Kerry Regulatory News (KYGA)

20 February 2018

Kerry Group

Preliminary Statement of Results

for the year ended 31 December 2017

Kerry, the global taste & nutrition and consumer foods group, reports preliminary results for the year ended 31 December 2017.

 HIGHLIGHTS

· Group revenue of €6.4 billion reflecting 4.3% business volume growth

- Taste & Nutrition €5.2 billion, +4.7% volume growth

- Consumer Foods €1.3 billion, +2.4% volume growth

· Group trading margin maintained at 12.2%

- Taste & Nutrition +20bps to 14.9%

- Consumer Foods -70bps to 8.1%

· Basic EPS up 10.1% to 333.6 cent

· Adjusted EPS* up 5.5% to 341.2 cent (+9.4% on a constant currency basis)

· Final dividend per share of 43.9 cent (total 2017 dividend up 12% to 62.7 cent)

· Free cash flow of €501m (2016: €570m)

* Before brand related intangible asset amortisation and non-trading items (net of related tax)

Commenting on the results Kerry Group Chief Executive Edmond Scanlon said; "Kerry Group delivered strong top line growth and sustained business development in 2017. Adjusted earnings per share increased by 5.5% reflecting 9.4% growth over the prior year on a constant currency basis. In 2018 we expect to deliver adjusted earnings per share growth of 6% to 10% on a constant currency basis".

Contact Information

PRELIMINARY STATEMENT OF RESULTS

For the year ended 31 December 2017

Kerry Group achieved a strong volume driven business performance above market growth rates in 2017, reflecting the Group's foundational technology capabilities and speed of innovation in response to consumer and customer requirements. The global marketplace continues to change at an unrelenting pace driven by health & wellness demands, convenience trends, channel proliferation and in particular the growth of out-of-home food and beverage consumption with continued blurring of the landscape between food retail and 'food-to-go'. Nutritional labelling requirements and regulatory changes continue to drive demand for clean label offerings across all end-use-markets providing significant opportunities for differentiated product development.

In 2017 the adaptability and agility of the Kerry Business Model proved highly effective across the increasingly fragmented marketplace through multiple retail, foodservice and ecommerce channels. The Group's focus on profitable growth was further assisted by technology investment and industry-leading RD&A expenditure in Taste & Nutrition. Taste & Nutrition Technologies and Systems achieved sustained volume growth in North America, a good performance in Latin America, a solid recovery in the EMEA region and continued double digit growth in Asia.

In the Group's UK and Irish consumer foods markets, while Kerry Foods maintained a strong category and business development focus, benefiting in particular from the increased snacking and 'food-to-go' consumption trends, the underlying satisfactory divisional business performance was impacted by adverse sterling exchange rate movements.

Business Performance

Group revenue on a reported basis increased by 4.5% to €6.4 billion reflecting strong volume growth offset by adverse currency movements. Business volumes grew by 4.3% year-on-year. Net pricing increased by 2% against a background of approximately 4% raw material price inflation. Currency headwinds accelerated during the year contributing an adverse 2.4% translation impact and an adverse 0.2% transaction currency impact relative to revenue. Business acquisitions contributed 0.8%.

Taste & Nutrition delivered 4.7% volume growth and pricing increased by 2%. Kerry Foods' business volumes increased by 2.4% and pricing increased by 2%.

The Group trading margin was maintained at 12.2%, reflecting 20 basis points improvement in Taste & Nutrition, positive underlying margin improvement in Kerry Foods offset by adverse sterling exchange rates resulting in a 70 basis points margin reduction, and an increased spend on the Kerryconnect programme.

Basic earnings per share increased by 10.1% to 333.6 cent. Adjusted earnings per share increased by 5.5% to 341.2 cent (2016: 323.4 cent) reflecting growth of 9.4% on a constant currency basis over the prior year. The Board recommends a final dividend of 43.9 cent per share, an increase of 12% on the final 2016 dividend. Together with the interim dividend of 18.8 cent per share, this brings the total dividend for the year to 62.7 cent, an increase of 12% on 2016.

