Kerry Group has raised its dividend to shareholders by 10% after reporting a net profit of €760m on turnover of €7,350m.
The company said that volume growth was 8.0%, with business volumes in all regions above 2019 levels in the fourth quarter. Kerry said Beverage, Bakery and Meat markets delivered ‘particularly strong performances’.
CEO Edmond Scanlon commented: “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.
“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. Our earnings guidance range for 2022 reflects the group's strong growth prospects and the net effect of recent portfolio developments," Scanlon added.
Earnings per share advanced from 313c in 2020 to 430c in 2021. With the share trading at €110, the price/earnings multiple is x25.6. The dividend yield at the current share price level is 0.86%.
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Annual revenue growth of 5.7% reflected volume growth against lower prior year comparatives, increased pricing of 1.2%, and business disposals net of acquisitions of 1.7%.
The company said that the Taste & Nutrition unit delivered strong volume growth across all regions, while Consumer Foods also performed well.
Group trading profit increased by 9.8% to €876m, a trading profit margin expansion of 40 basis points.
In the results announcement, Scanlon referenced “acquisitions aligned to our strategic priorities and key growth platforms”.
These included Niacet, a global market leader in technologies for food protection and preservation, and National Vinegar Co.
In the Health & Bio-Pharma segment, Scanlon said Kerry strengthened capabilities in the areas of probiotics, botanical extracts and nutritional lipids with the acquisition of Biosearch.
The group has also agreed to acquire Natreon, which has leading capability in Ayurvedic and botanical extracts.
Scanlon added: “We significantly enhanced our biotechnology capabilities with the acquisition of Enmex, which is a well-established enzyme manufacturer based in Mexico.
“Since year-end, we reached an agreement to acquire c.92% of the issued share capital of c-LEcta in Leipzig, Germany.”
c-LEcta specialises in precision fermentation, optimised bio-processing and bio-transformation for the creation of high-value targeted enzymes and ingredients.
“It is a leading innovator in disruptive new sciences for the pharmaceutical market, with a strong pipeline of functional bioactives across food, beverage and other consumer markets,” Scanlon explained.
Kerry has also expanded its presence in emerging markets with the bolt-on acquisition of Afribon, an Africa producer of flavours for a range of food and beverage applications.
Kerry recently reached an agreement to acquire Almer, a dairy taste business based in Johor Bahru, Malaysia.
Images: Maxwells
