Kerry Group has issued its statement of results for the financial year (FY) 2021, reporting a “good finish to a year of strong growth and business development”.
FY 2021 saw a group revenue of €7.4 billion, reflecting a volume growth of 8%. This gave a trading profit of €875.5 million.
Kerry’s taste and nutrition division saw a volume growth of 8.3%, including a fourth quarter (Q4) growth of 7.3%; while the consumer foods division saw a volume increase of 6%, including Q4 growth of 7.1%.
Group EBITDA (earnings before interest, taxes, depreciation, and amortization) was €1.1 billion, representing an EBITDA margin of 14.7%. Kerry’s trading margin increased to 11.9%.
Adjusted EPS (earnings per share) stood at 380.8c, an increase of 12.1% on a constant currency basis. Basic EPS for 2021 was 430.6c, compared to the 2020 figure of 313c.
Kerry saw a free cashflow of €566 million, reflecting 84% cash conversion.
The final dividend per share is 66.7c, while the total 2021 dividend is up 10.1% to 95.2c.
The 2022 adjusted EPS guidance envisages growth of 5% to 9% on a constant currency basis.
Commenting on these figures, Kerry Group CEO Edmond Scanlon said: “We ended the year on a strong note with excellent growth across our business… In the taste and nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservices with business volumes in all regions above 2019 levels in Q4.
“This growth was well spread across our end-use markets, with beverage, bakery and meat delivering particularly strong performances,” he added.
Scanlon also highlighted that it was “an important year” for the business from a strategic point of view.
“While recognising that the current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle.”
Kerry Group’s net capital expenditure for last year was €315 million (up slightly from the €311 million in 2020), and research and development expenditure was €297 million (compared to €282 million in 2020).
In terms of its strategic portfolio, Kerry completed the acquisition of the US-based company Niacet, a manufacturer of technologies for food protection and preservation.
The group also completed the acquisition of National Vinegar Co. (also US-based), adding further fermentation capacity and supporting growth in natural preservation.
Kerry also acquired Mexico-based enzyme manufacturer Enmex, which serves food, beverage and other consumer markets.
Furthermore, since year-end the group reached agreement to take 92% ownership of German biotechnology company c-LEcta, which specialises in fermentation, bio-processing and bio-transformation.
Finally, in terms of acquisitions, Kerry acquired Afribon, a flavour producer active in east Africa; and has reached an agreement to acquire Almer, a dairy taste business active in Malaysia.
During 2021, Kerry completed the disposal of its consumer foods meats and meals business to Pilgrim’s Pride.
The group says that market conditions have been “highly dynamic” across the year, with a strong overall demand environment combined with a high degree of variability across geographic channels.
At-home consumption “remained strong”, with the foodservices sector improving as consumers embraced the opportunities for more out-of-home social engagement.
Kerry noted that consumer demands continue to increase in areas such as plant-based food; functional food for specific requirements; and food with an improved sustainability impact.
“These heightened and complex consumer demands are presenting greater challenges for our customers, as they continue to balance these with current industry labour and supply chain dynamics,” Kerry Group said.