Kerry Group Pulls Back From Sale Of Assets To Kerry Co-Operative Creameries
Ireland's Kerry Group has announced that it has suspended discussions about the potential sale of some of its dairy assets to Kerry Co-Operative Creameries Limited.
The group announced a 'strategic review' of its dairy-related businesses in Ireland and the UK in February 2021.
In a statement on its website, Kerry Group said that as part of this review, 'discussions with Kerry Co-Operative Creameries Limited in relation to a potential transaction have been suspended'.
While the review is ongoing, Kerry Group added, 'there is no certainty that this will lead to a transaction and a further update on the strategic review process will be communicated later this year'.
The proposed assets up for sale included dairy operating facilities in sites in Yorkshire, Northern Ireland and Ireland, as well as a number of dairy brands, including Cheestrings and Charleville, just-food.com reported.
Kerry Group Performance
Earlier this year, Kerry Group announced group revenue of €7 billion for its most recent financial year, which was down 4.0% on the previous year, while volumes fell by 2.9%. Trading profit for the year was €797.2 million, down 11.7% on the previous full-year period.
Revenue in its Consumer Foods business was €1.28 billion (2019: €1.31 billion) reflecting a reported revenue decrease of 2.1%.
Commenting on the future prospects for the business, Edmond Scanlon said at the time that it saw "strong growth prospects" in the retail channel, along with "continued recovery" in foodservice.
"We will continue to invest for growth and enablement of our business model, while continuing to pursue M&A opportunities aligned to our strategic growth priorities," he said. "Kerry’s unique business model, broad taste and nutrition portfolio and industry-leading integrated solutions capabilities are more critical than ever, as we support our customers through this dynamic environment."