Kerry Group Company downsizes its growth outlook

by Editor fleischwirtschaft.com
Monday, August 14, 2017
Photo: Kerry Group
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Ireland Kerry Group


Group revenue increased by almost 5& topping the €3 bn (US$3.5 bn) mark for Irish food giant Kerry in its half year results, but the company’s outgoing chief executive has warned that full-year profits will be lower than expected. The maker of Irish butter, cheese and sausages, has been feeling the impact of adverse currency movements since Brexit which sent sterling tumbling and has left the currency volatile ever since. This war reported by Food Ingredients 1st.
The changing marketplace and consumer consumption trends continued to drive demand for Kerry’s taste & nutrition technologies, according to the Irish food giant. Group revenue increased by 4.8% to €3.2 bn (US$3.75 bn) reflecting 3.8% business volume growth, Taste & Nutrition showed 4.2% volume growth, while Consumer Foods demonstrated a 2.3 percent volume growth and trading profit increased by 5.2% to €338m (US$396m).

Group trading margin maintained at 10.6%, Taste & Nutrition +20bps to 13%, Consumer Foods -70bps to 7.6% and Adjusted EPS up 7.5% to 143.8 cent. Basic EPS of 127.6 cent (H1 2016: 126.4 cent), Interim dividend per share increased by 11.9% to 18.8 cent and free cash flow of €357m (US$418m) (H1 2016: €379m (US$444.5m)).

Retail and foodservice channel disruption and expansion, coupled with the growth of e-commerce and demand for convenience plus localized taste preferences benefited Kerry’s unique Taste & Nutrition business model and differentiated consumer-led innovation network.

Increased consumer demand for “better-for-you”, balanced nutrition and health offerings provided a strong platform for growth through Kerry’s market leading clean label solutions across all end-use markets and foodservice channels. Growth in out-of-home consumption drove strong business development in the foodservice sector.

The Group says that is maintained a strong overall business performance in the first half of 2017 despite significant adverse currency movements and increased raw material pricing.

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