FDBusiness.com

Kerry Group, the global taste & nutrition and consumer foods business, has reported a 10% rise in trading profit to €700 million on revenue up by 6.1% to €6.1 billion for year ended 31 December 2015. Business volumes progressively improved during the year delivering 3.8% year-on-year growth. Kerry’s Taste & Nutrition business accounts for 76% of group revenue and 84% of group trading profit.

Kerry Group’s trading performance was aided by 1 Kerry efficiency programmes, improved product mix and the repositioned Kerry Foods business portfolio, resulting in group trading profit margin increasing by 40 basis points to 11.5%.

Kerry Group completed ten acquisitions during the year at a net cost of €888 million. It also disposed of the Pinnacle lifestyle bakery business in Australia and the Consumer Foods Direct-ToStore business in the UK. The total consideration was €154 million before disposal related costs.

The Taste & Nutrition business reported an 8.7% increase in revenue to €4.7 billion, reflecting 4% business volume growth and 2.3% lower net pricing. Trading profit grew by 11.9% to €663 million reflecting a 40 basis points increase in divisional trading margin to 14.1%.

The changing marketplace continues to drive a strong pipeline of innovation and demand for Kerry’s Taste & Nutrition Technologies and Systems. Solid market development was achieved in all regions as the group’s global and regional customers addressed consumer demand for ‘better-for-you’, natural, authentic taste, ‘free-from’, ‘clean-label’, convenience products.

The repositioned Kerry Foods’ portfolio performed well delivering 3% volume growth in 2015. Net pricing was 1.9% lower. Following the sale of the division’s pastry manufacturing assets in August 2014 and the management buy-out of the Direct-To-Store business in the UK completed at the end of February 2015, sales revenue in the repositioned Kerry Foods’ portfolio was reported at €1.476 billion. Trading in the division’s continuing businesses improved during the year, with reported trading profit similar to the prior year level at €126 million despite the business disposals.

Stan McCarthy, chief executive of Kerry Group, comments: “In a record year of business development in 2015, the group achieved a strong financial performance, delivering continued business margin expansion and 8.2% growth in adjusted earnings per share. Our industry leading technologies are well positioned to meet today’s consumer and customer requirements. We expect to achieve 6% to 10% growth in adjusted earnings per share in 2016 taking into account a 3% currency headwind at today’s exchange rates.”