TIDMKYGA

RNS Number : 1770P

Kerry Group PLC

16 February 2021

Date 16 February 2021

LEI: 635400TLVVBNXLFHWC59

KERRY GROUP

PRELIMINARY STATEMENT OF RESULTS FOR THE YEARED 31 DECEMBER 2020

Strong recovery in business performance, with volumes returning to growth in the fourth quarter

Kerry Group, the global taste & nutrition and consumer foods group, reports business performance for the year ended 31 December 2020.

OVERVIEW

 
 
 
        *    Group revenue of EUR7.0bn reflecting a volume 
             reduction of 2.9% (Q4: +2.2%) 
 
 
        *    Taste & Nutrition volumes -3.0% (Q4: +0.7%) 
 
 
        *    Consumer Foods volumes -2.6% (Q4: +8.8%) 
 
 
        *    Pricing +0.3% 
 
 
        *    Group trading margin of 11.5% (2019: 12.5%) 
 
 
        *    Taste & Nutrition trading margin of 14.2% (2019: 
             15.3%) 
 
 
        *    Consumer Foods trading margin of 7.8% (2019: 7.6%) 
 
 
        *    Adjusted EPS reduction of 9.4% on a constant currency 
             basis to 345.4 cent (-12.3% reported) 
 
 
        *    Basic EPS of 313.0 cent (2019: 320.4 cent) 
 
 
        *    Final dividend per share of 60.6 cent (total 2020 
             dividend up 10.1% to 86.5 cent) 
 
 
        *    Free cash flow of EUR412m (2019: EUR515m) 
 
 
        *    Strategic review of Dairy business 
 
 

Edmond Scanlon, Chief Executive Officer

"This has been a truly unique year, with the daily lives of people across the world profoundly impacted by the COVID -- 19 pandemic. I am exceptionally proud of the response of our people, and how they have supported our customers and local communities throughout the year, aligned to our Purpose, Inspiring Food, Nourishing Life.

In the year, there were notable distinctions in business performance by channel. Sustained strong growth was achieved in the retail channel, primarily through growth in authentic cooking, plant-based offerings and health and wellness products. Performance in our foodservice channel was most significantly impacted in the second quarter, as the introduction of restrictions affected our customers' operations. The proactive nature of our business model has been a key driver of our strong recovery through the year, as we supported foodservice customers in adapting their operations and menus to cater for increased consumer demand for takeaway, online and delivery.

We made very good progress on a number of strategic fronts. We commenced the strategic development of our Georgia, US facility, which will have world-leading capabilities. We launched our 2030 sustainability strategy - Beyond the Horizon, which details Kerry's sustainability targets and will be central to our growth strategy, as we continue to innovate with our customers and expand our reach of sustainable nutrition solutions. We completed a number of key acquisitions aligned to our strategic growth priorities in the year, and have since announced our intention to acquire Spanish listed Biosearch Life.

While uncertainty from COVID-19 continues to impact our customers, consumers and industry, we will continue to co-create with our customers to meet accelerating consumer demands, and look forward to a year of strong recovery and good growth."

PRELIMINARY STATEMENT OF RESULTS FOR THE YEARED 31 DECEMBER 2020

The Marketplace

This year has seen major changes in the daily lives of consumers across the globe, with purchasing and consumption behaviours significantly disrupted, leading to a much more dynamic marketplace. At-home consumption has been elevated, as consumers adapted to changes in daily routines and work practices. The foodservice channel has been significantly impacted due to restrictions on operations and consumer mobility, leading to increased demand for online and delivery. Our foodservice business was most impacted in the second quarter, as many of our customers were closed for extended periods, with performance significantly improving through the year as they adapted their offerings to cater for the changing marketplace.

The COVID-19 pandemic has served to accelerate key trends that were on the rise at the beginning of the year, with increased demand for health and immunity enhancement, plant protein options, and products addressing a diverse range of sustainability criteria. Customers are increasingly focusing on sustainability as an enabler of growth, leading to significant opportunity for Kerry and our differentiated portfolio of sustainable nutrition solutions. As customers adapt to this dynamic operating environment, product portfolios and menu offerings continue to be evaluated, with new product development strategies focused on these rapidly changing consumer demands. These dynamics are leading to significant challenges and opportunities across the industry.

