![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Kerry Group Plc | LSE:KYGA | London | Ordinary Share | IE0004906560 | 'A'ORD EUR0.125 (CDI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-5.10 | -6.04% | 79.30 | 83.30 | 88.30 | 87.70 | 84.60 | 84.70 | 24,696 | 16:40:32 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Food Preparations, Nec | 8.02B | 728.3M | 4.1150 | 22.31 | 14.94B |
TIDMKYGA
RNS Number : 4899M
Kerry Group PLC
17 August 2011
Wednesday 17 August 2011
Interim Management Report
for the half year ended 30 June 2011
Kerry, the global ingredients & flavours and consumer foods group, reports interim results for the half year ended 30 June 2011
Highlights -- Adjusted* EPS up 9.7% to 86.8 cent -- Sales revenue increased by 8.4% (LFL) to EUR2.6 billion -- 3.6% volume growth and raw material/input cost inflation substantially recovered -- Trading profit increased by 6.1% (LFL) to EUR214m -- Group trading margin down 30bps despite strong underlying margin performance -- Interim dividend per share increased by 11.4% to 9.8 cent -- Free cash flow of EUR48m (H1 2010: EUR117m) *before acquisition related intangible asset amortisation and non-trading items ------------------------------------------------------------------------------
Commenting on the results Kerry Group Chief Executive Stan McCarthy said; "Kerry delivered a solid earnings performance and strong volume growth in the first half of 2011, despite significant raw material and input cost inflation. The Group remains confident of achieving its growth targets for the full year and delivering eight to twelve per cent growth in adjusted earnings per share as guided at the beginning of the year".
Contacts: Media Frank Hayes, Director of Investor Relations Brian Corporate Affairs Tel: +353 66 Mehigan, Chief Financial 7182304 Email: Officer Michael Ryan, Head of corpaffairs@kerry.ie Kerry Web Investor Relations Tel: +353 66 Site: www.kerrygroup.com 718 2253 Email: investorrelations@kerry.ie -------------------------------------- --------------------------------------
INTERIM MANAGEMENT REPORT
for the half year ended 30 June 2011
Kerry delivered strong volume growth and a solid earnings performance in the first half of 2011 despite significant raw material and input cost inflation. Against a strong first half comparative in 2010, the overall half-year performance was satisfactory across all regions notwithstanding the continuing economic challenges and restrained consumer spending in some key markets. Group cost recovery and business efficiency programmes proved highly effective and where raw material inflationary trends have continued pricing actions will continue to be taken in collaboration with customers. Ingredients & Flavours grew volumes ahead of the market in all regions due to successful layering of Group technologies and focused end-use-market innovation. Encouraging growth was maintained in developing markets. While the Irish and UK consumer foods markets remain highly competitive with heavy promotional activity which delayed input cost recovery, Kerry's leading brands maintained good growth in the UK market and stabilised market shares in Ireland.
Results
Group sales revenue increased to EUR2.6 billion, reflecting like-for-like (LFL) growth of 8.4%. Business volumes grew by 3.6% with product pricing/mix increasing by 5%. Raw material costs during the period increased by 11% relative to the prior year level. Ingredients & Flavours volumes grew by 4.1% and Consumer Foods achieved 2% business volume growth.
Trading profit increased by 6.1% (LFL) to EUR214m. Notwithstanding the significant increase in raw material and input costs, Ingredients & Flavours maintained a trading margin of 9.2%. A lag in cost recovery due to the competitiveness of the UK and Irish consumer foods sectors meant that the Consumer Foods divisional trading margin at 6.8% was 30 basis points lower than the same period of 2010 despite gains made through business efficiency programmes. While the underlying Group business trading margin increased significantly, the reported trading margin reduced by 30 basis points due to the impact of cost recovery and central costs relating to the ongoing 1 Kerry business transformation and global IT project ("Kerryconnect").
Profit before tax increased to EUR175m from the 2010 first half level of EUR162m. Profit after tax increased by 9% to EUR144m. Adjusted earnings per share increased by 9.7% to 86.8 cent. Basic earnings per share increased by 8.7% to 82.2 cent. The interim dividend of 9.8 cent per share represents an increase of 11.4% over the 2010 interim dividend.
Business Reviews
Ingredients & flavours
H1 2011 Like-for-like (LFL) Growth Revenue EUR1,973m 9.6% Trading profit EUR181m 9.7% Trading margin 9.2% Unchanged ---------------------- ---------------- ---------------------------------
Ingredients & Flavours revenue increased on a reported basis by 10.4% to EUR1,973m, reflecting 9.6% (LFL) growth. The Group's integrated technology approach and end-use-market focus continued to deliver a strong innovation pipeline - contributing 4.1% business volume growth in the period.
Trading profit grew by 9.7% (LFL) to EUR181m maintaining the division's 9.2% trading margin despite the impact of significant raw material and input cost increases. Food and beverage consumption trends continue to increase demand for reduced calorie, reduced salt, all-natural solutions and clean product labelling - providing increased opportunities for Kerry to capitalise on its global leadership in development and delivery of consumer preferred taste solutions.
Americas Region
Revenue in the Americas region increased by 9.8% (LFL) to EUR762m. Business volumes grew by 3.9% despite challenging market conditions in some industry sectors. Against a background of significant input cost inflation, cost recovery programmes proved successful, contributing a 5.9% increase in pricing/mix.
Savoury & Dairy systems & flavours achieved a strong performance across North American and Latin American end-use-markets. Despite challenging meat industry sectoral issues, Kerry's flavour development capabilities particularly through coatings systems achieved excellent results. Dairy systems saw continued growth in the yoghurt and smoothies markets. Dallas based CF Chefs acquired prior to year-end achieved a strong performance - strengthening Kerry's culinary expertise and development capability.
Cereal & Sweet technologies were impacted by the increased competitiveness of the cereal and ice-cream sectors where volumes were slightly adverse due to delayed product launches. However the bakery sector maintained strong innovative trends providing good growth opportunities for Kerry's portfolio of bio-ingredients, shelf-life extenders, flavours and functional ingredients. The Group continued to strengthen its market positioning in Latin American cereal and nutrition markets through establishment of production facilities in Mexico and Brazil. In June the acquisition of Argentina based General Cereals S.A. was completed providing additional manufacturing and extrusion capability in the region.
