Kerry Group reported higher sales and earnings for 2014 despite ongoing volume pressure at its consumer food unit.

Kerry Group reported higher sales and earnings for 2014 despite ongoing volume pressure at its consumer food unit.

Kerry Group, the Irish food and ingredients firm, reported higher sales and earnings for 2014 despite ongoing volume pressure at its consumer food unit. 

Kerry said today (24 February) that total sales volumes increased 3.4% in the 12 months to end-December. Revenue totalled EUR4.34bn (US4.91bn) in the period. Consumer food volumes contracted 0.7% to EUR1.5bn but Kerry stressed it saw something of a second-half rebound at the unit. The company said it traded ahead of the market in the UK and Ireland. 

Trading profit grew 6.1% to EUR593m. On a group-wide basis, trading operating margin expanded 80 basis points. Gains were again led by the ingredients business, with consumer food margins rising at a slower pace of 30 basis points. 

Net profit increased to EUR479.9m, up from EUR84.4m in 2013 as the group lapped non-trading one-time expenses of EUR352.2m. 

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Kerry, the global ingredients & flavours and consumer foods group, reports preliminary results for the year ended 31 December 2014.

 

Highlights

·      Adjusted EPS* up 8.1% to 278.9 cent

·      Group revenue of €5.8 billion reflecting 2.4% continuing volume growth

Ø Ingredients & Flavours €4.3 billion, +3.4% continuing volumes

Ø Consumer Foods €1.5 billion, -0.7% continuing volumes

·      Trading profit increased by €25m to €636m (+ 5.3% LFL)

·      Group trading margin up 60 basis points to 11.1%

Ø Ingredients & Flavours + 80 basis points to 13.7%

Ø Consumer Foods + 30 basis points to 8.3%

·      Final dividend per share of 31.5 cent (Total 2014 dividend up 12.5% to 45 cent)

·      Free cash flow of €303m (2013 : €412m)

·      Industry-leading RD&A investment

*before brand related intangible asset amortisation and non-trading items (net of related tax)

 

Commenting on the results Kerry Group Chief Executive Stan McCarthy said; "We recorded another year of good growth, business margin expansion and an 8.1% increase in adjusted earnings per share in 2014. The consumer environment across developed and developing markets is changing rapidly but Kerry is well positioned to capitalise on global growth opportunities. We expect to achieve another year of good growth in 2015".

 

Original source: http://otp.investis.com/clients/uk/kerry_group/rns/regulatory-story.aspx?cid=769&newsid=488185