Taste-and-nutrition firm Kerry Group delivered a 'solid performance' in its financial year 2023 amid a challenging environment, the company said in a preliminary report.
Group revenue amounted to €8.02 billion, with volume growth in the Taste & Nutrition division outperforming the markets. The division reported volume growth of 1.1% annually with revenue amounting to €6.97 billion.
The overall group volume for the financial year 2023 declined 0.9%, down from an increase of 6.1% in 2022.
Edmond Scanlon, chief executive officer of Kerry Group added, "APMEA and Europe achieved good volume growth led by a strong performance in the foodservice channel, while volumes in North America were impacted by stocking dynamics and softer market conditions. Dairy Ireland's performance reflected challenging market conditions across the year."
Annual Highlights
Kerry Group generated an EBITDA of €1.2 billion in FY 2023, with organic profit growth more than offset by the impact of disposals and translation currency.
EBITDA margin increased by 60bps to 14.5% during the financial year, with the Taste & Nutrition division reporting EBITDA margin growth of 17.0%.
The company added that it made 'good progress' on sustainability commitments, including increasing its nutritional reach to 1.25 billion consumers.
Expenditure on research and development amounted to €301 million during the financial year, while net capital expenditure was €303.
Outlook 2024
Kerry Group believes it is 'strongly positioned' for market volume outperformance and good margin expansion based on its innovation pipeline.
Scanlon added, "During the year [2023] we continued to invest capital and develop our business aligned to our strategic priorities. This included the expansion of our taste capabilities and footprint across our regions, further development of our nutrition portfolio, and broadening our emerging markets presence."
In 2024, it expects adjusted earnings per share to grow between 5% to 8% in constant currency.
