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Kerry Sales up 6.3%; Results of Flavor and Ingredient Integration

Posted: April 1, 2009

Kerry Group plc (Tralee, Ireland) announced its preliminary results ending Dec. 31, 2008, reporting a sales revenue increase of 6.3% on a like-for-like (LFL) basis totaling €4.8 billion. The company’s trading profit increased 8% on LFL to reach €409 million (despite the 7% increase in raw material and energy-related input costs). The group trading profit margin reached 8.5%.

Ingredients & Flavors

Kerry’s total ingredients and flavors sales revenue in 2008 increased by 7.5% (LFL) to €3,388 million. In the American markets, the division reported sales revenue of €1,343 million, reflecting 6.7% (LFL) growth. Kerry’s ingredient and flavor offerings and frozen sauce technology grew in both retail and food service channels, even as its sales to seafood and appetizer markets declined in line with the slowdown in the full-service restaurant trade. The sweet and cereal industry segments proved more challenging in 2008, as the ice cream, cereal and nutrition bar end-use markets slowed relative to the prior year.

Results of Realignment

The group’s results are the first following its realignment program in ingredients, flavors and bio-science businesses in the Americas. The division, which now incorporates flavors into its overall ingredients portfolio, delivered “encouraging results,” according to a company announcement. Meanwhile, the group has commissioned a new sweet technology campus and multi-process facility in 2008 to consolidate its technologies and expertise in the segment.