Changing consumer tastes present a challenge for food producers, but Kerry (KYGA) is helping those companies meet the demands of picky eaters. The trend towards healthier, more natural options contributed to a 4.2 per cent increase in volumes in the in the taste and nutrition business in the first half, boosting reported revenue in this division by 6.9 per cent to €2.5bn (£2.27bn). This was driven primarily by the Americans region, where demand for organic, gluten free, and vegetarian options saw sales improve by 7.6 per cent to €1.3bn.
Rising inflation and more competition from discount chains in the UK made this market more challenging for the chilled foods business. But a decision to hike prices by 1.9 per cent, helped by a 2.3 per cent improvement in volumes, managed to offset unfavourable exchange rates (evident in the 2.8 per cent dip in reported revenue) and keep trading profit margin steady at 10.6 per cent.
Prior to these results, analysts at Liberum expected EPS of 338ȼ for the year ending December 2017, compared with 322ȼ in 2016.
KERRY GROUP (KYGA) | ||||
ORD PRICE: | 7,740ȼ | MARKET VALUE: | €13.6bn | |
TOUCH: | 7,714-7,728ȼ | 12-MONTH HIGH: | 8,156ȼ | LOW: 6,106ȼ |
DIVIDEND YIELD: | 0.7% | PE RATIO: | 25 | |
NET ASSET VALUE: | 1,846ȼ* | NET DEBT: | 38% |
Half-year to 30 June | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
2016 | 3.04 | 256 | 126 | 16.8 |
2017 | 3.18 | 257 | 128 | 18.8 |
% change | +5 | - | +1 | +12 |
Ex-div: | 12 Oct | |||
Payment: | 10 Nov | |||
*Includes intangible assets of €3.45bn, or 1,962ȼ a share £1=€1.11 |