Solid First Half Profitable Growth By Kerry Group
Kerry Group, the global ingredients, flavours and consumer foods manufacturer, has achieved strong profitable growth in the first half of 2010 with trading profit up 12.9% to Eur204m and sales revenues increasing by 6.7% and 2.7% on a like-for-like basis to Eur2.4b. Profit before tax increased to Eur162m from the 2009 first half level of Eur115m.
Kerry Group’s trading profit margin improved by 40 basis points to 8.4%, while the Ingredients & Flavours Division’s trading margin advanced 50 basis points to 9.2%, and the Consumer Foods Division’s by 40 basis points to 7.1%.
Stan McCarthy, chief executive of Kerry Group.
Business volumes grew steadily and positive margin momentum was maintained through ongoing business efficiency projects and the benefits of restructuring actions and business alignment undertaken in connection with the group’s ‘go-to-market’ programmes over the past two years.
Sales at the Ingredients & Flavours Division rose by 3.9% on a like-for-like basis to Eur1.79b and trading profit grew by 9.3% to Eur164m. Progress was driven by successful product development initiatives, assisted by the business performance of the group’s leading global customers – reversing destocking trends of 2009.
Strong sales growth by Kerry’s leading UK brands and increased brand investment in Ireland contributed to a good overall performance in Kerry’s consumer foods markets during the period. The Consumer Foods Division’s sales revenue reached Eur885m, reflecting 0.5% like-for-like growth, and trading profit rose by 4.4% to Eur63m.
