Revenues up 10% at Kerry Group

Shares in Kerry Group advanced yesterday, after the food ingredients company reported increased revenue for 2012.

Revenues at the global food group rose by 10.3 per cent to €5.8 billion last year, but operating profit fell 22.1 per cent to €373.3 million.

The company reported adjusted earnings per share (EPS) growth of 11.3 per cent to 237.6 cent, while continuing business volumes increased by 2.8 per cent.

In consumer foods, sales grew by 2.3 per cent to €1.7 billion, despite “highly competitive” markets in Ireland and the UK. Kerry reported a trading profit of €130 million, an increase of 0.1 per cent, for this division.

Ingredients and flavours

The group’s ingredients and flavours businesses also performed well, reporting 14 per cent growth in revenues to €4.2 billion and a 15.1 per cent increase in trading profit to €506 million, as it benefited from “creative and speedy innovation”.

Kerry, which employs more than 23,000 people in 25 countries, earns about two-thirds of its revenue from its ingredients and flavours business and about one-third from its consumer foods division.

The company reported “excellent growth” in the Asia-Pacific markets despite a “constrained” consumer spend, with sales revenue up by 19.9 per cent to €726 million.

Chief executive Stan McCarthy welcomed the results, noting that the group’s “Kerry” business transformation programme, which aims to exploit the technologies and expertise of the organisation to drive its future growth, is well under way.

Earnings per share

“We continue to invest in our technologies, innovation and nutritional expertise, and also in expanding our footprint throughout developing markets. In 2013 we expect to achieve 7 per cent to 11 per cent growth in adjusted earnings per share,” Mr McCarthy said.

The company spent €186 million investing in research and development last year, up from €167 million in 2011.

The group will pay a total dividend of 35.8 per cent for the year, with a final dividend of 25 cent per share recommended.

Looking to 2013, the group expects that opportunities for its “technologies, applications, culinary expertise and processing capabilities” augur well for the future growth of the businesses. “We are firmly focused on expanding our footprint throughout regional developing markets,” the group said.

Shares in the company closed up 3 per cent at €42.40.