Beverage systems & flavours continued to record strong growth through foodservice applications and Kerry's branded portfolio. Agilex Flavors acquired in October 2010 has performed well particularly in wellness and nutritional beverage sectors. Foodservice chains continued to provide strong product development opportunities for Kerry's speciality beverage applications. California based Caffe D' Amore, also acquired prior to year-end, provided a solid additional growth platform for Kerry technologies through its gourmet beverage applications for foodservice and speciality retail outlets.
The Group continued to advance its positioning in the global pharmaceutical sector through its excipient products range and media optimisation products in the cell nutrition sector. Ongoing expansion of Kerry's global pharma customer service and commercial infrastructure continues to achieve encouraging results especially in India, China and Brazil.
EMEA Region
Ingredients & Flavours revenue in the EMEA region increased by 9.3% (LFL) to EUR653m. Business volumes grew by 2.9% notwithstanding sector related issues particularly in Eastern European markets. Input cost inflation was overcome through cost recovery programmes in collaboration with customers across all end-use-markets. Overall pricing/mix increased by 6.4% in the period.
Savoury & Dairy systems & flavours performed well overall but performance varied across end-use-markets and regional markets due to the cost pressures arising from raw material pricing. Dairy flavours recorded growth in dairy and ice-cream applications while the bakery sector provided good growth for the Beatreme(TM) range of dairy systems and cultured ingredients. Cheese flavourings achieved strong growth in sauce and snack applications. Capacity investment in culinary systems & flavours in addition to the UK based SpringThyme Oils Ltd acquisition in 2010 supported good volume growth through sauce systems. Technology development in this sector continued to support customer demand for solutions offering lower sodium, more authenticity in taste and cleaner ingredient declarations. Meat systems and flavours performed well in the UK but lower red meat consumption in Eastern Europe impacted demand for seasonings and functional ingredients. However the poultry segment continued to provide solid growth opportunities driven by strong retail and QSR demand.
Cereal & Sweet technologies performed well in EMEA markets in particular in added-value segments of the yoghurt, ice-cream, confectionery and bakery sectors. Demand for indulgence applications in the fine bakery and desserts markets was impacted by weakening consumer demand. Kerry technologies performed well in the EMEA ready-to-eat cereals market despite the level of competition in the retail marketplace.
Beverage systems & flavours again benefited from increased demand for natural flavours and an expansion of Kerry's market presence in EMEA markets. Accelerating demand for calorie reduction in the beverage sector provided excellent growth opportunities for Kerry's recently launched fmt(TM) flavour modulation technology.
Functional ingredients including enzymes and emulsifiers delivered good volume growth across all key end-use-markets - benefiting from Kerry's 'go-to-market' integrated approach to market development.
Primary Dairy markets benefited from strong international demand conditions during the half-year. Pricing increased in line with strong demand from key importing countries and a relatively tighter supply position in the early months of the year.
Asia-Pacific Region
Kerry again successfully progressed market development across all end-use-markets in the Asia-Pacific region despite the impact of the natural disaster events in Japan, Australia and New Zealand early in the year. Revenue increased by 12.8% (LFL) to EUR293m. Business volumes increased by 10% and pricing increased by 4% in response to the raw material inflationary impact. Cost recovery continues where inflationary trends have prevailed.
Savoury & Dairy applications achieved good volume growth particularly in the expanding QSR segment. Meat technology systems achieved good growth in Australia and New Zealand. EBI Cremica was acquired during the period providing a platform for growth through food coating systems in the food processing and foodservice sectors in India. Lipid systems delivered strong volume growth in particular in Vietnam and Indonesia and cost recovery continues in the sector. Kerry continues to outperform market growth rates in the infant nutrition sector in North East Asia. Culinary systems also performed well - benefiting from the Malaysia based KMC Foods acquisition completed prior to year-end 2010.
Sweet technologies continued to grow satisfactorily in the bakery sector. Despite a shift in demand towards value propositions in the lifestyle bakery sector in Australia, Kerry Pinnacle grew successfully through product launches providing in-store solutions to meet consumer requirements. The Van den Bergh's and Croissant King branded bakery businesses acquired prior to year-end performed well with expanded distribution through the Kerry sales network.
Beverage systems maintained double digit growth through the regional QSR sector.
Functional ingredients grew strongly, leveraging market opportunities through Kerry's 'go-to-market' strategy.
Consumer Foods
H1 2011 Like-for-like (LFL) Growth Revenue EUR944m 5.3% Trading profit EUR64m 6.0% Trading margin 6.8% -30bps ---------------------- -------------- ---------------------------------
The UK and Irish consumer foods markets remain challenging as retail competition continues to drive deeper and wider promotional activity. However Kerry Foods' brands in the UK market continued to grow satisfactorily and the division's Irish brand shares have stabilised. Divisional revenue grew by 5.3% (LFL) to EUR944m. Overall business volumes increased by 2%, reflecting 3% volume growth in the UK and a decline of 1% in Ireland. Trading profit grew by 6% (LFL) to EUR64m. Despite strong gains through ongoing business efficiency programmes, the impact of a delay in cost recovery particularly in private label market segments meant that the divisional trading margin was 30 basis points lower at 6.8%.
In Kerry Foods' UK Brands chilled foods market, all brands grew market share. Performance in added-value meat product categories was particularly strong. In the sausage sector Richmond again achieved double digit growth. Wall's continued to achieve good growth in the pastry sector and Mattessons maintained strong growth in the meat snacks category. Cheestrings also grew market share in the cheese snack sector.
While UK Customer Brands market segments remain highly competitive resulting in a delay in raw material cost recovery, Kerry achieved a satisfactory performance in the division's selected market niches. In the chilled ready meals marketplace Kerry Foods again outperformed market growth rates driven by successful new product launches. The frozen meals category has stabilised and Kerry recorded encouraging growth in the sector. Headland Foods acquired in January is performing in line with expectations. The acquisition has been referred by the OFT to the Competition Commission for further investigation.
The consumer foods market in Ireland remains intensely competitive as shoppers remain focussed on value/promotional offers and total basket/household expenditure. Private label and 'Discounter' sales continue to increase. Kerry's Brands Ireland business has stabilised market shares but business margins were impacted by a lag in cost recovery in some categories.