Performance

Group revenue of EUR7.0 billion reflected a reported decrease of 4.0%, with an overall volume reduction of 2.9% in the year. This performance reflected a strong recovery since April with a return to volume growth of 2.2% in the fourth quarter. Performance in Taste & Nutrition continued to improve through the year and returned to volume growth in the fourth quarter, while performance in Consumer Foods improved with a very strong finish to the year.

The Group reported trading profit of EUR797.2m (2019: EUR902.7m) due to the impact of COVID-19. Group trading margin decreased by 100bps to 11.5% as a result of operating deleverage and COVID -- related costs partially offset by cost mitigation actions, with significant recovery in business margins across the second half of the year.

Constant currency adjusted earnings per share decreased by 9.4% to 345.4 cent (2019 currency adjusted: 381.4 cent). Basic earnings per share decreased by 2.3% to 313.0 cent (2019: 320.4 cent). The Board recommends a final dividend of 60.6 cent per share, an increase of 10.0% on the final 2019 dividend. Together with the interim dividend of 25.9 cent per share, this brings the total dividend for the year to 86.5 cent, an increase of 10.1% on 2019.

Net capital expenditure amounted to EUR311m (2019: EUR315m) and research and development expenditure was EUR282m (2019: EUR291m) as the Group continued to invest in its strategic priorities for growth across taste, nutrition, developing markets and foodservice. Group free cash flow of EUR412m and cash conversion of 67% in the year (2019: EUR515m / 74%) reflected the impact of COVID-19 and investments to support the ongoing progression of the Kerryconnect programme across our sites in North America.

Sustainability

In October, we launched our new sustainability strategy - Beyond the Horizon. This details Kerry's key sustainability 2030 commitments and targets, while reflecting how innovation and co-creation will continue to be central to Kerry's growth strategy. Our aim is to increase our reach to over two billion people with sustainable nutrition solutions by 2030, which will be achieved by deploying and enhancing Kerry's solutions across the nutrition spectrum. Beyond the Horizon reflects our vision to become our customers' most valued partner, creating a world of sustainable nutrition.

Business Reviews

Taste & Nutrition

Sustained strong growth in retail, with continued good recovery in our foodservice business

 
                      2020  Performance 
===============  =========  =========== 
Revenue          EUR5,753m     -3.0%(1) 
Trading margin       14.2%      -110bps 
===============  =========  =========== 
 

(1) volume performance

   >    Overall volume reduction of 3.0%, with a return to growth of 0.7% in Q4 

> Retail channel delivered strong growth of 3.8%, led by Beverage and Pharma EUMs, with Food EUM performance driven by Snacks and Meals

> Foodservice channel volumes declined 19% with continued recovery through H2 (Q3: -15% | Q4: -8%)

> Trading margin decrease in the year principally driven by operating deleverage and net COVID -- related costs, with continued recovery in H2 aligned to the improvement in business volumes

Taste & Nutrition reported revenue was EUR5.8 billion, reflecting a reported decrease of 4.4%, primarily due to lower volumes and adverse translation currency, partially offset by contribution from business acquisitions. Taste & Nutrition began the year strongly before the global spread of COVID -- 19. While performance was most impacted in the second quarter, business volumes recovered well since then and returned to growth in the fourth quarter. We saw a significant change in the nature of innovation through the year, as product ideation, collaboration and co-creation was adapted to cater for virtual engagement through this period. Kerry's nutrition and wellness technology portfolio had a very good performance within the retail channel through customised solutions incorporating our broad protein portfolio, fermented ingredients, probiotics and immunity enhancing technologies.

Business volumes in the foodservice channel declined 19% in the year, with many out -- of -- home food and beverage outlets closed for an extended period of time. This impact was the primary driver of overall performance in developing markets, where business volumes declined by 1.2%.

