Kerry Group, the ingredients and flavours company, delivered volume growth of 4.2% in the first nine months of the year.
It saw prices increase 2% in the nine months against a background of 4% higher raw material costs. As a result, reported revenues were up 4.5% on the back of the volume growth and increased pricing.
However, currency headwinds impacted revenues by 1.9%. The group said its ingredients and flavours business delivered “good growth” in North America, “double digit” growth in Asia and “solid” growth in South America.
In his first set of results since taking over at the helm, Kerry Group chief executive Edmond Scanlon said the company “achieved good volume growth in the first nine months of 2017, and for the full year, taking into account the 4% currency translation headwind, we expect to achieve growth in adjusted earnings per share of 4% to 6% on a reported basis to a range of 336 to 343 cent per share”.
The group noted that despite increasing inflationary pressures in the UK consumer foods market, Kerry Foods maintained good volume growth there.
Overall group trading margins were maintained. Margins in the ingredients business improved 20 basis points while the company said margins improved also in its consumer foods business, Kerry Foods.
However, it was noted that the weakening of sterling against the euro hit consumer foods margins by 70 basis points over the nine-month period. Despite the hit to margins driven by increasing inflationary pressures in the UK, Kerry Foods volumes increased 2.5%.
Prices increased 1.9% in the period. The company said that good growth was achieved through butter-based spreads in the UK private label spreads category, and Dairygold maintained brand share in the Irish market.
Net debt at the end of the period stood at €1.3bn, similar to the year end 2016 level.
In the statement, the group announced it is to acquire the US-based Kettle business of Tyson Foods. The transaction, which is subject to regulatory approval, is expected to be completed by year end.
Board changes
The group also announced that the board has appointed Mr Philip Toomey as chair designate to succeed present chair Mr Michael Dowling, who will retire from the board at the Group’s AGM in May 2018.
Michael Dowling was appointed chair of the board in 2015 and has served as a director since 1998.
Toomey was appointed to the board in February 2012 and was formerly global chief operating officer for the financial services firm, Accenture.
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Kerry Group, the ingredients and flavours company, delivered volume growth of 4.2% in the first nine months of the year.
It saw prices increase 2% in the nine months against a background of 4% higher raw material costs. As a result, reported revenues were up 4.5% on the back of the volume growth and increased pricing.
However, currency headwinds impacted revenues by 1.9%. The group said its ingredients and flavours business delivered “good growth” in North America, “double digit” growth in Asia and “solid” growth in South America.
In his first set of results since taking over at the helm, Kerry Group chief executive Edmond Scanlon said the company “achieved good volume growth in the first nine months of 2017, and for the full year, taking into account the 4% currency translation headwind, we expect to achieve growth in adjusted earnings per share of 4% to 6% on a reported basis to a range of 336 to 343 cent per share”.
The group noted that despite increasing inflationary pressures in the UK consumer foods market, Kerry Foods maintained good volume growth there.
Overall group trading margins were maintained. Margins in the ingredients business improved 20 basis points while the company said margins improved also in its consumer foods business, Kerry Foods.
However, it was noted that the weakening of sterling against the euro hit consumer foods margins by 70 basis points over the nine-month period. Despite the hit to margins driven by increasing inflationary pressures in the UK, Kerry Foods volumes increased 2.5%.
Prices increased 1.9% in the period. The company said that good growth was achieved through butter-based spreads in the UK private label spreads category, and Dairygold maintained brand share in the Irish market.
Net debt at the end of the period stood at €1.3bn, similar to the year end 2016 level.
In the statement, the group announced it is to acquire the US-based Kettle business of Tyson Foods. The transaction, which is subject to regulatory approval, is expected to be completed by year end.
Board changes
The group also announced that the board has appointed Mr Philip Toomey as chair designate to succeed present chair Mr Michael Dowling, who will retire from the board at the Group’s AGM in May 2018.
Michael Dowling was appointed chair of the board in 2015 and has served as a director since 1998.
Toomey was appointed to the board in February 2012 and was formerly global chief operating officer for the financial services firm, Accenture.
Read more
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One year on from Trump: 10 things we’ve learned
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