During the period group revenues fell 5.9% year-on-year to nearly €3.9bn, despite a 1.7% increase in volume sales across the business.
Kerry attributed the lower reported revenue to pricing deflation of 4%, alongside the unfavourable translation currency of 0.9% and the effect from disposals net of acquisitions of 2.7%. The effect was a year-on-year fall in profit after tax from €358m to €291.1m.
Elsewhere, the group’s Taste & Nutrition division reported volume growth of 3.1% growth, led by strong foodservice performance which saw a 7.3% volume rise. This division saw a 3.4% decline in revenue for the period, while Dairy Ireland revenues fell by 12.2% following a 1.9% decline in volume.
Reflecting on Kerry’s performance during H1, chief executive Edmond Scanlon said he was pleased to see the Taste & Nutrition division deliver volume growth ahead of the group’s end markets.
“Strong profit growth and margin expansion across the business [contributed] to our earnings per share growth of 9.1% in the period,” Scanlon continued.
“Taste & Nutrition volume growth was led by strong performances in the foodservice channel across all three regions, as we continue to support established foodservice chains evolve and develop their businesses, while working with emerging leaders to upscale their operations and offerings. Volume growth in the retail channel was driven by good performances in the Americas and APMEA, led by very strong growth in Snack applications with Kerry’s leading range of savoury taste profiles and Tastesense salt-reduction technologies.”
Scanlon added that Kerry continued to invest in the organic development of the business, which included completing the acquisition of enzymes business Lactase in a deal worth €150m.
“Given the strength of our financial performance and our innovation pipeline, today we are updating our full year constant currency adjusted earnings per share guidance to 7% to 10%,” he concluded.
In other news, Italian firm Newlat has completed the £700m acquisition of Princes from Mitsubishi Corporation.
