Kerry Group revenue up 4.7% to €3 billion year-on-year

Kerry Group has reported a 4.7% year-on-year increase in the Group’s revenue bringing it to €3 billion.

The company’s Ingredients and Flavours sector reported that revenue increased by 8.6% to €2.32 billion (H1 2014: €2.13 billion).

In the Consumer Foods sector, Kerry reported that revenue decreased by 6.4% to €749.3m (H1 2014: €801.0m).

The company’s first half (H1) results also show a volume growth of 2.7% which it said reflects a strong overall performance in American markets, an improved performance in the Europe, the Middle East and Africa (EMEA) region and continuing good growth in Asia despite a slowdown in some regional markets.

Group trading profit increased by 9% to €300m, while the Group trading profit margin increased by 40 basis points to 9.9%, it said.

Currency tailwinds relative to the first half of 2014 contributed a positive 8.4% translation impact to revenue, it said.

The company’s adjusted earnings per share (EPS) increased by 8.1% to 124.5c (H1 2014: 115.2c).

Kerry Group Chief Executive Stan McCarthy said that the company delivered a strong financial performance in the first half of 2015 reporting continued business margin expansion and an 8.1% increase in adjusted EPS.

“Based on Group year-to-date performance, current exchange rates and business momentum, we are increasing our market guidance for the full year,” he said.

Consumer food and beverage markets worldwide, it said, continued to reflect increasing demand for ‘clean-label’, natural, tasteful offerings which address convenience, health and wellness and life-stage preferences.

Kerry said that increased volatility and currency fluctuations have contributed to inflationary trends in some countries and conversely to deflationary trends in some mature developed markets.

Geopolitical issues persist in some developing market zones, impacting market development, it said.

The Group said that based on Group year-to-date performance, current exchange rates and business momentum, it is increasing its full year guidance.

It said that it now expects to achieve 6% to 9% growth in adjusted EPS to a range of 296 to 304c/share in 2015.

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