Kerry Group’s profits pass the €900m mark

TRALEE head-quartered food giant Kerry Group has reported a 12 per cent jump in its trading profit of €903m for 2019.

Revenue increased 9.6 per cent to €7.2 billion during the year, according to annual results from the company.

The performance was driven by growth in Kerry’s Taste and Nutrition division, which reported volume growth of four per cent over the 12 months, despite what the company said was “the backdrop of softer market volumes in some developed markets.”

This arm of the business accounted for €6 billion in income.

Meanwhile, in the Consumer Foods arm, which was responsible for €1.3 billion in revenue, there was a two per cent fall in volume growth on the back of contract exits.

Edmond Scanlon, CEO of Kerry, said the group is “pleased with the business performance and the strategic development of the group in 2019.

“We also enhanced our trading profit margin and achieved growth in adjusted earnings per share of 8.3PC in constant currency,” he said.

Significant progress was made right across our strategic growth priorities of taste, nutrition, food service and developing markets,” said Mr Scanlon.

“We successfully integrated a number of strategic acquisitions, expanded our strategic footprint in high growth developing markets, while further enhancing our industry-leading global integrated solutions portfolio,” Mr Scanlon said.

During the year, the group completed eleven acquisitions at a total consideration of €561.7m.

In December last year Kerry lost out in a US$26.2bn race for DuPont’s nutrition division, a deal that would have transformed the Irish company and potentially triggered a sell-off of some of its Irish food businesses.

Kerry Group said it expects to achieve adjusted earnings per share growth in 2020 of five to nine per cent on a constant currency basis.