Kerry released its 2022 sales results reporting revenue in the year increased by 19.3% to €8.8 billion. This reflected volume growth of 6.1%, increased pricing of 11.7%, favorable transaction currency of 0.2%, favorable translation currency of 6.8% and contribution from business acquisitions of 4.3%, partially offset by the impact of business disposals of 9.8%. Kerry's EBITDA increased by 12.9% to €1.2 billion, with an EBITDA margin of 13.9% (2021: 14.7%), as the dilution from the impact of passing through input cost inflation was partially offset by accretion from portfolio developments, operating leverage, mix and efficiency initiatives.
Constant currency adjusted earnings per share increased by 7.3% to 440.6 cents (2021: 12.1% increase). Basic earnings per share were 341.9 cents (2021: 430.6 cents) as the prior year included a credit from the sale of the Consumer Foods Meats and Meals business. The board recommends a final dividend of 73.4 cents per share, an increase of 10.0% on the final 2021 dividend. Together with the interim dividend of 31.4 cents per share, this brings the total dividend for the year to 104.8 cents, an increase of 10.1% in 2021.
Research and development expenditure amounted to €303 million (2021: €297 million) and net capital expenditure was €217 million (2021: €315 million) as Kerry's continued to invest in its strategic priorities of Taste, Nutrition and Emerging Markets. Free cash flow for the year was €640 million (2021: €566 million) representing a cash conversion of 82%.
According to the report, Kerry increased its nutritional reach to 1.2 billion consumers globally. Kerry achieved a 48% reduction in Scope 1 & 2 carbon emissions, while strong progress was made in reducing food waste in Kerry’s operations by 32%.
2022 Sales Report Highlights:
- Revenue of €8.8 billion reflecting 18.0% organic growth
- Volume growth of 6.1% and pricing of +11.7%
- Taste & Nutrition volume +7.8% | pricing +8.7%
- Dairy Ireland volume +0.2%² | pricing +36.0%
- EBITDA increased by 12.9% to €1.2 billion
- EBITDA margin of 13.9% (2021: 14.7%)
- Adjusted EPS of 440.6 cents; +7.3% in constant currency (15.7% reported currency growth)
- Basic EPS of 341.9 cents (2021: 430.6 cents)
- Free cash flow of €640m reflecting 82% cash conversion
- Final dividend per share of 73.4 cents (total 2022 dividend up 10.1% to 104.8 cents)
- Strong progress on sustainability commitments including increasing our nutritional reach to 1.2 billion consumers
Edmond Scanlon, chief executive officer, shared, “As we marked Kerry’s 50th year in 2022, we achieved record organic revenue growth against the backdrop of an exceptionally dynamic operating environment. I am proud of the broad-based volume growth we delivered across our end use markets, channels, regions and emerging markets despite the macroeconomic conditions. Our teams worked closely with our customers to actively manage through the inflationary environment, while continuing to innovate and develop their offerings to meet evolving marketplace needs. We made good strategic progress in the year through development of our innovation platforms, footprint expansion and continued portfolio development. We completed a number of acquisitions aligned to our strategic priorities of Taste, Nutrition and Emerging Markets, and since year-end we announced the potential sale of our Sweet Ingredients Portfolio, as we continue to enhance and refine our business to areas where we can add most value. While recognising the current market uncertainty, we believe we are strongly positioned to continue to grow our business through this period. In 2023, we expect to achieve 3% to 7% adjusted earnings per share growth on a constant currency basis, before the dilution from the potential sale of the Sweet Ingredients Portfolio.”