Kerry Group announces turnover of more than 4 billion euros
Food company Kerry Group posted 6.8% growth in the first half, fueling revenue to 4.1 billion euros, it announced today.
The Group saw its earnings before interest, taxes, depreciation and amortization (EBITDA) amount to 518 million euros, an increase of 13.1%.
The Group maintained EBITDA at 12.8%, mainly thanks to the benefits of operating leverage, mix, efficiency gains and portfolio development. It was offset by the effect of pass-through to raw material cost inflation.
Interim results also showed that adjusted earnings per share were 176.4 cents, an increase of 9% at constant exchange rates.
The Group recorded free cash flow of €226 million representing a cash conversion rate of 72%. The company noted that the increase in working capital investments during the six-month period was partially offset by lower net capital expenditures due to the timing of projects.
The company declared an interim dividend of 31.4 cents per share. This is an increase of 10.2% compared to the interim dividend of the previous year.
Edmond Scanlon, Managing Director of Kerry Group, praised the group’s overall performance and said that despite inflationary difficulties and geopolitical volatility, the market remains buoyant.
Mr. Scanlon said: “Volume growth was very strong in the retail and restaurant channels, driven by an increased level of innovation activity. This growth was widespread across our regions, driven by strong performance in the beverage, meat and bakery end-use markets in particular.
“While acknowledging that the market is facing a period of heightened uncertainty and volatility, this also presents significant opportunities. We remain confident in our outlook and reaffirm our full-year earnings guidance.” he continued.
Reported revenue in the Europe region increased by 27.5% to €729 million during the half year. This change is explained by the growth in volumes, positive prices, favorable exchange rate effects and a positive contribution from acquisitions net of disposals.
Growth in the Europe region was driven by Central and Southern Europe, driven by a particularly strong performance in the foodservice channel. However, due to the ongoing war in Ukraine, performance in Russia and Eastern Europe was affected.
During the semester, the Group finalized the acquisition of the German leader in biotechnological innovation c-LEcta.
Dairy Ireland recorded overall sales of €695 million, with growth mainly driven by the dairy ingredients business.
Throughout the period, Dairy Ireland delivered solid overall volume growth despite the backdrop of increased inflationary costs.
High levels of inflation and tight global supply dynamics have led to significant price increases in the fluid dairy sector, which has created a challenge for overall volumes.
The company also noted that cheese snack volumes in the period were impacted by reduced promotional activity and operational issues, while a new range of plant-based Dairygold products was launched at the end of the period. .