Kerry Group’s sales for the six months ended June rose 13.3 percent to 4.1 billion euros, driven by higher sales and higher consumer prices.
The profits come despite inflation and the cost of selling the Russian business.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13.1 percent to 518 million euros, with the group maintaining its EBITDA margin at 12.8 percent.
The group announced an interim dividend of 31.4 cents per share, up 10.2 percent year-on-year.
Volumes rose 6.8 percent – led by the flavor and nutrition division, where growth was 8.6 percent – while prices rose 8.3 percent.
Reported Flavor & Nutrition sales increased 27.5 percent to EUR 3.4 billion, with EBITDA increasing 24.9 percent to EUR 515 million. Prices rose 5.9 percent due to cost inflation.
Within the Flavor and Nutrition division, volume growth in the Americas region was 9.1 percent, and reported sales rose by 29.1 percent to EUR 1.9 billion.
Volumes in Europe increased by 7.1 percent, reported sales rose by 27.5 percent to EUR 729 million.
Asia-Pacific, Middle East and Africa saw volume growth of 9.1 percent, with reported sales in the region increasing 26.1 percent to EUR 768 million.
Dairy Ireland reported a 31.2 per cent increase in reported revenue to €695 million, with prices rising 27.8 per cent due to raw material cost inflation, which also resulted in a decline in the EBITDA margin.
Kerry also had gains on a favorable currency transaction, acquisitions and the divestment of its meat and convenience food business during the period.
During the period, the group completed the acquisition of Malaysian ingredients maker Almer and US sports nutrition group Natreon for a total of €267.4 million.
The Group incurred charges from non-trading items of €62.1 million after tax in the first half, mainly due to the impairment of its Russian and Belarusian assets.
It has now fully divested its subsidiary in Russia to local management and reached an agreement to sell its subsidiary in Belarus to a third party.
There was growth across all regions, with Beverages, Meats and Bakery seeing the largest gains.
Currency-neutral earnings per share increased 9 percent to 176.4 cents (up 16.1 percent in reporting currency).
Basic earnings per share were 128.4 cents, compared to 128.2 cents for the same period in 2021, with growth offset by costs in Russia and Belarus.
Free cash flow was €226 million compared to €222 million in H1 2021.
In a management interim report on Friday, Kerry Group chief executive Edmond Scanlon said he was “comfortable” with the group’s overall performance despite “inflationary challenges and some geopolitical volatility.”
“We have continued to make good progress in actively managing the unprecedented inflationary environment in partnership with our clients as we help them develop their offerings to meet the rapidly evolving market,” said Mr. Scanlon.
“While we recognize that the market is facing a period of heightened uncertainty and volatility, it also presents significant opportunities. We remain confident on our outlook and reiterate our full-year earnings guidance.”
https://www.independent.ie/business/irish/kerry-group-sees-uptick-in-revenue-and-earnings-despite-inflation-and-russia-losses-41876236.html Kerry Group sees sales and profits up despite inflation and losses in Russia