Kerry Group shares slip despite strong growth guidance

Kerry Group shares dipped marginally and Merrion Stockbrokers reiterated its ‘hold’ recommendation on the stock, yesterday, despite the Tralee-based food giant announcing a US acquisition and a strong organic growth outlook for the next five years.

New chief executive Edmond Scanlon told investors that Kerry expects to deliver yearly adjusted earnings per share growth — on a constant currency basis — of 10% over the next five years and 3%-5% volume growth.

Taste and nutrition volumes are expected to grow by between 4% and 6%, while consumer foods growth of 2%-3% is being targeted.