Revenue at Kerry Group increased by 13.3 per cent to €4.1 billion in the first half of 2022 compared with the same period last year, according to its interim report.
The food group said the increase reflected a volume increase of 6.8 per cent, increased pricing of 8.3 per cent, and contributions from acquisitions of 4.7 per cent.
This was partially offset by the impact of the disposal of its consumer foods meats and meals business of 12.4 per cent.
Earnings before interest, taxes, depreciation and amortisation increased 13.1 per cent to €518 million, primarily driven by the benefits from operating leverage, mix, efficiencies and portfolio development, offset by the impact of passing through raw material cost inflation.
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Basic earnings per share of 128.4 cent were said to reflect the growth in the period offset by the impairment of the group’s Russia and Belarus assets and charges related to the previously announced restructuring.
The interim dividend of 31.4 cent per share reflects an increase of 10.2 per cent from the prior year interim dividend.
Kerry Group chief executive Edmond Scanlon said he was “pleased with our overall performance and business momentum across the first half of the year despite inflationary challenges and geopolitical volatility in places”.
“Volume growth was very strong in both retail and food-service channels, driven by an increased level of innovation activity,” he said.
“This growth was broad-based across our regions, led by excellent performances in beverage, meat and bakery end use markets in particular.
“We continued to make good progress in actively managing the unprecedented inflationary environment in conjunction with our customers, as we support them in developing their offerings to meet the rapidly evolving marketplace.
“We also made good strategic progress by expanding our footprint and completing a number of strategic acquisitions in the period.
“While recognising the marketplace is facing into a period of heightened uncertainty and volatility, this also presents significant opportunities. We remain confident in our outlook and are reaffirming our full year earnings guidance.”
The overall demand environment was “positive” through the period. The group said the resilience of supply chains “remains a key focus” across the industry due to geopolitical volatility and inflationary pressures.
The board declared an interim dividend of 31.4 cent per share, compared with the prior year interim dividend of 28.5 cent, payable on November 11th.
In terms of outlook, the group said Kerry remains “strongly positioned for growth in a highly dynamic marketplace with a good innovation pipeline”.
“The group is confident in its ability to continue to manage through the current inflationary cycle with its well-established pricing model and cost initiatives,” it said. “While overall market conditions remain uncertain, the group expects to achieve adjusted earnings per share growth in 2022 of 5 per cent to 9 per cent on a constant currency basis.”
