Kerry Group Interim Report: Financials, Strategy, Projections - Essay Sample

Introduction

Financial and strategic management are among the significant aspects of a company. They form the company's credibility in control of finances, plans, and overall performance of a company. In reference to Kerry Group, this paper is going to provide an interim report,projections,expectation statements based on company's strategy,revenues,earnings,tax rate, profits, capital expenditure,dividends,,cash flow, net debts among others that may affect the companies raw materials,companies' management,foreign exchange and the overall company's outlook.

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About the Group

Kerry Group is a public food company based in Ireland. It started in 1972 as a private company. It has achieved progress over time( Bolini & Arellano,2018). It is now supplying its products which include Low, dairy gold, Big train, Fire and Smoke, Denny, among others all over the world. It has bought companies like Quest Food Ingredients Group and a food ingredients business' company. Kerry has several business ventures like the taste, meat, dairy, and culinary, sweet and cereals, dry and liquid beverages. It is projected as one of the world's best in food and delivers unique, innovative solutions to its customers across the globe. Its foundational technology and integrated systems enable the delivery.

Kerry Group is committed to the success of its consumers and Kerry. It is also passionate about helping the world make food beverage and pharmaceuticals, best for all the consumers(Eslayed,2019). The group's mission is "to be a world leader in taste and Nutrition serving the food, beverage and pharmaceutical industries, and a leading supplier of added value brands and customer branded foods to the Irish, UK and selected international markets. Kerry has employed over 25000 workers.

Kerry shareholder analysis is about 13% of Kerry's co-op,27% of retail and 26% of institutions. The institutional shareholder analysis is approximately 15% in the UK,20% in North America,2% in Ireland and 23% of the rest of the world. This shareholder analysis shows that the company as more shareholders in the UK and North America than in native land Ireland.

It is also essential to look at some of the macro analysis of the Kerry Group. This report is an overview of some of the macro analysis factors. In politics, there is high involvement of nations in Kerry company, and it is exposed to many civil society organizations. The economic analysis of the company is that it has been able to manage cycle growth rate over time. The company also to contain and control the nature of demand and supply within the economic growth rate. Kerry faces competitions from companies that belong to the same category and sector of the industry, but it has been able to get rated over them in most cases.

These are some of the strengths, weaknesses, and opportunities of Kerry Group.

Strengths

• The group has a highly successful market strategy which has proven working. It has the largest and the most advanced technological and provider of taste and nutrition solution to the consumers.
• It has a strong base of reliable suppliers that have enabled it to overcome supply chain competitions. It has been able to supply its products to all the retail partners in the Irish UK among other selected international markets. Kerry foods are also the leading provider of consumer foods.
• Kerry Group is successful in capital expenditure and good returns. It has earned success in new projects building new revenue returns.
• It has a steady cash flow that provides the company with resource used in the expansion of the company.
• The company has been able to produce a streak of new projects that became successful. It has embraced technology which has provided it with innovations contributing to its success.
• The company also has a training program for its workers, which has enabled the company to produce the best Labour workforce.

Weaknesses

• Although the company has had a desirable marketing strategy, marketing skills are never 100%. They still need to improve on marketing to avoid attacks from competing companies.
• Another challenge is that financial planning is not done correctly and efficiently in terms of asset ratio and liquid assets. The company is at the risk of using more money than it is what is capable of doing.
• Input cost is more volatile due to crop production conditions affecting the raw material price
• Limited market share
• Pressure from competitive markets
• Ingredients and flavors market is highly uneven.

Opportunities

There are also opportunities available at the Kerry group setting.

The first opportunity comes with new environmental policies. It has a level field for all people in the group. This drive will lead to the gaining of shares. Some opportunities come with new technology. The technology advancement is a chance for Kerry Group to plan effectively. The smartness of the innovation is the bait to new customers. There is a unique opportunity with the government green drive. The deal is a procurement chance. The government and the federal contractors are now among the consumers of the group's products. The shipping prices have gone down. This drop in the fee has made transportation easy and affordable - the drop group to either increase profit or pass the benefit down to the consumer. The Organization has the advantages of new online customers. The investment on the online platform is now working and bringing in new revenue. The other benefit of the online platform is that the group can modify its future inventions based on the analysis of the customer's preference. Finally, the Kerry group has an opportunity given by the low inflation rates currently in the market. The inflation has brought stability to the market, enabling credits at little interest rates to the consumers.

