Kerry’s Profits Powered by Taste and Nutrition Unit

23 Feb 2016 --- Kerry Group, the food and nutrition group, has reported that its pre-tax profits have risen 8.5 percent to €603 million ($663 million) in the year to end of December, powered by the performance of its Taste and Nutrition division.

Revenues at the Irish-based company, whose brands include Dairygold and Cheesestrings, lifted by over six percent to €6.1 billion ($6.7 billion) over the year.

Kerry’s Taste & Nutrition division, which supplies flavorings and ingredients to food and drink companies, reported four percent growth in volumes.

Kerry, like its rivals, is looking to appeal to changing consumer trends for healthier options.

The company said it was addressing the demand for ‘better-for-you, natural, authentic, free-from and clean- label products.

Its Taste and Nutrition unit saw revenues rise by four percent to €4.7 billion ($5.1 billion) while its trading profits were up 12 percent to €663 million ($730 million) in the period. 

The company said that Taste & Nutrition now accounts for over 75 per cent of the group’s profits and 84 percent of its trading profit.

The group said the performance of its Food Division was helped by better trading conditions and the UK and Irish markets.

Kerry Group Chief Executive Stan McCarthy said; “In a record year of business development in 2015, the Group achieved a strong financial performance, delivering continued business margin expansion and 8.2% growth in adjusted earnings per share.”

“Our industry leading technologies are well positioned to meet today’s consumer and customer requirements. We expect to achieve 6% to 10% growth in adjusted earnings per share in 2016 taking into account a 3% currency headwind at today’s exchange rates”. 

By region, Kerry said across the Americas it benefitted from the demand for nutrition, snacking and wellness categories. 

Its performance was also aided by a number of acquisitions including Red Arrow Products and KFI Savory.

Across Europe, it said its performance was impacted by “geopolitical instability” and the “deflationary environment.”