Kerry reports 'strong' performance

Food group Kerry has revised its earnings per share guidance higher and said it was confident of meeting its full year objectives.

In an interim management report this morning, Kerry said sales revenue was 10 per cent higher at €2.9 billion in the first half of the year, with like-for-like growth at 2.5 per cent.

The group is fighting against a difficult global economic situation and falling consumer confidence in developed markets. In the UK and Irish consumer foods markets, competition remains high due to a combination of the economic situation and consumers seeking value.

Kerry has undertaken a strategic review of its manufacturing operations as part of a two-year programme that includes integrating recent acquisitions and streamlining of existing manufacturing facilities.

Trading profit was up 12.6 per cent to €241 million, and Kerry’s interim dividend per share was 10.2 per cent higher at 10.8 cent.

Chief executive Stan McCarthy said the group had put in a “strong” financial and operating performance in the first half of 2012, “which augurs well for the full year”.

The group said it expects earnings per share growth would be in the region of 8 to 12 per cent for the year.