Kerry Group - Q2 the nadir as Taste & Nutrition recovery gathers pace

Davy Research
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Kerry’s interim result was broadly in line with expectations with Q2 Taste & Nutrition (T&N) volumes declining 11.8% year-on-year. The outlook statement refers to a “continued good recovery” for T&N, with Q3 volumes expected to be “modestly below” prior year levels. We envisage no material change to FY20 EBITA forecasts. With robust business fundamentals against an improving trajectory and enhanced customer engagement, we reiterate our ‘Outperform’ call.