Record profits of €500m for Kerry

Kerry Group has defied the tough trading environment to post “milestone” profits of half a billion euros.

Group sales revenue increased by 6.9% to €5.3bn (£4.4bn) in 2011, Kerry announced in its preliminary results this morning. Like-for-like growth – discounting the effect of acquisitions and currency translation – stood at 6.4% and the company achieved a €501m trading profit.

Kerry had delivered profitable growth in 2011 despite weak consumer confidence in many markets and significant raw material and input cost inflation, said group chief executive Stan McCarthy.

“The group performed well across developed and developing markets while continuing to build our capabilities and positioning for the future,” he said.

Kerry said it was confident of meeting its growth objectives for 2012 and expected to achieve growth of 7% to 10% in earnings per share.

Raw material costs increased by 8% year-on-year and the group had proved successful in recovering costs in its ingredients and flavours markets. There had been a lag in cost recovery in the group’s consumer foods’ business, but it would be overcome “through continuing business efficiency projects and pricing actions,” the company said.