Kerry Group Updates Long Term Growth Targets

RNS Number : 3722J

Kerry Group PLC

29 June 2011

 



news release

29 June 2011

Kerry Group Updates Long Term Growth Targets At Investor Presentation

29 June 2011 - Kerry Group, the global ingredients & flavours and consumer foods group, at a Capital Markets presentation held in London today updated the Group's long term growth targets and objectives.

Addressing investors Kerry Group Chief Executive Stan McCarthy stated that the Group expects to deliver in excess of 10% adjusted earnings per share growth on average per annum over the next five-year cycle. He said this will be achieved through delivery of above industry average volume growth, business margin progression and the net benefits accruing from the Group's business transformation and efficiency programmes.

"We expect to achieve like-for-like (LFL) volume growth of 3% to 5% per annum on a Group-wide basis, with our ingredients & flavours businesses targeting 4% to 6% LFL growth (10% in emerging markets) and Kerry Foods, the Group's consumer foods business, targeting 2% to 3% LFL growth," Stan McCarthy said.

In terms of trading profit margin progression, he said that the ingredients & flavours' margin is expected to grow by 50 basis points per annum and the consumer foods division is targeting 20 basis points improvement per annum, which will contribute a 30 basis points Group margin improvement per annum on average across the five-year cycle - with a further 100 basis points improvement to be achieved on completion of the Group's 'Kerryconnect' business enablement programme.

"The Group is investing significant resources in design and implementation of '1 Kerry Operating Models' which when executed globally will create enduring competitive advantage for Kerry and our customers. The Kerryconnect programme will enable this business transformation programme through implementation of a common integrated global IT system across the Group. Our capital spend will increase to support the Group's planned growth over the five-year cycle and expenditure on the Kerryconnect programme will be approximately €350m. Notwithstanding this increased investment in Group systems and infrastructure, our financial return target ratios remain above 15% for return on average equity (ROAE) and above 12% for cash flow return on investment (CFROI)," Stan McCarthy added.

Concluding he stated that the Group remains on track to deliver earnings as guided for 2011 and is confident of delivering its strategic growth initiatives and objectives over the next five-year cycle.

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Contacts:

Media Frank Hayes, Director of Corporate Affairs Tel:  [phone]        Email: [e-mail] Kerry Web Site:  www.kerrygroup.com

Investor Relations Brian Mehigan, Chief Financial Officer Michael Ryan, Head of Investor Relations Tel: [phone]        Email: [e-mail]

 

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