There will be disruption even in orderly Brexit scenario - Kerry Group CEO
There will be short term disruption even in the event of an orderly Brexit, Kerry Group CEO Edmond Scanlon has said.
Mr Scanlon said that regardless of what outcome occurs there will be an impact on consumption and demand in the UK.
“Right now we see the market as soft from a demand stand point in the UK. I don’t see anything positive happening to that demand in the short term, even if there’s a really orderly Brexit,” said Mr Scanlon at the company’s 2019 Interim report launch.
“I don’t necessarily see any significant improvement on consumer demand. From my perspective we are as well positioned as we possibly can. There will be short term disruption. In the longer term things will normalise, the question remains what the impact to consumption and demand in UK environment will be.”
Last year Kerry Group acquired a Dutch substitute meat company controlled by a Belgian private equity firm for €20m.
While Mr Scanlon said that he doesn’t envisage the company investing in more companies like that as its Asian market is very meat focused, he said the plant based trend “isn’t a fad”.
Just because we’re not investing it doesn’t mean we don’t see significant opportunity. Plant based protein is here to stay. There’s huge consumer demand,” he said.
“While we see plant based protein certainly growing and certainly being a trend not a fad. I don’t see it having any significant impact on Kerry’s business. We think it’s an add on.”
This comes as the report highlighted increased 10pc year-on-year to €3.6bn in the first six months of 2019, according to interim results from the company.
The increase in turnover reflected volume growth of 3.3pc, flat pricing, and the positive impact of acquisitions.
Group earnings before interest, taxation, and amortisation (Ebita) was up 12.6pc to €382.9m. Analysts had predicted Ebita of €377.7m for the company.
Edmond Scanlon, CEO of Kerry Group, said he was “pleased with the business performance.”
“While heightened consumer pricing and uncertainty impacted market volume growth rates in some developed markets, our unique and industry-leading business model and integrated taste and nutrition positioning continued to deliver significant value for our customers in meeting rapidly evolving consumer needs.”
“Good progress has been made on the integration of recent acquisitions.”
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