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Kerry Group confirms annual outlook as food volumes grow, prices rise

(Alliance News) - Kerry Group PLC on Wednesday said it is on track to hit its full-year targets ...

Alliance News 27 October, 2021 | 10:50AM
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(Alliance News) - Kerry Group PLC on Wednesday said it is on track to hit its full-year targets as the Taste & Nutrition segment and foodservice channel continue to drive growth.

The Tralee, Ireland-based nutrition firm saw revenue in the nine months to September 30 increase 6.3% year-on-year. This was the result of a volume increase of 8.2%, increased pricing of 0.7%, and net contribution from acquisitions and disposals of 1.0%, offset by a hit of 3.6% from currency movements.

Chief Executive Edmond Scanlon said: "We are pleased with overall performance through the period, reflecting continued good growth in our retail channel and strong performance in foodservice. The Americas had good overall volume growth, Europe delivered an excellent performance, while growth in Asia Pacific, Middle East & Africa remained strong with varying conditions across the region. A number of our end use markets had strong performances, with Beverage in particular achieving excellent growth."

Group trading profit margin increased by 60 base points, reflecting improvements in Taste & Nutrition and Consumer Foods.

"Taste & Nutrition continued its strong growth through the period, led by continued momentum in the foodservice channel with increased demand from quick service restaurants in particular, while also recognising the lower prior year comparatives," the company said.

Looking ahead, Kerry said its full-year outlook is unchanged, and it sees strong growth prospects across both the retail and foodservice channels. The company continues to expect to deliver strong volume and earnings growth.

It also said that mergers and acquisitions are on the cards.

In mid-October, the company said it is targeting an earnings before interest, tax, depreciation and amortisation margin of 18% by 2026 and average revenue volume growth between 4% and 6% between 2022 and 2026.

For 2020, Kerry reported pretax profit of EUR635.3 million on EUR6.95 billion in revenue.

Kerry shares were up 0.5% to EUR117.50 each in London on Wednesday morning.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Kerry Group PLC Class A 110.35 -

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