Kerry Group posts sales boost in ‘adverse’ market

By James Ridler contact

- Last updated on GMT

Kerry Group has posted sales growth, despite adverse currency movements
Kerry Group has posted sales growth, despite adverse currency movements
Irish food and ingredients manufacturer Kerry Group has posted a £130M rise in sales in its half-year trading report, despite the company facing “significant adverse currency movements”.

Kerry – owner of the Richmond sausage brand – sales grew 4.8% to £2.88bn (€3.18bn) in the six weeks to June 30 2017, up from £2.75bn (€3.04bn) for the same period last year.

Adjusted earnings before taxation rose to £264M (€292M) from £245M (€271M). Kerry’s adjusted earnings per share grew 7.5% to 130p (143.8 euro cents).

The completion of three acquisitions by the company – Tianning Flavours, Taste Master and Ben Alimentos – had created £16.1M (€17.8M) of costs, bringing profit after taxes down to £203M (€225M). Profits after tax were still £2.43M (€2.7M) higher than the first half of last year.

Adverse currency movements

Kerry said it had maintained a strong overall business performance in the first half of this year, despite significant adverse currency movements and increased raw material pricing.

“Business volume growth rates outpaced industry levels, capitalising on Kerry's unique taste and nutrition technologies and systems which are well positioned to deliver innovative solutions for the group’s global, regional and local customers in response to ever-changing consumer requirements,”​ said the company. 

“Whilst the retail environment remained challenging across European markets, the continued growth of out-of-home consumption and channel diversification provided good opportunities for growth and market development.” 

Growth of out-of-home consumption

Demand for enhanced nutrition, clean label, authentic, sustainably produced products had provided a strong platform for growth, Kerry said. Growth in the foodservice channel outpaced growth in traditional retail outlets.

Commenting on the results, Kerry chief executive Stan McCarthy said: “Against a background of significant adverse currency movements, we achieved a strong overall business performance in the first half of 2017, outperforming market growth rates and delivering a 7.5% increase in adjusted earnings per share.

“Taking into account increased currency translation headwinds of 4% and a 2% improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3% to 7% on a reported basis to a range of 333.1 ​[301p] to 346 ​[313p] cent per share.”

Meanwhile, nutrition firm Glanbia reported a 9.9% rise in group revenue, at constant currency, to £1.67bn (€1.85bn), after starting a new joint venture and selling 60% of its Dairy Ireland business.

Kerry Group results – at a glance


Percentage change

H1 2017

H1 2016





Profit before tax




Profit after tax




Adjusted earnings per share




Related topics: Business News, Meat & poultry

Related news

Show more


Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.