TIDMKYGA
RNS Number : 6086J
Kerry Group PLC
28 April 2022
Date: 28 April 2022
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Q1 INTERIM MANAGEMENT STATEMENT 2022
Continued strong business growth through the first quarter
OVERVIEW
* Group volume growth 5.6% (6.3%(1) LFL volume growth)
* Taste & Nutrition 6.8 %
* Dairy Ireland 0.7%(1)
* Group pricing 5.8% (6.6%(1) LFL pricing)
* Group organic growth 11.4% (12.9%(1) LFL organic
growth)
* Group EBITDA margin +10bps
* Full year EPS guidance reaffirmed
(1) Like-for-like (LFL) growth rates exclude the Consumer Foods Meats
& Meals business disposal
Edmond Scanlon, Chief Executive Officer
"We were pleased with our start to the year despite challenging conditions
in a number of markets. Taste & Nutrition achieved continued strong
growth, particularly in developed markets. This growth was led by
the Meat, Snacks and Bakery end use markets. Growth in the retail
channel remained strong while foodservice continued its excellent
overall growth in the period.
We also made good progress on the strategic front, enhancing our
biotechnology portfolio with the acquisition of c-LEcta(2), while
expanding our local presence in emerging markets with the acquisition
of Almer(2) in Southeast Asia and further enhancing our footprint
in the Middle East and Africa.
As overall market conditions remain highly dynamic, we are actively
managing the inflationary environment in close collaboration with
our customers. As previously announced, we have taken the decision
to suspend our operations in Russia and Belarus and we continue to
work through the challenges presented in China since the introduction
of localised restrictions.
As we commence a new strategic cycle, the progress we've made positions
us strongly for growth. We are reaffirming our full year earnings
guidance."
Markets and Performance
The overall demand environment remained positive through the
period, as consumers moved to more normalised work environments and
increased their social engagement. Overall mobility approached
pre-pandemic levels, with travel and out-of-home eating occasions
continuing to increase. As consumer preferences continue to evolve
with increased demand for new food and beverage experiences,
sustainability remains a key factor in purchasing decisions, while
overall price inflation has now moved into the consciousness of
many consumers.
These dynamics are leading to challenges for customers who
continue to pursue more focused innovation strategies to meet these
evolving needs, while they seek to ensure continuity of supply and
navigate the current inflationary environment.
Group reported revenue increased by 8.1% in the period. This
comprised of business volume growth of 5.6%, increased pricing of
5.8%, a translation currency tailwind of 5.4% and contribution from
business acquisitions of 4.0%, partially offset by the impact of
the business disposal of the Consumer Foods Meats & Meals
business of 12.7%.
Group EBITDA margin increased by 10bps primarily driven by
accretion from recent portfolio developments, operating leverage
and mix, offset by the impact of passing through input cost
inflation.
Business Reviews
Taste & Nutrition
Continued good growth in the retail channel and excellent growth
in foodservice
> Overall volume growth of 6.8% with strong growth across many developed markets
> Food EUMs of Meat, Bakery and Snacks achieved excellent growth
> Pricing of 4.6% reflected the pass through of increases in raw material input costs
Taste & Nutrition delivered strong overall growth in the
period, driven by performance across many developed markets. The
foodservice channel achieved strong double digit volume growth,
reflective of continued business momentum and lower comparatives at
the beginning of the prior year. The retail channel delivered good
growth levels driven by Meat, Snacks and Bakery markets. This
growth was supported by continued strong demand for Kerry's food
waste solutions as customers continue to evaluate the
sustainability credentials of their offerings, while good growth
was achieved within authentic taste with a number of new business
wins.
Business volumes in emerging markets increased by 7.9%, as
strong growth in LATAM, the Middle East and Southeast Asia was
partially offset by challenging conditions in China.
Americas Region
> Overall volume growth of 6.7% led by Meat, Bakery and Meals
> Retail channel delivered good growth, with continued momentum in the foodservice channel
> LATAM delivered strong growth led by Mexico and Brazil
North America delivered a very good performance led by Meat and
Meat Alternatives, as strong growth was achieved through taste
innovations and increased demand for Kerry's food protection and
preservation solutions. This growth was supported by the Group's
new manufacturing facility in Rome, Georgia.
Bakery delivered strong growth through customer launches with
cleaner labels and added functionality, together with a step-up in
LTOs within the foodservice channel. Meals achieved very strong
growth through new taste solutions with quick service and fast
casual foodservice restaurant customers. Overall growth in
foodservice was strong in the period, underpinned by innovations to
reduce complexity in back of house operations, targeted menu
development and increased seasonal menu offerings. The previously
announced acquisition of Natreon, Inc.(2) also completed in the
period.
Within LATAM, Brazil and Mexico delivered strong growth. Volume
growth in Brazil was driven by performance in Meat and ice cream,
while growth in Mexico was led by new launches in Meat and within
the Snacks category with regional leaders.