Expenditure on research and development increased due to increased investment in Taste & Nutrition to €269m (2016: €261m). Net capital expenditure amounted to €297m (2016: €210m) due to increased investment in Group growth platforms, in particular in taste technologies and developing market facilities. The Group achieved a free cash flow of €501m (2016: €570m).

Business Reviews

* Volume growth

Kerry, the industry's leading, globally-connected Taste & Nutrition company, provides the largest most innovative portfolio of Taste & Nutrition Technologies and Systems, and Functional Ingredients & Actives for the global food, beverage and pharmaceutical industries.

'Mindful' consumption, driven by the connected consumer revolution, has increased demand for speedy innovation as the marketplace aligns to consumer trends favouring enhanced taste profiles, premiumisation, clean label, 'free-from', personalised, convenient, sustainably sourced food and beverage offerings. Kerry's Technology & Innovation Centre network, supporting the Group's in-market application and commercial centres achieved solid market development across all regions. Development in regional developing markets continued to advance favourably, with an excellent performance reported in the Asia-Pacific region. Demand for 'food-to-go' and out-of-home consumption continued to drive increased innovation requirements in the foodservice channel in all regions. Business performance also benefited from Kerry's commercial effectiveness programmes and the Group's continued industry-leading RD&A investment and capital expenditure programmes.

Taste & Nutrition reported revenue increased by 5.7% to €5.2 billion, reflecting 4.7% volume growth. Net pricing increased by 2%. Trading profit grew by 7.1% to €767m, reflecting a 20 basis points improvement in trading margin to 14.9%. In 2017 Taste & Nutrition accounted for 79% of Group revenue and 88% of Group trading profit.

Clean label and elevated taste requirements were to the fore in driving innovation across American end-use-markets in 2017. 'Centre of store' branded offerings continued to be adversely impacted by consumer trends in North America but demand for health & wellness, natural, organic, non-GMO, meat-free snacking lines and natural food preservation led to strong development and innovation opportunities throughout food and beverage categories across retail and foodservice channels. In Latin American markets, a solid overall performance was achieved in Brazil, Mexico and Central America but development in the Caribbean region slowed relative to the prior year.

Sales revenue in the Americas region on a reported basis increased by 3.5% to €2,678m, reflecting 3.3% volume growth, a 1.3% increase in net pricing, business acquisitions of 0.4% and an adverse translation currency impact of 1.5%.

The North American meat sector continued to provide strong growth opportunities for Kerry's clean label and authentic taste technologies. Seasonings, coatings and functional meat systems achieved a strong performance in Latin America. Savoury Taste grew well in the stocks and broths segments. Mississippi, US based Dottley Spice was acquired in October 2017 - furthering Kerry's position as a leading supplier of seasonings and coatings to the meat processing industry and foodservice sector in North America.

Culinary Foundations achieved encouraging growth in the prepared meals category. 2017 also saw an increased focus on plant based proteins and premium meat alternatives - in particular in the foodservice channel as providers launched new vegan and meal alternative menu options. Global and regional chains in Brazil also provided good growth opportunities for Culinary Systems and sauce applications.

Kerry's fermented ingredients technologies recorded strong growth in the North American meat and bakery sectors. Introduction of gluten-free, organic and non-GMO lines to the portfolio contributed to the continuing strong performance in 2017. The US $28m expansion programme at the Group's Rochester, Minnesota facility was significantly advanced to increase manufacturing capacity of naturally derived fermented ingredients.

Dairy systems recorded good growth in Brazil and the South Cone. Ben Alimentos was acquired in June expanding the Group's dairy technology capacity in Brazil. In the North American snacks sector good growth was achieved through strategic accounts across multiple technologies including sweet, dairy and culinary systems. Savoury snacks achieved continued growth in Central America and through regional accounts in Mexico. The traditional breakfast cereal category continued to decline in North America.

