Kerry Group Financial Statement Analysis

Kerry Group Financial Statement Analysis

1. Introduction

   • Purpose of Report
   • Background of Kerry Group
   • Micro & Macro Environmental factors
   • Financial Analysis
   • Corporate Governance
   • Strategic Objectives

2. Caveats

   • Accounting Policies
   • Outliers
   • What, not why
   • Based on the past
   • Definitions may vary

3. Executive Summary

   • Publically Listed
   • Based in Tralee
   • Listed in Dublin & London
   • 36000 people employed
   • Manufactures in 23 countries
   • Revenues in excess of 5.8 billion
   • Trading profit increased by 10.8% to €555m
   • Pre-tax profit €482m
   • Adjusted EPS of 11.3%
   • 2.8% increase in continuing business volume
   • Group trading margin up 10 BPS to 9.5%
   • Final Dividend per share of 25c
   • Free Cash Flow of 380m
   • R&D Investment of €186m

4. Background

   • Major International Food Corporation
   • 1-Kerry Business Strategies
   • Delivered good growth in all geographies
   • Ingredients & Flavours growth in excess of 14%
   • Consumer food growth 2.3%

5. SWOT Analysis

   • Strengths
     • High Profitability & Revenue
     • Reduced Labour Costs
     • Existing Distribution & Sales Network
     • Established Global Processing & Technical Network
     • Core Technological Strengths
     • Close Working Relationship with Retail Customers
     • Leading Consumer Brand in UK & ROI
   • Weaknesses
     • Raw Material Pricing
     • Market Share Competition
     • Fragmented Ingredients & Flavours market
     • Horse Meat Scandals
   • Opportunities
     • Growth in demand for ready meals & fresh produce
     • Growing Ingredients & Flavours Market
     • Emerging markets & Global Customers
     • New Acquisitions
   • Threats
     • Food industry Supply & Demand Issues
     • Foreign Exchange Fluctuations
     • Increasing Labour Costs
     • Increasing Raw Materials Cost
     • Fluctuating Interest Rates
     • Government Regulations
     • Unexpected Problems

6. Activity & Liquidity

7. Financial Review

8. Profitability & Return on Investment

9. Corporate Governance

10. Business Risks

11. Future Strategy

12. Conclusion