Kerry Group has raised its interim dividend by 11.1% to 15 cent after adjusted earnings per share advanced by 8.1% in the first half of 2015.

Chief Executive Stan McCarthy said: “We delivered a strong financial performance in the first half of 2015 reporting continued business margin expansion and an 8.1% increase in adjusted earnings per share. Based on group year-to-date performance, current exchange rates and business momentum, we are increasing our market guidance for the full year.”

Group revenue in the six month period was €3 billion, up 2.7%. Trading profit increased by 9% to €300m and the trading margin increased by 40 basis points to 9.9%.

Currency factors relative to the first half of 2014 contributed a positive 8.4% translation impact to revenue. The Ingredients & Flavours division achieved 3% growth in business volumes relative to H1 2014 and pricing was 2.8% lower. Kerry Foods’ business volumes grew by 1.9% and pricing reduced by 2.6%.

Basic earnings per share increased to 135.2 cent (H1 2014: 110.8 cent).

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Davy analyst Jack Gorman commented: “Results are broadly in line with expectations. With solid underlying trading momentum, Kerry has increased its full year EPS growth guidance to a 6-9% range, or 296-304c.

“During the period, Kerry completed five acquisitions for a total consideration of €156m. M&A activity year-to-date has included a selection of emerging market bolt-ons (in Turkey, Costa Rica) and technology-related additions (KFI Savory from Kraft Food Ingredients, Insight Beverages). The Pinnacle bakery business accounted for most of the disposal proceeds in the period.

“Kerry continues to retain substantial flexibility to put its balance sheet to work, notwithstanding healthy levels of investment capex spend at present.”

Currently trading at the €71 level, the Kerry Group has gained 22% in value year to date.

Kerry Group CEO Stan McCarthy