Kerry delivers strong growth across “highly dynamic marketplace,” Taste and Nutrition revenue rises 27.5%

29 Jul 2022 --- Kerry’s financial results for the first half of the year saw a revenue increase of 13.3% to €4.1 billion (US$4.19 billion), representing 15.2% organic growth overall.

CEO, Edmond Scanlon, is pleased with the company’s overall performance and business momentum, despite inflationary challenges and geopolitical volatility in a highly dynamic marketplace.

“Volume growth was solid in both retail and foodservice channels, driven by an increased level of innovation activity,” he notes. “This growth was broad-based across our regions, led by excellent performances in Beverage, Meat and Bakery end-use markets in particular.”

“We also made good strategic progress by expanding our footprint and completing several strategic acquisitions in the period. While recognizing the marketplace is facing a period of heightened uncertainty and volatility, this also presents significant opportunities. We remain confident in our outlook and reaffirm our full-year earnings guidance,” Scanlon underscores.

Taste & Nutrition reported revenue increased by 27.5% to €3.445 billion (US$3.517 billion), driven by volume growth, positive pricing, favorable foreign currency impacts and a positive contribution from acquisitions net of disposals.

“Excellent” and double-digit growth
Strong business volume development was achieved through the period, with growth led by the Beverage, Meat and Bakery markets in particular. 

The company’s CEO, Edmond Scanlon, says Kerry is pleased with its overall performance and business momentum for the first half of the year.The retail channel achieved excellent growth due to customers’ increased requirements for innovation support. 

The foodservice channel delivered strong double-digit growth across all regions, supported by increased seasonal menu offerings, innovations to reduce operational complexity and solutions designed to improve their overall sustainability impact.

Overall growth across the group’s key growth platforms was strong, led by increased demand for Kerry’s range of food waste solutions, with good growth across authentic taste and plant-based solutions. 

The recently acquired Niacet business continued to deliver strong growth and business development.

Business volumes in emerging markets increased by 10.7% in the period, as robust growth in the Middle East, Southeast Asia and LATAM were partially offset by challenging conditions in China due to localized restrictions.

North and Latin America regions
Reported revenue in the Americas region increased 29.1% to €1.934 billion (US$1.975 billion), driven by volume growth and contribution from acquisitions.

Growth in North America continued its strong momentum through the period, with high activity levels across retail and foodservice channels. 

This was led by the Beverage market, which delivered solid growth through innovations across refreshing beverages, functional beverages and the tea and coffee categories incorporating Kerry’s authentic natural taste, Tastesense sugar reduction and proactive nutrition technologies. 

Performance in Meat and Meat Alternatives was strong across food preservation, culinary taste and texture coating systems.

Meanwhile, Bakery delivered strong growth with customer launches in food protection and preservation and increased LTO activity within the foodservice channel.

Within LATAM, Brazil and Mexico delivered strong growth. 

Volume growth in Brazil was driven by performance in Meals and Meat, while volumes in Mexico were led by growth in Beverages and Snacks.

European highlights
Reported revenue in Europe increased by 27.5% to €729 million (US$744 million) in the period, driven by volume growth, favorable pricing and a positive contribution from acquisitions net of disposals.

Europe achieved strong overall growth in the foodservice channel. This was driven by solid menu development activity and an increased level of seasonal products.

Growth in Beverage was led by refreshing beverages, tea and coffee, and low/no alcohol with launches featuring Kerry’s natural extracts, Tastesense sugar reduction technologies and enzymes. 

Dairy delivered strong growth with innovations across dairy alternatives, ice cream and desserts within the foodservice channel. Good growth was achieved in Snacks driven by increased customer focus on enhancing their products’ nutritional profiles in light of the evolving regulatory requirements within the region. 

Growth in the Europe region was led by Central and Southern Europe, driven by a solid performance in the foodservice channel. In contrast, performance in Russia and Eastern Europe was impacted by the ongoing war in the region. 

Asia Pacific, Middle East and Africa revenues
Reported revenue in the Asia Pacific, Middle East and Africa (APMEA) region increased by 26.1% to €768 million (US$784 million), driven by volume growth and contribution from acquisitions.

Growth in the region was primarily driven by excellent performances in the Middle East and across Southeast Asia, partially offset by challenges resulting from the localized restrictions in China. The strong growth in Q2 reflected good business development across both the foodservice and retail channels.Taste & Nutrition reported revenue increased by 27.5% to €3.445 billion (US$3.517 billion).

Growth in Meat and Meat Alternatives was driven by increased demand across global, regional and local leaders for Kerry’s range of local authentic taste and texture systems. 

Snacks achieved excellent growth in savory applications across the Middle East and Southeast Asia, while Bakery delivered strong performance through new launch activity and increased demand for functional systems. 

Dairy Ireland
Solid overall volume growth was delivered in Dairy Ireland while managing the heightened inflationary cost environment, which resulted in significant price increases across the business.

Within Dairy Consumer Products, most categories saw significant price increases, leading to more challenging overall volumes. Within the spreads category, good performance was achieved across our customer-branded ranges. 

Volumes during the period in cheese snacking were impacted by reduced promotional activity and operational issues. At the same time, a new plant-based range of Dairygold products was launched at the end of the period.

Dairy Ingredients achieved good volume growth, while prices were significantly higher due to constrained global supply dynamics.

Edited by Elizabeth Green