Kerry Group has reported a 5.9 per cent slump in group revenues in the first half of the year as lower prices hit its dairy Ireland and taste and nutrition business.
But the food group raised its full-year earnings per share guidance on the strength of its financial performance, with chief executive Edmond Scanlon reporting volume growth across its two main business areas.
Kerry faced price deflation of 4 per cent across the group over the period, it said, reporting revenues of €3.9 billion for the period, down 5.9 per cent from last year. Disposals of group properties, plant and equipment in North America and Europe over the period coupled with the legacy impact of the sale of its sweet ingredients business last year also impacted revenues, it said.
In its dairy Ireland division, revenues were down 1.9 per cent to €592 million in the first six months of the year, as prices slumped 6.9 per cent amid continuing volatility in global milk markets.
Kerry’s more significant taste and nutrition division, meanwhile, reported a 3.1 per cent increase in revenues to €3.4 billion despite a 3.1 per cent slide in prices. Earnings before tax, interest, deductibles and appreciation (EBITDA) within the division improved by 5.5 per cent to €551 million over the period compared to the first half of 2023.
Yet, group profits before tax were down by close to 3.8 per cent, from €379.2 million last year to €364.8 million.
Kerry said it incurred a one-off non-trading charge over the period of €20.2 million related to its continuing transformation programme.
Mr Scanlon said: “We are pleased to report a good performance across the first half of the year. Taste and nutrition delivered good volume growth ahead of our end markets, with strong profit growth and margin expansion across the business, contributing to our earnings per share growth of 9.1 per cent in the period.”
“Taste and nutrition volume growth was led by strong performances in the food service channel across all three regions, as we continue to support established food service chains evolve and develop their businesses, while working with emerging leaders to upscale their operations and offerings.”
Mr Scanlon said Kerry Group achieved volume group in its retail channel, chiefly through “good performances” in the Americas and Asia-Pacific/Middle East regions.
The group upgraded its full-year earnings per share guidance to between 7 per cent and 10 per cent from a previous range of 5.5 per cent to 8.8 per cent.
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