The solid revenues were reflected by underlying sales growth of 3.2%. Although volumes were up 2.7% and pricing was up 0.6%, revenues were down 1.9% due to currency movements.

Trading profits increased 3% to €275m. Underlying trading profit rose by 7.1%. Group trading margins were up 50 basis points to 9.5%.

The ingredients and flavours division saw volumes increase 4.2% and net pricing increase 0.6%.

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As the group continues to restructure its consumer foods business, continuing volumes were down 1.2%. However, net pricing increased marginally by 0.6%.

The ingredient and flavours business continues to drive margin which is up 60bps to 11.7%. Consumer Foods margin meanwhile grew 10bps, to 7.8%.

Adjusted diluted EPS was up 5.8% to 115.1c. Full year EPS growth guidance of 6-10% was reiterated.

Comment

Commenting on the results Kerry Group Chief Executive Stan McCarthy said; “We are pleased to report a solid performance in H1 2014 with good underlying sales growth and margin improvement.

He added that there were significant adverse currency movements but that the adjusted earnings per share increased by 5.8%."

Increased fragmentation and a changed value driven consumer in both Ireland and UK, impacted negatively on the performance in the group’s chilled foods categories.

Consumer Foods H1 revenue was €801m reflected by 0.9% lower underlying sales. Volumes were down 1.2%, and this was due to reduced promotional activity. While trading profit decreased by 2.4% to €62m, the division’s trading margin improved by 10 basis points to 7.8%.