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Kerry Group Updates Targets, Acquires Probiotic Company

Published on Oct 11 2017 2:15 PM in A-Brands tagged: Trending Posts / Kerry Group

Kerry Group Updates Targets, Acquires Probiotic Company

Kerry Group has updated its medium term growth targets and objectives, as well as confirmed its acquisition of US-based technology company Geneden, which focuses on probiotics and related technologies.

Addressing investors at a Capital Markets presentation today, Kerry Group Chief Executive Edmond Scanlon said that the Group expects to deliver in excess of 10% adjusted earnings per share growth on a constant currency basis on average per annum over the next five-year cycle.

“This will be delivered through achievement of above industry-average volume growth and continued business margin expansion. We expect to achieve 3% to 5% volume growth annually on a group-wide basis, with Taste & Nutrition targeting 4% to 6% growth and Consumer Foods targeting 2% to 3% growth,” he said.

Scalable Business

In terms of trading profit margin progression, Scanlon also confirmed that margin in Taste & Nutrition is now targeted to grow by 40 basis points per annum, while the margin in Consumer Foods is targeted to grow by 20 basis points per annum.

“Kerry Group has a unique scalable business model which I am confident can deliver the continued organic growth of the business across developed and developing markets as planned. We are in a strong position to lead the continued consolidation of our industry benefiting from the Group’s strong balance sheet, scalable business model and geographic footprint,” he commented.

“Return On Average Capital Employed (ROACE) is the Group’s key financial return metric, the target for which remains to achieve a return in excess of 12% per annum.”

Acquisitions

The Group today also confirmed the acquisition of Ganeden. Ganeden is based in Cleveland, Ohio, and has a current year revenue of approximately $25 million (approximately €21 million).

It also has an extensive library of published studies and more than 135 patents for technologies in the supplement, food, beverage, nutrition and personal care markets.

With the goal of complementing Kerry Group’s acquisition of Wellmune (acquired in late 2015), the group says that Ganeden technologies will be extended into wider applications across Kerry’s global developed and developing markets.

© 2017 - Checkout Magazine by Jenny Whelan

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