Kerry Foods' income hits new high

One of the biggest private sector employers in south Shropshire – thanks to its factory near Tenbury Wells – Kerry Foods delivered the revenue figure after thanks to a 3.2 per cent increase in the quantity of goods it sold.

Trading profit increased by 7.4 per cent to 322million euros (£269m).

Kerry said its improved performance came despite it battling for ground in a difficult market, which was impacted by slow economic growth around the world and unstable currencies.

The taste and nutrition side of the business – which is the larger of the two divisions, and which is represented with the sweet ingredients factory at Burford – grew by 3.5 per cent to 2.4bn euros (£2bn).

Kerry's ingredients factory at Burford employs more than 200 people, and makes products including such as sweet ingredients such as crystallised fruits which are used in baked goods.

While the company delivered a glowing appraisal of its overall performance, however, it did sound a cautionary tone when discussing its performance in Europe, the Middle East and Africa. It said its cereal and sweet products are continuing to be impacted by the deflationary environment on the continent, which was being driven locally by a price war among supermarkets.

Chief executive Stan McCarthy said the company was expecting to continue its growth.

"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 per cent increase in adjusted earnings per share," he said.

"While we are confident of delivering an underlying trading performance in the full year as previously guided."