Kerry has released their Interim Management Report for the first half of this year. The report reflected continued growth in the retail channel, with progression in food service. The group revenue of €3.6 billion is a 9.0% growth in volumes compared to last year.
- Group revenue of €3.6 billion reflecting 9.0% volume growth
- Taste & Nutrition volumes +9.8% (Q2: +18.1%)
- Consumer Foods volumes +4.6% (Q2: +8.5%)
- Pricing of +0.5%
- Group trading margin +70bps
- Taste & Nutrition +80bps
- Consumer Foods +20bps
- Adjusted EPS of 152.0 cents, up 24.1% on a constant currency basis
- Basic EPS of 128.2 cents (H1 2020: 120.4 cents)
- Free cash flow of €222m reflecting 83% cash conversion
- Interim dividend per share of 28.5 cents (H1 2020: 25.9 cents)
- Guidance updated to reflect business performance and portfolio development
Edmond Scanlon, chief executive officer, said, “We are pleased with overall performance in the period, reflecting continued strong growth in our retail channel, with good progression and momentum in foodservice, while lapping lower prior-year levels. The Americas had good overall volume growth, Europe delivered an excellent relative performance, while growth in APMEA remained strong despite challenging conditions in some local markets. A number of our end-use markets had strong category development in the period, with Beverage, in particular, achieving excellent growth.
“We had some notable strategic developments this year as we continued to evolve our portfolio. We announced the acquisition of Niacet, which enhances our leadership position in the fast-growing food protection and preservation market, while we also reached agreement for the sale of our Consumer Foods' Meats and Meals business. These transactions will further enhance Kerry's position as a market-leading taste & nutrition company.
“Our performance through the period gives us continued confidence in our full-year outlook while recognizing the inherent uncertainty that will remain in many regions through the remainder of the year. Our earnings guidance range has been updated as a result, and we have also reflected the expected impact from portfolio developments.”