Kerry turned in a reasonable set of numbers, with sales up 7% to 4.4bn and pre-tax profits up 11% to 298m. The impact of currencies and higher energy costs held the business back somewhat. The consumer foods arm was static due to lower food prices and a downturn in demand for ready meals.

Yet this trend is not entirely negative for Kerry. The increased demand for foods that have "added" healthy and functional ingredients and "removed" bad stuff, such as fats, sugar and salt, also offers the group opportunities.

Reworking recipes is "grist to the mill" for Kerry, according to Goodbody's Liam Igoe . . . and with new products come higher margins.

Kerry is working on ingredients for products that address specific medical conditions (such as depression, anxiety, arthritis and menopause), a range of enhanced energy ingredients, and healthy alternatives to mainstream food ingredients, such as wheat, including oatmeal and soy proteins.

Kerry-watchers have been bemoaning the lack of a big acquisition for the company in recent years, as it lost out in the race to buy both Chr Hansen, one of the world's leading producers of natural food ingredients and enzymes, and Degussa, a major producer of food flavouring and texturing agents. The former was sold to a knock-out bid from a private equity firm, while the latter was bought by US group Cargill.

However, some analysts argue the continued focus on Kerry Group 'landing the whopper' masks the fact that the company is still spending big on acquisitions.

Over the past two years, the company has spent just under 1bn on a series of deals, the largest of which was the 450m purchase of Quest food ingredients from ICI in 2004.

Quest brought Kerry into a whole new area of hydrolysed proteins for use in cell tissue culture, specialist ingredients for making tablets along with therapeutic and nutritional products.

"It's a bit of a misconception that they have not been out there doing deals over the past couple of years, they are out there, " said Goodbody's Igoe.

Kerry chief executive Hugh Friel said the current deal pipeline was healthy.

Kerry hopes to close a couple of 50m to 70m purchases in the first half of this year and is also looking at other opportunities.

Meanwhile, Glanbia is also on the hunt for acquisitions in the nutritional ingredients sector. Managing director John Moloney said the company could spend up to 100m on the right deal, and had been close to making a purchase last year . . . but that "it takes two to tango".

Sales at Glanbia increased by 4% to 1.8bn last year, while pre-tax profits fell 24% to just over 62m. Operating profits before exceptionals were down 7% to just over 80m.

Glanbia is expanding into the nutritional sector at both a wholesale and retail level.

Its dairy-based proteins are used in sports bars and health and wellness products.

On the consumer foods side, the company has just launched a new range of Yoplait yoghurt drinks that carry additional functions.

Moloney did not agree that Glanbia was entering a crowded market in terms of functional foods, and argued that its recognised Yoplait brand would help the company make a splash. Glanbia has the Yoplait franchise for Ireland, and Moloney said this range could be expanded back into France.

Glanbia's consumer foods business had a poor year, with margins slipping from 6.2% to 5.5% due to increased competition in milk and chilled foods.

Milk imports from the North, which are much cheaper than Glanbia's Avonmore and Premier brands, continue to take a major share of the market in the Republic. And with Northern farmers picking up extra milk quota from Britain, this trend looks likely to continue.

The firm's international business performed well, but investors will have to wait until next year to see the impact of the huge new cheese and whey plant in New Mexico, in the US southwest, and the benefits from its Nigerian evaporated milk and milk powder joint venture.

Goodbody's Igoe reckons that Glanbia "might have a bit of traction" in the near term, as the full impact of its international expansion begins to flow through.

He notes, too, that Kerry remains cheap, although the stock lacks an obvious catalyst for a re-rating in the short to medium term.

Merrion Stockbrokers' Robert Brisbourne reckons that Kerry is fairly valued at present, though, and has changed his stance from a 'buy' to a 'hold' until there is more visibility on how earnings growth at the company will accelerate.