Revenues rise at Kerry Group

Revenue at Kerry Group rose 8.4 per cent in the first half of 2011, and the food group said it was confident of achieving growth targets for the year, despite rising costs.

Sales revenue increased to €2.6 billion for the six month period, with trading profit up 6.1 per cent on a like-for-like basis to €214 million. Profit before tax rose to €175 million from €162 million a year earlier.

Adjusted earnings per share were 9.7 per cent higher at 86.8 cent.

Raw material costs rose by 11 per cent during the first half of the year. Group trading margin was down 30bps.

The group said volumes in its ingredients and flavours business were 4.1 per cent higher, while consumer foods grew by 2 per cent.

The UK and Irish consumer food markets remained competitive, Kerry said, but the group stabilised its market share in Ireland and achieved good growth in the UK market.

"Kerry delivered a solid earnings performance and strong volume growth in the first half of 2011, despite significant raw material and input cost inflation," chief executive Stan McCarthy said.

"The group remains confident of achieving its growth targets for the full year and delivering 8 to 12 per cent growth in adjusted earnings per share as guided at the beginning of the year."

Shares in the group were 3.5 per cent higher in Dublin this morning, trading at €27.47.