Kerry Group shares rise as results suggest good crisis management

Kerry Group chief executive Edmond Scanlon has said the group is well-positioned to grow further, with more acquisitions likely. 

Kerry Group shares rose on the back of a strong set of annual results and its chief executive saying the business is “well-positioned” to prosper further and that investors support its growth strategy.

The Tralee-headquartered group posted a near 10% jump in annual trading profit to €875.5m and generated revenues of €7.35bn, nearly 6% ahead of 2020 levels. 

Group chief executive Edmond Scanlon said it was a strong set of results “in what has been, and continues to be, a disruptive environment”.

He said Kerry ended the year very strongly, with the most pleasing aspect being its broad-based growth across geographic regions, end-user markets and sales channels.

As Kerry progresses its transformation from consumer food producer to an international leader in the areas of nutrition, flavourings, food sustainability and food technology, Mr Scanlon noted 2021 as having been strategically important.

Mr Scanlon said Kerry received “quite positive” feedback from investors regarding its strategy at its recent capital markets presentation day, despite having received criticism early last year. 

Kerry sold the bulk of its consumer foods division — taking in the meats and meals element and brands like Galtee and Denny — for €819m to US group Pilgrim’s Pride last year.

It also spent about €1.3bn on acquisitions to progress its new strategy, including the €853m purchase of global food preservation technology leader Niacet.

Earlier this week, Kerry announced two strategic biotechnology acquisitions, including an enzyme manufacturer in Mexico. Mr Scanlon said more acquisitions were likely, with the purchasing of companies remaining part of Kerry’s growth strategy.

“I would expect to see more technology acquisitions in the future as we look out to grow and evolve our business,” he said.

Kerry’s core taste and nutrition division grew revenues by 8.3% last year to €6.3bn, with its consumer foods business showing sales of €1.1bn, 6% higher than the previous year.

While Kerry has weathered the Covid and supply chain crises well, Mr Scanlon said market conditions remain uncertain, with inflation being the greatest business challenge at present.

Kerry's shares were up about 1.5%, having peaked at just over 2%.