FDBusiness.com

Kerry Group, the global taste & nutrition and consumer foods group, has reported a solid underlying business performance for the half year ended 30 June 2018. Group revenue on a reported basis increased by 1.4% to €3.2 billion, reflecting strong volume growth and contribution from acquisitions, offset by adverse currency movements. Business volumes grew by 3.6% and pricing increased by 0.6% in the period.

The reported revenue increase reflects the aforementioned business volume growth and positive pricing, contribution from acquisitions of 3.9%, an adverse translation currency impact of 6.6% and an adverse transaction currency impact of 0.1%.

Kerry Group’s Taste & Nutrition business delivered 4.1% volume growth and pricing increased by 0.6%. Consumer Foods’ business volumes increased by 1.3% and pricing increased by 0.9%. Group trading margin reduced by 10 basis points to 10.5%, reflecting a 10 basis points improvement in Taste & Nutrition, positive underlying margin improvement in Consumer Foods offset by adverse sterling exchange rates resulting in a 60 basis points margin reduction.

Constant currency adjusted earnings per share increased by 9.0% to 144.2 cent (H1 2017 currency adjusted: 132.3 cent). Basic earnings per share increased by 0.5% to 128.3 cent (H1 2017: 127.6 cent).

Edmond Scanlon, chief executive of Kerry Group, comments: “Evolving consumer trends and the changing marketplace have provided increased opportunities and demand for Kerry’s industry leading RD&A and broad technology portfolio. 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. In light of the above, we update our guidance and now expect to achieve growth in adjusted earnings per share of 7% to 10% in constant currency.”