenue for the year would have been
EUR5,507.1m.
During 2011 after allowing for acquisition related costs the
main acquisitions contributed a loss after tax of EUR10.8m. If
these acquisitions had been completed on 1 January 2011, the Group
profit after tax would have been EUR370.6m.
Due to the fact CFS was acquired near the end of 2011, the
revenue included in the Group's reported revenue is not material
and loss after tax and acquisition related costs included in the
Group results was EUR3.5m. In a full year CFS is expected to
contribute revenue of EUR142.9m.
6. Events after the balance sheet date
Since the year end, the Group has proposed a final dividend of 22.40 cent per A ordinary share
(note 4).
There have been no other significant events, outside the ordinary course of business, affecting
the Group since 31 December 2011.
7. General information and accounting policies
The financial information set out in this document does not
constitute full statutory financial statements for the years ended
31 December 2011 or 2010 but is derived from same. The Group's
financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs), applicable
Irish law and the Listing Rules of the Irish and London Stock
Exchanges. The Group's financial statements have also been prepared
in accordance with IFRSs adopted by the European Union and
therefore comply with Article 4 of the EU IAS Regulation.
The 2011 and 2010 financial statements have been audited and
received unqualified audit reports. The 2011 financial statements
were approved by the Board of Directors on 20 February 2012.
The consolidated financial statements have been prepared under
the historical cost convention, as modified by the revaluation of
available-for-sale financial assets, financial asset investments
and financial liabilities (including derivative financial
instruments), which are held at fair value. The Group's accounting
policies will be included in the Annual Report & Accounts to be
published in April 2012.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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