It's trying to keep up with the fast-changing appetite of food consumers, but that didn't stop Kerry Group (KYGA) saying adjusted earnings would be at the mid to lower end of expectations of 320¢-332¢ per share. The recent squeeze on sterling means the group needs to effectively sell more products in British pounds to equal the same amount of euros, its reporting currency. Thankfully volume growth was strong, helping mitigate the impact of exchange rates and lower pricing on sales, keeping them flat overall.
The taste and nutrition division, which generates more than two-thirds of revenue, helps customers formulate food and beverage recipes for their end consumers and changing attitudes to convenient and healthy food mean the group's services are in solid demand. The Americas region was a standout performer, with revenues up 15 per cent to €1.24bn (£1.05bn), thanks in part to acquisitions made in 2015. But conditions across the Europe, Middle East and Africa segments remained challenging due to continued price deflation in regional markets.
The consumer foods division, which makes own-brand goods for supermarkets, saw sales and adjusted trading profits rise, but disposals and currency movements led to falls in the reported numbers.
Prior to the results, analysts at Berenberg expected EPS of 289¢ a share for the year to December 2016, down from 298.7¢ in 2015.
| KERRY GROUP (KYGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 7,697¢ | MARKET VALUE: | €13.5bn | |
| TOUCH: | 7,697-7,702¢ | 12-MONTH HIGH: | 8,480¢ | LOW: 6,217¢ |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 1,365¢ | NET DEBT: | 53% | |
| Half-year to 30 Jun | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | 3.03 | 272 | 135 | 15.00 |
| 2016 | 3.04 | 256 | 126 | 16.80 |
| % change | +0 | -6 | -7 | +12 |
Ex-div: 13 Oct Payment: 18 Nov *Includes intangible assets of €3.41bn, or 1,940¢ a share £1=€1.19 | ||||
