FDBusiness.com

Kerry Group, the global taste, nutrition and consumer foods business, has reported a 4.5% increase in revenue to €6.4 billion for the year ended 31 December 2017, reflecting strong volume growth offset by adverse currency movements. Group trading profit increased by 4.2% to €781.3 million.

Kerry Group’s Taste & Nutrition business reported revenue increased by 5.7% to €5.2 billion, reflecting 4.7% volume growth. Net pricing increased by 2%. Trading profit grew by 7.1% to €767 million, reflecting a 20 basis points improvement in trading margin to 14.9%. In 2017, Taste & Nutrition accounted for 79% of group revenue and 88% of group trading profit.

The Consumer Foods business reported revenue decreased slightly by 0.1% to €1.3 billion. Volumes increased by 2.4%, product pricing increased by 2%, and transaction related currency had a negative impact of 0.9%. The divisional trading profit margin decreased by 70 basis points to 8.1% as the underlying margin improvement was more than offset by the adverse sterling exchange rate movements, resulting in a trading profit decrease of 8.1% to €108 million.

Expenditure on research and development rose in 2017 due to further investment in Taste & Nutrition to €269 million, against €261 million in 2016. Net capital expenditure amounted to €297 million up from €210 million in 2016 due to increased investment in group growth platforms, in particular in taste technologies and developing market facilities. Kerry Group achieved a free cash flow of €501 million (€570 million in 2016).

Edmond Scanlon, chief executive of Kerry Group, says: “Kerry Group delivered strong top line growth and sustained business development in 2017. Adjusted earnings per share increased by 5.5% reflecting 9.4% growth over the prior year on a constant currency basis. In 2018 we expect to deliver adjusted earnings per share growth of 6% to 10% on a constant currency basis.”