Kerry Group Plc · EURONEXT:KRZ
Kerry — Q3 2017 Earnings Presentation
13 slides from Kerry's earnings presentation, November 2017
Slide 1: Q3 2017 Interim Management Statement
Q3 2017 Interim Management Statement November 2017
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 Group’s strategy, revenues, earnings, trading profit, trading margin, finance costs, tax rate, capital expenditure, dividends, cash flow, n
Slide 3: Performance Overview
Performance Overview Brian Mehigan Chief Financial Officer
Slide 4: Strong Underlying Performance
Q3 YTD 2017 HIGHLIGHTS Strong Underlying Performance • Volume growth +4.2% VOLUME GROWTH • Taste & Nutrition +4.6% 4.6% • Consumer Foods +2.5% 4.2% • Pricing +2.0% • Group trading margin maintained • Underlying margin expansion offset by transaction currency headwind 2.5% • Taste & Nutrition +20bps
Slide 5: Q3 YTD 2017 Business Overview
REVIEW OF Q3 YTD 2017 Business Overview BUSINESS • Developed – overall stable while consumer trends driving major disruption and fragmentation MARKETS • Developing – general improvement in market dynamics • Strong volume growth – continued growth ahead of our markets HIGHLIGHTS • Inflationary input
Slide 6: Q3 YTD Revenue Growth Analysis
REVIEW OF Q3 YTD Revenue Growth Analysis BUSINESS Q3 YTD Q3 YTD 2016 2017 4.5% Volume Volume 4.2% 3.6% Translation Transaction Acquisition/ Price currency currency disposal (1.9%) (0.3%) 2.0% 0.5% 6
Slide 7: Taste & Nutrition
Taste & Nutrition REVIEW OF BUSINESS YTD GROWTH Revenue +4.6%* Trading margin +20bps • Volume growth ahead of our markets: REVENUE GROWTH BY REGION* 10.9% - Good growth across global, regional & local customers - Strong growth in clean label, natural extracts & our nutritional portfolio 4.6% • Foods
Slide 8: Consumer Foods
Consumer Foods REVIEW OF BUSINESS YTD GROWTH Revenue +2.5%* Trading margin (70bps) • Volume growth led by good growth in Food-to-go and Convenience Meal Solutions • Inflationary environment with 1.9% average pricing across the period • Innovations performing well – e.g. Fire & Smoke meat snacking &
Slide 9: M&A Update
M&A M&A Update UPDATE NUTRITION, DEVELOPING AUTHENTIC TASTE WELLNESS & MARKETS FOODSERVICE FUNCTIONALITY Taste Master Tianning Hangman Ben Alimentos Ganeden Dottley Spice Kettle (Tyson) Consideration of €420m 9
Slide 10: Other Financial Matters
FINANCIAL Other Financial Matters MATTERS Raw Materials Inflation continues – increases in dairy, protein, naturals and vanilla Acquisition Progressing as planned, new acquisitions to be incorporated Integration Action plan progressing – restructuring unprofitable businesses, cost optimisation Brexi
Slide 11: Kerry Business Model – Our Platform for Growth
BUSINESS Kerry Business Model – Our Platform for Growth MODEL Foundational Integrated Technology Value Creation Channels & Customers Technologies Retail & Foodservice Authentic Taste Taste & Nutrition Nutrition, Wellness Culinary Development & Product Process Solutions & Insights Applications Techno
Slide 12: Future Prospects
OUTLOOK AND FUTURE Future Prospects PROSPECTS • Continued growth ahead of our markets • Unique Kerry business model for global, regional and local customers • Innovation and agility the key drivers of growth • Continued investment for growth • Continued enhancement in breadth and depth of our founda
Slide 13: Q3 2017 Interim Management Statement
Q3 2017 Interim Management Statement November 2017