Kerry's TasteSense sugar reduction technology received US regulatory approval in October which will assist development in the soft drinks sector. Functional ingredients achieved good growth in the craft beer sector. Strong growth was achieved in the RTD coffee sector in North America where Kerry's 'Cold Brew' technology continues to achieve encouraging results. The foodservice sector and convenience store channel provided a solid platform for growth across American markets through extended day-part-menus and 'better-for-you' lines of food and beverage convenient offerings. The acquisition of the US based Kettle business of Tyson Foods was completed prior to year end. Operating from a production and development facility in Fort Worth, Texas; the Kettle business has a strong heritage in the North American foodservice industry with well-established key customer alliances in the QSR and fast-casual restaurant sectors.

The Group continued to advance business development and performance in the pharmaceutical sector. Cell nutrition recorded continued growth through custom-developed complex media systems. Excipients performed strongly in North America - in particular through Sheffield Anhydrous premium lines. Wellmune® recorded excellent growth in all regions including new applications in the North American dietary supplements market. Ganeden, acquired in August, performed well in particular in the beverage sector. Headquartered in Cleveland, Ohio, Ganeden produces highly stable probiotic ingredients and significantly strengthens Kerry's position in the nutritional actives market.

Despite the prevailing competitive environment compounded by currency volatility and market uncertainty due to geopolitical issues, Kerry achieved a strong business and operational performance in the EMEA region in 2017. A renewed focus on commercial effectiveness and 'in-market' customer engagement throughout the region assisted overall business performance. Growth in the foodservice sector was particularly encouraging through innovative seasonal launches and 'limited-time-offerings'. A solid performance was achieved in the UK market against a background of inflationary food and beverage trends and continuing uncertainty following the UK electorate decision to leave the European Union. In regional developing markets, trading conditions improved in Sub-Saharan Africa and Middle Eastern markets, and Kerry also continued to achieve good growth in Russia.

Sales revenue in the EMEA region on a reported basis increased by 6.2% to €1,537m, reflecting 4.2% volume growth, a 3.4% increase in net pricing, an adverse 0.1% transaction currency impact, business acquisitions of 0.8% and an adverse 2.1% translation currency impact.

Kerry taste technologies achieved double digit growth across geographies and end-use-markets in the region. TasteSense delivered a strong innovation pipeline in food and beverage categories responding to consumer demand and regulatory changes for reduced sugar.

The meat industry across Europe provided good opportunities for growth through retail and foodservice applications. Kerry recorded good growth through regional QSRs and through retail suppliers in the UK, Ireland and Russia. Coatings technologies performed well leading to investment in additional production capacity in Germany. Establishment of a new production facility to meet customer requirements in the meat and savoury snack sectors in Russia was significantly advanced in 2017. The meat and savoury snack sectors in Middle Eastern markets also provided good growth opportunities for Kerry technologies in 2017. Prior to year end, the Group acquired Galicia, Spain based Hasenosa - a leading producer of coatings (including gluten-free lines), marinades and sauces serving the meat and seafood industries in Europe. Since year end, the Group has also reached agreement to acquire Johannesburg, South Africa based Season to Season - a leading supplier of Taste ingredients and systems to the African snack and food sectors.

Dairy & Culinary technologies achieved solid growth in 2017, in particular in the foodservice sector through seasonal QSR applications including appetisers, desserts and beverages. Sweet technologies performed well in the ice cream sector, benefiting from consumer trends favouring premium lines, 'better-for-you' variants and indulgent offerings. Hydrolysed proteins recorded good growth in the confectionery and bar markets.

Beverage applications grew strongly across Europe capitalising on clean label demands and Kerry's TasteSense and Simply Nature technologies, in addition to the Group's branded foodservice offerings and delivery systems. Island Oasis was successfully launched across the Iberian market and Da Vinci continued to achieve above-market growth rates.

