Revenues at Kerry Group ahead by 4.5%, interim results show

Growth in snacking trends in UK help boost sale volumes at diary giant

 Edmond Scanlon (right), Kerry Group chief executive.

Edmond Scanlon (right), Kerry Group chief executive.

 

Revenues at Kerry Group increased by 4.5 per cent in the nine months to the end of September, an interim statement from the company said on Wednesday.

Business volumes on a company-wide basis at the dairy giant increased by 4.2 per cent, it said. Pricing increased by 2 per cent against a background of approximately 4 per cent higher raw material costs.

Reported revenues increased by 4.5 per cent “reflecting the strong business volume growth, increased pricing, adverse currency translation impact of 1.9 per cent, adverse currency transaction impact of 0.3 per cent and the effect of acquisitions net of disposals of 0.5 per cent”.

Kerry Group chief executive Edmond Scanlon said the company’s business model “continues to deliver speedy innovation in response to the pace of change in the food and beverage industry”.

“We achieved good volume growth in the first nine months of 2017 and for the full year, taking into account the 4 per cent currency translation headwind,” he said.

“We expect to achieve growth in adjusted earnings per share of 4 per cent to 6 per cent on a reported basis to a range of 336 to 343 cent per share.” That’s up from 323.4 cent per share last year.

The company said it maintained “a strong business momentum” during the period, delivering “good volume growth” ahead of category growth rates, “driven by successful innovation in response to consumer health and wellness trends”.

“Taste and nutrition technologies and systems delivered good growth in North America, a solid performance in Latin America, good growth in the Europe, the Middle East, and Africa region, and continued double digit growth in Asia.

“Despite increasing inflationary pressures in the UK consumer foods market, Kerry Foods maintained good volume growth - benefiting in particular from increased snacking trends in dairy and meat categories.”

In terms of its future prospects, it said that taking into account the 4 per cent currency translation headwind, it expected to achieve full year growth in adjusted earnings per share of 4 per cent to 6 per cent.