Kerry Group interim figures report €4.1bn revenue
The latest trading figures from Irish manufacturer Kerry Group has confirmed that revenue for the first half of 2022 increased by 13.3% to €4.1 billion, compared to the same period last year.
According to the manufacturer, the increase in revenue reflects, amongst other factors, a volume increase of 6.8%, increased pricing of 8.3% and contribution from acquisitions of 4.7%. This was partially offset by the disposal of the Consumer Foods Meats and Meals business of 12.4%.
The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13.1% to €518 million. EBITDA margins were maintained at 12.8%, primarily driven by the benefits from operating leverage, mix, efficiencies and portfolio development.
However, the company reported that its EBITDA was offset by the impact of passing through raw material cost inflation.
According to Kerry Group, the overall demand environment was positive through the period. The importance of value options has increased for consumers, while sustainability remains an important consideration.
The report stated that the resilience of supply chains remains a key focus across the industry due to geopolitical volatility and inflationary pressures. Despite these challenges, the level of customer innovation remains strong, and the level of innovation support needs continues to expand, with customers continuing to evaluate the relevance and uniqueness of their product ranges.
Growth despite ongoing challenges
Chief executive officer Edmond Scanlon said that the Group was pleased with its overall performance and business momentum, despite inflationary challenges and geopolitical volatility in places.
He said: “Volume growth was very strong in both retail and foodservice channels, driven by an increased level of innovation activity. This growth was broad-based across our regions, led by excellent performances in Beverage, Meat and Bakery end use markets in particular.”
Scanlon added that whilst the company recognises the marketplace is facing into a period of heightened uncertainty and volatility, there are “significant opportunities” as a result: “We remain confident in our outlook and are reaffirming our full year earnings guidance.”