Nutritional technologies maintained good growth through infant and life-stage applications. Lower dairy exports from some exporting countries and strong butterfat demand contributed significant upward momentum to international dairy pricing in the first half of 2017. However, a rapid growth in milk output from Q3 saw supply outpacing demand which led to considerably lower dairy market pricing.

Excellent growth and business development momentum was maintained in Asia-Pacific markets in 2017. All Kerry technologies established in the region achieved solid growth. Development in the dynamic regional foodservice channel proved highly favourable - capitalising on Kerry's innovation capabilities and speed to market. Further expansion of Kerry's manufacturing and technology footprint was achieved through continued investment in Group facilities and strategic acquisitions.

Sales revenue in the Asia-Pacific region on a reported basis increased by 13.1% to €866m, reflecting 11.1% volume growth, 1.8% increase in net pricing, business acquisitions of 2.9% and an adverse currency translation impact of 2.7%.

Beverage systems grew strongly through tea, coffee and nutritional applications. Liquid beverage systems performed well through foodservice chains, in particular in China, Japan and Thailand. Culinary systems also performed well in the foodservice sector and through soup, sauce, and dressings applications and the bakery and snack sectors in Malaysia, Singapore, China, Australia and New Zealand. Dairy systems grew strongly throughout the region. Meat systems maintained solid growth across all channels in Australia, New Zealand, Thailand and China.

Enzymes and specialised proteins maintained good growth in Asia. Wellmune® achieved solid growth, in particular through functional beverage applications in China. The Group's operational footprint in the Asia-Pacific region was significantly expanded in 2017 through organic investment and the completion of a number of acquisitions. A regional Technology & Innovation Centre was established in Bangalore, India. Regional Application & Development Centres were established in Jakarta, Indonesia; Bangpoo, Thailand and Ho Chi Minh, Vietnam. New production facilities were established across sites located in Plentong, Malaysia; Cikarang, Indonesia; Tumkur, India; Nantong, China; Batangas, Philippines and Brisbane, Australia.

In March 2017, Taste Master was acquired in Adelaide, Australia strengthening the Group's taste capabilities in the beverage, snack, meat and culinary industries in Australia and New Zealand. In April, the acquisition of Jurong, China based Tianning Flavours was completed providing a significant boost to Kerry's savoury and sweet flavour development capabilities.

Since year end, the Group completed the acquisition of Hangzhou, China based Hangman Flavours, further strengthening Kerry's taste positioning and capabilities in Greater China. Agreement has also been reached to acquire Dachang, China based SIAS Food Co. - a leading supplier of culinary and fruit ingredients and systems to the foodservice and food manufacturing industries in China.

* Volume growth

Kerry Foods is an industry-leading manufacturer of added-value branded and customer branded chilled food products to the Irish, UK and selected international markets.

Consumer shopping trends across multiple channels have continued to heighten competitiveness in the UK and Irish consumer foods markets. At retail level, the focus on delivery of 'better value' continues through range simplification, EDLP strategies and investment in customer brands. In the UK market, in an inflationary environment, such trends have adversely impacted trading margins. Discounter chains have continued to gain market share, whilst online shopping continues to grow at pace - driven by innovation and new entrants. Snacking and 'on-the-go' consumption continues to grow, blurring the market landscape between food retail and foodservice.

Kerry Foods' business volumes grew by 2.4%. While there was some lag in price recovery in response to the impact of sterling depreciation on products exported from Ireland to the UK, pricing increased by 2%. The divisional trading profit margin decreased by 70 basis points to 8.1% as the underlying margin improvement was more than offset by the adverse sterling exchange rate movements, resulting in a trading profit decrease of 8.1% to €108m.

