Kerry Group's Consumer Foods division has posted a 2.9% decline in trading profits for the year to 31 December 2013, according to the company's preliminary results, which were issued this morning.
Reported revenues in the division decreased by 6.5% to €1,601 million, despite underlying sales growth of 1.3%. Nonetheless, an ongoing business restructuring programme contributed to an improvement of 30 basis points in the trading margin, to 8%.
"Consumer confidence remained weak in the UK and Ireland in 2013 as inflation continued to outstrip growth in average incomes," a company statement read.
Kerry said that "against the background of major structural changes in the marketplace, Kerry Foods is focused on strengthening its consumer foods business portfolio", and it will be looking to make investment in the areas of "snacking, health and convenience."
In Ireland, while its Galtee and Shaws brands performed well, "the Denny brand share was impacted by heavily discounted private label offerings." Dairygold remained the number one brand in the spreads sector, achieving 2% volume growth.
Its Cheestrings brand, which was launched in Poland and Austria last year, continues to "expand its market positioning in France, Germany and the Netherlands."
Overall, Kerry Group reported group revenue of €5.8 billion for the year, reflecting underlying sales growth of 4.6%.
© 2014 - Checkout Magazine by Stephen Wynne-Jones
