Irish agrifood business Kerry Group has reported that group revenue increased by 4.5% to €6.4 billion in 2017, driven by a 4.3% growth in business volumes.
The group saw volume increases in both its Taste & Nutrition (+4.7%) and Consumer Foods (+2.4%) units, however, profits were negatively affected by currency movements and raw material price inflation.
“Kerry Group delivered strong top line growth and sustained business development in 2017," said Edmond Scanlon, Kerry Group chief executive.
"Adjusted earnings per share increased by 5.5%, reflecting 9.4% growth over the prior year on a constant currency basis. In 2018 we expect to deliver adjusted earnings per share growth of 6% to 10% on a constant currency basis."
Business Performance
Kerry Group's main division, Taste & Nutrition, which develops and manufactures ingredients for the global food, beverage and pharmaceutical industries, saw revenue of €5.16 billion during 2017, driven by 4.7% volume growth.
Trading profit was up 7.1% to €767 million, with changing consumer trends favouring clean label, nutritious, natural, and convenience food continuing to drive performance in all regions.
Meanwhile, Kerry Group's consumer food business in the UK and Ireland saw sales grow by 2.4% to €1.33 billion, however, trading profit fell 8.1% to €1.8 million.
The group says that this unit was impacted by adverse currency movements, but that it maintained a strong category and business development focus, benefiting from the increased snacking and food-to-go trends.
Kerry says that grocery performance was driven by brands such as Dairygold, Charleville, Richmond, Denny and Galtee, while it outperformed market growth rates in chilled and frozen ready meals.
Looking ahead, Kerry Group says that it is continuing to work through the implications that could arise from Brexit, but says that the business is 'very well positioned to deal with the potential challenges and realise the opportunities that will arise'.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
