Kerry sees good start to the year

4 May 2015

Kerry says that it achieved a good start to the year maintaining the positive momentum reported in Q4 2014. While global retail food and beverage markets continue to be challenged by consumer trends towards more convenient shopping formats and broader channels, demand for innovation in health/wellness and nutritional offerings provided solid opportunities for growth of […]

Kerry sees good start to the year

businessmen-discussing-financial-results-15641653Kerry says that it achieved a good start to the year maintaining the positive momentum reported in Q4 2014. While global retail food and beverage markets continue to be challenged by consumer trends towards more convenient shopping formats and broader channels, demand for innovation in health/wellness and nutritional offerings provided solid opportunities for growth of Kerry’s Taste and Nutrition technologies, the company said. Kerry achieved an improved performance in EMEA markets. American markets maintained positive momentum despite inflationary pressures in Brazil. Whilst strong business development continues to be achieved in Asia, reported growth slowed slightly due primarily to high inventory levels in China.

Market conditions in the UK and Irish consumer foods sectors have broadly stabilised, Kerry said, noting that the repositioned Kerry Foods portfolio performed well benefiting from snacking trends and a good recovery in meal solutions.

Business volumes grew by 2.5% on a groupwide basis – slightly ahead of the Q4 2014 level of growth. Net pricing was 2.4% lower, reflecting reduced raw material costs. Reported revenues increased by 4.5% relative to Q1 2014, reflecting the business volume growth, lower pricing, 6.9% positive translation impact due to significant currency tailwinds and (2.5%) business disposal impact.

Business trading performance continued to improve reflecting groupwide business operational improvements, improved product mix and the portfolio repositioning in Kerry Foods. The Group trading profit margin increased by 40 basis points, reflecting a 40 basis points improvement in ingredients and flavours and a 20 basis points improvement in Kerry Foods relative to Q1 2014.

Kerry’s Taste & Nutrition technologies and Functional Ingredients & Actives platforms achieved sustained business development across developed and developing markets. Business volumes increased by 2.9% while pricing was 2.3% lower relative to the first quarter of 2014. Divisional trading profit margin increased by 40 basis points as a result of the Group’s business performance and efficiency programmes.