Double digit growth for Kerry Group

Kerry, the global ingredients, flavours and consumer food group, has reported earnings in line with expectations, with revenues advancing by 10.3 per cent to €5.8 billion for 2012.

It reported an adjusted earnings per share (EPS) growth of 11.3 per cent to 237.6 cent, while continuing business volumes increased by 2.8 per cent. Operating profit at the group advanced by 10.8 per cent to €554.7 million, while profits after tax fell by 26 per cent to €267 million.

Chief executive Stan McCarthy welcomed the results, noting that the group’s “1 Kerry” business transformation programme, which aims to exploit the technologies and expertise of the organisation to drive its future growth, is well underway.

“We continue to invest in our technologies, innovation and nutritional expertise, and also in expanding our footprint throughout developing markets. In 2013 we expect to achieve 7 per cent to 11 per cent growth in adjusted earnings per share,” Mr McCarthy said.

The group’s ingredients & flavours businesses continued to perform well, reporting a 14 per cent growth in revenues to €4.2 billion and 15.1 per cent increase in trading profit to €506 million, as it benefited from “creative and speedy innovation”.

In consumer foods, sales grew by 2.3 per cent to €1.7 billion, on the back of “highly competitive” markets in Ireland and the UK, “due to the adverse impact of economic conditions on consumer spending and the response of retailers through deeper and wider promotional activity”. Kerry reported a trading profit of €130 million, an increase of 0.1 per cent, for this division.

The group will pay a total dividend of 35.8 per cent for the year, with a final dividend of 25 cent per share recommended.

Looking to 2013, the group expects that opportunities for its “technologies, applications, culinary expertise and processing capabilities” augur well for the future growth of the businesses.

“Our investment in strategically located, industry-leading Kerry Global Technology & Innovation Centres will provide access to the group's entire technological base and expertise - further strengthening our strategic customer alliances. We are firmly focused on expanding our footprint throughout regional developing markets,” the group said.

Following DCC's confirmation that it will depart the Irish Stock Exchange in May, Kerry Group said this morning that the company has no plans to move its main stock exchange listing from Dublin to London.