Kerry Group has reported a 4.9% increase in group revenue to €3.6 billion in the half-year to 30 June, with the business citing 'strong growth' in retail and 'good progression and momentum' in foodservice.
The group, which recently announced the divestment of its Consumer Foods' Meats and Meals business to Pilgrim's Pride, said that volumes in its Taste & Nutrition arm were up 9.8% for the half-year, while Consumer Foods was up 4.6%.
Looking at its performance on a quarterly basis, Taste & Nutrition saw a 18.1% increase in volumes in the second quarter, while Consumer Foods volumes were up 8.5%.
Trading profit rose by 13.0% to €357 million in the period, while trading profit margin was up 70 basis points to 10.0%, primarily due to the recovery of operating leverage following last year's COVID-19 affected period.
Kerry Group Confident Of Future Growth
Overall, the group said that at-home consumption remains 'elevated' at present, as consumers' daily routines continue to evolve, while the foodservice channel is 'continuing its trajectory of gradual overall recovery'.
"We are pleased with overall performance in the period, reflecting continued strong growth in our retail channel, with good progression and momentum in foodservice while lapping lower prior year levels," commented Edmond Scanlon, chief executive.
"The Americas had good overall volume growth, Europe delivered an excellent relative performance, while growth in APMEA remained strong despite challenging conditions in some local markets. A number of our end use markets had strong category development in the period, with Beverage in particular achieving excellent growth."
Within its Taste & Nutrition business, the group's Americas region reported revenue of €1.54 billion (a 0.3% decrease), with volumes up 8.1%, while revenue in Europe came in at €722 million, a 9.9% increase. In APMEA (encompassing Asia Pacific, Middle East and Africa), revenue was €646 million, a 14.0% gain.
In Consumer Foods, meanwhile, revenue stood at €674 million, with the business seeing a 4.6% increase in volume.
Commenting on its performance, analysts Cathal Kenny and Roland French of Davy said, "Highlights of the Q2/H1 result include confirmation of an improving volume cadence for Taste & Nutrition (Q2 volumes +18%) with a strong margin rebuild and strengthening cash generation.
"Company guidance has been updated for previously announced portfolio changes and strong volume delivery. Business fundamentals remain healthy, underpinned by broad-based customer engagement, commercial pipelines and a reinvestment mindset."