Otis Spunkmeyer, La Brea Bakery help spur IAWS N. American growth
DUBLIN, IRELAND — Operating profit of the Food North America segment of IAWS Group P.L.C. was €11,568,000 ($15,241,000) in the six months ended Jan. 31, up 69% from €6,863,000 in the first half of fiscal 2006. Sales within the segment more than doubled to €145,693,000 ($191,555,000) from €64,635,000.
"IAWS Group has had a good start to 2007 with satisfactory growth being achieved across the business," said Owen Killian, chief executive officer. "In November 2006, the group made its largest ever acquisition, acquiring Otis Spunkmeyer in the U.S., an excellent strategic fit. IAWS is now a market leader in two complementary growth categories in the North American value-added bakery market."
IAWS said the Otis Spunkmeyer business contributed more than €20 million in net cash during the six-month period.
"It (Otis Spunkmeyer) is an excellent strategic fit for the Group’s North American Lifestyle Foods business," IAWS said. "The business has strong management, proven national marketing expertise, an extensive distribution network and substantial production capability."
In addition to Otis Spunkmeyer, IAWS also operates La Brea Bakery, Inc., Van Nuys, Calif. IAWS said La Brea Bakery "achieved exceptionally high growth during the period, benefiting from the increased capacity that came on stream last year." The company added that La Brea Bakery’s market "is continuing to show growth."
Companywide, IAWS reported sales of €838,456,000 for the six months ended Jan. 31, which compared with €714,680,000 in the previous year’s six months. Operating profit of €50,585,000 for the six months compared with €42,436,000 in the previous year’s six months. Earnings per share for the most recent six months were €37.62, up from €33.50 in the same period a year ago.