Kerry Group has raised its full-year earnings outlook after reporting higher sales and earnings in the first quarter.
The company said it now anticipates 6-9% growth in earnings per share based on its year-to-date performance and business momentum. This gives Kerry an EPS guidance range of EUR2.96-3.04 (US$2.71-2.78) per share.
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During the first half Kerry said reported group sales rose 4.7% to EUR3bn. The company said that it continued to see a slowdown in Asia but that this was offset by a "strong" performance in the Americas and improved trends in Europe, the Middle East and Africa.
Sales growth was supported by higher volumes on lower pricing, Kerry said. In consumer foods, volumes grew by 1.9% and pricing dropped 2.6%.
Group trading profit increased by 9% to EUR300m. On a group-wide basis, including the ingredients arm, trading profit margin increased by 40 basis points to 9.9%. Kerry's consumer foods brands reported a 20 basis point improvement in margin, which rose to 8%.
Kerry said that sales of its Richmond sausages in the UK had been dampened by its "disciplined" approach to promotions in a highly price sensitive environment. The company said that its dairy business also saw a decline as private label spreads lost share to "heavily promoted" branded offerings.
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By GlobalDataThe company said it saw growth across its Wall's as well as its meat snacks and cheese snacks brands. Karry also saw "strong growth" in meal solutions: "Kerry Foods outperformed market growth rates in chilled ready meals and achieved good volume growth in frozen meals in Q2. While the ready-to-cook category declined, Kerry Foods product offerings recorded good growth."
However, disposals hit the trading profit at consumer foods, which fell 3.9% year-on-year to EUR30m. During the period, Kerry confirmed the sale of Australian bakery Pinnacle.
