Kerry Group Reports Solid First Half Performance
Kerry Group, the global taste, nutrition and consumer foods business, has reported a solid underlying business performance for the half year ended 30 June 2017, despite significant adverse currency movements and increased raw material pricing. Revenue on a reported basis increased by 4.8% to €3.2 billion, reflecting 3.8% business volume growth. Group trading profit rose by 5.2% to €338.4 million with the margin being maintained at 10.6%.
Kerry Group’s Taste & Nutrition business increased revenue by 6.9% to €2.5 billion, aided by volume growth of 4.2%, and trading profit margin improved by 20 bps to 13.0%, due to the benefits of improved product mix, leverage and efficiencies, offset by currency headwinds.
The Consumer Foods business reported revenue decreased by 2.8% to €677 million although volumes increased by 2.3% and product pricing increased by 1.9%. Trading profit margin in Consumer Foods decreased by 70 bps to 7.6% due to significant transaction currency headwinds in the period, partly offset by underlying margin expansion.
Stan McCarthy, chief executive of Kerry Group, comments: “Against a background of significant adverse currency movements, we achieved a strong overall business performance in the first half of 2017, outperforming market growth rates and delivering a 7.5% increase in adjusted earnings per share. In February 2017 we guided growth in adjusted earnings per share of 5% to 9% at prevailing exchange rates. Taking into account increased currency translation headwinds of 4% and a 2% improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3% to 7% on a reported basis to a range of 333.1 to 346 cent per share (2016: 323.4 cent).”
Kerry Group is able to capitalise on its unique taste and nutrition technologies and systems which are well positioned to deliver innovative solutions for the group’s global, regional and local customers in response to ever-changing consumer requirements. Consumer trends favouring clean label, nutritious, tasteful, natural and convenient food and beverage offerings continue to drive a strong innovation pipeline across all end-use markets in all regions.