Financial review
Reconciliation of adjusted* earnings % H1 2011 H1 2010 to profit after taxation Change EURm EURm Continuing Operations Revenue 8.4% (LFL) 2,650.0 2,421.4 Trading profit 6.1% (LFL) 213.6 203.8 Trading margin 8.1% 8.4% Computer software amortisation (1.9) (2.0) Finance costs (net) (28.2) (33.7) Adjusted* profit before taxation 9.1% 183.5 168.1 Income taxes (excluding non-trading items) (31.1) (29.5) Adjusted* earnings after taxation 9.9% 152.4 138.6 Acquisition related intangible asset amortisation (5.7) (6.0) Non-trading items (net of related tax) (2.3) (0.2) Profit after taxation and attributable to equity shareholders 9.0% 144.4 132.4 EPS EPS cent cent Adjusted* earnings per share 9.7% 86.8 79.1 Acquisition related intangible asset amortisation (3.3) (3.4) Non-trading items (net of related tax) (1.3) (0.1) Basic earnings per share 8.7% 82.2 75.6
* Before acquisition related intangible asset amortisation and non-trading items
Analysis of Results
Group revenue increased by 8.4% (LFL) and 9.4% on a reported basis when account is taken of adverse reporting currency (-1.5%) and the positive impact of business acquisitions net of disposals (+2.5%).
While Group trading profits before Kerryconnect costs increased by 9.6% this reduces to 6.1% (LFL) when account is taken of the additional EUR7m expenditure in the period taken centrally in relation to the Kerryconnect project. Trading profit increased by 4.8% on a reported basis allowing for the negative impact of reporting currency (-1.7%) and the positive contribution from business acquisitions net of disposals (+0.4%).
The Group trading margin decreased by 30 basis points to 8.1% (H1 2010: 8.4%) in the period. Excluding the impact of cost recovery pricing (-60bps), acquisitions/disposals (-20bps), currency movements (-10bps), and the impact of expenditure on Kerryconnect (-20bps), the Group's underlying trading margin increased by 80 basis points reflecting strong margin improvement due to operational leverage and business efficiency programmes.
The negative impact of cost recovery pricing (-60bps) consists of -20bps due to a time lag in recovery and -40bps due to the arithmetical effect which cost recovery pricing has on the trading margin calculation (the "denominator effect"). The denominator effect in Ingredients and Flavours was -50bps and in Consumer Foods it was -20bps.
Finance Costs
Finance costs for the period decreased by EUR5.5m to EUR28.2m (H1 2010: EUR33.7m) due to lower interest rates and lower average borrowings.
Taxation
The tax charge for the period was EUR31.1m (H1 2010: EUR29.5m) which represents an effective tax rate of 17.5% (H1 2010: 18.2%). The decrease in the effective tax rate is primarily due to variations in the geographical split of profits earned and changes in local statutory tax rates.
Adjusted Earnings Per Share
At Kerry's Capital Markets Day held in June 2011, the Group announced that it had changed the calculation basis for adjusted earnings per share. Historically adjusted earnings per share has been calculated after adding back all intangible asset amortisation (including software amortisation). From 2011 computer software amortisation will no longer be included in the amortisation add-back and will therefore be treated as a cost in calculating adjusted earnings per share. This change is due to the significance of the Kerryconnect project that the Group is currently undertaking. Adjusted earnings per share for the prior period has been calculated and re-presented on this new basis.
Free Cash Flow
The Group achieved a free cash flow of EUR48m (H1 2010: EUR117m) which is stated after net capital expenditure of EUR60m (H1 2010: EUR41m) and working capital outflow of EUR85m (H1 2010: EUR26m). The increase in working capital is driven by the impact of commodity cost inflation.
H1 2011 H1 2010 Free Cash Flow EURm EURm EBITDA* Movement in working capital 268.8 255.5 Pension contributions paid less (85.2) (26.2) pension expense (15.8) (14.3) Net investment in non-current assets (59.6) (41.3) Finance costs paid (net) (25.6) (24.1) Income taxes paid (34.8) (33.1) ------------------------------------------ -------- -------------------- Free cash flow 47.8 116.5 ------------------------------------------ -------- --------------------
* Earnings before finance costs, income taxes, depreciation, intangible asset amortisation and non trading items (net of related tax)
Financial Position
At 30 June 2011 net debt stood at EUR1,088m, a decrease of EUR24m relative to the December 2010 position. In April 2011 the Group completed a new 5 year EUR1 billion revolving credit facility with an international syndicate of banks which provides a line of credit until April 2016 and significantly extends the available facilities to the Group. The period end maturity profile of drawn Group debt was 5.4 years (H1 2010: 5.2 years, Dec 2010: 4.8 years).
At the period end 44% of debt was carried at fixed rates and the weighted average period for which rates were fixed was 3.7 years.
At 30 June the key financial ratios were as follows;
Covenant H1 2011 H1 2010 TIMES TIMES Net debt: EBITDA* Maximum 3.5 1.7 2.2 EBITDA: Net interest* Minimum 4.75 11.6 8.2 --------------------------------------- ----------- -----------------
* Calculated in accordance with lenders' facility agreements
The Group's balance sheet is in a healthy position and with a net debt to EBITDA* ratio of 1.7 times, the increased facilities provided by the revolving credit facility and the extension of the maturity profile of Group debt, the organisation has sufficient headroom to support its future growth plans.
Retirement Benefits
At the balance sheet date, the net deficit for all defined benefit schemes (after deferred tax) was EUR130m (H1 2010: EUR212m, Dec 2010: EUR145m). The decrease since the 2010 year end primarily reflects a decrease in estimated liabilities caused by an increase in the discount rate based on corporate AA bond rates.
Acquisitions
The Group completed a number of bolt on acquisitions during the period in a number of geographic markets including the USA, UK, India and Argentina at a total cost of EUR40m. The acquisition of Headland Foods announced in January 2011 is currently being reviewed by the Competition Commission.
related party transactions
There were no changes in related party transactions from the 2010 Annual Report that could have a material effect on the financial position or performance of the Group in the first half of the year.
