Chief executive of Kerry Group Edmond Scanlon has said that the ingredients company delivered “a solid performance” in 2023, despite overall consumer market volumes remaining “relatively muted.”
Scanlon said: “Overall Taste & Nutrition volume growth represented an outperformance of our markets. Asia Pacific/Middle East/Africa (APMEA) and Europe achieved good volume growth led by a strong performance in the foodservice channel, while volumes in North America were impacted by stocking dynamics and softer market conditions. Dairy Ireland performance reflected challenging market conditions across the year. We were pleased with our good progress in expanding our EBITDA margin and reporting strong free cash flow generation.”
He added: “As we begin 2024, Kerry’s innovation pipeline is strong, though overall consumer market volumes remain relatively muted, which is reflected in our guidance for the year of 5% to 8% adjusted earnings per share growth in constant currency.”#
Reported revenue in the Europe region of €1,517 million reflected volume growth of 2.9% and positive pricing of 6.4%, more than offset by an unfavourable translation currency of 1.4% and the effect from disposals of 10%.
Growth within the region was led by strong performances in the UK and Ireland, according to the report. Dairy achieved good growth led by performances in dairy applications for the foodservice channel. Snacks delivered strong growth through savoury taste and Tastesense™ salt reduction technologies, while Meals performance was supported by nutritional enhancements and taste solutions in stocks and broths.
Total Group revenue for the year was €8,020 million reflecting a decrease of 8.6%. Its Taste & Nutrition business volumes increased by 1.1% while Dairy Ireland volumes decreased by 6.5%.
Group earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin increased by 60bps. Group EBITDA for the year was €1,165 million (2022: €1,216 million) as organic profit growth was more than offset by the impact of disposals net of acquisitions and “unfavourable translation currency.”