Snacking occasions continued to drive strong category growth in the meat and cheese categories. 'Fridge Raiders' achieved strong growth in the meat sector assisted by an increase in promotional frequency and a successful 'Call of Duty' marketing campaign. Dairy snacking grew by 11% with 'Cheestrings' and 'Attack-a-Snak' performing well in response to increased marketing support and wider distribution. In Ireland, Kerry Foods also successfully launched an innovative adult cheese snacking range under the 'Go Go's' brand. 'Charleville' also introduced the premium range 'Crafty Creations' and 'Charleville Snackfuls' snacking products.

In the grocery meats sector, the rebrand of 'Richmond' had a positive impact in the UK sausage category. 'Richmond Perfect Bake' was rebranded to 'Oven Ready' to highlight the brand's convenience benefit. Kerry Foods' brands performed satisfactorily in the Irish meats sector despite the continued focus of retailers on private label and growth of discounter sales. 'Denny' remains the number 1 meats brand in its core categories. 'Galtee' saw good growth in the sausage and sliced cooked meat categories. 'Denny Fresh Pack' was successfully launched in the cooked meats category. 'Fire & Smoke' maintained strong growth in the Irish and UK prepack meats segment. 'Fire & Smoke Snack Pots' achieved continued growth in the chilled snacking sector.

Kerry Foods' grocery dairy business maintained growth in a challenging category environment. In the UK good volume growth was achieved through private label customer brands incorporating Kerry's spreadable butter technologies. In Ireland 'Dairygold' maintained its market leadership positioning, assisted by innovative product launches and a successful 'Make a Minute' marketing campaign. The 'Dairygold Deli' range launch in 2017 created a new 'Fresh Flavours' category segment.

Kerry Foods outperformed market growth rates in chilled and frozen ready meals ranges. This performance was driven by an ongoing focus on enhanced nutrition, lower calories and salt, and clean label declarations - with a number of range relaunches and an increasing presence in health and 'free from' segments.

A strong focus on expanding channel reach in 2017 led to strong growth in 'out-of-home' segments. 'Rollover' recorded good growth and encouraging progress was achieved through pub chains and restaurant chains. The acquisition of Oakhouse Foods was completed in November, expanding Kerry Foods' chilled foods route to market through a new 'direct-to-customer' platform.

Financial Review

* Before brand related intangible asset amortisation and non-trading items (net of related tax)

On a reported basis, Group revenue increased by 4.5% to €6.4 billion (2016: €6.1 billion). Volumes grew by 4.3%, product pricing increased by 2.0%, and transaction related currency had a negative impact of 0.2%. Business acquisitions contributed 0.8%, and there was a negative reporting currency impact of 2.4%.

FY2016: Group reported revenue +0.4%, volumes +3.6%, product pricing (2.1%), transaction currency (0.3%), acquisitions +3.3%, translation currency (4.1%).

In Taste & Nutrition, reported revenue increased by 5.7% to €5.2 billion (2016: €4.9 billion). Volumes grew by 4.7%, and product pricing increased by 2.0%. Business acquisitions contributed 0.9%, and there was a negative reporting currency impact of 1.9%.

FY2016: Taste & Nutrition reported revenue +3.5%, volumes +4.0%, product pricing (2.1%), transaction currency (0.1%), acquisitions +4.9%, translation currency (3.2%).

In Consumer Foods, reported revenue decreased slightly by 0.1% to €1.3 billion (2016: €1.3 billion). Volumes increased by 2.4%, product pricing increased by 2%, and transaction related currency had a negative impact of 0.9%. Business acquisitions contributed 0.2% and there was a negative reporting currency impact of 3.8%.

FY2016: Consumer Foods reported revenue (9.7%), volumes +2.1%, product pricing (2.0%), transaction currency (1.1%), disposals (2.1%), translation currency (6.6%).

On a reported basis, Group trading profit increased by 4.2% to €781.3m (2016: €749.6m). Group trading profit margin was maintained at 12.2% reflecting good underlying margin expansion attributable to portfolio enhancement, operating leverage and efficiencies, offset by transaction currency headwinds, increased Kerryconnect investment and the denominator pricing effect.

Trading profit margin in Taste & Nutrition increased by 20 bps to 14.9% (2016: 14.7%), due to the benefits of portfolio enhancement, operating leverage and efficiencies, offset by the denominator pricing effect and currency headwinds. Trading profit margin in Consumer Foods decreased by 70 bps to 8.1% (2016: 8.8%), due to significant transaction currency headwinds in the period, partly offset by underlying margin expansion.

Computer software amortisation increased to €24.3m (2016: €23.4m) reflecting the on-going progression of the Kerryconnect project. The capitalised element of the cost of this project is being amortised over a 7 year period.

Finance costs (net) for the year decreased by €4.8m to €65.6m (2016: €70.4m) due to strong cash generation in the year and the repayment of US $192m of senior notes which matured on 20 January 2017. The Group's average interest rate for the year was 3.5% (2016: 3.5%).

The tax charge for the year, before non-trading items, was €89.5m (2016: €86.7m) representing an effective tax rate of 13.4% (2016: 13.7%).

On 22 December 2017, the US Tax Cuts and Jobs Act ("the Act") was enacted into law. This Act brings about fundamental changes to the US tax system, both from an individual and corporate tax perspective. As a result of the Act, the statutory rate of US federal corporate income tax has been reduced from 35% to 21% with effect from 1 January 2018. The reduction in the US corporate income tax rate to 21% required revaluation of Kerry's US deferred tax assets and liabilities. This resulted in a one-off deferred tax credit in 2017, which is reported in the Consolidated Income Statement as a non-trading item of €52.8m. The final impact of the changes from this new law are subject to a number of detailed provisions in the legislation and any implementation guidance issued by the Treasury Department and the IRS. Kerry will continue to monitor any developments and give due consideration to the impact of any guidance, along with ongoing market interpretation and assessment on the accounting implications of this Act.

During the year the Group completed 8 acquisitions at a cost of €397m. The acquisition of Hangman Flavours in China was completed shortly after year end.

Non-trading items totalling an income of €10.2m (2016: a charge of €13.0m) net of tax were recorded in 2017. The Group recorded a deferred tax credit arising from the recent US tax reform changes as noted above, which was largely offset by costs relating to the integration of businesses acquired in recent years and the Brexit mitigation programme underway in consumer foods.

Adjusted EPS increased by 5.5% to 341.2 cent (2016: 323.4 cent). The year-on-year increase was negatively impacted by translation currency headwinds. On a constant currency basis, adjusted EPS increased by 9.4% (2016: 12.3%) over the prior year.

Basic EPS increased by 10.1% to 333.6 cent (2016: 302.9 cent) after accounting for brand related intangible asset amortisation of 13.4 cent (2016: 13.1 cent) and a non-trading item credit of 5.8 cent net of tax (2016: a charge of 7.4 cent).

This is measured by the Group on a profit basis using ROACE and ROAE, and on a cash basis using CFROI. In 2017 the Group achieved ROACE of 13.0% (2016: 12.9%) and ROAE of 15.7% (2016: 16.5%) which were above the Group's return on investment hurdles. The Group achieved CFROI of 10.9% (2016: 12.8%) which was below the Group target as a result of capital expenditure and other strategic investments which are expected to drive business growth in the longer term.

Group results are impacted by fluctuations in exchange rates year-on-year versus the euro. The average rates below are the principal rates used for the translation of results. The closing rates below are used to translate assets and liabilities at year end.

While the exact outcome of the UK's exit from the European Union is still unclear, our Business Brexit teams continue to work through the potential implications for Kerry. Sterling mitigation plans are well progressed, as the Group continues to restructure less profitable businesses, execute the KerryExcel cost optimisation programme and reduce transaction currency exposure. Given our well established manufacturing footprint in the UK and in the Eurozone, we are very well positioned to deal with the potential challenges and realise the opportunities that will arise.

