Kerry Group reports growth despite Brexit fears

By Matt Atherton

- Last updated on GMT

Kerry Group reported 2.2% growth in the nine months to September 30
Kerry Group reported 2.2% growth in the nine months to September 30

Related tags United kingdom Revenue Kerry group

Irish food and ingredients firm Kerry Group reported 2.2% growth in its consumer foods division in its financial update for the nine months to September 30, despite Brexit uncertainty and fluctuating currencies.

The company said it maintained a “solid performance”​ as consumer demand for dairy and meat snacks continued to provide growth opportunities.

“Despite the uncertainty and sterling devaluation resulting from the UK electorate voting to leave the EU, Kerry Foods continued to perform well in the UK and Irish markets,”​ a company statement said.

‘Solid business performance’

“Kerry Foods maintained a solid business performance despite the prevailing competitive market situation and uncertainty caused the by the Brexit vote in the UK. The consumer foods division also maintained good growth in its selected mainland European markets.”

The company reported growth in the Wall’s brand, despite the highly competitive sausage market, and said snack product Cheestrings continued to perform well.  

Kerry Group as a whole – including its taste & nutrition division – reported volume growth of 3.2%. Prices dropped by an average of 2.2% against a backdrop of 4.5% lower raw material costs.

Balance sheet ‘remains strong’

The business reported a 0.4% increase in revenue, and its profit margin increased by 0.7%. Kerry Group said its balance sheet “remains strong”​.

“We remain confident of delivering an underlying trading performance in the full year as previously guided,” ​said Kerry. “Taking into account the currency headwinds of 5% at current exchange rates, growth in adjusted earnings per share in 2016 is expected to be towards the middle to lower end of the 6% to 10% range of 320% to 332% per share.”

Meanwhile, Kerry Group reported similar results in April this year​, posting growth of 2.9%. Revenue increased by 0.9%, owing largely to its Cheestrings brand.

Kerry Group results – at a glance

  • 2.2% growth in consumer foods division, and 2% drop in prices
  • Group reported 3.2% growth and 2.2% decrease in prices
  • Total revenues up 0.4% and profit margin increased by 0.7%

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