Kerry Group’s €7.4B revenue mark bolstered by strategic acquisitions in preservation and health solutions

16 Feb 2022 ---Kerry’s end-of-year financial review for fiscal year 2021 reflects strong overall growth across all regions, with the taste and nutrition giant recording revenue of €7.4 billion (US$8.4 billion), driven by volume growth of 8.0%. The company’s CEO reflects that business has remained resilient amid an economic climate weathering inflationary prices.

“In the Taste & Nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservice with business volumes in all regions above 2019 levels in the fourth quarter. This growth was well spread across our end-use markets, with Beverage, Bakery and Meat delivering particularly strong performance,” details Edmond Scanlon, CEO of Kerry.

“The year was important for Kerry from a strategic perspective,” he details, referencing the company’s various portfolio developments throughout the year.

Kerry’s Taste & Nutrition category reported revenue increased by 9% to €6.3 billion (US$7.2 billion).Inflationary prices present challenges
Scanlon continues that recognizing that current market environment and inflationary pressures continue to present challenges across industry, but notes that Kerry is “stronger positioned and more resilient than ever” as it enters a new strategic cycle.

Kerry’s overall growth was supported by an increased number of customer launches through the year, where it played an important role in improving the sustainability impact of its customers’ products. In emerging markets it achieved strong growth across all regions, with overall volume growth of 14.4%.

The group’s Taste & Nutrition category reported revenue increased by 9.0% to €6.3 billion (US$7.2 billion) in the year. This reflected strong volume growth of 8.3%, increased pricing of 1.3% and contribution from acquisitions net of disposals of 2.1%, partially offset by the impact of adverse translation currency of 2.7%.

Strategic portfolio investments
Kerry’s Net capital expenditure amounted to €315 million / US$358.6 billion) (2020: €311 million / US$354 million).

Meanwhile, research and development expenditure was €297 million / US$338 million (2020: €282 million / US$320.9 million) as the group continued to invest in its strategic priorities of taste, nutrition and emerging markets.

In the area of Food Waste – specifically in Food Protection and Preservation, Kerry completed the acquisition of Niacet, which is a global specialist in technologies for food protection and preservation.

In the area of Food Waste – specifically in Food Protection and Preservation, Kerry completed the acquisition of Niacet.Kerry also completed the bolt-on acquisition of National Vinegar Co., adding further fermentation capacity and supporting the group’s growth strategy in natural preservation.

Under Health & Bio-Pharma – Kerry strengthened its capabilities across its proactive health portfolio in the areas of probiotics, scientifically-backed innovative botanical extracts and nutritional lipids with the acquisition of Biosearch.

In this space, the company also reached an agreement for the acquisition of Natreon, which specializes in Ayurvedic and botanical extracts.

Big moves in biotech
Kerry significantly enhanced its biotechnology capabilities with the acquisition of Enmex, which is an enzyme manufacturer based in Mexico, serving food, beverage and other consumer markets. 

Just yesterday, the company reached an agreement to acquire 92% of the issued share capital of c-LEcta, with management to retain the balance. 

Based in Leipzig, Germany, c-LEcta is a leading biotechnology innovation company specializing in precision fermentation, optimized bioprocessing and biotransformation for the creation of targeted enzymes and ingredients.

Kerry also expanded its presence within its emerging market, with the bolt-on acquisition of Afribon, which is a producer of flavors for a range of food and beverage applications in East Africa.

In other developments, Kerry moved to acquire Almer, which is a dairy taste business based in Johor Bahru, Malaysia. The company also completed the offloading of its Consumer Foods Meats and Meals Business to Pilgrim’s Pride.

Market performance 
Kerry reports that market conditions have been highly dynamic across the year, with a strong overall demand environment combined with high degrees of variability across geographies and channels.

At-home consumption remained strong, with foodservice improving as consumers embraced the opportunities for more out-of-home social engagement and food consumption.

The group highlights that the extent of consumer demands continues to increase in areas such as plant-based, functional food for specific health requirements, taste without compromise and products with an improved sustainability impact.

“These heightened and complex consumer demands are presenting greater challenges for our customers, as they continue to balance these with current industry labor and supply chain dynamics,” it details.

Edited by Benjamin Ferrer