Kerry reports 2014 volume, profit up

Kerry Group has reported volume growth of 3.4% to €4,337m for its ingredients and flavours business for 2014, with trading profit up 6.1%. “We recorded another year of good growth, business margin expansion and an 8.1% increase in adjusted earnings per share in 2014,” said Kerry Group Chief Executive Stan McCarthy. “The consumer environment across […]

Kerry Group has reported volume growth of 3.4% to €4,337m for its ingredients and flavours business for 2014, with trading profit up 6.1%.

“We recorded another year of good growth, business margin expansion and an 8.1% increase in adjusted earnings per share in 2014,” said Kerry Group Chief Executive Stan McCarthy. “The consumer environment across developed and developing markets is changing rapidly but Kerry is well positioned to capitalise on global growth opportunities. We expect to achieve another year of good growth in 2015”.

Kerry said that it achieved another year of good underlying growth ahead of the markets and sustained business margin expansion in 2014. Despite a challenging macro-economic landscape and the impact of geopolitical issues – particularly in developing markets – the Group said that it continued to successfully develop across its three strategic pillars: Taste, Nutrition and Developing Markets.

Changing consumer demographics and shopping behaviour are driving a paradigm shift in food and beverage consumption trends, according to Kerry, impacting industry, retail and foodservice developments. In particular increased urbanisation, millennial growth and life-stage requirements continue to increase demands for innovation to meet convenience, snacking, functionality and health / wellness trends.

Demand for clean-label, enhanced nutrition, natural, ‘free-from’ – in particular gluten-free – offerings, and wider flavour profiles continued to provide solid growth opportunities for Kerry’s taste, nutritional and functional ingredients and actives technology platforms, the company said.

Partnerships with the Group’s global and regional customers were further advanced – benefiting from the Group’s 1 Kerry capabilities and expertise provided by Kerry Global Technology & Innovation Centre and Regional Development and Application Centre developments.

While showing early signs of recovery, increased fragmentation and polarisation in the Irish and UK consumer foods markets contributed to increased competitiveness. Kerry Foods said that it performed satisfactorily against this background whilst continuing to progress its business repositioning strategies.

In relation to its ingredients and flavours business, Kerry said that challenging macro-economic trends and changing consumer shopping behaviours meant that developed markets overall were relatively weak but provided good scope for innovation in health / wellness and niche growth sectors. While industry growth was weaker in some developing markets due to political or currency related issues, nevertheless Kerry claims it continued to achieve solid growth and development – in particular in Asia.