Trading profit at the food and ingredients group increased 9% to €300m for the first half of 2015. Group trading margins increased 40 basis points (bps) to 9.9%, driven by an improved product mix, operational efficiencies and the positive impact of exiting non-core business activities such as its direct-to-store business in Britain. Adjusted earnings per share increased by 8.1% to 24.5c and the interim dividend per share increased by 11.1% to 15c.

Revenue increased 4.7% to €3.03bn, driven by an 8.4% positive currency tailwind. While business volumes increased 2.7%, pricing was back 2.7% as a result of lower raw material costs. The overall business saw strong growth in American markets, along with improved performance in Europe, the Middle East and Africa (EMEA).

The group attributed the strong trading performance to its improved product mix and repositioning parts of its Kerry Foods business, along with operational improvements because of its 1 Kerry transformational programme.

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The ingredients and flavours business grew 8.6% to record revenues of €2.3bn. While volumes grew 3%, pricing was 2.8% lower, meaning positive currency translations contributed significantly to the improved revenue performance. Trading profit increased 12.3% to €281m, leading to a margin growth of 40bps to 12.1%.

Americas

Sales volumes grew 3.3% in the Americas region, challenged by some inflationary pressures in Brazil. The meat sector delivered solid performance in the US. In June, Kerry acquired KFI Savory, a US-based savoury flavour business from Kraft Foods.

Business volumes increased 7.2% in Asia despite lower levels of economic growth in the region. In EMEA, volumes grew marginally (0.7%).

Revenues in the consumer foods business fell 6.4% to €749m as a result of business disposals. Kerry sold its pastry manufacturing assets in August 2014, and at the end of February, there was a management buyout of its direct-to-store business in the UK.

Overall business volumes in the foods business increased by 1.9%. Prices fell by 2.6%. The group highlighted that the market remains highly competitive due to deflationary trends and retail competitiveness. Trading profits fell 3.9% to €60m, but margins increased by 20bps to 8%.

UK

UK customer brands saw strong growth in meal solutions but a decline in the dairy sector due to the private label spread sector losing market share to heavily promoted butter offerings. In Ireland, branded dairy spread volumes were also lower, but the Charleville brand of cheese gained strong growth.

Kerry Group chief executive Stan McCarthy said: “We delivered a strong financial performance in the first half of 2015 and, based on year-to-date performance, current exchange rates and business momentum, we are increasing our market guidance for the full year.”

Kerry now expects to achieve 6% to 9% growth in adjusted earnings per share to a range of 296c to 304c per share in 2015.