Kerry Group Plc · EURONEXT:KRZ
Kerry — Q1 2020 Earnings Presentation
15 slides from Kerry's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Interim Management Statement
Q1 2020 Interim Management Statement 30 April 2020
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: Q1 IMS
Q1 IMS 1 Business Update Performance 2 Review 3 Outlook Edmond Scanlon, Marguerite Larkin, Chief Executive Officer Chief Financial Officer © Kerry 2020 | 3 |
Slide 4: Q1 2020 Overview
Q1 2020 Overview Volume Growth Strategic Developments COVID Response 4.7% 4.1% 4.0% Rome, Georgia 1.2% Shanghai, China 2017 2018 2019 Q1 2020 Taste & Nutrition TecniSpice, Guatemala © Kerry 2020 | 4 |
Slide 5: COVID-19 – Our Role & Priorities
COVID-19 – Our Role & Priorities Our People: Safety and wellbeing of all our employees Our Customers: Working with our customers to ensure products continue to reach consumers around the world Our Community: Providing PPE to healthcare workers and food to the vulnerable, producing hand sanitiser at
Slide 6: COVID-19 – Short Term Market Dynamics across the Supply Chain
COVID-19 – Short Term Market Dynamics across the Supply Chain Consumer Customer Industry HOW people are purchasing Interpreting demand Supply chains tested WHERE people are consuming Employee safety / operational efficiency Resource redeployment capability WHAT people are Agility critical Full suppo
Slide 7: COVID-19 – Impact & Actions
COVID-19 – Impact & Actions Impact to Date • China – business impact in line with guidance issued in February • Taste & Nutrition foodservice channel – significant disruption since March • Taste & Nutrition retail channel – major shifts in recent weeks, with a number of customers benefitting from ca
Slide 8: Q1 2020 Performance
Q1 2020 Performance • Group reported revenue +3.4% • Group volume growth +0.2% (+3.7% excluding one-off items¹) • Taste & Nutrition +1.2% • Consumer Foods -4.8% • Pricing of +0.5% • Group trading margin maintained (+30bps excluding one-off items) • Taste & Nutrition maintained • Consumer Foods +10bp
Slide 9: Group Revenue Growth Analysis
Group Revenue Growth Analysis Q1 2019 Q1 2020 3.4% Volume Volume 1 0.2% 3.6% Translation Transaction Acquisitions Price currency currency / disposals 1.3% 0.1% 0.5% 1.3% © Kerry 2020 | 9 | ¹ volume growth of 3.7% excluding one-off items
Slide 10: Business Review – Taste & Nutrition
Business Review – Taste & Nutrition Growth 1 Revenue +1.2% Trading margin Maintained Continued volume growth of 1.2% despite China lockdown and further Foodservice impact from restrictions on movement in APMEA and Europe Retail channel delivered a robust performance • Snacks, Beverage, Dairy and Pha
Slide 11: Taste & Nutrition – Business Growth by Region
Taste & Nutrition – Business Growth by Region Americas Europe APMEA +3.2% +1.0% -3.5% • Strong growth, led by an • Good underlying growth, pre • Business volume growth significantly excellent performance across foodservice channel impacted by restrictions in China as guided, Beverage and Snacks rest
Slide 12: Business Review – Consumer Foods
Business Review – Consumer Foods Growth 1 Revenue -4.8% / +2.8% Trading margin +10bps • Solid underlying performance excluding impact of ready meals contract exit Everyday Fresh • Richmond – solid performance • Positive impact in the quarter from COVID-19 of circa 1.5% • Spreadable butter – benefitt
Slide 13: Other Matters
Other Matters Kerryconnect North America deployment on track Raw materials Overall input costs showing slight inflation driven by Consumer Foods Currency Relatively neutral impact expected on EPS COVID-19 Actions Cost management to limit short term impact, while continuing to invest in strategic pri
Slide 14: Outlook 2020
Outlook 2020 • Due to uncertainty around duration and impact of COVID-19, FY 2020 guidance withdrawn • Taste & Nutrition: managing through the short term challenges to emerge an even stronger customer partner • The foodservice channel remains challenged while restrictions are in place. We are focusi
Slide 15: Q1 2020 Interim Management Statement
Q1 2020 Interim Management Statement 30 April 2020