Kerry Group PLC Kerry Group Capital Markets Day Update (2866T)

TIDMKYGA

RNS Number : 2866T

Kerry Group PLC

11 October 2017

NEWS RELEASE

For Immediate Release

11 October 2017

Kerry Group Updates Medium Term Growth Targets at Capital Markets Day

Kerry Group, the global taste & nutrition and consumer foods group, at a Capital Markets presentation being held today, updates the Group's medium term growth targets and objectives. The Group also confirms the acquisition of US based Ganeden(R) -- a branded technology company focused on probiotics and related technologies.

Addressing investors, Kerry Group Chief Executive Edmond Scanlon states that the Group expects to deliver in excess of 10% adjusted earnings per share growth on a constant currency basis on average per annum over the next five year cycle. "This will be delivered through achievement of above industry-average volume growth and continued business margin expansion. We expect to achieve 3% to 5% volume growth annually on a Groupwide basis, with Taste & Nutrition targeting 4% to 6% growth and Consumer Foods targeting 2% to 3% growth".

In terms of trading profit margin progression, he confirms that margin in Taste & Nutrition is targeted to grow by 40 basis points per annum and margin in Consumer Foods is targeted to grow by 20 basis points per annum, which will contribute a 30 basis points Group margin improvement per annum on average across the five year cycle.

"Kerry Group has a unique scalable business model which I am confident can deliver the continued organic growth of the business across developed and developing markets as planned. We are in a strong position to lead the continued consolidation of our industry benefiting from the Group's strong balance sheet, scalable business model and geographic footprint. Return On Average Capital Employed (ROACE) is the Group's key financial return metric, the target for which remains to achieve a return in excess of 12% per annum", says Edmond Scanlon.

The Group today also confirms the acquisition of Ganeden(R) -- a leading technology innovation company focused on patented probiotics and related technologies. Ganeden(R) based in Cleveland, Ohio, with current year revenue of approximately US$25m, has an extensive library of published studies and more than 135 patents for technologies in the supplement, food, beverage, nutrition and personal care markets. Complementing the Group's acquisition of Wellmune(R) acquired in late 2015, the acquired Ganeden(R) technologies will be extended into wider applications across Kerry's global developed and developing markets.

Contact Information

 
 Media 
 Frank Hayes          Director of          +353 66    [e-mail] 
                       Corporate Affairs    7182304 
 Investor 
  Relations 
 Brian Mehigan        Chief Financial      +353 66    [e-mail] 
                       Officer              7182292 
 Ronan Deasy          Group Financial      +353 66    [e-mail] 
                       Controller           7182292 
 William              Head of Investor     +353 66    [e-mail] 
  Lynch                Relations            7182292 
 Website 
 www.kerrygroup.com 
 

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October 11, 2017 03:00 ET (07:00 GMT)