Q1 2017 Interim Management Statement May 2017
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, 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. Therefore actual results may differ materially from these projections. These forward looking statements speak only as of the date they were made and the Group undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise. 2
Performance Overview Brian Mehigan, CFO Brian Mehigan, CFO 3
Strong Underlying Performance Q1 2017 HIGHLIGHTS Volume growth +3.8% • Taste & Nutrition +4.1% • VOLUME GROWTH Consumer Foods +2.3% • Pricing +1.3% • 4.1% 3.8% Group trading margin maintained • Underlying margin expansion offset by transaction currency / Kerryconnect investment • 2.3% Taste & Nutrition +20bps • Consumer Foods (70bps) • Net debt of € 1.2bn T&N Foods Group • Earnings guidance for full year reaffirmed • 4
Q1 2017 Business Overview REVIEW OF BUSINESS • Developed – overall stable with increased fragmentation MARKETS • Developing – economic & geopolitical volatility affecting growth • Good start to 2017 – continued volume growth ahead of our markets HIGHLIGHTS • Inflationary input costs – managing via pass through pricing model • Acquisitions – 3 Taste acquisitions announced (Taste Master / Tianning / Hangman ) • Taste & Nutrition – agility of our holistic business model the driver of strong growth delivery BUSINESS PERFORMANCE • Consumer Foods – good volume & underlying margin growth via innovation in snacking & convenience 5
Q1 Revenue Growth Analysis REVIEW OF BUSINESS Q1 2016 Q1 2017 4.5% Volume Volume 3.8% 3.6% Translation Transaction Acquisition/ Price currency currency disposal (0.6%) (0.4%) 1.3% 0.4% 6
Taste & Nutrition REVIEW OF BUSINESS YT YTD GR GROWTH Revenue +4.1%* Trading margin +20bps • Volume growth REVENUE GROWTH BY REGION* - Good growth across all customers segments 10.4% - Strong growth in clean label, active nutrition & protein technologies • Foodservice & c-store channels – strong performance globally 4.1% 3.8% 1.9% • Price inflation of 1.4% reflecting customer partnership agreements • Margin progression – underlying margin growth driven by enhanced product mix AMERICAS EMEA APAC T&N ASIA-PACIFIC AMERICAS EMEA • Developed – strong • Developed – Good growth in • Strong growth across all regional performance in clean label, Beverage, Dairy & Savoury developing markets Taste & Dairy • Developing – Russia performing • Beverage, Dairy & Culinary were • Developing – Brazil stable well, South Africa & Middle key drivers of growth overall, Mexico performing well East stabilised • Strategic footprint expansion continuing (organic & acquisitive) Note: * volume growth 7
Consumer Foods REVIEW OF BUSINESS YT YTD GR GROWTH Revenue +2.3%* Trading margin (70bps) • Volume growth led by our expanding snacking range • Inflationary environment with 1% average pricing across the quarter • Recent innovations performing well – e.g. Scoffies snack packs, Fire & Smoke meat snacking & Dairygold Softer Butter Underlying margin improvement more than offset by transaction currency • DAIRY MEAL SOLUTIONS MEAT SNACKING • Cheese snacking – good growth • Meat snacking – performing well • Chilled category – solid performance via ongoing innovations • Spreads – good growth in softer • Richmond – category challenged butter technology offerings • Frozen category challenged but • Fire & Smoke range – continued growing in Foodservice and ‘direct to • Go Go’s snack packs successfully strong momentum consumer’ launched Note: * volume growth 8
OUTLOOK Future Prospects AND FUTURE PROSPECTS • Continued growth ahead of our markets • Technology leadership for global, regional and local customers • Innovation & agility the key drivers of growth • Continued investment in science & footprint • Continued enhancement in breadth and depth of technology portfolio • Footprint expansion in key growth markets • Continue to pursue strategic acquisition opportunities In 2017, we expect to achieve good revenue growth and 5% to 9% growth in adjusted EPS* to a range of 339.6 to 352.5 cent per share (2016: 323.4 cent) Note: * before brand related intangible asset amortisation and non-trading items (net of related tax) 9
Q1 2017 Interim Management Statement May 2017
Recommend
More recommend
