FDBusiness.com

Kerry Group Sustains Business Margin Expansion

 Breaking News
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...
  • €40 Million VistaMilk SFI Research Centre Launched in Ireland The Irish Government has launched the new VistaMilk SFI Research Centre which is jointly funded by Science Foundation Ireland (SFI) and the Department of Agriculture, Food and the Marine. The VistaMilk Centre will be hosted by Teagasc Moorepark, in partnership with a number of research performing organisations. Multinational and SME companies in the food and ICT [...]...
  • Autumn Chill Puts Sunday Lunch Back on the Menu For UK Shoppers UK shoppers have returned to seasonal favourites as supermarket spending cools off, according to the latest figures from Kantar Worldpanel, for the 12 weeks to 7 October 2018. Overall sales grew 3.2% compared to the same 12 weeks last year. Though this is a slight slowdown from the highs reached during 2018’s hot summer, sales [...]...
  • Müller Milk & Ingredients Completes Integration and Appoints CFO Brian Watson has been appointed as Chief Finance Officer at Müller Milk & Ingredients (MMI). He joins the business from Marmon, a $7.7 billion Berkshire Hathaway company operating in the supermarket and food service sector. The appointment comes as MMI confirms completion of the biggest integration the UK dairy industry has ever seen – merging [...]...

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

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements