Kerry Group - Taste & Nutrition growth momentum sustained; interims in line with expectations

Davy Research
/Read Important Disclosures

Kerry has sustained positive operating momentum through the first half of 2017. Taste & Nutrition (T&N) volume growth accelerated to an estimated 4.3% in Q2 (from 4.1% in Q1). Regionally, volume growth was strong in the Americas and Asia Pacific with a notable improvement in EMEA. T&N’s capacity to deliver organic growth ahead of the market continues to impress. Its best-in-class delivery model and technology toolkit ensures that it remains highly relevant to its customers. As anticipated, FY guidance (adjusted EPS growth) has been updated for FX and is now guided at 3-7%. We remain comfortable with our FY forecasts and reiterate our ‘Outperform’ rating.