Kerry Group achieves US$870M revenue growth in APMEA for H1

APMEA – Global taste and nutrition solutions provider, Kerry Group, has reported a strong growth in the Middle East and Africa, while volumes in China were broadly similar to the prior year and Southeast Asia improved in the H1 of 2024.

Revenue in the APMEA region stood at US$868.59m (Ksh 112 B). Across the market the company said snacks delivered very strong growth across leading global and regional brands.

Good growth was also achieved in Meat through taste and preservation systems, while Beverage performed well with refreshing beverage innovations.

The Group reported revenue of €3.9 billion in the first six months of 2024 (H1), which is down by 5.9% compared to the same period last year (€4.12 billion).

The company said that group revenue comprised volume growth of 1.7%, pricing deflation of 4%, unfavourable translation currency of 0.9% and the effect from disposals net of acquisitions of 2.7%.

Taste and Nutrition division reported volume growth of 3.1% in the period resulting in revenue of €3.4 billion against a 3.1% fall in pricing. EBITDA in the division rose by 5.5% to €551 million compared to the first half of 2023.

“Taste & Nutrition volume growth was led by strong performances in the foodservice channel across all three regions, as we continue to support established foodservice chains evolve and develop their businesses, while working with emerging leaders to upscale their operations and offerings,” Edmond Scanlon, Chief Executive Officer, underscored.

Volume growth in the retail channel was driven by good performances in the Americas and APMEA, led by very strong growth in Snack applications with Kerry’s leading range of savoury taste profiles and Tastesense® salt-reduction technologies.

In an Investor call, Mr Scanlon said the group would likely achieve a “3 per cent to 3 per cent plus zone” compared with previous forecasts of between 2 per cent and 3 per cent for the rest of the year.

However, he told The Irish Times that Kerry was not factoring in an improvement in underlying market conditions in its forecasts for the rest of the year.

“I’d describe our approach as pragmatic and kind of sensible, given what we’re seeing today and what we’ve seen over the last couple of years,” he mentioned.

He added that the food solution company has completed a share buyback of 27,500 of its own A ordinary shares for almost US$305.57 million and would start another round when the current scheme concludes.

This transaction is part of a larger buyback program, set to run until December 19, 2024. As a result, Kerry’s total number of shares in issue will decrease to 171,135,197, excluding treasury shares.

The move follows the new “pragmatic” approach which the company’s CEO said will help in forecasting sales volumes for the remainder of its 2024 financial year as European consumers continue to tighten their belts after years of soaring inflation.

(US$1= Ksh130)

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