Kerry Group to carry out strategic review of its dairy business
THE Kerry Group is to undertake a strategic review of its dairy business in Ireland and Britain, putting a potential transaction on the table.
The group's chief executive Edmond Scanlon said the review would consider its dairy production and consumer food assets, which have annual revenues in the region of £785 million.
The Kerry Group employ a significant number of people in the north involved in manufacturing its dairy products. It has factories in Portadown, Omagh and Coleraine, producing a broad dairy range from Coleraine Chedder to Dairygold butter.
Mr Scanlon confirmed that the review could result in a transaction.
"We're taking a stand back and doing a strategic review. Evaluating several options. One of those options could lead to a transaction but may not lead to a transaction," he said.
The announcement came as Kerry published its latest financial figures on Tuesday.
The preliminary results for the year ending December 31 2020, showed group revenue of €7 billion (£6.1bn), down of 4 per cent, while its trading profit fell to €797.2m (£695m) from €902.7m (£787m) in 2019.
Kerry said its foodservice business took a substantial hit from Covid-19 in the second quarter of 2020, with many of its customers closed for extended periods.
It said the performance improved significantly during the year as, as it adapted its offerings to cater for the changing marketplace.