13 March 2006 - IAWS GROUP, plc the international lifestyle foods and agri group, announces its Interim Results for the half year ended 31.1.2006
Interim Results Statement
IAWS Group, plc announces an increase of 19.8 per cent in diluted earnings per share* for the half year ended 31 January 2006 to 33.13c compared to 27.65c in the previous period.The Group has fully adopted IFRS.The profit for the period was €39.66 million compared to €41.64 million last year.The 2005 comparative results include a profit before tax of €10 million on the disposal of an agri business. Pre tax profits* increased by 22.6 per cent to €49.38 million compared with €40.27 million for the same period in the previous year.The interim dividend has been increased by 15 per cent to 6.71c per share.
Group turnover was 13.4 per cent higher at €715 million. Total underlying sales growth showed a 4.4 per cent increase when account is taken of foreign currency fluctuations and acquisitions.Food Europe delivered sales growth of 23.7 per cent at €421 million while Food USA reported a 24.3 per cent sales increase in the period to €65 million. Total underlying sales within Food Europe and Food USA in the period were up 8.3 per cent and 17.7 per cent respectively. There was a 4.2 per cent reduction in underlying sales within Agribusiness to €229 million.
Total operating profit* increased by 23.4 per cent to €56.8 million from €46 million.The profit* from the food division before share of profit from associates and joint venture was €40.9 million compared with €29.5 million in the previous year – an increase of 38.5 per cent.This increase was largely driven by a full six months contribution from Groupe Hubert and strong growth in the USA as a result of increased investment in production capacity.
The profit contribution from associate and joint venture companies increased by 4 per cent to €10.86 million. During the period the Group increased its shareholding in A. Hiestand Holding AG from 22 per cent to 32 per cent.Hiestand is a renowned Swiss gourmet bakery, which manufactures and distributes high quality bakery goods to retail and foodservice markets.Hiestand posted 13 per cent sales growth in the 2005 calendar year.
Operating profit within Agribusiness fell by 16.4 per cent to €5.1 million in the period. This performance is in line with the comparable period when account is taken of the business disposal made in the period.
The Group balance sheet remains strong. Net debt increased to €334 million compared to €279 million at the same date last year.During the period there was an investment and acquisition spend amounting to €71 million principally relating to the €35 million investment in A. Hiestand Holding AG and the €19 million expenditure to date relating to the commissioning of two new manufacturing lines at La Brea Bakery New Jersey.In addition the Group made a special contribution of €23.5 million to the Group pension scheme. Interest cover was 7.5 times.Cash earnings per share were 44.72c, which was an increase of 28 per cent on the same period in 2005.
*EPS, Pre-tax and Operating Profit is stated here before intangible amortisation and separately reportable items.