Kerry Group’s revenue equalled €3.2 billion in the first of half of this year

Kerry Group’s revenue equalled €3.2 billion in the first half of this year, according to its Interim Management Report for the first six months of 2017.

The company reported a solid underlying business performance for the year up until June 30.

As revenue reached – on a reported basis – in excess of €3.2 billion, this represented an increase of 4.8% year-on-year.

The growth in revenue was driven by strong organic growth offset by adverse currency movements, the interim report added. Meanwhile, business volumes grew by 3.8% in the first half of this year.

This growth reflected a good performance in American markets, an improved performance in the EMEA (Europe, the Middle East and Africa) region and double digit growth in the Asia-Pacific region, according to the report.

Currency headwinds increased during Q2 contributing an adverse 1% translation impact and an adverse 0.4% transaction currency impact to revenue relative to the first half of 2016, the group added.

With regards to Kerry’s Taste and Nutrition business, it was reported that it delivered 4.2% growth in business volumes and that pricing increased by 1.7%.

Meanwhile, the company’s Foods’ business volumes reportedly increased by 2.3% and divisional pricing increased by 1.9% across the first six months of the year.

The group trading margin was maintained at 10.6%. According to the interim report, adjusted earnings per share increased by 7.5% to 143.8c. Basic earnings per share increased by 0.9% to 127.6c.

The interim dividend of 18.8c per share represents an increase of 11.9% over the 2016 interim dividend, the report added.

Adverse currency movements

Against a background of significant adverse currency movements, the company achieved a strong overall business performance in the first half of 2017, Kerry Group’s CEO, Stan McCarthy, said.

During the first half of the year, the business outperformed market growth rates and delivered a 7.5% increase in adjusted earnings per share, he added.

In February 2017 we guided growth in adjusted earnings per share of 5% to 9% at prevailing exchange rates.

“Taking into account increased currency translation headwinds of 4% and a 2% improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3% to 7% on a reported basis to a range of 333.1 to 346c per share (2016: 323.4c),” he concluded.

Board and management changes

As announced earlier this year, McCarthy will step down as the CEO of Kerry Group at the end of September and as a director of the group at the end of the year.

Having taken up the role in 2008, McCarthy will be replaced by Edmond Scanlon when he retires.

Having joined Kerry’s Graduate Development Programme in 1996, Scanlon has worked in various roles for the company over the past two decades.

He was most recently appointed as the President and CEO of the Kerry Asia Pacific region in November 2013.