At the recent Capital Market Day event, Kerry Group has announced the acquisition of Ganeden and has updated its medium-term growth targets.
A Strong Five Years Ahead
During the event, Kerry Group chief executive Edmond Scanon announced that the Group is expected to deliver in excess of 10% adjusted earnings per share growth on a constant currency basis over the next five-year cycle. In term of trading profit margin growth, he confirmed that the margin in the taste and nutrition category is expected to grow by 40 basis points, and the consumer food category by 20 basis points.
“This will be delivered through achievement of above industry-average volume growth and continued business margin expansion. We expect to achieve 3% to 5% volume growth annually on a Groupwide basis, with taste and nutrition targeting 4% to 6% growth and consumer foods targeting 2% to 3% growth,” said Edmond Scanlon.
Additionally, the Group has announced the acquisition of technology innovation company Ganeden. Based in Cleveland, Ohio, Ganeden has over 135 patents for technologies in supplement, food, beverage, nutrition and personal care market and has a revenue of approximately US $25 million. This comes after a similar move in 2015 where Kerry Group acquired Wellmune.
“Kerry Group has a unique scalable business model which I am confident can deliver the continued organic growth of the business across developed and developing markets as planned. We are in a strong position to lead the continued consolidation of our industry benefiting from the Group’s strong balance sheet, scalable business model and geographic footprint. Return On Average Capital Employed (ROACE) is the Group’s key financial return metric, the target for which remains to achieve a return in excess of 12% per annum”, said Edmond Scanlon.