Kerry Management Strategic Options

The company has several management strategies. First, the company's global executive is responsible for the leadership and long-term development of the company. They are responsible for ensuring the growth of the best company's consumer products taste and the nutrition business. Among the global executives are the regional leadership that mandated in continuous assessment of the company as a leading to number one food beverage and pharmaceutical industry.

The management is committed to the sustainability of the company. It increases awareness of sustainability and the importance of balancing economic growth, environmental and social wellbeing. The company makes sure that the environment is free from pollution through its industrial raw material and the wastes. It also pays attention to the health of its people and consumers.

The company, through directorate management, proposes an increase in dividends by 12%. This plan strategies to increase the confidence of their shareholders. It also attracts more shareholders who want to partner with the company.

Strategic priorities of the companies are growth and margin implementation. It embraces groups leadership towards achieving the best taste and Nutrition in Kerry's group. Strategic development of the company's platform for growth is based on continued organic growth and acquiring proper investment.

The company will make changes in the management table, following the retirement of director and chairman of the board someone else will be appointed to take up the positions also will be a chance to make other changes in leadership with which the company will be looking forward to making a significant contribution to the board.

Volume growth is an essential metric as a key driver in business improvements. The company operates a pass-through pricing model where the consumers take up the raw materials frequently changing prices. The pricing will, therefore, impact revenue positively or negatively depending on the direction of raw material price. Trading with this margin expansion is a crucial measure of profitability. It will lead to an improvement of product variety sold and also the operations of the business.

The company's another strategy is that it has a future vision. It has adapted the rapidly changing market by developing the Kerry model to continuously outperform the market and responding to changing consumer trends and needs through innovation and technology.

Financial Reviews and Strategies

The understanding of the commercial policy this year requires the analysis of several factors that makes up the fiscal year. Kerry economic outlook is durable and able to face any volatile macroeconomic times and any changing consumer landscape. Its products are delivering a unique taste and speed to the market. The Kerry food and Nutrition, for example, has outperformed all food companies in the world(Shirsat, 2016). There is an increase in currency headwing. It ranged at 5% during the currency exchange rate. The report dwells on earning per share (EPS). It is expected to reach between 6% and 10%. This range is equal to 320 to 332 cents.

Revenue

The revenue growth has been monitored in various fields and recorded under the transactions, translation acquisition, currency disposal price currency, and the total performance in three outlets. The review based on Taste and Nutrition performance.

Study in the Americans

There was a significant business volume, an additional of 3.5 % while the pricing reduced by 2%. This excellent performance was brought about by the technology boost. This boost is because of technology acquired in 2015 mainly the red arrow products. The sustained growth of the meat sector in North America and the snacking groups in Mexico are also contributing factors. Brazil had challenges in the dairy sectors but still managed to have sustained growth. The overall revenue was 1,244 million euros, an increase of 3.5%.

Review in EMEA

The business volume increased by 0.3 %, while the pricing stood at 2.7%. The overall business environment is challenging. It was a deflationary environment with geopolitical problems. The total revenue ranged at 734 million euros a little increase of 0.3 %. The reasons for the growth despite all the challenges includes the oversupply position in the dairy sector. The meat sector is highly competitive but still managed to bring in returns in Europe and Russia.

Review in Asia-Pacific

The business volumes in the Asian-pacific region had the most excellent performance. This result is because of the up-trend and support in all sectors of the business. The business volume was an enormous 9.5%. The pricing stood at the highest 1.8%, making the technologies achieve active market development. There were extension and achievement of the acquisition of Jung-jin food, which assisted in the development of the Kerry group in Vietnam and China. The regulatory changes in China affected the infant nutrition sector. The changes allowed Kerry to group-based nutrition technologies.

Overall Review

The group reported increased revenue, which stood at 365 billion euros in the year 2016. The figure is inclusive of the volume growth of 4.5%. The overall pricing reduced, but this did not have any effects on the amount of the profit. A small percentage decrease was related to the raw materials deflation, which passed to the buyers. The impact adversely felt in Brazil outlet. There was a 3.4% decrease as a result of currency translation. There was also acquired businesses that consumed at least 3.6%.

The overall revenue growth range at +3.2%.A volume of 3037 million euros. The pricing was +2.0%. The group reported a fair transaction currency of 3.2 %, translation currency lesser than the previous year. It spent 3.2% on the acquisitions and disposal of businesses.

The financial trends in the Taste and Nutrition and Consumer Foods were impressive despite the competitive environment. Other significant expenditures include finance costs, which h...