In the year, we completed a number of key strategic acquisitions. These included Bio-K Plus International Inc., a leading biotechnology company with a number of probiotics in beverage and supplement applications in Canada, and we acquired Jining Nature Group in China and Tecnispice, S.A. in Guatemala, both of which are local leaders in savoury taste in their respective markets within APMEA and LATAM.

Americas Region

   >    Overall volume reduction of 2.5%, with a return to growth of 0.5% in Q4 

> Retail channel delivered strong growth - led by the Beverage EUM and Meals and Snacks within the Food EUM

   >    Foodservice performance recovered well across H2 

Revenue in the region was EUR3.1 billion, reflecting a reported decrease of 3.5%, with lower business volumes of 2.5%, positive pricing of 0.1%, an adverse translation currency impact of 3.0% and contribution from business acquisitions of 1.9%.

The retail channel in North America achieved strong growth in the year. This was led by an excellent performance across the Beverage EUM, where Kerry's immunity enhancing technologies, broad protein portfolio and natural extracts were deployed in a number of nutritional, low/no alcohol and plant -- based beverage launches. Within the Food EUM, Meals achieved very strong growth through clean label innovations incorporating Kerry's natural stocks and broths, with a number of plant-based launches also supporting growth. Overall Meat performance was impacted in the year by customer product availability on retail shelves, while Snacks performed well through more at-home consumption and increased demand for healthier options.

The foodservice channel in North America was impacted considerably in the second quarter, however performance has seen a significant improvement since then, led by quick service restaurant chains, while dine-in restaurants and independent operators were more challenged. This improvement in performance has been supported by health and wellness innovations and limited time offerings.

In LATAM, the foodservice channel was impacted later in the year, but recovered well through the fourth quarter. Brazil returned to growth led by beverage and ice -- cream, while market conditions in Mexico and CACAR remained more challenged.

Pharma achieved very strong growth globally, with cell nutrition performing well and immunity enhancing technologies delivering excellent growth in the year.

Europe Region

> Overall volume reduction of 5.0%, with business volumes of -0.4% in Q4 reflecting further recovery

   >    Retail channel delivered good growth in Beverage EUM and Snacks and Meat within the Food EUM 
   >    Foodservice continued to recover but was impacted by restrictions late in the year 

Revenue in the region was EUR1.4 billion, reflecting a reported decrease of 5.6%, with lower business volumes of 5.0%, an adverse transaction currency impact of 0.1%, an adverse translation currency impact of 0.9% and contribution from business acquisitions of 0.4%.

This was the most impacted region from COVID-related restrictions in the foodservice channel in the second quarter, but has recovered well since then with customers reopening and operating at varying capacities through the second half of the year. Kerry's improvement in the foodservice channel was supported by a number of launches incorporating the Radicle(TM) portfolio of plant-based technologies.

The retail channel performed well, with Beverage achieving good growth in nutritional and low/no alcohol beverage categories. Within the Food EUM, Snacks had strong growth through clean label and healthier innovations in savoury applications with a number of large customers. Dairy performance was impacted by product repositioning in the category and supply/demand dynamics in global dairy markets. Meat performed well in the year, driven by strong growth and business development in plant -- based alternatives, as ranges continued to expand within the category. Russia and Eastern Europe delivered a very good performance in the year, led by Snacks and Meat within the Food EUM.

APMEA Region

   >    Overall volume reduction of 1.9%, with growth of 2.8% in Q4 

> Retail channel performed well with strong growth in H2 within the Food EUM through Snacks and Dairy

   >    Foodservice continued strong recovery through Q4 

Revenue in the region was EUR1.2 billion, reflecting a reported decrease of 5.2%, with lower business volumes of 1.9%, an adverse transaction currency impact of 0.2%, an adverse translation currency impact of 3.5% and contribution from business acquisitions of 0.4%.