PrincipaL RISKS & uncertainties
Details of the principal risks and uncertainties facing the Group can be found in the 2010 Annual Report on pages 60 and 61. These risks include but are not limited to; competition risk, a slow down in the rate of innovation, operational and technical compliance risks, the loss of a critical manufacturing facility and the execution of a value destroying acquisition. However, fluctuating raw material costs and volatile currencies, remain the most likely to affect the Group in the second half of the year. The Group actively manages these and all other risks through its control and risk management processes.
dIVIDEND
The Board recommends an interim dividend of 9.8 cent per share (an increase of 11.4% on the 2010 interim dividend) payable on 11 November 2011 to shareholders registered on the record date 14 October 2011.
post balance sheet events
Since the period end the Group has entered into exclusive discussions with Cargill, which may or may not result in the Group's acquisition of Cargill's global flavours business. Cargill Flavor Systems has well established international flavour technology development expertise serving a global customer base through provision of flavour ingredients and flavour systems for beverage, dairy, sweet and savoury applications. Through its network of modern integrated flavour development and application centres spanning 22 countries in North and South America, Europe, South Africa and Asia, Cargill Flavor Systems has long-standing relationships with leading global food and beverage manufacturers.
future prospects
Kerry's customer-centric business model has continued to strengthen our commercial alliances notwithstanding the challenges arising from the inflationary raw material and input cost environment. The innovation pipeline from our industry leading technologies augurs well for the future growth and development of the Group's Ingredients & Flavours business in developed and developing markets. Kerry Foods' brand investment and ongoing business efficiency programmes will continue to consolidate the division's leadership in the UK and Irish chilled foods markets.
The Group remains confident of achieving its growth targets for the full year and delivering eight to twelve per cent growth in adjusted earnings per share as guided at the beginning of the year.
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 of Ireland (S.I. No. 277 of 2007) ("the Regulations"), the Transparency Rules of the Central Bank of Ireland and with IAS 34 "Interim Financial Reporting" as adopted by the European Union.
The Directors confirm that to the best of their knowledge:
-- the Group Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2011 have been prepared in accordance with the international accounting standard applicable to interim financial reporting adopted pursuant to the procedure provided for under regulations 5, 6, 7 and 8 of the Regulations and Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the half year ended 30 June 2011;
-- the Interim Management Report includes a fair review of the development and performance of the business and the position of the Group;
-- the Interim Management Report includes a fair review of the important events that have occurred during the first six months of the financial year, and their impact on the Group Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2011, and a description of the principal risks and uncertainties for the remaining six months;
-- the Interim Management Report includes a fair review of the related party transactions that have occurred during the first six months of the current financial year and that have materially affected the financial position or the performance of the Group during that period, and any changes in the related parties' transactions described in the last Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.
On behalf of the board
Stan McCarthy Brian Mehigan Chief Executive Chief Financial Officer
16 August 2011
results for THE half YEAR ENDED 30 june 2011
Kerry Group plc Condensed Consolidated Income Statement for the half year ended 30 June 2011 Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited Notes EUR'000 EUR'000 EUR'000 Continuing operations Revenue 1 2,649,969 2,421,428 4,960,003 _________ _________ _________ Trading profit 1 213,572 203,797 470,216 Intangible asset amortisation (7,626) (7,994) (16,065) Non-trading items 2 (2,530) 163 (815) _________ _________ _________ Operating profit 203,416 195,966 453,336 Finance income 391 501 945 Finance costs (28,589) (34,203) (61,446) _________ _________ _________ Profit before taxation 175,218 162,264 392,835 Income taxes (30,855) (29,842) (68,618) _________ _________ _________ Profit after taxation and attributable to equity shareholders 144,363 132,422 324,217 _________ _________ _________ Earnings per A ordinary share Cent Cent Cent - basic 3 82.2 75.6 185.0 - diluted 3 82.2 75.4 184.7 _________ _________ _________ Kerry Group plc Condensed Consolidated Statement of Recognised Income and Expense for the half year ended 30 June 2011 Half year Year Half year ended ended ended 30 June 31 Dec. 30 June 2011 2010 2010 Unaudited Unaudited Audited Notes EUR'000 EUR'000 EUR'000 Profit for the period after taxation 144,363 132,422 324,217 Other comprehensive income/(expense): Fair value movements on available-for-sale investments 6 - 4,190 - Fair value movements on cash flow hedges 9,576 (664) 21,914 Exchange difference on translation of foreign operations 10 (47,511) 90,017 57,295 Actuarial losses on defined benefit post-retirement schemes (336) (86,524) (30,268) Deferred tax on items taken directly to reserves 5 (1,905) 16,155 2,015 _________ _________ _________ Net (expense)/income recognised directly in other comprehensive income (40,176) 23,174 50,956 Reclassification to profit or loss from equity: Cash flow hedges (6,159) 3,894 1,228 Available-for-sale investments 6 - 3,213 7,403 _________ _________ _________ Total comprehensive income 98,028 162,703 383,804 _________ _________ _________ Kerry Group plc Condensed Consolidated Balance Sheet as at 30 June 2011 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited Notes EUR'000 EUR'000 EUR'000 Non-current assets Property, plant and equipment 1,073,881 1,076,601 1,107,164 Intangible assets 1,949,777 1,987,025 1,998,868 Financial asset investments 8,215 15,692 8,215 Non-current financial instruments 9 17,399 87,901 42,680 Deferred tax assets 10,598 13,182 8,928 __________ ___________ ___________ 3,059,870 3,180,401 3,165,855 __________ ___________ ___________ Current assets Inventories 637,264 522,376 531,561 Trade and other receivables 710,025 696,151 618,727 Cash and cash equivalents 9 90,897 162,993 159,340 Other current financial instruments 4,307 45 4,684 Assets classified as held for sale 4,991 5,212 5,386 __________ ___________ ___________ 1,447,484 1,386,777 1,319,698 __________ ___________ ___________ Total assets 4,507,354 4,567,178 4,485,553 __________ ___________ ___________ Current liabilities Trade and other payables 1,129,629 1,110,033 1,017,912 Borrowings and overdrafts 9 41,554 49,135 181,286 Other current financial instruments 293 24,778 12,206 Tax liabilities 26,272 20,051 34,357 Provisions for liabilities and charges 15,801 21,507 18,342 Deferred income 3,037 2,390 2,514 __________ ___________ ___________ 1,216,586 1,227,894 1,266,617 __________ ___________ ___________ Non-current liabilities Borrowings 9 1,151,237 1,380,678 1,123,276 Other non-current financial instruments 3,280 - - Retirement benefits obligation 7 171,589 283,856 194,700 Other non-current liabilities 55,507 56,592 55,299 Deferred tax liabilities 169,747 156,390 166,389 Provisions for liabilities and charges 29,250 26,484 30,672 Deferred income 19,674 17,946 21,649 __________ ___________ ___________ 1,600,284 1,921,946 1,591,985 __________ ___________ ___________ Total liabilities 2,816,870 3,149,840 2,858,602 __________ ___________ ___________ Net assets 1,690,484 1,417,338 1,626,951 __________ ___________ ___________ Issued capital and reserves attributable to equity holders of the parent Share capital 21,940 21,903 21,939 Share premium account 398,711 395,741 398,711 Other reserves (141,629) (86,376) (98,234) Retained earnings 1,411,462 1,086,070 1,304,535 __________ ___________ ___________ Shareholders' equity 1,690,484 1,417,338 1,626,951 __________ ___________ ___________ Kerry Group plc Condensed Consolidated Statement of Changes in Equity for the half year ended 30 June 2011 Share Share Other Retained Capital Premium Reserves Earnings Total Notes EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 At 1 January 2010 21,895 395,177 (187,345) 1,054,328 1,284,055 Total comprehensive income - - 100,650 62,053 162,703 Dividends paid 4 - - - (30,311) (30,311) Long term incentive plan expense - - 319 - 319 Shares issued during the period 8 564 - - 572 ________ ________ ________ _______ ________ At 30 June 2010 - unaudited 21,903 395,741 (86,376) 1,086,070 1,417,338 Total comprehensive income - - (12,810) 233,911 221,101 Dividends paid 4 - - - (15,446) (15,446) Long term incentive plan expense - - 952 - 952 Shares issued during the period 36 2,970 - - 3,006 ________ ________ ________ ________ ________ At 31 December 2010 - audited 21,939 398,711 (98,234) 1,304,535 1,626,951 Total comprehensive income - - (44,094) 142,122 98,028 Dividends paid 4 - - - (35,195) (35,195) Long term incentive plan expense - - 699 - 699 Shares issued during the period 3 1 - - - 1 _______ _______ ________ ________ ________ At 30 June 2011 - unaudited 21,940 398,711 (141,629) 1,411,462 1,690,484 _______ _______ ________ ________ ________ Other Reserves comprise the following: Capital Long Term Capital Conversion Incentive Available-for-sale Redemption Reserve Plan Investment Translation Hedging Reserve Fund Reserve Reserve Reserve Reserve Total EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 At 1 January 2010 1,705 340 2,115 (7,403) (158,007) (26,095) (187,345) Total comprehensive income - - - 7,403 90,017 3,230 100,650 Long term incentive plan expense - - 319 - - - 319 ________ ________ ________ ________ ________ ________ ________ At 30 June 2010 - unaudited 1,705 340 2,434 - (67,990) (22,865) (86,376) Total comprehensive income - - - - (32,722) 19,912 (12,810) Long term incentive plan expense - - 952 - - - 952 ________ ________ ________ ________ ________ ________ ________ At 31 December 2010 - audited 1,705 340 3,386 - (100,712) (2,953) (98,234) Total comprehensive income - - - - (47,511) 3,417 (44,094) Long term incentive plan expense - - 699 - - - 699 ________ ________ _______ ________ ________ _______ ________ At 30 June 2011 - unaudited 1,705 340 4,085 - (148,223) 464 (141,629) ________ ________ _______ ________ ________ _______ ________ Kerry Group plc Condensed Consolidated Cash Flow Statement for the half year ended 30 June 2011 Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited Notes EUR'000 EUR'000 EUR'000 Operating activities Trading profit 213,572 203,797 470,216 Adjustments for: Depreciation (net) and impairment 55,248 51,702 148,351 Change in working capital (85,182) (26,184) (21,511) Pension contributions paid less pension expense (15,792) (14,328) (41,068) Expenditure on restructuring and other costs (3,148) (25,005) (26,355) Exchange translation adjustment 10 251 2,705 (1,483) __________ ___________ ___________ Cash generated from operations 164,949 192,687 528,150 Income taxes paid (34,762) (33,096) (54,249) Finance income received 391 501 945 Finance costs paid (25,995) (24,582) (58,525) ___________ ___________ ___________ Net cash from operating activities 104,583 135,510 416,321 ___________ ___________ ___________ Investing activities Purchase of non-current assets (60,237) (47,635) (151,001) Proceeds from the sale of non-current assets 611 2,047 7,162 Capital grants received - 4,314 4,395 Purchase of subsidiary undertakings (net of cash acquired) 8 (39,131) (8,054) (150,681) Proceeds/(payments) due to disposal of businesses (net of related tax) 5,290 (183) (2,674) Payment of deferred consideration on acquisition of subsidiaries (2,935) (6,367) (7,824) Consideration adjustment on previous acquisitions 1,521 3,510 3,672 ___________ ___________ ___________ Net cash used in investing activities (94,881) (52,368) (296,951) ___________ ___________ ___________ Financing activities Dividends paid 4 (35,195) (30,311) (45,757) Issue of share capital 3 1 572 3,578 Net movement on bank borrowings (35,020) (170,041) (201,706) (Decrease)/increase in bank overdrafts 9 (3,432) (6,500) 5,240 ___________ ___________ ___________ Net cash movement due to financing activities (73,646) (206,280) (238,645) ___________ ___________ ___________ Net decrease in cash and cash equivalents (63,944) (123,138) (119,275) Cash and cash equivalents at beginning of period 159,340 270,011 270,011 Exchange translation adjustment on cash and cash equivalents 10 (4,499) 16,120 8,604 __________ ___________ ___________ Cash and cash equivalents at end of period 9 90,897 162,993 159,340 ___________ ___________ ___________ Reconciliation of Net Cash Flow to Movement in Net Debt Net decrease in cash and cash equivalents (63,944) (123,138) (119,275) Cash outflow from debt financing 38,452 176,541 196,467 ___________ ___________ ___________ Changes in net debt resulting from cash flows (25,492) 53,403 77,192 Fair value movement on interest rate swaps recognised in shareholders' equity 4,428 6,507 19,415 Exchange translation adjustment on net debt 10 45,222 (99,002) (49,064) ___________ ___________ ___________ Movement in net debt in the period 24,158 (39,092) 47,543 Net debt at beginning of period (1,111,933) (1,159,476) (1,159,476) ___________ ___________ ___________ Net debt at end of period 9 (1,087,775) (1,198,568) (1,111,933) ___________ ___________ ___________
Kerry Group plc
Notes to the Condensed Consolidated Interim Financial Statements
for the half year ended 30 June 2011
1. Analysis of results
The Group has two operating segments: Ingredients & Flavours and Consumer Foods. The Ingredients & Flavours operating segment manufactures and distributes application specific ingredients and flavours spanning a number of technology platforms while the Consumer Foods segment supplies added value brands and customer branded foods to the Irish and UK markets.
