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Volumes and margins look healthy at Kerry

The Irish-based food producer has kept revenue flat despite an adverse currency environment
February 22, 2017

In today's society, it's not uncommon for the busy office worker to grab a fruit smoothie and drink it on the way to work. Healthy eating and 'food-to-go' are both growing trends which food producer Kerry (KYGA) is attempting to capitalise on. In the year to December 2016 volumes grew 4 per cent at its taste and nutrition business thanks to more healthy eating products. Meanwhile, increased production of 'food-to-go' options sent volumes in the consumer business up 2.1 per cent.

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Perhaps it's unsurprising to see Kerry selling a greater volume of products seeing as prices came down 2 per cent during the period. That, coupled with adverse currency movements, left overall revenue flat. But a 70 basis points improvement in group trading margin helped send trading profit up by 7 per cent to €750m (£633m). Adjusted earnings per share also rose 7 per cent to 323ȼ, although this was towards the bottom end of previous guidance.

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