Kerry Releases 2010 Revenue Statement

TRALEE, Ireland—Kerry reported that 2010 year-end sales revenue increased by 9.7% (4.6% LFL) to €5 billion, with a 5.5% increase in continuing business volumes. Trading profit increased by 11.3% to €470m. Ingredients & Flavours trading margin was up 50 basis points to 10.9%, with the Consumer Foods trading margin up 40 basis points to 7.5%.
“Kerry Group achieved excellent results in 2010," said Kerry Group Chief Executive Stan McCarthy. “Business development in the Group’s established and emerging markets proved highly successful, delivering strong volume growth and good margin progression. We achieved a 16.8% increase in earnings per share to 194.5 cent. Taking into account the phasing of raw material cost recovery and exchange rate variability, we expect to achieve growth in adjusted earnings per share in 2011 to a range of 210 to 218 cent per share".
The Group’s Ingredients & Flavours businesses reported a sales revenue increase of 12.7% on a reported basis and 6.6% on a like-for-like basis relative to the prior year. The company said the solid growth in business volumes and trading profits was achieved despite the significant upward trend in input costs, including cereal, dairy, sugar, edible oils and energy costs in the second half of 2010. This performance was driven by the successful execution of Kerry’s ‘go-to-market’ strategies in all regions and delivery of successful innovative applications in partnership with key customer accounts throughout the food processing, beverage and foodservice industries.
The company reported that economic conditions in the UK and Ireland continued to adversely impact food and beverage demand, with shoppers budgeting cautiously and promotional activity playing an increasingly prominent role.