Kerry Group finances up 10.9% to €4.4bn

Thu, Nov 1, 2012, 00:00

KERRY GROUP has reaffirmed its outlook for the year as the food company reports revenues of €4.4 billion for the first nine months of the year.

While this represented a 10.9 per cent increase on the year on a like-for-like basis, excluding the impact of disposals, acquisitions, and currency translations, the increase was 2 per cent.

Trading profit increased by just over 12 per cent on a reported basis. The company noted increased unallocated development costs related to its 1 Kerry IT integration programme. However, its trading profit margin increased by 10 basis points compared to the same period of 2011, it said.

Kerry’s ingredients and flavours division continued to be the main driver, posting a 14.8 per cent increase in revenues, representing a 3.8 per cent jump on a like-for-like basis.

The Americas region delivered “solid growth”, the company said, resulting in 2.4 per cent continuing business volume growth. The Asia-Pacific region, which represents about 10 per cent of overall sales, delivered 8.3 per cent continuous business volume growth.

Kerry Group’s consumer foods division continued to be affected by the challenging consumer environment in Britain and Ireland. Revenues increased by 2.4 per cent, representing a 0.9 per cent decrease on a like-for-like basis.

Brand performance in the meat category was affected by “intense price-driven competition” but Mattessons, Richmond sausages and Cheesestrings did well. Kerry’s ready-meal business also grew.

In the Irish market, Kerry’s Denny brand faced “intense competition” from heavily discounted private label offerings, the company said. However, the Galtee, Dairygold and Charleville products performed well.