Balance Sheet

A summary balance sheet as at 31 December is provided below:

Intangible assets increased by €202.4m to €3,646.7m (2016: €3,444.3m) due to additions of €401.3m during the year which were partially offset by foreign exchange movements and the annual amortisation charge.

Current assets decreased by €208.3m to €2,031.7m (2016: €2,240.0m), primarily due to a decrease in cash in hand at 31 December 2017 arising from the repayment of US Senior Notes of $192m during the year.

At the balance sheet date, the net deficit for defined benefit schemes (after deferred tax) was €102m (2016: €291.9m). The decrease in the net deficit since the previous year end arises primarily from strong investment returns, cash contributions, and the impact of the ongoing liability management programme. The net deficit expressed as a percentage of market capitalisation at 31 December 2017 was 0.6% (2016: 2.4%).

Free cash flow is seen as an important indicator of the strength and quality of the business and of the availability of funds to the Group for reinvestment or for return to the shareholder. In 2017 the Group achieved another strong year of free cash flow of €501.3m (2016: €569.9m) despite higher capital expenditure to support future growth.

¹ Cash conversion is free cash flow expressed as a percentage of adjusted* earnings after tax

Net debt at the end of the year was €1,341.7m (2016: €1,323.7m).

A significant portion of Group financing facilities are subject to financial covenants as set out in their facility agreements. The Group's balance sheet is in a healthy position. With a net debt to EBITDA* ratio of 1.4 times, the organisation has sufficient headroom to support future growth plans. Group Treasury monitors compliance with all financial covenants and at 31 December the key covenants were as follows:

* Calculated in accordance with lenders' facility agreements which take account of adjustments as outlined in Financial Definitions.

Share Price and Market Capitalisation

The Company's shares traded in the range €64.18 to €94.30 during the year. The share price at 31 December 2017 was €93.50 (2016: €67.90) giving a market capitalisation of €16.5 billion (2016: €12.0 billion). Total Shareholder Return for 2017 was +38.6% (2016: -10.3%).

The Group's Annual Report will be published at the beginning of April and the Annual General Meeting will be held in Tralee on 3 May 2018.

The Board announces its intention to appoint Ms Marguerite Larkin as Chief Financial Officer from 30 September 2018 to succeed Mr Brian Mehigan who will take up the role of Chief Strategy Officer.

Marguerite Larkin is a senior partner with Deloitte and has held a number of leadership roles within Deloitte Ireland including Audit & Assurance and Risk Advisory leader, Head of Consumer Business Industry Practice and Client & Industries Partner. She has over 25 years global experience and has served as lead client partner for a number of the firm's largest clients operating in a broad range of industries including food & beverage, pharma and technology. She is a fellow of Chartered Accountants Ireland and holds a Bachelor of Commerce degree and Masters in accounting. Ms Larkin will be appointed to the Board on taking up the Chief Financial Officer position on 30 September 2018.

Despite the changing market landscape and significant currency volatility, Kerry businesses are well positioned to continue to grow and develop profitability, and to achieve the Group's new medium term strategic financial targets as presented at its Capital Markets Day in October 2017. The Group expects its targets to be delivered through above industry average volume growth and continued business margin expansion. Building on Kerry's breadth and depth of foundational technologies and geographic footprint, Kerry Taste & Nutrition is well placed to deliver the continued organic growth of the business across developed and developing markets. In European consumer foods markets, building on Kerry Foods' deep consumer insight and core dairy, meals and meat technologies, the business will continue to focus on its 'strategic value creation model' through occasion led propositions in response to consumer, customer and channel requirements.

The Group is in a strong position to continue to invest in the organic growth of its global businesses and to lead the continued consolidation of the industry benefiting from the Group's strong balance sheet and scalable business model.

In 2018 the Group expects to deliver adjusted earnings per share growth of 6% to 10% 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.

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017