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IAWS GROUP, plc (Ticker: IAW), the international lifestyle foods and agri/nutrition group, announces its Preliminary Results for the year ended July 31st, 2005. The results show strong organic and acquisition led growth in its Food business. Trading conditions in key European and North American markets have become more challenging. While experiencing a downturn, the agri/nutrition business remained strongly cash generative in very difficult markets.
| Financial Highlights |
31 July 2005 |
|
€’000 |
| EPS (cent) diluted* increased by 13.4% |
70.41c |
| Group Operating Profit pre goodwill was 14.1% higher |
96,604 |
| Total Operating Profit pre goodwill increased 13.7% |
124,082 |
| Group Turnover increased 10.3% |
1,408,174 |
| Free cash flow per share (cent) increased by 11.8% |
80.21c |
| Group Net Borrowings compared with €141m in 2004 |
215,869 |
| Interest compared with (€11.4m) in 2004 |
(12,392) |
| Final Dividend of 6.052 cent increases total by 13% |
11.887c |
* before goodwill and exceptional items
Operational Highlights
- Food achieved strong growth in all markets and, including acquisitions, increased sales by 22.6 per cent to €892m. Year on year organic sales growth was 12.1 per cent. Underlying sales in Ireland increased by 6 per cent, in the UK by 13 per cent and in North America by over 20 per cent.
- Group capital investment of €63m supported the Group’s management teams in building strong operational platforms, customer services and enhanced product portfolios in Europe and North America. Substantial capital investment is continuing across the Group to ensure quality, innovation and competitive delivery to market.
- The Group now distributes an increasingly diverse product range internationally to over 50,000 outlets. New product offerings were introduced across all markets.
- The Groupe Hubert acquisition in France was completed and made an excellent initial €7.4m contribution to operating profits over the period. The Group’s record of integrating and developing prior year acquisitions was successfully maintained.
- Associates and Joint Venture in Food, Hiestand, Odlum and the Tim Horton JV, contributed €25m to Operating Profits, a 13 per cent increase.
- Nutrition/Agri experienced difficult market conditions with sales falling by 4.3 per cent to €563m and operating profits down 18 per cent at €22.7m, partially attributable to a disposal. The business continues to contribute strong positive cash flow.
- The results are prepared under Generally Accepted Accounting Principles (GAAP) in Ireland and the UK. IAWS Group results for the year commencing August 1st 2005 will be prepared under IFRS.
Outlook:
The Group is well placed to achieve further growth from continuing operations in the current financial year.
Chief Executive’s Comment:
Commenting on the 2005 performance, IAWS Group Chief Executive, Owen Killian said:
“Overall the Group performed very well in 2005 notwithstanding the challenging environment in the market. Our food business performance was excellent with strong organic growth evident across all markets. We are achieving operational and business enhancements as a result of our continuing capital expenditure and acquisition programmes. The strong cash generative nature of our portfolio of businesses means that the Group is well positioned to invest in its continued expansion.”
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