Kerry Group has today (Thursday, February 16) announced that reported revenues in 2022 increased by 19% to €8.8 billion.
The global food and ingredients company, which is headquartered in Tralee, said that this reflected volume growth of 6.1%, increased pricing of 11.7% and favourable transaction currency of 0.2%.
There was also a contribution from business acquisitions of 4.3%, which was partially offset by the impact of business disposals of 9.8%.
Kerry’s profit after tax was €606.5 million, down from €763 million in 2021.
In a preliminary statement of results for the year ended December 31, 2022, the company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 12.9% to €1.2 billion.
Kerry Group
Kerry’s taste and nutrition division saw volume growth of 7.8%, and while the Dairy Ireland division recorded slight volume growth there was a 36% increase in pricing.
Basic earnings per share were 341.9c, which is down from 430.6c in 2021, according to the report.
The report noted that 2022 included a credit from the sale of the company’s consumer foods, meats and meals business.
The board of Kerry Group has recommended a final dividend of 73.4c/share, adding that the total 2022 dividend is up 10% from the previous year to 104.8c.
The company increased its spend on research and development from €297 million to €303 million.
Free cashflow for the year was €640 million (2021: €566 million), representing cash conversion of 82%.
The report said that Kerry Group cut scope one and two carbon emissions by 48% in 2022, while food waste was reduced by 32%.
Scope one covers direct emissions from owned or controlled sources.
Scope two covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company.
Markets
Kerry Group said that “the overall demand environment remained robust through the year despite the macroeconomic backdrop”.
“Consumers continued to seek new taste experiences, cleaner labels and added functional benefits through food and beverages.
“The cost-of-living crisis has resulted in many consumers looking for relative value options to meet their purchase preferences, depending on their available resources,” the report said.
Commenting on the financial results, Edmond Scanlon, Kerry chief executive, said:
“As we marked Kerry’s 50th year in 2022, we achieved record organic revenue growth against the backdrop of an exceptionally dynamic operating environment.
“Our teams worked closely with our customers to actively manage through the inflationary environment, while continuing to innovate and develop their offerings to meet evolving marketplace needs.
“We made good strategic progress in the year through development of our innovation platforms, footprint expansion and continued portfolio development.
“We completed a number of acquisitions aligned to our strategic priorities of Taste, Nutrition and Emerging Markets, and since year-end we announced the potential sale of our Sweet Ingredients Portfolio, as we continue to enhance and refine our business to areas where we can add most value.
“While recognising the current market uncertainty, we believe we are strongly positioned to continue to grow our business through this period,” he said.
Kerry is expecting to achieve 3-7% adjusted earnings per share growth on a constant currency basis in 2023, before the dilution from the potential sale of the Sweet Ingredients Portfolio.