Within the global Pharma EUM, good volume growth was achieved in
cell nutrition.
Europe Region
> Volume growth of 8.5% led by Meat, Dairy and Beverage
> Retail channel delivered good growth, with strong growth in
foodservice against lower prior year comparatives
> Growth in the region was led by the UK, Central Europe and Southern Europe
The region achieved strong growth across food and beverage
markets in the period. Within the Food EUM, growth was strong in
Meat through new launch activity in healthier coatings, authentic
taste innovations and clean smoke solutions. Growth in Dairy was
supported by recent dairy alternative launches in the foodservice
channel, while good growth in Snacks was achieved through new
savoury taste solutions and healthier snacking. Within the Beverage
EUM, growth was driven by innovations in nutritional beverages with
functional claims and through low/non-alcohol launches
incorporating Kerry's botanicals, natural extracts and sugar
reduction technologies.
Growth in the region was strongest in developed markets in the
period, led by growth in the UK, followed by Central and Southern
Europe, while performance in Russia and Eastern Europe was impacted
by the war in the region.
In the period the Group completed the acquisition of c-LEcta
GmbH(2), which is a leading biotechnology innovation company based
in Leipzig, Germany.
APMEA Region
> Volume growth of 6.2% driven by strong growth in the Middle East and Southeast Asia
> Growth led by Snacks, Meat and Bakery
> Foodservice achieved good overall growth and retail performed well
Growth in the region was primarily driven by strong growth in
the Middle East and a very good overall performance across
Southeast Asia, partially offset by challenges resulting from the
localised restrictions in China.
Overall growth was strong across Food EUMs. Excellent growth was
achieved in Snacks with regional leaders across the Middle East and
Southeast Asia. Growth in Meat was led by local authentic taste and
texture solutions, while growth in Bakery was supported by new
launch activity and increased demand for functional systems.
Kerry continued its expansion in the region with the acquisition
of Almer Malaysia Sdn Bhd(2) and the opening of its Jeddah, Saudi
Arabia operation, which enhances the Group's capability to deliver
sustainable taste and nutrition solutions for local customers and
consumers.
Dairy Ireland
Solid growth as business saw significant price inflation across
the period
> Overall volume growth of 0.7%(1) with increases across both
Dairy Consumer Products and Dairy Ingredients
> Pricing of 18.7%(1) reflected significant increases in dairy prices and raw material costs
In the Dairy Ireland segment, solid overall volume growth was
achieved as the business saw significant price increases across the
period.
Within Dairy Consumer Products, good volume growth was achieved
right across the dairy snacking range, led by Cheestrings with
increased out-of-home consumption. Volumes in spreadable butter
were lower due to reduced promotional activity, while the cheese
category had strong comparatives due to a higher level of at-home
consumption in the prior year.
Dairy Ingredients performance reflected significant higher
prices as a result of constrained global supply dynamics.
(2) In March 2022, Kerry completed the following
acquisitions:
-- 100% of the share capital of the company Almer Malaysia sdn
Bhd "Almer"
-- 100% of the issued share capital of the company Natreon Inc.
"Natreon"
-- c.93% of the issued share capital of the company c-LEcta GMBH
"c-LEcta"
Financial Review
At the end of March, the Group's net debt of EUR2.3 billion
reflected overall acquisition spend. The Group's consolidated
balance sheet remains strong which will facilitate the continued
organic and acquisitive growth of Group businesses. As announced on
16 February, the Group has proposed a final dividend of 66.7 cent
per share for approval at the Annual General Meeting.
Future Prospects
Our markets remain highly dynamic with a good overall demand
environment, despite current uncertain market conditions in places.
While our industry is experiencing a period of heightened
inflation, we remain confident in our ability to manage through
this current cycle with our well-established pricing model and cost
initiatives. Kerry remains strongly positioned for growth with a
good innovation pipeline. We expect to achieve adjusted earnings
per share growth in 2022 of 5% to 9% on a constant currency
basis.
Disclaimer: Forward Looking Statements
This Announcement contains forward looking statements which
reflect management expectations based on currently available data.
However actual results may differ materially from those expressed
or implied by these forward looking statements. These forward
looking statements speak only as of the date they were made, and
the Company undertakes no obligation to publicly update any forward
looking statement, whether as a result of new information, future
events or otherwise.
CONTACT INFORMATION
=============================================
Investor Relations
Marguerite Larkin , Chief Financial
Officer
+353 66 7182292 | investorrelations@kerry.ie
William Lynch , Head of Investor
Relations
+353 66 7182292 | investorrelations@kerry.ie
Media
Catherine Keogh , Chief Corporate
Affairs & Brand Officer
+353 45 930188 | corpaffairs@kerry.com
Website
www.kerrygroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUBAWRUVUSUAR
(END) Dow Jones Newswires
April 28, 2022 02:01 ET (06:01 GMT)
Kerry (LSE:KYGA)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Kerry (LSE:KYGA)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
