Kerry Group reported an increase in profits (EBITDA) of 4% to €917.5m for 2017. Revenues increased 4.5% to €6.4bn, driven by 4.3% growth in volumes which offset currency headwinds of 2.4%.

Adjusted earnings per share increased 5.5%, reflecting 9.4% growth over the prior year on a constant currency basis.

Pricing increased 2% against a background of approximately 4% raw material price inflation. Acquisitions contributed 0.8%. Overall margins were maintained at 12.2%, supported by Kerry's ingredients business.

Kerry's ingredients and flavours business, which accounts for 80% of the company, saw volumes increase 4.7% and pricing increase 2%. Trading profits grew 7.1% to €767m.

The consumer foods business, Kerry Foods saw volume increase 2.4% while prices increased 2%. It saw margins fall by 70 basis points, due to adverse sterling exchange rates. Trading profits decreased 8.1% to €108m.

Chief Executive Edmond Scanlon said" “Kerry Group delivered strong top line growth and sustained business development in 2017.”

Dividends

The board recommended a final dividend of 43.9c/share, an increase of 12% on the final 2016 dividend. Together with the interim dividend of 18.8c/share, this brings the total dividend for the year to 62.7c.

Shares in Kerry group rose 22% in 2017. They hit a record high in December of almost €95 and have since fallen back 10%. Shares closed at €85.80 on Monday.

Kerry Group expects to deliver adjusted earnings per share growth of 6% to 10% on a constant currency basis.

Last year, Kerry Group targeted to deliver growth in excess of 10% every year over the next five years. This is raised from the outlook for 2017 by 3-7%.

Management changes

Philip Toomey, formerly global chief operating officer for the financial services firm Accenture, will take over as Kerry Group chair from Michael Dowling who will retire at the company’s AGM in May.

Brian Mehigan will retire as chief financial officer on 30 September 2018 and take up the position of chief strategy officer. Marguerite Larkin will succeed him as CFO. She is a partner with Deloitte and has held a number of roles including audit and risk.

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