Kerry Group - Interims in line; a good start to the five-year plan

Davy Research
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Kerry Group’s interim statement confirms another strong period of delivery. Within T&N, healthy volume growth was sustained (H1: +4.1%), led by developing markets (+9.6%). Group underlying margins were robust, increasing 30bps year-on-year (yoy). Continuing operational momentum and a busy innovation pipeline has prompted Kerry to lift the lower end of its FY 2018 guidance; it now expects adjusted constant currency EPS growth of 7-10% (previously 6-10%). Accordingly, we envisage a modest upward revision to our FY EPS forecast. We reiterate our ‘Outperform’ rating.