Kerry ac­quires US-based Gane­den

The Irish Times - Business - - MARKETS - PETER HAMIL­TON

Kerry Group has ac­quired a US-based in­no­va­tion com­pany fo­cused on pro­bi­otics, it said yes­ter­day.

At a cap­i­tal mar­kets day for the food and nu­tri­tion com­pany, the ac­qui­si­tion of Gane­den was said to com­pli­ment the group’s ac­qui­si­tion of Well­mune in late 2015. The Cleve­land, Ohio, based com­pany has cur­rent year rev­enue of $25 mil­lion and more than 135 patents for tech­nolo­gies in the sup­ple­ment, food, bev­er­age, nu­tri­tion and per­sonal care mar­kets.

Mean­while, Kerry’s chief ex­ec­u­tive told in­vestors that the group ex­pects to de­liver in ex­cess of 10 per cent ad­justed earn­ings per share growth on av­er­age per year over the next five years.

“This will be de­liv­ered through achieve­ment of above in­dus­try-av­er­age vol­ume growth and con­tin­ued busi­ness mar­gin ex­pan­sion,” said Ed­mond Scan­lon, Kerry Group chief ex­ec­u­tive.

“We ex­pect to achieve 3 per cent to 5 per cent vol­ume growth an­nu­ally on a group­wide ba­sis, with taste and nu­tri­tion tar­get­ing 4 per cent to 6 per cent growth and con­sumer foods tar­get­ing 2 per cent to 3 per cent growth,” he added.

Con­fi­dent the com­pany can con­tinue to de­liver or­ganic growth for in­vestors, Mr Scan­lon said the group’s unique scal­able busi­ness model puts it in a “strong po­si­tion to lead the con­tin­ued con­sol­i­da­tion of our in­dus­try”.

“We con­tinue to be im­pressed with man­age­ment’s abil­ity to pro­duce stable re­turns for share­hold­ers but we feel the stock is trad­ing at fair value,” Mer­rion Pri­vate equity an­a­lyst, Dy­lan Sim­monds, said.

Kerry Group, which con­trols brands in­clud­ing Cheeses­trings, Denny and Dairy­gold, also told in­vestors that its strate­gic pri­or­i­ties up to 2022 in­clude im­ple­ment­ing a cost op­ti­mi­sa­tion pro­gramme, ad­vance ex­pan­sion into fast grow­ing sec­tors in­clud­ing snack­ing, out of home and food-to-go so­lu­tions, and mit­i­gate Brexit re­lated chal­lenges. It plans to do that by ad­dress­ing struc­tural busi­ness is­sues and re­duce its trans­ac­tion cur­rency ex­po­sure.

We ex­pect to achieve 3-5 per cent vol­ume growth an­nu­ally on a group­wide ba­sis – Ed­mond Scan­lon

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.