Kerry reports 4.5 percent revenue lift in Q3


08 Nov 2017 --- Global taste & nutrition and consumer foods group, Kerry, has reported its Q3 results. In the nine months to September 30, 2017 business volumes on a group-wide basis increased by 4.2 percent. Pricing increased by 2 percent against a background of approximately 4 percent higher raw material costs. Reported revenues increased by 4.5 percent reflecting the strong business volume growth, increased pricing, adverse currency translation impact of 1.9 percent, adverse currency transaction impact of 0.3 percent and the effect of acquisitions net of disposals of 0.5 percent.  

The group has maintained a strong business momentum in Q3 2017, delivering good volume growth ahead of category growth rates, driven by successful innovation in response to consumer health and wellness trends. The continuing positive momentum reflects the adaptability and agility of Kerry’s Business Model in meeting customer requirements across multiple end-use-markets and broadening diverse market channels.

Kerry Group Chief Executive Edmond Scanlon says: “The Kerry Business Model continues to deliver speedy innovation in response to the pace of change in the food and beverage industry. We achieved good volume growth in the first nine months of 2017 and for the full year, taking into account the 4 percent currency translation headwind, we expect to achieve growth in adjusted earnings per share of 4 percent to 6 percent on a reported basis to a range of 336 to 343 cent per share.” 

Business performance 
Nutritional labeling requirements and demand for clean label, free-from, meat-free, natural, tasteful food and beverage offerings remain a strong positive catalyst for differentiated product development. Investment in pioneering technologies, assisted by Kerry’s Innovation Centre network and “in-market” Development & Application Centres, continues to provide significant growth opportunities through the Group’s global, regional and local customer alliances across developed and developing markets. In particular, growth across foodservice, convenience and e-tail channels in all regions continues to present solid innovation platforms for growth and market development.   

Taste & Nutrition Technologies and Systems delivered good growth in North America, a solid performance in Latin America, good growth in the EMEA region and continued double-digit growth in Asia.  

Despite increasing inflationary pressures in the UK consumer foods market, Kerry Foods maintained good volume growth – benefiting in particular from increased snacking trends in dairy and meat categories.   
Consumer foods 
The group’s consumer foods business performed well against a background of increasing inflationary pressures in the UK market, sterling volatility following the UK electorate decision to leave the EU, and increased market fragmentation with the continued expansion of discounter retail chains. In the nine months to the end of September, business volumes grew by 2.5 percent. With a continuing focus on significant raw material price inflation recovery, pricing increased by 1.9 percent. The divisional trading profit margin decreased by 70 basis points as the underlying business margin improvement was offset by adverse sterling exchange rate movements.  

Double-digit growth was achieved in the UK market through branded meat and dairy snacking lines including Fridge Raiders and Cheestrings. Cheestrings also continued to extend its market positioning in mainland Europe. The UK sausage category proved challenging where the relaunch of Richmond assisted brand share. The cooked meats category in the UK and Ireland also proved highly competitive. Kerry Foods meal solutions lines maintained a good performance. In the chilled sector, good growth was achieved through ethnic meals and the foodservice channel provided encouraging prospects for frozen meals. Good growth was achieved through butter-based spreads in the UK private label spreads category and Dairygold maintained brand share in the Irish market.

As recently announced, the group completed the acquisition of Ganeden –  a leading technology innovation company focused on patented probiotics and related technologies. 

In October, the group also acquired Mississippi, US-based Dottley Spice, a leading supplier of seasonings and coatings to the meat processing industry and foodservice sector in North America.  

An agreement has also been reached to acquire the US-based Kettle business of Tyson Foods, a leading provider of culinary systems and custom solutions to the foodservice channel in North America. Operating from a production and development facility in Fort Worth, Texas; the Kettle business has a strong heritage in the fast-growing foodservice industry and well established key national customer alliances in particular in the QSR and casual restaurant sectors. The transaction which is subject to regulatory approval is expected to be completed by year-end.

To contact our editorial team please email us at



Kerry is responding to consumer demand for real ingredients with better, more authentic and nutritious taste experiences. With 40 years’ experience and 24,000 staff on six continents, Kerry has a renewed focus on Taste & Nutrition where the science of taste merges with the science of nutrition. They combine a deep understanding of taste with an in-depth knowledge of people, culture, life stage and daily nutritional needs. By partnering with Kerry, customers are taken on a journey to make food, beverage and pharma products that people enjoy and feel better about. Kerry calls this Leading to Better.

Related Articles

Food Ingredients News

“No-No Ingredients”: Kerry consumer research highlights meat concerns

12 Jul 2018 --- Consumer knowledge of food and beverage properties has begun to evolve into ingredient curiosity, according to taste and nutrition company Kerry. With increased attention on the origin, sourcing and manufacturing of products, ingredient selection for meat products, has become a priority to consumers. They often want to know more about what they consume. In terms of clean label, consumers are demanding a return to real food and transparency through authenticity. They seek foods that are natural and familiar, with simple ingredients that are easy to recognize, understand and pronounce.

Food Ingredients News

Better beverages: High protein and digestive health tipped for strong growth

03 Jul 2018 --- Nutrition science is making itself heard in the beverage category. Protein coffees, probiotic juices and turmeric teas are common sightings as the demand for convenient and functional foods increases with consumers. The penetration of better-for-you related claims for soft drinks products increased from 58 percent in 2012, to 65 percent in 2017 globally.

Food Ingredients News

Kerry opens expanded fermented ingredients US facility, boosts coatings business in Europe

28 Jun 2018 --- Taste & Nutrition company, Kerry, is celebrating the US$28.6 million expansion of its facility in Rochester, Minnesota. This project increases manufacturing capacity at the state-of-the-art facility and includes the addition of a new spray dryer and two 10,000 gallon dryer feed tanks. Groundbreaking for the expansion commenced in April 2017 and a ribbon-cutting ceremony was held at the facility yesterday (June 27).

Food Ingredients News

Convenience factor (Part 1): Authenticity & salt reduction drives prepared meal innovation

15 May 2018 --- The demand for healthy and nutritious food is paving the way for innovation across many food sectors. One particular food sector that is flourishing when it comes to innovative NPD is ready meals and convenience foods. The authenticity of ready meals that are easy to cook, in a world where consumers’ lives are fast-paced, is also driving innovation in this area.

Food Ingredients News

Kerry launches Great Culinary Taste to meet changing consumer needs in prepared meals

14 May 2018 --- Consumers are consistently seeking authentic, delicious restaurant quality prepared meals made from ingredients they know and trust. Taste, convenience, nutrition and traceability need to coexist; and while all four are intrinsically linked to consumer demand, delivering it all at scale and for a profit, is not easy, according to Kerry, the Taste & Nutrition company.

More Articles