Ireland-based Kerry Group has said that reported revenue at its consumer foods division was up 0.6% to €1.34 billion in its 2018 financial year.
Volume growth in the division, which includes brands such as Richmond and Cheestrings, was up 1.1%, however performance was offset by foreign currency headwinds, the company said.
‘Consumer confidence softened noticeably in the second half of the year, leading to reduced consumption across a number of categories,” Kerry Group said of the division’s performance.
‘The UK retail environment continues to undergo major structural change through increased consolidation of major retailers, further growth of discounter volumes and ranges, and pressure on high street stores ‐ all leading to the need for more streamlined and dynamic supply chains.”
Overall, group revenue at Kerry Group was €6.6 billion, an increase of 3.1%, including volume growth of 3.5% and a pricing decrease of 0.5%.
Its Taste & Nutrition business, which includes its food ingredients businesses, posted revenue of €5.35 billion, which included volume growth of 4.1% and a pricing decrease of 0.5%.
“We are pleased with our performance in 2018, with volume growth well ahead of our markets, underlying margin expansion in line with expectations and adjusted earnings per share growth of 8.6% in constant currency,” said Edmond Scanlon, Kerry Group’s chief executive officer.
“We have also made good progress across our strategic growth priorities, including further developing our industry leading portfolio of taste and nutrition foundational technologies, completing a number of strategic acquisitions and investments aligned to growth priorities as planned.
"In 2019 we expect to deliver adjusted earnings per share growth of 6% to 10% on a constant currency basis.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.