Kerry results boosted by recent acquisitions

The Irish based supplier reported to perform ‘satisfactorily’ in the first quarter of 2012 with reported sales revenue increasing by 9.7% - reflecting a 3.8% growth over Q1 in 2011 when acquisitions and currency translation are taken into account.

Speaking with FoodNavigator, Frank Hayes, director of corporate affairs for Kerry Group said that the companies acquisitions – which include the €170 million buy-out of Cargill’s flavour business and the purchase of South Africa based FlavourCraft – have “performed very well”​ in the first quarter of 2012.

Hayes said that the integration of the new businesses into Kerry’s portfolio was progressing well, noting that the acquisition of Cargill flavor systsms had boosted the groups ingredients and flavours business both in emerging markets and at home in Europe. He revealed that the buy-out has boosted the Irish supplier’s foothold in the flavours market: “particularly in the development of beverage flavours.”​

“Each of the acquisitions have been important steps in Kerry’s ambition to grow and develop,”​ said Hayes.

Flavour performance​

Kerry revealed that revenues in its ingredients and flavours businesses increased by 13.8% - reflecting 4.9% like-for-like growth over 2011. 

In particular the company said that dairy systems achieved good growth in the US frozen desserts sector, whilst coatings systems “maintained solid growth in the meat sector.”​

European growth was impacted by ‘weak consumer sentiment’; however the company maintained a ‘satisfactory’ performance with revenues up 2.9% over last year.

Functional ingredients were reported to achieve good growth performance, whilst cereal and sweet technologies “continued to perform well.” ​

Developing markets​

Hayes said strong growth in the developing markets of Asia-Pacific were “driven by increased business with major food customers,” adding that Asia “continues to be a strong region for the group.”
He noted that the Irish-based giant saw a 12.2% growth in sales from the same period in 2011 for the region, noting in particular that lipids achieved strong growth in nutritional applications – especially in the infant nutrition sector. 

In particular, the acquisition of Cargill's flavour business last year has brought new facilities in the region into the Kerry portfolio, said Hayes.