Kerry Group Reports 10.7% Revenue Increase To €3.6bn In Interim Results
Kerry Group has reported a 10.7% revenue increase to €3.6 billion reflecting volume growth of 3.3%, its latest financial results showed.
The group attributed this to neutral pricing, contribution from acquisitions of 4.7%, and a favourable translation currency impact of 2.7%.
Group earnings before interest, taxation, and amortisation (EBITA) was up 12.6% to €382.9 million, the groups interim management report for the half year ended 30 June 2019 showed. .
Edmond Scanlon, chief executive officer said that he is “pleased with business performance in the period as the group continued to deliver volume growth ahead of the market while expanding trading margins in line with expectations.”
“While heightened consumer pricing and uncertainty impacted market volume growth rates in some developed markets, our unique and industry-leading business model and integrated taste and nutrition positioning continued to deliver significant value for our customers in meeting rapidly evolving consumer needs.” He added.
The group posted a 0.6% revenue increase to €689 million in its consumer food division which reflected volume growth, pricing, and a ‘translation currency tailwind.’
‘Everyday Fresh’ performed in line with expectations, the global taste & nutrition and consumer foods group outlined in a statement.
Richmond delivered 'solid performance' led by growth in chicken sausages, while the Denny brand in Ireland experienced 'strong growth'.
The traditional spreads category continued to be 'challenged', however Kerry said that it 'outperformed' with its spreadable butter offering 'addressing consumer preferences.'
Food To Go
‘Food to Go’ performed well, as strong growth in Cheestrings was supported by a number of innovations.
Fridge Raiders also extended its snacking range with the launch of a number of new products during the period to reach a broader consumer market.
"We are excited by the ongoing enhancement of our product mix and the development of our innovation pipeline," Scanlon added.
During the period, the group completed three acquisitions at a total cost of €327.2 million including Ariake U.S.A.,Inc. and Southeastern Mills’ North American coatings and seasonings business (SEM.)
Scanlon said that good progress has been made on the integration of recent acquisitions, which are performing very well.
"We are updating our guidance and expect to achieve growth in adjusted earnings per share of 7% to 9% in constant currency.” he concluded.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.