Kerry Group, the global taste and nutrition giant, has reported double-digit profit growth for its 2019 financial year.

On Tuesday morning, Kerry announced annual results for 2019 showing a 12% rise in trading profits to €903m as trading profit margins widened slightly to 12.5%.

The Irish multinational reported a 10% rise in turnover to a record €7.2bn, which was driven by volume growth of 2.8%, favourable currency movements of 2.1% and contributions from acquisitions of almost 5%. Kerry said pricing was flat during the year.

R&D expenditure

During the year, Kerry Group said it spent almost €562m acquiring 11 businesses, while R&D expenditure increased to €291m. Capital expenditure increased to €315m.

Kerry announced a final dividend of 55.1c per share. This brings the group’s total dividend for the 2019 financial year to 78.6c per share, which is up 12% on the previous year.

Despite missing out on a high-profile deal to take over DuPont just before Christmas, Kerry Group CEO Edmond Scanlon said he was pleased with the group’s business performance and strategic development last year.

We successfully integrated a number of strategic acquisitions

“Significant progress was made right across our strategic growth priorities of taste, nutrition, foodservice and developing markets. We successfully integrated a number of strategic acquisitions, expanded our strategic footprint in high growth developing markets, while further enhancing our industry-leading global integrated solutions portfolio,” said Scanlon.

“Taste and nutrition delivered good volume growth, particularly against the backdrop of softer market volumes in some developed markets. We also enhanced our trading profit margin and achieved growth in adjusted earnings per share of 8.3% in constant currency,” he added.

Outlook

For the year ahead, Kerry Group is forecasting continued growth in adjusted earnings per share of 5% to 9% for 2020. The company said it has a strong innovation pipeline and remains confident in its ability to continue to outperform its markets.

Kerry said its growth forecast for 2020 also reflected its estimated impact that the recent outbreak of the coronavirus in China is having on its business.