FDBusiness.com

Kerry Group Sustains Business Margin Expansion

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

Kerry Group Sustains Business Margin Expansion

Kerry Group Sustains Business Margin Expansion
February 22
14:58 2017

Kerry Group, the global taste & nutrition and consumer foods group, has reported a 0.4% increase in revenue to €6.1 billion for the year ended 31 December 2016 reflecting good volume growth offset by significant adverse currency movements and lower pricing, as group trading profit increased by 7.1% to €749.6 million and group trading margin increased by 70 basis points to 12.2%.

Kerry’s Taste & Nutrition business, which accounted for 79% of group revenue and 86% of group trading profit in 2016, reported a 3.5% increased in revenue to €4.9 billion with volumes up by 4.0% but product pricing decreased by 2.1%, and there was a negative transaction related currency impact of 0.1%. Trading profit grew by 8.1% to €716 million, reflecting a 60 basis points improvement in divisional trading margin to 14.7%.

Kerry’s Consumer Foods business reported a 9.7% decline in revenue to €1.33 billion due to adverse currency movements in 2016 and the disposal of non-core businesses net of acquisitions in 2015. Volumes grew by 2.1% and net pricing decreased by 2% in 2016. Business efficiency improvements and the improved quality of Kerry Foods’ portfolio contributed a 30 basis points increase in divisional trading margin to 8.8%. However, the underlying trading profit improvement was more than offset by the adverse currency movement and the business disposals resulting in a trading profit decrease of 6.7% to €117 million.

Kerry Group’s success has been built on a total commitment to ongoing technological innovation in all sectors of its business.

Kerry Group’s success has been built on a total commitment to ongoing technological innovation in all sectors of its business, providing integrated customer-focused product development. The group invests heavily in highly specialised research, development and application centres of excellence. This gives Kerry a ‘technological edge’ in its chosen sectors, allowing it to proactively meet customer and market needs.

Kerry Group’s recent investments in its global, regional and in-market Technology & Innovation Centre network and Commercial/Application facilities, coupled with a significant increase in RD&A expenditure in Taste & Nutrition to 5.1% of divisional revenue in 2016, contributed to increased customer engagement and innovation activity.

The 2016 performance was also assisted by businesses acquired in 2015 which provided a strong platform for international market development. During the year Kerry Group completed two bolt-on acquisitions – Jungjin Foods in South Korea and Vendin in Spain – so establishing manufacturing bases in two new geographies.

Stan McCarthy, chief executive of Kerry Group, says: “In 2016 Kerry delivered good volume growth and a strong financial performance including sustained business margin expansion, record free cash generation and 7.1% growth in adjusted earnings per share. The group remains confident of its ability to sustain profitable growth throughout global markets. In 2017 we expect to achieve good revenue growth and 5% to 9% growth in adjusted earnings per share.”

Stan McCarthy (pictured above on right), who became chief executive of in January 2008, will retire from this position on 30 September 2017 and as a director of the group at year-end. He will be replaced as chief executive by Edmond Scanlon (pictured above on left), who is currently president and chief executive of Kerry Asia Pacific.

Edmond Scanlon joined Kerry’s Graduate Development Programme in 1996 and worked in Finance until his appointment as vice president Finance, Supply Chain and Operations of Kerry’s Global Flavours Division in 2004. In 2007, he was appointed vice president Mergers & Acquisitions, Kerry Americas region, before being appointed global president Kerry Functional Ingredients & Actives in late 2008. In 2012, he was appointed president of Kerry China, prior to being appointed to his current position as in November 2013.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements