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, net debt or other financial measures, the impact of foreign exchange fluctuations, the impact of raw material fluctuations and other competitive pressures. These and other forward looking statements reflect management expectations based on currently available data. However actual results will be influenced by, among other things, macro-economic conditions, food industry supply and demand issues, foreign exchange fluctuations, raw material and commodity fluctuations, the successful acquisition and integration of new businesses, the successful execution of business transformation programmes and other, as of today, unknown factors and therefore actual results may differ materially from these projections. These forward looking statements speak only as of the date they were made and the Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise. 2
Q3 2015 Interim Management Statement Brian Mehigan CFO
Q3 YTD 2015 Highlights › Volume Growth Volume growth +3.2% 3.4% 3.2% › Taste & Nutrition +3.4% 2.6% › Consumer Foods +2.6% › Pricing -2.8% T&N Foods Group › Group trading margin up 40bps › Taste & Nutrition +40bps Margin Expansion 40 bps 40 bps › Consumer Foods +20bps 20 bps › Net Debt of € 1.4bn › Earnings guidance for full year reaffirmed T&N Foods Group 4
Q3 YTD 2015 Overview › Changing marketplace - good Kerry performance in a challenging environment › Developed markets - broadly stabilised as ‘new c onsumer’ landscape continues to drive innovation › Taste & Nutrition positioning delivering success with great tasting, clean label, natural nutritious offerings addressing consumer preferences › Developing markets - variations more pronounced, geopolitical & currency volatility affecting growth › Asia - good growth maintained › EMEA - remains challenging › Deflationary input cost environment continued › Recovery continues within competitive UK and Irish consumer foods markets › Kerry Foods repositioned portfolio delivering on today’s consumer needs › Key acquisitions announced will enhance our Taste & Nutrition strategy globally 5
Revenue Analysis Q3 YTD 2015 Q3 YTD 2014 GROWTH YOY 4.3% VOLUME DISPOSAL/ CURRENCY 3.2% ACQUISITION 7.7% (3.8%) PRICE (2.8%) 6
Q3 YTD: Business Review – Taste & Nutrition GROWTH Revenue +3.4%* Trading margin +40bps › Volume growth +3.4% › Price deflation of -2.9%, reflecting customer partnership arrangements 7.9% › Margin accretion of 40bps › Americas - Strong performance in meeting ‘new c onsumer’ needs › EMEA developed markets - encouraging innovation pipeline › 3.5% 3.4% EMEA developing markets - geopolitical & economic issues creating a challenging marketplace › Asia - Strong growth driven by taste, beverage & foodservice 0.8% › Foodservice & c-store - new launches meeting trends & driving traffic AMERICAS EMEA APAC T&N › Acquisitions of Red Arrow Products, Island Oasis & Wellmune Note: * volume growth 7
Q3 YTD: Business Review – Consumer Foods GROWTH Revenue +2.6%* Trading margin +20bps › Strong volume growth +2.6% › Business performance and efficiency programmes contributed 20bps margin growth › Price deflation of 2.4% › Ready meals - Good growth in both chilled & frozen › Snacking - Strong growth continued › Mattessons Fridge raiders leading category growth › Cheestrings continued successful growth in all regions › Sausage category volumes impacted by reduced volume led promotions › Spreads growing market share in a declining market › New Denny range performing well post launch in Ireland in H1 › Good progress in channel strategy - convenience, internet & value Note: * volume growth 8
Repositioned Portfolio Market Leadership Consumer #1 #1 Taste & Nutrition Foods Consumer Channel Customer Nutrition & General Developing Taste 2015 Acquisitions Geography Wellness Markets Red Arrow Island Oasis Wellmune IOI Loders Insight Beverages KFI Savory Baltimore Spice PST Rollover Ltd Direct to Store Lifestyle Bakery Business 2015 Disposals Business 9
Recent Acquisitions Announced Global leader – authentic, Industry leader – natural, cold Natural immunity Technology clean smoke & grill taste speciality beverage systems enhancers Location US - WI (x2), Sweden, US - NY, OH, MA US - MN Germany Geographic Americas | EMEA | APAC Americas Americas | EMEA | APAC Sales End Use Beverage ‘on - premise’ Meat & culinary Nutritional beverage & Markets channel functional foods Total consideration of USD $735m FY 2014: annual revenues of $301m & EBITDA of $59m
Other Updates › EMEA centre officially opened on 1 October 2015 Global Technology › Investor Day held on 15 October 2015 & Innovation Centres › New 10 year € 750 million bond issued in September, extending the maturity Debt Financing profile of Group debt - used to retire existing debt & fund acquisitions › Portfolio repositioning - moving from dilutive to accretive M&A › Signs raw material deflation has reached inflection point Raw Materials › Developing markets currency headwind FX 11
2015 Outlook: Summary › Continued growth ahead of our markets › Good Innovation pipeline › Delivering in an era of unprecedented consumer change › Strengthening customer partnerships via our holistic business model › Capitalising on our market leading Taste & Nutrition positioning › Continued investment in developing markets to meet local consumer needs › Further investment in platforms for growth in foodservice, c-stores and etail › New acquisitions will be integrated, while headroom for further consolidation exists The Group is confident of delivering full year growth of 6% to 9% in adjusted* earnings per share in 2015 * before brand related intangible asset amortisation and non-trading items (net of related tax) 12
Recommend
More recommend
