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Cargill Acquisition Boosts Kerry Results
Posted: May 3, 2012
Kerry's acquisition of Cargill Flavor Systems has boosted first-quarter 2012 sales, which grew 9.7% year-over-year. According to the company, the purchase significantly benefited its activities in the beverage sector.
The ingredients and flavors business revenues increased by 13.8% and business volumes grew by 2.2%, year-over-year. Sales revenues in the Americas increased by 12.2%, while business volumes were 1.1% above 2011 comparables.
Kerry saw "satisfactory" performance in Europe Middle East and Africa, with revenues growing 14.8% and business volumes increasing by 0.9%. Growth was boosted by the acquisitions of FlavourCraft and SuCrest.
Asia-Pacific sales revenues increased by 15.9%, while business volumes grew by 8.2%. Culinary systems performed well benefiting from increased demand for authentic ethnic marinades and dressings, according to the company. Meat technologies continued to outperform market growth rates in Australia and New Zealand.
Kerry notes that input costs continue to drag on results, though margins grew versus the same period 2011. Meanwhile, developing markets continue to promise growth.
Flavor and ingredient highlights from Kerry's official release:
- Dairy systems achieved good growth in the frozen desserts sector.
- Coatings systems maintained solid growth in the meat sector through retail and food service applications.
- Cereal systems outperformed market growth rates and benefited in Latin American markets from the acquisition of General Cereals S.A. in Argentina completed in 2011.
- Performance in sweet applications benefited from improved plant efficiencies.
- Pharma, nutritional and functional ingredients continued to perform strongly.
- While functional ingredients achieved good growth, performance in the mainland European meat industry was impacted by challenging sectoral market conditions.
- Cereal and Sweet technologies continued to perform well.