Kerry Group has published its statement of results for the year ended 31 December 2016, announcing that it achieved ‘good business volume growth momentum in a competitive market environment’ and ‘delivered a strong financial performance including record cash generation in 2016’.
Group revenue reached €6.1 billion reflecting 3.6% business volume growth, and trading profit increased by 7.1% to €750 million. Adjusted EPS grew 7.1% to 323.4 cent, with a final dividend per share of 39.2 cent.
The group stated that its businesses responded well to currency volatility and marketplace changes by ‘accelerating product innovation’ and commercial effectiveness. Health & wellness trends aided this growth, with increasing consumer demand for active nutrition, higher protein, natural, ‘free-from’, authentic, clean-label, convenient food and beverage products. Taste & Nutrition revenue for the group increased 4% to €4.9 billion.
The Group’s recent investments in Technology & Innovation Centres and Commercial/Application facilities coupled with a significant increase in RD&A expenditure also contributed to this growth.
Performance was also assisted by businesses acquired in 2015. Kerry Group also recorded ‘excellent growth’ in Asia as well as ‘good growth in North America’, and an improved performance in Latin American markets.
The group’s report stated that currency headwinds relative to 2015 contributed an adverse 4.1% translation impact and an adverse 0.3% transaction currency impact relative to revenue.
Commenting on the results, Kerry Group Chief Executive Stan McCarthy said, “In 2016 Kerry delivered good volume growth and a strong financial performance including sustained business margin expansion, record free cash generation and 7.1% growth in adjusted earnings per share. The Group remains confident of its ability to sustain profitable growth throughout global markets. In 2017 we expect to achieve good revenue growth and 5% to 9% growth in adjusted earnings per share”.
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