Carbery Reports Doubling in Pre-tax Profits

“Carbery Group’s performance was extremely encouraging, generating a stronger EBIT relative to 2009. This performance allowed Carbery to progress further in accomplishing its strategic objectives.” said Carbery Group CEO, Dan MacSweeney.

4/15/2011 --- International food ingredients manufacturer Carbery Group recorded a 22% rise in turnover in 2010, with revenues of €224.3m. The group benefited from stronger consumer demand for nutritional based food & beverages in key overseas markets, continued recovery of global dairy prices in 2010 and successful positioning in new regions. Pre-tax profit increased to €6.8m from €3.1m the previous year.

“Carbery Group’s performance was extremely encouraging, generating a stronger EBIT relative to 2009. This performance allowed Carbery to progress further in accomplishing its strategic objectives.” said Carbery Group CEO, Dan MacSweeney.

Carbery’s ingredients division comprises of Synergy, an international flavours and savoury ingredients specialist, and a whey protein-based nutritional ingredients business. Both made a strong contribution to the increase in revenue and operating profit. Synergy delivered significant growth based on greater penetration in existing markets such as North America and Western Europe, continued gains in emerging markets in Asia and South America and successful new business development in sport nutrition and general nutrition.

The nutritional ingredients business again performed strongly, driven largely by successful NPD and momentum in mature and emerging markets. This was supported by a strategy of marketing added-value whey protein ingredients for infant nutrition, sports formulae and nutritional enhancement in everyday foods. The rising consumption of sports nutrition products in mature markets and the continued growth of infant nutrition in emerging regions such as Asia have been important drivers in the overall positive performance of whey protein-based nutritional ingredients.

Carbery’s expenditure on R&D was increased in 2010 and significant work has already been advanced with FHI (Food for Health, Ireland) to identify potential novel milk-based compounds for use in final products in market sectors which include infant health, weight management and healthy ageing.  Similarly a research programme is under way with the North Carolina State University (NCSU) to further develop Group capability in sensory science and applications expertise in dairy proteins.

Furthermore, according to Mr MacSweeney “Our business commitment in R&D is matched by continuous investment in process technology including new plant technology for our nutritional ingredients business, an upscale of flavour production facilities for our North America & European businesses, and plans to invest in production facilities both in Asia and South America. The culmination of this commitment, combined with effective strategy execution, will put Carbery in the best position possible to reach a higher growth path for the future.”