Revenue increases at Kerry, but currency headwinds impact results
Revenue at Kerry Group rose 1.4pc year-on-year to €3.2bn in the six months to June 30.
The growth in revenue reflected volume growth of 3.6pc and a 0.6pc improvement in pricing, as well as the contribution from acquisitions, according to interim results from the group.
However the consumer foods business saw its trading margin decrease by 10 basis points to 10.5pc, as strong volume growth and contribution from acquisitions were offset by adverse currency movements.
On a constant currency basis, group sales increased by 8pc year-on-year.
Group trading profit came in at €340m, up 0.5pc year-on-year, and up 8.7pc in constant currency.
"Evolving consumer trends and the changing marketplace have provided increased opportunities and demand for Kerry's industry leading RD&A and broad technology portfolio," Edmond Scanlon, CEO of Kerry Group, said.
"This, along with the group's enhanced end use market focus, drove healthy volume growth and underlying margin expansion in the first half of 2018. We also continued to make progress with and invest in business development initiatives aligned to our strategic growth priorities."
During the six month period the group’s taste and nutrition business reported volume growth of 4.1pc, while its consumer foods business reported volume growth of 1.3pc.
Looking forward the group said it was updating its guidance for the year and now expect to achieve growth in adjusted earnings per share of 7pc to 10pc in constant currency.
The group had previously expected to achieve growth in adjusted earnings per share of 6pc to 10pc in constant currency.