Financial and Strategic Management Issues of Kerry Group

UU-MBA 710:
FINANCE &
STRATEGIC
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Financial and Strategic Management Issues of Kerry Group......................................................4
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The aim of this report is to examine from the director's point of view the interim financial
performance of the Kerry Company. The reason is to address concerns related to the company's
financial and strategic results. The Kerry Group is a public limited corporation headquartered in
Ireland and is responsible for consumer food goods. The group Kerry is initially established by
the Listowel and two other entrepreneurs as a private limited company. Three main shareholders
hold all the company's stock and are split into the State-owned Dairy Disposal Corporation
(42.5% shareholdings), the Farmer's Union of eight smallholder farmers (42.5% shareholdings),
and finally Erie Casein Business (15% shareholdings).). The group is listed on the London Stock
Exchange and Ireland in the following years: after Kerry Group became turned into a publicly-
owned business. The Kerry Group increased its operations in 2004 and 2005 by acquiring two
companies (About interim report of Kerry plc, 2016). The Kerry Group received approximately
EUR 440 million in the first quarter of 2004 for Search Food Ingredients Category and 2005
(About interim report of Kerry plc, 2016). For 124 million Euros, Kerry Group has acquired
Noon Products. The business Noon Products is the leading suppliers of Indian and Thai goods.
Since this report is produced from the viewpoint of the managing director, it is necessary to
analyze all of the company's strategic decisions and draw their financial implications in the
interests of full awareness of the company's preliminary results.
Kerry Group's 2016 interim management report is directed at evaluating the policy of the firm,
sales, profits, operating income, profit margins, financing expenses, spending on property, debt
keeping, tax implications, cash flows, and other financial details that has an effect on potential
success of the business. The report consists of three sections, company activity analysis, an
summary of financial success and potential market prospects. As per details in the interim report,
Kerry Group may face several challenges in the years to come. Macroeconomic conditions, food
market demand and supply issues, volatility in foreign exchange movements, and price
differences in raw materials and product volatility will influence the forecasts presented in the
provisional management report. The report will concentrate on the related concerns from the

Directors' standpoint. Ratio analysis and pattern analysis are the methodologies used to assess
Kerry Group's interim results (Kölbel, Busch and Jancso, 2017).
MAIN BODY
Financial and Strategic Management Issues of Kerry Group
The key aim of the interim management report is to improve communication with the
board, shareholders and managers of the business. The reason for Kerry Group's interim
development is to demonstrate the credibility and reputation of the different management
divisions, such as financial management, sales management and strategic management. The
managers consider the company's potential success and want the interim management report to
be reviewed with respect to the company's future progress (Böhm, Eggert and Thiesbrummel,
2017). The data contained in the interim management report is 9 months long and will reflect on
the overall results during the time span. The preliminary financial report is not audited, because
it is not the company's final statement. The mid-year report provides the organization with a
perspective for shareholders to recognize the business's results so management will take effective
action to address the issues if any issues are found (Karna, Richter and Riesenkampff, 2016).
The organization provides dairy products, poultry items and food options for a wide
range of customers in order to supply them with safe and hygienic food. By offering premium
food and beverage goods at inexpensive demand, the organization has become a world leader. It
works primarily in the United States, Asia-Pacific, the Middle East and Africa. However, as the
company's Interim Management Report of the year 2016 stated, the key competitive concern has
been that the company's market growth is slower than in Asia Pacific in EMEA countries like
Europe, the Middle East and Africa. For example, its interim management report reveals that its
business in Asia and the Pacific has experienced growth of around 10%, while in America; its
growth in 2016 was about 4% (About interim report of Kerry plc, 2016). It is largely attributed to
strong increases of lifestyle nutrition items in these countries and therefore to the growing need
for Kerry Group food products. In order to satisfy the different consumer requirements in EEA
countries, the key obstacle faced by Kerry Group is to search into innovative ways to raise the