Kerry Group Confident On Earning Growth As Developing Markets Deliver

(Alliance News) - Irish foods firm Kerry Group PLC on Wednesday said its volume growth has beaten ...

Alliance News 6 November, 2019 | 8:50AM
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(Alliance News) - Irish foods firm Kerry Group PLC on Wednesday said its volume growth has beaten the wider market, with developing markets in particular doing well.

In the nine months to September, Kerry's business volumes rose 3.1%. Taste & Nutrition volumes are up 3.9%. Consumer Foods volumes were down 0.7%, but up 0.6% excluding a contract exit.

Taste & Nutrition volume growth was driven by meat, snacks and beverages, with developing market volume growth "strong" at 9.5%.

Within Taste & Nutrition, the Americas region delivered 2.6% volume growth and Europe 2.3%. The strongest performance came in the Asia-Pacific, Middle East & Africa territory, which registered 9.9% growth.

In Consumer Foods, volumes were muted due to a "subdued marketplace" and the impact of the loss of a ready-meals contract.

Revenue for the period has risen 10% year-on-year, helped by acquisitions, which provided a 4.7% boost, as well as volume growth and currency tailwinds.

"We are pleased with our performance to date in the period, with volume growth ahead of our markets combined with margin expansion. We enjoyed strong growth in developing markets, as we further deploy our technology and continue our strategic footprint expansion," said Chief Executive Edmond Scanlon.

"We continued to make strategic acquisitions, and good progress has been made on the integration of acquisitions completed over the last 12 months which are performing well. We reaffirm our full year 2019 guidance of adjusted earnings per share growth of 7% to 9% on a constant currency basis."

In 2018, adjusted EPS increased by 8.6% at constant currency to 353.4 euro cents.

Shares in Tralee-based Kerry were 0.6% lower in London on Wednesday morning at a price of EUR109.90 each.

By George Collard;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Kerry Group PLC Class A 108.70 EUR -1.36

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