Slide 1: Q3 2016 Interim Management Statement
> Q3 2016 Interim Management Statement 2 November 2016
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: Q3 2016 Interim Management Statement
Q3 2016 Interim Management Statement Brian Mehigan 3 CFO Kerry Group
Slide 4: Q3 YTD 2016 Highlights
Q3 YTD 2016 Highlights • Volume growth +3.2% Volume Growth • Taste & Nutrition +3.4% 3.4% 3.2% • Consumer Foods +2.2% 2.2% • Pricing (2.2%) • Group trading margin up 70bps T&N Foods Group • Taste & Nutrition +70bps Margin Expansion • Consumer Foods +30bps • Kerryconnect cost reduction 70 bps 70 bps
Slide 5: Q3 2016 Overview
Q3 2016 Overview Markets • Developed - overall demand remains soft • Developing - remains challenging due to economic instability in some regions Kerry • Solid volume performance outperforming the market • Deflationary input cost environment continued • Acquisitions performing well Business Performa
Slide 6: Revenue Growth Analysis
Revenue Growth Analysis Q3 YTD Q3 YTD 2015 2016 0.4% Volume 3.2% Translation Transaction Acquisition/ Currency Price Disposal Currency (4.5%) (0.3%) (2.2%) 4.2% 6
Slide 7: Business Review – Taste & Nutrition
Business Review – Taste & Nutrition YTD GROWTH Revenue +3.4%* Volume Growth by Region Trading margin +70bps • Volume growth – outperforming our markets – winning on technology driving enhanced product mix 9.6% • Clean label product innovation – delivering strong growth • Price deflation of 2.2% – re
Slide 8: Business Review – Consumer Foods
Business Review – Consumer Foods YTD GROWTH Revenue +2.2%* Trading margin +30bps • Volume growth led by snacking & meal solutions • Deflationary environment continued • New Innovation – e.g. launched Fire & Smoke meat snacking, Dairygold Softer Butter & Pure ‘Free-From’ meals range • Continued inves
Slide 9: Other Matters
Other Matters Currency Continuing currency headwinds due to fall in Sterling Brexit Business teams in place in both businesses to manage challenges & opportunities Raw Materials Cycle moving from deflation to inflation Cash Flow Business profitability converting to strong cash generation 9
Slide 10: Future Prospects
Future Prospects • Continued growth ahead of our markets • Good innovation pipeline • Helping our customers manage change & churn via our holistic business model • Further investment in our science & technology for tomorrow’s consumer • Innovation for growth markets – nutrition, general wellness, cl
Slide 11: Q3 2016 Interim Management Statement
> Q3 2016 Interim Management Statement 2 November 2016