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 Revenue - Ingredients & Flavours 1,973,233 1,788,147 3,674,498 - Consumer Foods 943,790 885,625 1,768,059 - Group Eliminations and Unallocated (267,054) (252,344) (482,554) ___________ ___________ ___________ 2,649,969 2,421,428 4,960,003 ___________ ___________ ___________ Trading profit - Ingredients & Flavours 180,677 164,268 401,342 - Consumer Foods 63,803 63,001 131,963 - Group Eliminations and Unallocated (30,908) (23,472) (63,089) ___________ ___________ ___________ 213,572 203,797 470,216 Intangible asset amortisation (7,626) (7,994) (16,065) Non-trading items (2,530) 163 (815) ___________ ___________ ___________ Operating profit 203,416 195,966 453,336 Finance income 391 501 945 Finance costs (28,589) (34,203) (61,446) ___________ ___________ ___________ Profit before taxation 175,218 162,264 392,835 Income taxes (30,855) (29,842) (68,618) __________ ___________ ___________ Profit after taxation 144,363 132,422 324,217 __________ ___________ ___________
Information about geographical areas
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 Revenue by location of customers EMEA 1,594,995 1,471,631 2,972,173 Americas 762,202 701,441 1,479,003 Asia Pacific 292,772 248,356 508,827 __________ ___________ ___________ 2,649,969 2,421,428 4,960,003 __________ ___________ ___________
2. Non-trading items
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 (Loss)/profit on disposal of non-current assets (411) 581 183 Loss on disposal of businesses (2,119) (418) (998) ________ ________ ________ (2,530) 163 (815) Tax 249 (340) 161 ________ ________ ________ (2,281) (177) (654) ________ ________ ________
Loss on disposal of non-current assets
The loss on disposal of non-current assets relates to the sale of property, plant and equipment in the UK and the USA.
Loss on disposal of businesses
The loss on disposal of businesses relates to the sale of the Dawn Dairies business in Co. Limerick, Ireland and other non-core businesses in Ireland and the USA.
2010 Non-trading items
The profit on disposal of non-current assets in 2010 relates to the sale of property, plant and equipment in Europe. The loss on disposal of businesses relates primarily to the sale of the non-core Kerry Spring business in Co. Kerry, Ireland and the sale of the Dawn Dairies business in Co. Galway, Ireland.
3. Earnings per A ordinary share
Half year Half year ended ended Year ended 30 June 2011 30 June 2010 31 Dec. 2010 Unaudited Unaudited** Audited** EPS EPS EPS Notes cent EUR'000 cent EUR'000 cent EUR'000 Basic earnings per share Profit after taxation and attributable to equity shareholders 82.2 144,363 75.6 132,422 185.0 324,217 Acquisition related intangible asset amortisation 3.3 5,709 3.4 6,049 6.7 11,812 Non-trading items (net of related tax) 2 1.3 2,281 0.1 177 0.4 654 _______ _______ ______ ______ ______ ______ Adjusted earnings* 86.8 152,353 79.1 138,648 192.1 336,683 _______ _______ ______ ______ ______ ______ Diluted earnings per share Profit after taxation and attributable to equity shareholders 82.2 144,363 75.4 132,422 184.7 324,217 Adjusted earnings* 86.8 152,353 79.0 138,648 191.8 336,683 _______ _______ ______ ______ ______ ______
* In addition to the basic and diluted earnings per share, an adjusted earnings per share is also provided as it is considered more reflective of the Group's underlying trading performance. Adjusted earnings is profit after taxation before acquisition related intangible asset amortisation and non-trading items (net of related tax).
** In previous years Kerry has calculated adjusted earnings per share after adding back all intangible amortisation including computer software amortisation. However from 2011, with 2010 re-presented, computer software amortisation will be treated as a cost in arriving at adjusted earnings per share. This is due to the significance of the Kerryconnect project the Group is currently undertaking.
Number of Number of Number Shares Shares of Shares 30 June 30 June 31 Dec. 2011 2010 2010 000's 000's 000's Unaudited Unaudited Audited Basic weighted average number of shares for the period 175,520 175,198 175,292 Impact of share options outstanding 94 308 234 _______ _______ _______ Diluted weighted average number of shares for the period 175,614 175,506 175,526 _______ _______ _______
Shares issued during the period
During the period ended 30 June 2011, a total of 5,610 A ordinary shares, each with a nominal value of 12.50 cent, were issued at nominal value per share under the Long Term Incentive Plan.
The total number of shares in issue at 30 June 2011 was 175,522,816 (30 June 2010: 175,229,885; 31 December 2010: 175,517,206).
4. Dividends
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 Amounts recognised as distributions to equity shareholders in the period Final 2010 dividend of 20.00 cent per A ordinary share paid 13 May 2011 (Final 2009 dividend of 17.30 cent per A ordinary share paid 14 May 2010) 35,195 30,311 30,311 Interim 2010 dividend of 8.80 cent per A ordinary share paid 12 November 2010 - - 15,446 ________ ________ _________ 35,195 30,311 45,757 ________ ________ _________
Since the end of the period, the Board has proposed an interim dividend of 9.80 cent per A ordinary share. The payment date for the interim dividend will be 11 November 2011 to shareholders registered on the record date 14 October 2011. These condensed consolidated interim financial statements do not reflect this dividend payable.
