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Kerry Group 2013 Revenue Rose 4.6%
Posted: February 25, 2014
Kerry Group PLC’s 2013 total group revenue rose 4.6% from a year ago, with continued growth momentum in its flavors and fragrances group. The company said its group revenue at €5.8 billion reflects underlying sales growth (USG) of 4.6% from restated earnings a year ago.
Kerry's ingredients and flavors unit had 2013 revenue of €4.327 billion which is up 5.9% from restated earnings a year earlier.
In the Americas, Kerry achieved a strong performance throughout North and South American markets in 2013 despite sectoral issues in some food industry categories. Beverage systems and flavors maintained strong growth across all segments of the market including new nutritional beverage launches leveraging Kerry's ingredients, flavors and packaging/processing capabilities. Savory, dairy and culinary systems and flavors saw slower growth due to weaker market conditions in some industry segments.
Prior to year-end, the group acquired U.S.-based Wynnstarr Flavors, which focuses on savory flavors, particularly chef-style culinary flavors development, and has well-established customer relationships in particular with food service solutions providers in North American markets. Cereal and sweet technologies performed well against a background of reduced sales in some industry sectors, in particular the ready-to-eat (RTE) breakfast cereals market.
In the Europe, Middle East and Africa region, beverage systems and flavors recorded solid growth particularly in the food service channel. Savory, dairy and culinary systems performed satisfactorily notwithstanding a slowdown in product development due to competitive industry issues. Health and wellness trends continued to increase demand for Kerry's sodium reduction and umami technologies. Kerry continued to achieve satisfactory growth in niche sectors of the RTE cereals market. Also, in line with the group's nutrition strategy, Kerry broadened its portfolio of general wellness and enabling technologies.
In Asia-Pacific, consumer demand in some Asian countries was slightly reduced due to relatively weaker currencies, but the company said demand for the group's nutritional systems, taste solutions and functional ingredients and actives continues to increase. By segment, savory and dairy systems saw slower growth in line with consumer demand trends. Sweet technology expansion progressed further in the region with strong development throughout the regional bakery sector. Due to the Cargills' flavors acquisition, beverage flavors grew strongly in particular through tea and coffee applications in South East Asia and through sweet beverage applications in South West Asia.