Kerry Group announce ‘strong’ Q3 figures
Kerry Group has released its quarterly figures, with 2.9 per cent increase in continuing business volumes (Q3 +3.2 per cent) and 4.1 per cent gain in Ingredients and Flavours (Q3 +4.3 per cent).
Kerry Group achieved an encouraging business performance in the three month period to 30 September 2013 and continued to invest in enhancing the quality of group businesses. A statement from the group says the “performance was achieved against a background of significant currency headwinds and a challenging overall market environment in developed markets.”
Their statement also reports “solid growth and business development,” especially in Asia and EMEA developing zones. Performance was assisted by successful integration of acquisitions from Group 1’s Kerry Business Transformation Programme.
The Group’s consumer foods’ sectors in the UK and Ireland remain competitive where Kerry Foods continues to focus its business model on its core offerings and on strategies to improve the quality of its business portfolio.
Sales growth sequentially improved during 2013. In the nine months to 30 September 2013, continuing business volumes grew by 2.9 per cent and pricing increased by 1.7 per cent broadly offsetting input cost inflation of approximately 3.5 per cent to 4 per cent. Continuing business volumes grew by 3.2 per cent in Q3. Reported revenues in the nine months to end of September decreased by 0.2 per cent, reflecting significant currency headwinds (-6 per cent in Q3) and discontinued volume of 3.7 per cent arising from restructuring programmes to optimise the Group’s manufacturing footprint and withdrawal from Kerry Foods non-core business activities.
At the end of September net debt stood at €1.2 billion, similar to that reported at the half year stage despite ongoing investment in development capital expenditure and footprint optimisation. The Group continues development of its 1 Kerry Business Transformation Programme across all operations and functional areas to leverage global capabilities whilst optimising manufacturing, scale and efficiency benefits. Deployment of SAP continues with recent successful deployments in Ireland and Germany. Changes in the planned phasing of deployment have resulted in slightly lower than expected expenditure in 2013 on the Kerryconnect project.
Construction of the Kerry Global Technology and Innovation Centre in Ireland is progressing, with the centre scheduled to open in Q1 2015.
The full report can be found at www.kerrygroup.com.