5. Deferred tax on items taken directly to reserves
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 Deferred tax impact due to: Fair value movements on cash flow hedges (427) (404) (2,894) Exchange difference on translation of foreign operations (706) (403) (675) Actuarial losses on defined benefit post-retirement schemes (772) 16,962 5,584 ________ _________ _________ (1,905) 16,155 2,015 ________ _________ _________
6. Available-for-sale investments
The available-for-sale investments represent investments in securities. These investments have no fixed maturity or coupon rate. Quoted market prices are used to determine the fair value of listed shares where there is an active market. A "sum-of-the-parts" valuation model is used to determine the fair value of shares where there is not an active market.
During the period, the Group recognised a fair value movement of EURnil (increase 30 June 2010: EUR4,190,000; decrease 31 December 2010: (EUR3,287,000)) on its available-for-sale investments. In addition, no impairment of available-for-sale investments arose in the period (30 June 2010: EUR3,213,000; 31 December 2010: EUR10,690,000).
7. Retirement benefits obligation
The Group's net defined benefit post-retirement schemes' deficit which has been recognised in the Condensed Consolidated Balance Sheet was as follows:
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 Net recognised deficit in plans before deferred tax (171,589) (283,856) (194,700) Net related deferred tax asset 41,717 72,019 50,116 ________ _________ _________ Net recognised deficit in plans after deferred tax (129,872) (211,837) (144,584) ________ _________ _________
The defined benefit post-retirement schemes' liabilities at 30 June 2011 have been rolled forward from the 31 December 2010 position and updated to reflect material movements in underlying assumptions over the half year. The Group's defined benefit post-retirement schemes' assets at 30 June 2011 are measured at market value.
The decrease in the net deficit before deferred tax over the half year to 30 June 2011 was accounted for by a decrease of EUR24,847,000 in the underlying present value of schemes' liabilities. The decrease in the present value of schemes' liabilities was mostly due to an increase in discount rates in the Eurozone and the UK. The increase in the assets over the half year to 30 June 2011 was due to ongoing cash contributions and a modest investment return of less than 1% in the first half of the year which were offset by negative foreign exchange movements so the market value of assets at 30 June 2011 was EUR736,000,000.
8. Business combinations
The principal acquisitions completed during the period, all of which were 100% acquired, are summarised as follows:
In January 2011, the Group acquired the following:
- the Unilever Frozen Savory Foodservice Business based in Texas and North Carolina USA, which develops and markets a variety of soups, sauces and meal solutions;
- the business and assets of UK based Headland Foods. Headland Foods is a leading manufacturer of frozen customer branded ready meals supplying major retailers in the UK. This acquisition is currently being reviewed by the Competition Commission; and
- EBI Cremica, a provider of food coating systems to the food processor and foodservice sectors in India.
The Group acquired General Cereals S.A. in June 2011. Based in Argentina the acquired company manufactures extruded cereals for a range of customers.
In addition during the period the Group completed a number of small acquisitions in the UK and Central America.
Total consideration for the acquisitions was EUR39,871,000, being cash of EUR39,131,000 and deferred payments of EUR740,000, with no individual acquisition costing in excess of EUR21,500,000. The total consideration figure includes EUR1,430,000 of net cash taken over at the date of acquisition. Acquisition related costs were charged against trading profit in the Group's Condensed Consolidated Income Statement during the period and represented less than one percent of the total consideration.
The net assets acquired before combination were EUR24,955,000. The Group recognised goodwill on acquisition of EUR14,916,000. As these acquisitions were only recently completed the initial accounting for these business combinations is incomplete and therefore the disclosure of fair value adjustments and separate disclosure of the acquisitions' revenues and profit or loss is impracticable.
9. Financial instruments
The following table outlines the components of net debt by category at the balance sheet date:
Loans & Receivables & Other Liabilities at Derivatives Financial Fair Value Designated Total Net Liabilities through Profit as Hedging Debt at Amortised and Loss Instruments by Category Cost EUR'000 EUR'000 EUR'000 EUR'000 Assets: Interest rate swaps - - 17,399 17,399 Cash and cash equivalents 90,897 - - 90,897 __________ ________ ________ __________ Total assets 90,897 - 17,399 108,296 __________ ________ ________ __________ Liabilities: Interest rate swaps - - (3,280) (3,280) Bank overdrafts (3,764) - - (3,764) Bank loans (383,812) - - (383,812) Senior notes (797,658) (7,557) - (805,215) __________ ________ ________ __________ Borrowings and overdrafts (1,185,234) (7,557) - (1,192,791) __________ ________ ________ __________ Total liabilities (1,185,234) (7,557) (3,280) (1,196,071) __________ ________ ________ __________ At 30 June 2011 - unaudited (1,094,337) (7,557) 14,119 (1,087,775) __________ ________ ________ __________ Assets: Interest rate swaps - - 87,901 87,901 Cash and cash equivalents 162,993 - - 162,993 __________ ________ ________ __________ Total assets 162,993 - 87,901 250,894 __________ ________ ________ __________ Liabilities: Interest rate swaps - - (19,649) (19,649) Bank overdrafts (8,456) - - (8,456) Bank loans (475,956) - - (475,956) Senior notes (928,050) (17,351) - (945,401) __________ ________ ________ __________ Borrowings and overdrafts (1,412,462) (17,351) - (1,429,813) __________ ________ ________ __________ Total liabilities (1,412,462) (17,351) (19,649) (1,449,462) __________ ________ ________ __________ At 30 June 2010 - unaudited (1,249,469) (17,351) 68,252 (1,198,568) __________ ________ ________ __________ Assets: Interest rate swaps - - 42,680 42,680 Cash and cash equivalents 159,340 - - 159,340 __________ ________ ________ __________ Total assets 159,340 - 42,680 202,020 __________ ________ ________ __________ Liabilities: Interest rate swaps - - (9,391) (9,391) Bank overdrafts (7,196) - - (7,196) Bank loans (436,121) - - (436,121) Senior notes (858,398) (2,847) - (861,245) __________ ________ ________ __________ Borrowings and overdrafts (1,301,715) (2,847) - (1,304,562) __________ ________ ________ __________ Total liabilities (1,301,715) (2,847) (9,391) (1,313,953) __________ ________ ________ __________ At 31 December 2010 - audited (1,142,375) (2,847) 33,289 (1,111,933) __________ ________ ________ __________
