Kerry Group net profits shrink by 6.5%

Its revenues grew to more than €3bn

Kerry Group net profits shrink by 6.5%

Radio Kerry

Kerry Group's net profits have taken a 6.5% hit during the first half of €222m as revenue grew by 0.3% to more than €3bn.

It has indicated that it expects conditions to remain challenging in international trade during the second half of the year. The group now says that end-of-year earnings will be to the middle, or lower range of previous forecasts.

The Irish group enjoyed a strong performance in the US - overall business volumes grew by 3.2% and the cost of raw materials fell by 4%.

Currency fluctuations had a 3.7% impact on revenues.

Kerry Group Chief Executive Stan McCarthy said: "Despite the challenging market landscape we delivered a solid financial performance in the first half of 2016, with continued margin expansion, strong cash generation and a 7.5% increase in adjusted earnings per share.

"While we are confident of delivering an underlying trading performance in the full year as previously guided; taking into account the increased currency headwinds of 5% at current exchange rates, growth in adjusted earnings per share in 2016 is expected to be towards the middle to lower end of the 6% to 10% range of 320 to 332 cent per share."