Kerry revenues still moving up
KERRY Group has reported annual growth of 1.4 per cent in its Interim Management Report for the first six months of 2018.
The report was published by Kerry Group CEO Edmond Scanlon in Dublin last Thursday.
The company posted revenue growth of 1.4 per cent year-on-year in the first half. Sales volumes were up 3.6 per cent but reported revenue was held back by currency movements.
Volumes grew 4.1 per cent in the taste and nutrition division and 1.3 per cent in the consumer foods division.
Mr Scanlon told reporters that the Group could spend as much as €800m on acquisitions this year, and that its pipeline in this regard was as strong as he has ever seen.
“We very much see ourself as the consolidator in our space. We feel very good about where we are,” Mr Scanlon said,
He added that the acquisition plan would be largely focused on the company’s taste and nutrition division. He said, however, that reaching close to €800m of spend would depend on the timing of deal closures.
Mr Scanlon outlined the key areas that had helped drive growth.
“Evolving consumer trends and the changing marketplace have provided increased opportunities and demand for Kerry’s industry leading RD and A and broad technology portfolio. This, along with the Group’s enhanced end use market focus, drove healthy volume growth and underlying margin expansion in the first half of 2018.”
“We also continued to make progress with and invest in business development initiatives aligned to our strategic growth priorities,” he said
Based on the positive results Mr Scanlon said the Group was revising its forecast earning per share growth.
“In light of the above, we update our guidance and now expect to achieve growth in adjusted earnings per share of seven per cent to 10 per cent in constant currency,” Mr Scanlon told the briefing.