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(Alliance News) - Kerry Group PLC on Wednesday reported an increase in profit for 2021 and sees further growth ahead despite inflationary pressures.
Revenue for 2021 grew 5.7% to EUR7.35 billion from EUR6.95 billion the year before, with pretax profit advancing 28% to EUR816.3 million from EUR635.3 million.
The revenue result reflected strong volume growth of 8.0% against lower prior-year comparatives and increased pricing of 1.2%, partially offset by a currency translation hit of 1.8% and business disposals net of acquisitions of 1.7%.
As well as the increase in sales, also boosting profit was a 40 basis points improvement in the trading profit margin to 11.9%.
"Market conditions have been highly dynamic across the year, with a strong overall demand environment combined with high degrees of variability across geographies and channels. At-home consumption remained strong, with foodservice improving as consumers embraced the opportunities for more out-of-home social engagement and food consumption," the Tralee, Ireland-based nutrition products firm said.
By division, Taste & Nutrition revenue was up 9.0% while Consumer Foods sales were down 11% due to the sale of the Meats & Meals business.
"The year was important for Kerry from a strategic perspective. We continued to enhance our position as a market-leading taste and nutrition company with a number of strategic portfolio developments, while further enhancing our local footprint to support our growth ambitions," said Chief Executive Edmond Scanlon.
He added: "While recognising that current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle."
Adjusted earnings per share of 380.8 cents in 2021 were up 12% on a constant currency basis, and are expected to grow by between 5% and 9% in 2022.
Kerry declared a dividend of 95.2 cents for 2021, up 10% on 86.5 cents in 2020.
Shares in Kerry were up 2.3% at EUR110.05 in London early Wednesday.
By Lucy Heming; lucyheming@alliancenews.com
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