LONDON (Alliance News) - Irish foods company Kerry Group PLC on Tuesday reported solid annual revenue growth, with its core Taste & Nutrition business doing well.
For 2018, Kerry's revenue came in at EUR6.61 billion, 3.1% higher year-on-year, while business volumes increased 3.5% on the year.
Kerry's pretax profit rose 0.8% to EUR617.9 million, from EUR613.3 million the year before.
It is paying a final dividend of 49.2 euro cents, taking the total for 2018 to 70.2 cents, 12% higher than in 2017.
Volumes in the Taste & Nutrition business increased 4.1% on the year, while Consumer Foods volumes were up 1.1%.
Taste & Nutrition revenue climbed 4.1% to EUR5.35 billion, with developing markets growth in particular doing well with volumes growth at 9.5%.
Consumer Foods revenue was up 1.1% to EUR1.34 billion, with Kerry's Food to Go range posting a strong performance. Growth, Kerry said, was "more than offset" by a foreign exchange headwind.
Further, consumer confidence softened in the second half of 2018, with the UK retail environment continuing to struggle.
Kerry has held its trading margin flat at 12.2%, despite a 30 basis point currency headwind, with Taste & Nutrition's margin increased 20 basis points to 15.1% though Consumer Foods' margin fell 60 basis points to 7.5%.
Looking ahead, Kerry said Brexit is providing uncertainty, but it has a plan in place to limit any short-term impact.
For 2019, it is guiding for adjusted earnings per share growth of 6% to 10% excluding any currency headwinds.
Chief Executive Edmond Scanlon said: "We are pleased with our performance in 2018, with volume growth well ahead of our markets, underlying margin expansion in line with expectations and adjusted earnings per share growth of 8.6% in constant currency.
"This performance continues to highlight the uniqueness of Kerry's business model in supporting customers, as consumers continue to look for innovation and drive further marketplace fragmentation," he continued.
"We have also made good progress across our strategic growth priorities, including further developing our industry leading portfolio of taste and nutrition foundational technologies, completing a number of strategic acquisitions and investments aligned to growth priorities as planned."
Shares were 2.1% higher early on Tuesday in London at a price of EUR92.95 each.
Kerry (KYGA)