News

Kerry reports growth

7 Nov 2016

Kerry has issued its Interim Management Statement for the nine months ended 30 September 2016. Business growth was 3.2%, with 3.4% coming from Taste & Nutrition and 2.2% from Consumer Foods.

Kerry has issued its Interim Management Statement for the nine months ended 30 September 2016. Business growth was 3.2%, with 3.4% coming from Taste & Nutrition and 2.2% from Consumer Foods. Group trading margin was ahead 70 basis points. The company confirmed its guidance for the full year.

The Group maintained the business momentum reported at the half-year stage in the third quarter delivering sustained volume growth and business margin enhancement. Overall, global market conditions remained weak - impacted by currency volatility, the changing marketplace and continuing geopolitical issues in some developing regions. Consumer trends reflect widening preference for health & wellness offerings, clean-label solutions, organic lines and convenient products available through more fragmented retail and foodservice channels. In turn, this has led to significant product 'churn' as food and beverage providers seek growth through innovative, differentiated product developments.

Taste & Nutrition Technologies and Systems continued to record good growth in North America, an improved performance in Latin America and excellent growth in Asia. EMEA market conditions remained subdued due to the deflationary environment, rapidly changing marketplace and instability in developing markets in the region. However snacking and wellness trends drove a strong innovation pipeline in the dairy and meat retail / convenience sectors - in particular throughout global foodservice channels which provided strong growth opportunities for Kerry's Taste & Nutrition Technologies and Systems. Businesses acquired in 2015 continued to perform well providing a strong platform for international market development.

Despite the uncertainty and sterling devaluation resulting from the UK electorate voting to leave the European Union, Kerry Foods continued to perform well in the UK and Irish markets. The consumer foods division also maintained good growth in its selected mainland European markets and in the fast growing e-tail channel.

In the nine months to 30 September 2016, business volumes on a Group-wide basis increased by 3.2%. Pricing declined by 2.2% against a background of 4.5% lower raw material costs. Reported revenues increased by 0.4% reflecting the business volume growth, lower pricing, adverse currency translation impact of 4.5%, adverse currency transaction impact of 0.3%, and the effect of acquisitions net of disposals of 4.2%.

The Group trading profit margin increased by 70 basis points. This reflects a 70 basis points improvement in trading margin in Taste & Nutrition, a 30 basis points improvement in Kerry Foods' margin and reduced spend on the Kerryconnect Programme.