TRALEE, IRELAND — Recent acquisitions and various trends carried the Americas region of Kerry Group P.L.C. to 19% revenue growth in the first half of the fiscal year.
The Tralee-based company on Aug. 8 reported revenues of €1,556 million ($1,742.7 million) in the Americas, which compared with €1,306.9 million in the first half of the previous year and reflected volume growth of 2.7%, contributions from acquisitions of 10% and favorable foreign currency translation. End-use markets for meat, snacks and dairy all performed well in the Americas.
In meat, Kerry supported customers seeking regional flavors, cleaner labels, natural shelf life preservation and plant-based alternatives. The acquisition of Southeastern Mills North American coatings and seasonings business, based in Rome, Ga., complemented the performance in meat.
Snacks delivered growth through healthier snacking and new world taste experiences, particularly in Latin America. Dairy benefited as the ice cream and desserts category moved toward premiumization, lower-calorie offerings and plant-based offerings. Within the end-use market for beverages, food service benefited from innovations using Ganeden probiotics and Wellmune immunity enhancing technologies.
Companywide, Kerry Group P.L.C. on Aug. 8 posted revenues of €3,568.9 million ($3,997.1 million), which were up 11% from €3,225.3 million in the first half of the previous year. Acquisitions contributed 4.7% of the growth. Volume growth was 3.3%, and translation currency had a positive impact of 2.7%.
“Good progress has been made on the integration of recent acquisitions, which are performing very well,” said Edmond Scanlon, chief executive officer of the Kerry Group.
Increased innovation opportunities came from global consumer trends, including plant-based diets, authenticity, healthfulness, convenience, clean label, sustainability and premiumization, according to Kerry.
First-half trading profit was €382.9 million ($428.8 million), up 13% from €340 million in the same time of the previous year. The Kerry Group changed its guidance for growth in adjusted earnings per share in the fiscal year to 7% to 9% in constant currency. The previous guidance was 6% to 10%.
In Kerry’s worldwide Taste & Nutrition segment, revenues of $2,915 million were up 13% from €2,579 million in the first half of the previous year. Volume growth was 3.8%. First-half trading profit increased 15% to €388.1 million from €338.9 million.
In Kerry’s worldwide Consumer Foods segment, revenues of €689.4 million were up 0.6% from €685.4 million in the first half of the previous year. Volume growth was 0.6%. First-half trading profit increased 0.4% to €48 million from €47.8 million.