Kerry Group's Financial and Strategic Management
Added on 2020-10-22
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FINANCE AND STRATEGIC MANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3KERRY GROUP.............................................................................................................................3Overall Interim performance.......................................................................................................3Directors point of view.............................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONFinance and strategic management is considered as study of funding with perspective oflong term aspect, which considers various strategic business enterprise. In the present scenario,financial management is increasing in rapid aspect for the purpose of developing set of decisions.It refers to particular planning for application of management for organizational financialresources to accomplish its objectives and goals. Managing control over funds helps the businessin maximising value of shareholders for a long run. The present report has target organizationwith financial and strategic management of Kerry Group. It will articulate directors point of viewwith context to problems linked with financial and strategic management. In the same series, itwill also present information related to overall interim performance of year 2016. With thecontext of interim performance, it had stated consolidated interim financial position of specificbusiness entity with its debt position.KERRY GROUPKerry Group plc along with its subsidiaries manufacture, delivers and develop technologywhich is based on nutrition and taste solution for beverages, pharmaceutical industries and foodin Europe, America, Asia pacific, Middle East and Africa. Generally, it operates in two segmentswhich are classified as Consumer food and nutrition manufacturers. The segment of consumerfood manufacturers and supply branded chilled food and added value branded food to Irish andin market of United Kingdom. It also offers dairy products, meat, savoury products and variousmeal solutions with retailer’s perspective to e-commerce channels and convenience stores underdifferent brands such as Dairygold, Fire & smoke, Galtee, Cheestrings and many more. Theproducts with private label are also produced such as, meals which are chilled and frozen, dairyand cheese products and cooked meat. The taste and nutrition segment distribute andmanufactures portfolio of functional activities and ingredients as they offer technologies ofnutrition and taste along with system and solutions.Overall Interim performanceKerry Group has stated solid financial performance for the interim duration of year 2016.Its overall performance had been highlighted with improvement in quality and operationalprocess along with increment in trading profits by 7.4% to 322 m and 70 basis points to 10.6%.In the same series, there dividend got raised to 16.8% from 12%. In first half of 2016, firmachieved growth by challenging different market conditions, slow economic growth, instability3
of geopolitical factors in specific developing market and currency volatility. In the same series,there is increment in retail fragmentation, penetration of regional brands, online shopping andongoing growth with context of snacking had contributed for churning of significant productalong with raise in demand of product differentiation and offering in innovative aspect. The trendof consumer reflects growth with reference to wealth, natural, health offerings and specificpropositions of clean label which, is highly focused on increasing attention towards developmentof both segments and demand for meal solutions.The combination of nutrition, taste and capabilities of general wellness along withapproach of unique system which had continued for increment in engaging customer and variousinnovation. The Asia had attained strong growth in channel of food service in every region. Inthe year 2015, internationalisation and integration with reference to business had been acquiredas its outcome was successful progress. The UK and Irish consumer food are very competitivefor alterations in market place and uncertainty of economy in market of UK. The portfolio hadbeen repositioned for continuing its performance with advantages such as convenience andsnacking trend. The growth rate of market was outperforming with proper maintenance ofmomentum of good business. The revenue of group was not changed at €3 billion whicharticulate appropriate growth of volume, as it is outset through movements in currency andpricing had been lowered with context of first half of year 2015. The growth had been observedin business volume by 3.2% which reflects very good performance of firm in market of America.However, growth of volume was lower in EMEA region with context of specific regionaldeveloping market. Simultaneously there was strong momentum of business growth in Asia.Against the background its net pricing decreased by 2.2% and in same series cost of raw materialby approx. 4%.In the year 2016, 3.5% growth was attained through taste and Nutrition with context ofvolume of business and its pricing was lowered by 2.2%. In the same series, volume of Kerry'sfood business was increased by2.3% and pricing were decreased by 2.1%. There was continuousimprovement in overall quality of business and efficiency of operations. There was increment intrading profit by 7.4% with €322 million. It could be interpreted that its trading profit marginwas raised through 70 bps to 10.6%. It reflects that improvement of 70 bps in trading marginwith 12.8% in taste and nutrition and 30 bps with context of consumer food as it is margining to8.3% and decreases spending on its connect programs with contribution of 10 bps. The earning4
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