IAWS GROUP, plc the international lifestyle foods and agribusiness group, announces its Preliminary Results for the year ended 31.7.2006.
| Financial Highlights | 31 July, 2006 |
|---|---|
| *EPS diluted increased by 13.5% | 81.60c |
| *Profit before tax up 14.6% | €123.5m |
| *Group operating profit 13.5% higher | €111.8m |
| Share of profit of associates and JV up 19.2% | €25.7m |
| Group revenue increased 10.6% | €1.56bn |
| Free cash flow (excluding disposals) up 20.5% | €100.7m |
| Group net borrowing | €216.5m |
| Final Dividend of 6.78 cent increases total by 13.5% | 13.49c |
*adjusted for intangible amortisation and exceptional items
Operational Highlights
- Continued growth in the Food Division, achieving revenues of €975.4m. Year on year revenue growth in Food was 15.4 per cent and operating profits *were up 15.9 per cent to €87.8m.
- Improved performance from Agribusiness Division with revenue increasing by 3.4 per cent to €582.0m and operating profits *up 5.4 per cent to €24.0m.
- Due to the strong operational performance during the year, the Group’s free cash flow increased by 20.5% to €100.7m.
- The third phase of expansion at La Brea Bakery, New Jersey completed at a cost of €50 million bringing the total investment in the New Jersey site to over €100 million.
- Food Europe benefited from the first full year contribution from Groupe Hubert which was acquired in December 2004.
- The Group increased its shareholding in Hiestand Holding AG by 10% in an investment totalling €35.1m. The total shareholding is now 32%.
- The implementation of the Group wide Enterprise Resource Planning System (ERP) was successfully rolled out across the entire Lifestyle Food UK operation.
Chief Executive’s Comment:
Commenting on the 2006 performance, IAWS Group Chief Executive, Owen Killian said:
"The Group made excellent progress in 2006 with strong performances right across the business. The hallmark of the Food Division’s performance is revenue growth combined with margin stability against a backdrop of rising input costs. Food North America completed a major capital investment programme in La Brea Bakery, New Jersey, that will provide a strong platform for future growth. Food Europe benefited from an excellent first full year financial contribution from French acquisition, Groupe Hubert, together with an excellent performance from our businesses in Ireland and the UK operating in competitive markets. The Agribusiness Division rebounded this year with increased demand for animal feed ingredients and fertiliser. Rising costs are a feature of all food businesses and make for a very challenging environment. Nevertheless, we remain confident about our prospects for growth."