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(Alliance News) - Kerry Group PLC on Thursday updated its annual earnings guidance as first half profit and revenue rose on a strong performance from core Taste & Nutrition business.
For the six months to the end of June, the Irish foods company reported a pretax profit of EUR272.4 million, up 5.3% from EUR258.7 million the year before.
Trading profit, which is operating profit before asset amortisation and non-trading items, rose by 13% to EUR382.9 million from EUR340.0 million, with a higher trading margin of 10.7% compared to 10.5% the year before.
This was mainly on double digit growth in revenue, rising by 11% to EUR3.57 billion from EUR3.23 billion the prior year, reflecting volume growth of 3.3%, contribution from acquisitions of 4.7% and a favourable currency impact of 2.7%.
In the Taste & Nutrition segment, revenue increased by 3.8% to EUR2.92 billion, driven by volume growth fostered by meat, snacks and beverage end use markets.
Consumer Foods meanwhile saw revenue rise by 0.6% to EUR689 million, in spite of a challenging market environment cause by lower consumer confidence and structural changes in the retail environment.
Kerry declared an interim dividend of 23.5 cents per share, up 12% from 21.0 cents the prior year.
Looking ahead, Kerry has updated its guidance for 2019, now expecting growth in adjusted earnings per share of 7% to 9% in constant currency, compared to its previous guidance of 6% to 10%.
"We are pleased with business performance in the period, as the group continued to deliver volume growth ahead of the market while expanding trading margins in line with expectations," said Chief Executive Officer Edmond Scanlon.
"While heightened consumer pricing and uncertainty impacted market volume growth rates in some developed markets, our unique and industry-leading business model and integrated taste and nutrition positioning continued to deliver significant value for our customers in meeting rapidly evolving consumer needs," Scanlon added.
Shares in Kerry were up 3.3% at EUR106.90 on Thursday in London.
