Kerry Group confirms Ganeden acquisition, updates medium-term growth targets at Capital Markets Day

11 Oct 2017 --- Kerry Group has confirmed the acquisition of US-based technology and innovation company Ganeden at a Capital Markets presentation, which is being held today. The presentation also updates the group’s medium-term growth targets and objectives. Kerry points out that the newly acquired probiotics manufacturer Ganeden, based in Cleveland, Ohio, with current year revenue of approximately US$25m, has an extensive library of published studies and more than 135 patents for technologies in the supplement, food, beverage, nutrition and personal care markets.

Complementing the group’s acquisition of Wellmune in late 2015, the acquired Ganeden technologies will be extended into wider applications across Kerry’s global developed and developing markets.

Growth expected
Addressing investors, Kerry Group Chief Executive Edmond Scanlon states that the group expects to deliver in excess of 10 percent adjusted earnings per share growth on a constant currency basis on average per annum over the next five-year cycle.

“This will be delivered through achievement of above industry-average volume growth and continued business margin expansion,” Scanlon says. “We expect to achieve 3 percent to 5 percent volume growth annually on a group-wide basis, with Taste & Nutrition targeting 4 percent to 6 percent growth and Consumer Foods targeting 2 percent to 3 percent growth.”

In terms of trading profit margin progression, he confirms that margin in Taste & Nutrition is targeted to grow by 40 basis points per annum and margin in Consumer Foods is targeted to grow by 20 basis points per annum, which will contribute a 30 basis points group margin improvement per annum on average across the five-year cycle.

“Kerry Group has a unique scalable business model which I am confident can deliver the continued organic growth of the business across developed and developing markets as planned,” Scanlon comments.

“We are in a strong position to lead the continued consolidation of our industry benefiting from the group’s strong balance sheet, scalable business model and geographic footprint. Return On Average Capital Employed (ROACE) is the group’s key financial return metric, the target for which remains to achieve a return in excess of 12 percent per annum,” adds Scanlon.