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Kerry's Nine-Month Interim Report Shows Strength in Ingredients, Flavors
Posted: October 31, 2013
Kerry Group’s interim results for the nine months ended Sept. 30, 2013 showed a 2.9% increase in continuing business volumes including a 4.1% rise in ingredients and flavors, which more than offset a 0.2% decline in consumer foods. The company also said its recent integration of acquisitions also boosted results.
For ingredients and flavors, pricing increased by 1.9% for the nine-month period ended Sept. 30. Reported revenues increased by 2.7% reflecting 3% like-for-like (LFL) growth for that same time period.
By region, the Americas performed well with strong innovation through key customer accounts delivering 4.5% continuing business volume growth for the nine months. Kerry said it strengthened its beverage flavor capabilities due to the integration of its Big Train and Cargill flavors acquisitions. In the EMEA region, the company said developed markets remain relatively weak but regional developing markets provided good growth opportunities, particularly South Africa and Russia.
Kerry's program to integrate recent acquisitions (including Cargill’s flavors’ business, Millennium Foods, FlavourCraft, Big Train and Orley Foods) is nearing completion. Although Kerry noted the final cost of this program will be higher than originally expected, it called the benefits "significant" through integrating these businesses quickly and successfully. It expects full-year earnings growth of 8% to 10%, notwithstanding currency headwinds.