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Kerry Group still upbeat on expectations

Kerry Group still upbeat on expectations

Kerry Group still upbeat on expectations

Irish food giant Kerry Group expects to achieve its full year growth target as per previous guidance despite rising input costs.

Ireland’s third biggest company by market capitalisation, Kerry said it will report earnings per share of between 210 to 218c in 2011, an increase of 7pc to 12pc on 2010 figures.  

Last year, the group enjoyed good volume growth, as well as a solid financial performance in the first quarter of 2011.  

Reported revenues increased by 14.8pc and like-for-like revenue increased by 10.5pc in the first three months of the year.

Business volumes grew by 4.1pc and pricing/mix increased by 6.3pc, reflecting the group's cost recovery programme undertaken in collaboration with customers to offset input cost inflation.

“Some raw materials continue to reflect inflationary trends and while there is a lag in cost recovery in some end-use-markets, cost recovery and business efficiency programmes are successfully mitigating the impact of such issues,” the company said in its interim trading statement this morning.

The group's closing net debt position was €1.16bn and it expects higher capital expenditure in 2011 as investment in growth and efficiency programs continues.

Shares were up over 11pc this morning to €28.96 but have since eased back to €28.42.