Kerry revenue down 3.5%

Food group Kerry said revenue in the first four months of 2009 is down 3.5% on a like-for-like basis but its trading profit margin reflects an increase of 40 basis points over the same period last year."The group is trading ahead of target at EBIT level and is confident of delivering earnings growth in 2009 to a range of 160 cent to 165 cent per share as guided at the start of the year," said the group,"Despite the prevailing economic/market conditions, the Group is on target to achieve sustained margin improvement and is progressing solidly towards our long-term growth targets' it added.While volumes increased slightly, total ingredients & flavours sales revenue was flat on a reported basis and 2% lower on a like-for-like basis, hit by the downturn in primary ingredients, in particular dairy and fruit preparations. The challenging economic environment in the UK and Ireland has impacted all consumer food categories. Overall volumes were 3% lower in the period with total divisional sales revenue reduced by 8% on a like-for-like basis.Kerry said it has decided to downsize its investment in the fruit ingredients business in France. The subsequent plant closure and asset write down will cost approximately €40m in the current year.