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.
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.
Free cash flow reached record levels of €570m last year and Kerry continues to use its balance sheet to acquire new companies. In June it bought Madrid-based drinks company Vendin SL and its Asia business has been enhanced by two acquisitions, one since the period end.
Broker Liberum expects adjusted diluted earnings per share of 357ȼ for the year to December 2017, up from 323ȼ last year.
KERRY (KYGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 7,384ȼ | MARKET VALUE: | €13bn | |
| TOUCH: | 7,359-7,384ȼ | 12-MONTH HIGH: | 8,465ȼ | LOW: 6,103ȼ |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 1,758ȼ* | NET DEBT | 43% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2012 | 5.85 | 316 | 148 | 35.8 |
| 2013 | 5.84 | 122 | 48 | 40.0 |
| 2014 | 5.76 | 556 | 273 | 45.0 |
| 2015 | 6.10 | 603 | 299 | 50.0 |
| 2016 | 6.13 | 612 | 303 | 56.0 |
| % change | +0 | +1 | +1 | +12 |
Ex-div: 27 Apr Payment: 19 May *Includes intangible assets of €3.44bn, or 1,957ȼ a share £1=€1.18 | ||||
