Kerry Performance 'Satisfactory' in Q1

In an interim management statement the consumer foods group said reported sales revenue increased by 9.7%, reflecting like-for-like (LFL) growth of 3.8% when acquisitions and currency translations are taken into account.

3 May 2012 --- Kerry Group has reported a "satisfactory" performance in the first quarter of 2012 despite what it referred to as "more challenging trading conditions" in developed markets.

In an interim management statement the consumer foods group said reported sales revenue increased by 9.7%, reflecting like-for-like (LFL) growth of 3.8% when acquisitions and currency translations are taken into account.

Performance in the first quarter also benefited from the impact of acquisitions completed in 2011, Kerry said.

Revenues in ingredients & flavours increased by 13.8% reflecting 4.9% LFL growth. Business volumes grew by 2.2% relative to a strong comparative in Q1 2011 – outperforming market growth rates and destocking trends in some market sectors.

Dairy systems achieved good growth in the frozen desserts sector. Coatings systems maintained solid growth in the meat sector through retail and foodservice applications. Cereal systems outperformed market growth rates and benefited in Latin American markets from the acquisition of General Cereals S.A. in Argentina completed in 2011. Performance in sweet applications benefited from improved plant efficiencies. Good progress was achieved in the beverage sector - in particular through beverage flavours, benefiting from the acquisition of Cargill’s flavours business acquired prior to year end.

Consumer Foods achieved an encouraging business performance despite the challenging conditions in the Irish and UK consumer foods markets. Revenue on a reported basis increased by 0.6% reflecting 1.5% LFL growth. Business volumes increased by 0.6% and pricing / mix increased by 1%.

The company says it is continuing to integrate the acquisitions completed in 2011, all of which are performing in line with expectations.

As previously guided, Kerry said it expects to achieve 7% to 10% growth in adjusted earnings per share in 2012 to a range of 228 to 235 cent per share.