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Food company Kerry Group said today that it will meet its annual earnings forecast, despite pressures caused by rising costs and currencies.

The firm reported first-half net profit of €105 million, with sales revenue of €2.3 billion - a rise of 1.3 per cent. On a like-for-like basis, revenue increased 7.3 per cent, the company said. Operating profit, meanwhile, increased 8.1 per cent to €175 million.

In the individual units, revenue from the ingredients division rose 7.8 per cent on a like for like basis to €1.6 billion, while consumer foods rose 6 per cent to €877 million.

The cost of raw materials such as dairy products, cereals and edible oils increased by about 7 per cent during the period, compared with a rise of 5 per cent in 2007, with the company raising prices by about 4 per cent in response.

“Kerry made good progress in the first half of 2008, delivering 7.3 per cent like-for-like revenue growth, while maintaining trading margins despite significant currency and input cost pressures," said the company's chief executive Stan McCarthy.

"Building on the Group’s performance in the half year and the underlying prospects for our business in all regions, we expect a good outturn for 2008 and reconfirm our expectation to grow earnings for the full year to a range of 151 cent to 155 cent per share.”

The company is planning to keep looking for "complementary acquisition opportunities" across its business.

"Given recent adverse economic news, we judge this a reassuring set of results," Bloxham Stockbrokers analysts wrote in a note. "There is evidence that higher raw-material and energy costs have been passed on to consumers."

Kerry rose 20 cents, or 1.1 per cent, to €19.20 as of 8.53am in Dublin trading. The stock has dropped 12 per cent this year.