US demand sees IAWS profits rise

Bread and pastries maker IAWS said first-half earnings rose 30 per cent and predicted further growth despite high grain prices and economic uncertainty.

The company said its adjusted, fully diluted earnings per share (EPS) rose 30.2 per cent to 48.37 cent for the six months to January 31st from 37.15 cent the year before.

That compared with a forecast of 39.0 cents by Goodbody Stockbrokers, and for the first time it fully consolidated the results of US baked goods firm Otis Spunkmeyer which IAWS bought in 2006.

"So basically 50 per cent of the underlying profit is coming from the core business growing, and 50 per cent is coming from acquisitions," chief executive Owen Killian said.

Rising costs in the global commodities boom would be passed on to consumers, and demand for food would not drop even in an economic downturn, he said.

Shares in IAWS were up 3 per cent at €13.85 earlier today.

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