Kerry Group reports revenue of over €4bn

The Group saw earnings before interest, taxes, depreciation, and amortisation (EBITDA) rise to €518m, an increase of 13.1%. 

The interim results also reported that adjusted earning per share stood at 176.4 cents, an increase of 9% on a constant currency basis. Picture: Dan Linehan

Kerry Group recorded first-half growth of 13.3%, fuelling revenues to reach €4.1bn, it announced today.

The Group saw earnings before interest, taxes, depreciation, and amortisation (EBITDA) rise to €518m for the six-month period to the end of 30 June 2022, an increase of 13.1%. 

The Group maintained an EBITDA at 12.8%, this was mainly driven by the benefits from operating leverage, mix, efficiencies and portfolio development. It was offset by the effect of passing on raw material cost inflation.

The interim results also reported that adjusted earning per share stood at 176.4 cents, an increase of 9% on a constant currency basis.

The Group recorded a free cash flow of €226m representing a cash conversion rate of 72%. The company noted that increased investment in working capital during the six-month period was partially offset by lower net capital expenditure due to the timing of projects.

The firm reported an interim dividend of 31.4 cents per share. This is an increase of 10.2% from the previous year's interim dividend.

Edmond Scanlon, Chief Executive Officer, Kerry Group welcomed the overall performance of the Group and stated that despite the inflationary difficulties and geopolitical volatility, the marketplace remains dynamic.

Mr Scanlon said:  “Volume growth was very strong in both retail and foodservice channels, driven by an increased level of innovation activity. This growth was broad-based across our regions, led by excellent performances in Beverage, Meat and Bakery end use markets in particular.

"While recognising the marketplace is facing into a period of heightened uncertainty and volatility, this also presents significant opportunities. We remain confident in our outlook and are reaffirming our full year earnings guidance," he continued. 

Performance in Europe

Reported revenue in the Europe region increased by 27.5% to €729m during the six-month period. This was driven by volume growth, positive pricing, favourable foreign currency impacts and a positive contribution from acquisitions net of disposals.

Growth in the Europe region was led by Central and Southern Europe driven by a particularly strong performance in the food service channel. However, due to the ongoing war in Ukraine performance in Russia and Eastern Europe was impacted.

During the six month period, the Group completed the acquisition of leading German biotechnology innovation company c-LEcta.

Dairy Ireland recorded an overall revenue of €695m, with growth primarily driven by the dairy ingredients business.

Throughout the period Dairy Ireland delivered solid overall volume growth despite the heightened inflationary cost environment.

The high levels of inflation and constrained global supply dynamics resulted in significant price increases within the dairy consumer products business, which resulted in a challenge to overall volumes.

The company also noted that volumes in the period in cheese snacking were impacted by reduced promotional activity and operational issues, while a new plant-based range of Dairygold products was launched at the end of the period.