Kerry Group has reported a revenue of €3.6 billion for the first half of 2021 to June 30, in its interim management report, released this morning (Friday, July 30).
This is a 4.9% increase on the first half (H1) of 2020.
The revenue for the first six months reflects a volume growth of 9.0% on H1 2020, the business said.
Among that volume growth, taste and nutrition volume increased 18.1% in quarter two (Q2) 2021, while consumer foods volume increased 8.5% in Q2.
The taste and nutrition division saw revenue increase by 5% to €2.9 billion, while consumer foods revenue increased by 4.3% to €674 million.
Group trading margin increased 70 basis points (bps). Taste and nutrition was up 80bps and consumer foods was up 20bps.
Adjusted earnings per share (EPS) was 152c, up 24.1% on a constant currency basis, while basic EPS was 128.2c.
Interim dividend per share was reported to be 28.5c.
Overall group trading profit increased by 13% to €357.1 million, while finance costs for the period decreased to €34.2 million, primarily due to lower interest rates.
During the period, the group completed the acquisition of USA-based National Vinegar Co. by way of an asset purchase agreement for a consideration of €24.6 million.
Intangible group assets decreased by €243.3 million to €4.4 billion, while current assets increased by €632.2 million to €3.2 billion.
As of June 30, total group net debt was just under €2 billion, an increase of €35.5 million relative to December 30, 2020, explained by acquisition investments and dividends.
In terms of markets, overall conditions improved in many markets, with increased economic activity, reopening levels and consumer confidence. However, developing markets saw more variability in that time, the group said.
At-home consumption remains elevated as work practices and consumers’ daily routines continue to evolve, with the foodservice channel continuing its trajectory of gradual overall recovery.
On group portfolio, apart from the acquisition of the National Vinegar Co., Kerry also reached agreement to acquire food preservative company Niacet, for an expected consideration of €853 million (expected to close in Q3), as well as Biosearch, S.A, a biotechnology company based in Spain.
The latter transaction has since been completed in the month of July for €127 million.
During the period, the group also reached an agreement to dispose of its consumer foods’ ‘Meats and Meals’ business to Pilgrim’s Pride Corporation, in a deal to be worth €819 million when it closes in Q4 this year.