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.



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

Tackling food waste: Ingredients are often the unsung hero, claims IFAC chief

16 Mar 2018 --- Food waste has been an industry concern for some time and there are a multitude of ingredients available that manufacturers can use to both extend shelf-life and fulfill consumer expectations for quality, safety and experience. The European Commission (EC) recently released a study investigating the relationship between date marking on food labels and food waste and according to the International Food Additives Council chief, Robert Rankin, ingredients are often the unsung hero.

Food Ingredients News

Clean label opportunity: Kerry defines five behavioral consumer segments

12 Mar 2018 --- Kerry has unveiled its latest comprehensive clean label consumer research which defines five behavioral consumer segments, each with a unique outlook and opinion on clean label. The Irish food and nutrition giant surveyed 702 US consumers to better understand their opinions on nutrition, ingredients and sustainability, as well as how these factors influence their opinions on clean label.

Food Ingredients News

Sugar reduction tops reformulation agenda as UK sugar tax beckons

06 Mar 2018 --- In recent years, a trend for healthier lifestyles has emerged and consumers have become increasingly aware of the ingredients in their food and drinks. As EU sugar consumption figures reach nearly 32kg per person per year, sugar reduction has become the health trend under the spotlight. In fact, one month from today (April 6, 2018), the much-debated sugar tax will come into effect in the UK.

Business News

A sweet challenge: 64 percent of industry finds sugar reduction in confectionery to be toughest

01 Mar 2018 --- Sugar reduction is at the top of most NPD agendas and in just over a month (April 6, 2018), the much-debated sugar tax will come into effect in the UK. The market penetration of new food & beverages with sugar reduction claims continues to grow. Interestingly, a recent poll conducted in a live webinar hosted by FoodIngredientsFirst and presented by Kerry yesterday finds that 64 percent of the industry believes that reducing sugar in Sweet Confectionery & Bakery will be most challenging, despite ingredient innovation thriving in this area. This application area was followed by Beverages on 20%.

Food Ingredients News

Dirty meat: US pork and poultry breaches spark serious safety concerns

22 Feb 2018 --- A series of alleged hygiene and safety breaches at US meat factories have been detailed by British newspaper The Guardian which claims “shocking failings” across several pork and poultry plants factories. The Bureau of Investigative Journalism (TBIJ) and The Guardian carried out a joint investigation to discover a number of hygiene incidents after analyzing unpublished US- government records. According to the companies involved, all of the reported breaches resulted in immediate remedial action and posed no risk to consumers.

More Articles