Slide 1: Q1 Interim Management Statement
1 MAY 2014 Q1 INTERIM MANAGEMENT STATEMENT
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER: FORWARD LOOKING STATEMENTS This presentation/announcement may contain forward looking statements with projections regarding, among other things, the Company’s strategy, revenues, earnings, trading profit, trading margin, finance costs, tax rate, capital expenditure, dividends, cash flow,
Slide 3: Q1 2014 Interim Management Statement
Q1 2014 INTERIM MANAGEMENT STATEMENT Brian Mehigan, CFO 3
Slide 4: Q1 2014 Highlights
Q1 2014 HIGHLIGHTS UNDERLYING CONTINUING GROUP SALES GROWTH VOLUMES PRICING TRADING MARGIN +3.3% +2.9% +0.4% +40bps › 3.3% underlying sales growth (USG) › Ingredients & Flavours +4.4% (+4.0% volume) › Consumer Foods +0.2% (-0.1% volume) › Group trading margin up 40bps › Ingredients & Flavours +60bps
Slide 5: Q1 2014 Overview
Q1 2014 OVERVIEW › Satisfactory start to 2014, despite challenging conditions in some developed markets › Solid growth in developing markets – in particular Asia and LATAM › Inflationary impact of adverse currency movements in developing markets › Kerry’s Taste & Nutrition systems performed well › F
Slide 6: Revenue Growth Analysis and Trading Margin %
REVENUE GROWTH ANALYSIS AND TRADING MARGIN % REVENUE GROWTH ANALYSIS TRADING MARGIN % Underlying Sales Growth +3.3% +0.4% +2.9% +40 bps Continuing volumes Price Q1 2013 Q1 2014 6
Slide 7: Business Review – Ingredients & Flavours
BUSINESS REVIEW – INGREDIENTS & FLAVOURS GROWTH Revenue +4.4%* Trading margin +60bps › Good market development in all regions › Continuing volumes +4.0% and pricing +0.4% › Strong operational performance contributing 60bps margin improvement › Good underlying growth in Americas despite weather impac
Slide 8: Ingredients & Flavours Revenue Analysis
INGREDIENTS & FLAVOURS REVENUE ANALYSIS REVENUE BY TECHNOLOGY* CONTINUING VOLUME GROWTH Americas +4.0% EMEA +1.0% Asia-Pacific +10.8% Ingredients & Total +4.0% Taste Solutions Savoury & Dairy 44% Beverage 19% Cereal & Sweet 18% Pharma/Functional Ingredients 10% Regional Technologies 9% Note: * Based
Slide 9: Business Review – Consumer Foods
BUSINESS REVIEW – CONSUMER FOODS GROWTH Revenue +0.2%* Trading margin +10bps › Continuing volumes (0.1%) and pricing +0.3% › Operational improvement contributed 10bps margin growth › Increased market fragmentation in response to consumer trends › Discounter and P/L offerings continue to grow › Encou
Slide 10: Q1 2014 Financial Highlights
Q1 2014 FINANCIAL HIGHLIGHTS +3.3% REVENUE Underlying Sales Growth CONTINUING VOLUMES +2.9% PRICING +0.4% TRADING MARGIN +40bps NET DEBT €1.2bn 10
Slide 11: Revenue Growth Analysis
REVENUE GROWTH ANALYSIS Underlying Sales Growth +3.3% 0.4% (1.7%) 2.9% (3.4%) 0.1% Q1 2013 Revenue Continuing volumes Price Rationalisation volumes Reporting currency Acquisitions / disposals Q1 2014 Revenue 11
Slide 12: Underlying Sales Growth Across All Businesses
UNDERLYING SALES GROWTH ACROSS ALL BUSINESSES +3.3% Underlying Sales Growth Continuing Volumes Price +2.9% +4.4% +0.4% +4.0% +0.4% +0.2% (0.1%) +0.3% Group Ingredients & Flavours Consumer Foods 12
Slide 13: Trading Margin %
TRADING MARGIN % Margin Progression +40 bps +60 bps +10 bps Group Ingredients & Flavours Consumer Foods 13
Slide 14: Currency Basket
CURRENCY BASKET 2013 2014 1.56 1.54 1.52 1.50 1.48 1.46 1.44 1.42 2013 2012 1.40 Q1 2014 Rates as of March 2014 1.38 1.36 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar April May June Jul Aug Sep Oct Nov Dec Q1 2014 % change (3.4%) 14
Slide 15: 2014 Outlook: Summary
2014 OUTLOOK: SUMMARY › Satisfactory start to year – USG momentum maintained › Significant currency related headwinds › Further development of Taste & Nutrition platforms › Excellent progress in nutritional segments in developing markets › Continued development of beverage technologies › Expansion o
Slide 16: Q1 Interim Management Statement
1 MAY 2014 Q1 INTERIM MANAGEMENT STATEMENT