Further double-digit growth
Since joining the global food market in the 1980s, its performance has been phenomenal.
The group has doubled in size over five years and takeover concerns are becoming less obvious.
In the past few years, the number of Kerry’s key customers has shrunk from 10 to six, as globalisation drives mega-mergers in the food sector.
Kerry lost its 1.5billion bid for Haarmann & Reimer in Europe, one of the last big plays in the ingredient end of the market.
Kerry head Hugh Friel said yesterday that big plays would be the exception rather than the rule with acquisitions.
It looks as if the group will have to drive more value out of its existing businesses, and could be forced to lower its growth capacity closer to 10%.
It would be wrong to underestimate Kerry’s ability to grow, but the circumstances it now finds itself in are different to those of five years ago.
However, Mr Friel said the geographic spread of the business and the strong expansion enjoyed by Kerry in consumer foods and food ingredients put it in a commanding position.
Mr Friel said the real issue was whether there were enough opportunities of size in its chosen areas to underpin the kind of 15% earnings the markets have taken for granted over the years.
