Monday 18 December 2017

Revenue at Kerry Group passes the €3bn mark driven by organic growth

Stan McCarthy
Stan McCarthy
Ellie Donnelly

Ellie Donnelly

Revenue at Kerry Group rose by 4.8pc year on year to €3.2bn in the six months to 30 June, according to the company’s interim management report.

The increase was driven by strong organic growth and price increases.

Despite what the company described as "significant adverse currency movements" and increased raw material pricing, trading profit at the group increased by 5.2pc on the same period last year to €338.4m.

Trading margins were maintained at 10.6pc.

Read more: Greencore revenue boosted by new US sales

During the period business volumes grew by 3.8pc, compared to the same period in 2016, reflecting a good performance in American markets, an improved performance in the European, Middle East, and African regions and double digit growth in the Asia-Pacific region.

However Kerry was not immune to currency fluctuations, which contributed to an adverse 1pc translation impact and an adverse 0.4pc transaction currency impact to revenue relative to the same period last year.

Breaking down the results by business segment, the company’s Taste & Nutrition business delivered strong growth of 4.2pc in business volumes, while pricing increased by 1.7pc.

Kerry Foods' business volumes increased by 2.3pc and divisional pricing increased by 1.9pc across the half year to 30 June.

Adjusted earnings per share increased by 7.5pc to 143.8 cent, while its basic earnings per share increased by 0.9pc to 127.6 cent.

The company’s interim dividend of 18.8 cent per share represents an increase of 11.9pc over the 2016 interim dividend.

During the period, the group completed three bolt-on acquisitions, Tianning Flavours was acquired in China, Taste Master was acquired in Australia, and Ben Alimentos was acquired in Brazil.

Read more: Stan McCarthy of Kerry Group joins the board of Ryanair

Kerry also reached agreement to acquire Hangman Flavours in China.

Describing the results as a "strong overall business performance", Kerry Group CEO Stan McCarthy said the company was "outperforming" market growth rates.

"Taking into account increased currency translation headwinds of 4pc and a 2pc improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3pc to 7pc on a reported basis to a range of 333.1 to 346 cent per share," Mr McCarthy said.

Earlier this year Kerry Group announced that Mr McCarthy will step down as CEO of the company at the end of September.

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