Kerry to continue acquisitions in 2012

Kerry Group is likely to make further acquisitions this year on the back of a strong 2011, which saw the business generate a record trading profit of over €500m.

The Tralee-headquartered diversified food group reported a good set of full-year figures yesterday broadly in line with analyst projections. Revenue was up by 6.9% to €5.3bn, while 2011 also saw Kerry generate adjusted pre-tax profits of €449.1m, which constituted a year-on-year increase of nearly 11% .

Adjusted earnings per share rose by over 11%, to 213.4c; with a final dividend of 22.4c being declared, bringing the total 2011 dividend for Kerry’s shareholders to 32.2c — nearly 12% higher than 2010’s payment.

“The group performed well across developed and developing markets, while continuing to build our capabilities and positioning for the future. We’re confident of achieving our strategic growth objectives for 2012,” said Kerry’s chief executive Stan McCarthy, who noted that the group’s growth came about despite weak consumer confidence in many of its markets and “significant raw material and input cost inflation”.

Mr McCarthy also yesterday reiterated the group’s 2012 guidance for 7%-10% growth in adjusted earnings per share to a range of 228c-235c. He added that acquisitions will continue to play a part in Kerry’s growth this year, albeit on a smaller scale. The group spent a total of €380m on seven acquisitions — across Asia, South Africa, South America, the US and Europe — last year and will spend this year integrating them all into the existing business. While management viewed entering markets such as India and Argentina as “hugely important”, it still feels the group is under-represented in Africa.

Mr McCarthy also said that the idea of leaving the Iseq is a “non-issue” for Kerry Group.

Kerry’s latest figures show that its ingredients/flavours unit grew sales by nearly 8% last year to €3.7bn, while its consumer foods arm grew revenue by 3.2% to €1.7bn.