Kerry Group is considering strategic options for its €1bn consumer foods business, according to a report by Bloomberg.
Kerry is said to be weighing up options for its Kerry Foods business, which sells meat and dairy products under well-known brands such as Denny, Richmonds sausages, Dairygold butter, Charleville cheese and Cheesestrings snacks.
Sales and profit
Kerry Group’s consumer foods division had sales of €1.3bn in 2019 and made profits of €100m.
Market analysts at Goodbody stockbrokers said they valued the business at around €1bn based on a 10x earnings valuation.
“The disposal would make strategic sense, freeing up significant funds to invest behind the core T&N division whilst also improving the growth and margin profile of the group,” said analysts at Goodbody in a note.
Kerry’s consumer foods business also includes its primary milk processing business here in Ireland, which the company is currently in negotiations with Kerry Co-op about the creation of a new joint venture business. These talks have stalled in recent months.
Shares in Kerry Group were up 4% on Friday on the back of the news.