The following table sets out the currency profile of the Group's net debt, highlighting the impact of cross currency swaps (CCS) on net debt:
Notional Pre CCS CCS Half Post CCS Half year year Half year Half year Year ended ended 30 ended 30 ended 30 ended 30 31 Dec. June 2011 June 2011 June 2011 June 2010 2010 Unaudited Unaudited Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 Euro (153,770) (344,828) (498,598) (511,170) (470,101) Sterling (87,814) - (87,814) (108,441) (60,782) US Dollar (830,382) 344,828 (485,554) (566,956) (540,160) Other (15,809) - (15,809) (12,001) (40,890) __________ ________ __________ __________ __________ (1,087,775) - (1,087,775) (1,198,568) (1,111,933) __________ ________ __________ __________ __________
The following table details the maturity profile of the Group's net debt:
On demand & up to 1 Up to 2 2 - 5 year years years > 5 years Total EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 Cash and cash equivalents 90,897 - - - 90,897 Interest rate swaps - (1,124) (2,156) 17,399 14,119 Bank overdrafts (3,764) - - - (3,764) Bank loans (37,790) (149) (345,620) (253) (383,812) Senior notes - (158,621) (225,244) (421,350) (805,215) _________ ________ _________ _________ __________ At 30 June 2011 - unaudited 49,343 (159,894) (573,020) (404,204) (1,087,775) _________ ________ _________ _________ __________ Cash and cash equivalents 162,993 - - - 162,993 Interest rate swaps (19,649) - - 87,901 68,252 Bank overdrafts (8,456) - - - (8,456) Bank loans (40,679) (115,948) (318,813) (516) (475,956) Senior notes - - (441,964) (503,437) (945,401) _________ ________ __________ _________ ___________ At 30 June 2010 - unaudited 94,209 (115,948) (760,777) (416,052) (1,198,568) _________ ________ __________ _________ ___________ Cash and cash equivalents 159,340 - - - 159,340 Interest rate swaps (9,391) - 3,479 39,201 33,289 Bank overdrafts (7,196) - - - (7,196) Bank loans (174,090) (261,212) (480) (339) (436,121) Senior notes - - (410,637) (450,608) (861,245) _________ ________ _________ _________ __________ At 31 December 2010 - audited (31,337) (261,212) (407,638) (411,746) (1,111,933) _________ ________ _________ _________ __________
10. Effect of exchange translation adjustments on the Condensed Consolidated Balance Sheet
Half year Half year Year ended ended ended 30 June 30 June 31 Dec. 2011 2010 2010 Unaudited Unaudited Audited EUR'000 EUR'000 EUR'000 (Decrease)/increase in assets Property, plant and equipment (45,282) 89,783 54,146 Intangible assets (54,859) 112,149 58,929 Inventories (20,263) 38,825 24,969 Trade and other receivables (22,132) 47,506 30,442 Cash and cash equivalents (4,499) 16,120 8,604 Assets classified as held for sale (409) 733 316 Decrease/(increase) in liabilities Trade and other payables 33,517 (67,013) (43,932) Tax liabilities 1,101 (3,080) (2,215) Financial liabilities 49,721 (115,122) (57,668) Retirement benefits obligation 7,890 (17,184) (7,063) Other non-current liabilities 1,577 (4,898) (641) Deferred tax liabilities 3,449 (6,295) (5,802) Provisions for liabilities and charges 2,223 (3,769) (1,106) Deferred income 204 (443) (201) Retained earnings 251 2,705 (1,483) ________ _________ _________ (47,511) 90,017 57,295 ________ _________ _________
The above exchange translation adjustments arise primarily on the retranslation of the Group's opening net investment in its foreign currency subsidiaries.
11. Events after the balance sheet date
Since the period end, the Group has:
- proposed an interim dividend of 9.80 cent per A ordinary share (see note 4); and
- entered into exclusive discussions with Cargill which may or may not result in the Group's acquisition of Cargill's global flavours business.
There have been no other significant events, outside the ordinary course of business, affecting the Group since 30 June 2011.
12. Accounting policies
These condensed consolidated interim financial statements for the half year ended 30 June 2011 have been prepared in accordance with the requirements of IAS 34 'Interim Financial Reporting' and using accounting policies consistent with International Financial Reporting Standards as adopted by the European Union. The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those detailed in the 2010 Annual Report. Some comparative information has been re-presented to align with the current half year presentation.
The following standards and interpretations are effective from 1 January 2011 but do not have a material effect on the results or financial position of the Group:
- IFRS 1 (amendment) First-time adoption of International Financial Reporting Standards - IFRS 3 (amendment) Business Combinations - IFRS 7 (amendment) Financial Instruments: Disclosures - Improving disclosures about Financial Instruments - IAS 1 (amendment) Presentation of Financial Statements - IAS 24 (amendment) Related Party Transactions - IAS 27 (amendment) Consolidated and Separate Financial Statements - IAS 32 (amendment) Financial Instruments: Presentation - IAS 34 (amendment) Interim Financial Reporting - IFRIC 13 (amendment) Customer Loyalty Programmes - Amendments resulting from May 2010 Annual Improvements to IFRSs - IFRIC 14 (amendment) IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction - IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
13. General information
These condensed consolidated interim financial statements for the half year ended 30 June 2011 have been prepared on the going concern basis as detailed in the 2010 Annual Report. The Board of Directors approved these condensed consolidated interim financial statements on 16 August 2011. These are not full financial statements and were not reviewed by the auditors. Full consolidated financial statements to 31 December 2010, which were audited and received an unqualified audit report, have been filed with the Registrar of Companies.
In relation to seasonality, trading profit is lower in the first half of the year due to the nature of the food business and stronger December trading. While revenue is relatively evenly spread, margin has traditionally been higher in the second half of the year.
As permitted by the Transparency (Directive 2004/109/EC) Regulations 2007 this Interim Report is available on www.kerrygroup.com. However, if a physical copy is required, please contact the Corporate Affairs department.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PFMRTMBIBBIB
1 Year Kerry Chart |
1 Month Kerry Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions