In what IDB chief executive Kevin Lane described as “a transitional year” for the business, sales reached €1.9bn, supported by an 18 per cent increase in branded sales.

Highlights from the year included record sales of Kerrygold and double-digit growth in the consumer foods business in the US and Germany.

Specialty struggles

But not all corners of the business were so successful in 2010. In particular, the DPI specialty foods business in the US had a challenging year, with operating profits down a third. Constrained consumer spending on discretionary items and intense competition in the sector put downward pressure on margins.

IDB said it has reorganised the business as a result in order to eliminate unnecessary costs and increase direct accountability.

In the meantime, the reduced profits at DPI pulled down the operating profits (EBITA) of IDB as a whole to €26.9m in 2010. In the previous year, IDB operating profits were €40.2m.

“Satisfactory performance”

Giving an overall verdict on 2010, Lane described the performance as “satisfactory”.

“Overall the business reported a satisfactory performance in 2010, with the exception of our US speciality distribution business, DPI, where margins, in common with the broader market, contracted sharply.”

Looking forward, the chief executive said IDB will focus on leveraging its brands building new routes to market and to value.

Lane said: “This will require continued investment in new product development and marketing and a relentless focus on efficiency and tight cost management.”