Overall performance in the region further improved in the fourth quarter, having returned to growth in the previous quarter. This growth was led by China and the Middle East, while there remained variations in performance across the region aligned to local conditions. The foodservice channel continued to recover through the year as restrictions on mobility eased. The retail channel performed well, led by the Food EUM of Snacks, where we saw a lot of innovation in the category across the region. Demand increased for indulgent offerings as consumers spent more time at home, while healthier snacks with nutritional claims also had a strong performance in the year, benefitting from increasing emphasis on ingredient label declarations for children in China. Meals was more challenged, as many consumers opted for more traditional food offerings during the initial period where restrictions were in place. Dairy had strong growth from increased demand with regional leaders for Kerry's clean label solutions, with Meat also performing well, particularly in the Middle East.

The Group continued to make good progress in expanding its capacity and deploying technology capabilities in China and the Middle East, while also moving into the new Technology & Innovation Centre in Shanghai.

Consumer Foods

Good underlying growth with a very strong finish to the year across the portfolio

 
                      2020  Performance 
===============  =========  =========== 
Revenue          EUR1,279m     -2.6%(1) 
Trading margin        7.8%       +20bps 
===============  =========  =========== 
 

(1) volume performance

> Volume performance reflected underlying growth of 2.2%, more than offset by the ready meals contract exit impact

> Volume growth of 8.8% in Q4 represented strong performances across the portfolio and some stocking benefits

   >    Pricing of +1.2% reflective of increases in input costs and market pricing 
   >    Trading margin +20bps as efficiencies partially offset by COVID -- 19 impacts and pricing 

The market saw major variations in category performances through the year, as consumers' purchasing and consumption behaviours changed significantly as a result of COVID-19. Shopping habits became more functional and impulse purchases have reduced. At-home snacking increased, as out-of-home occasions have been curtailed by restrictions on movement. Many retailers scaled back category product listings and their freshly prepared over -- the -- counter operations. Large traditional retailers have benefitted through the year, with increased average basket sizes and reduced promotional activity, while demand for online and delivery has increased dramatically.

Consumer Foods reported revenue was EUR1.3 billion, reflecting a reported decrease of 2.1%, as lower volumes due to the previously reported ready meals contract exit and an adverse impact from translation currency were partially offset by increased pricing.

The Richmond sausage range achieved very good growth in the year, with strong growth across Kerry's branded meat-free ranges driving further market share gains. The Denny brand performed well, while overall meat sales were impacted by reduced retailer deli counter operations. Spreadable butter and Dairygold performed well due to increased at-home consumption.

Chilled meals were impacted by reduced consumer impulse purchases, while frozen meals benefitted from increased retailer stocking in the fourth quarter. Plant-based meals had strong growth across both chilled and frozen ranges through the year, with a number of successful launches supporting performance.

The snacking range and home delivery meals business achieved very strong growth in the year. This was led by Fridge Raiders, which benefitted from increased at-home snacking consumption. The Strings & Things range, led by Cheestrings also delivered strong growth with a number of innovations, while Oakhouse Foods home delivery meals had exceptionally strong growth in the year.

Financial Review

 
                                                             2020     2019 
                                                % Change    EUR'm    EUR'm 
============================================  ==========  =======  ======= 
Revenue                                           (4.0%)  6,953.4  7,241.3 
--------------------------------------------  ----------  -------  ------- 
Trading profit                                   (11.7%)    797.2    902.7 
Trading margin                                              11.5%    12.5% 
Computer software amortisation                             (28.4)   (26.5) 
Finance costs (net)                                        (72.4)   (81.6) 
--------------------------------------------  ----------  -------  ------- 
Adjusted earnings before taxation                           696.4    794.6 
Income taxes (excluding non-trading 
 items)                                                    (85.1)   (98.6) 
--------------------------------------------  ----------  -------  ------- 
Adjusted earnings after taxation                 (12.2%)    611.3    696.0 
Brand related intangible asset amortisation                (41.7)   (37.8) 
Non-trading items (net of related 
 tax)                                                      (15.5)   (91.7) 
--------------------------------------------  ----------  -------  ------- 
Profit after taxation                                       554.1    566.5 
--------------------------------------------  ----------  -------  ------- 
                                                              EPS      EPS 
                                                             cent     cent 
--------------------------------------------  ----------  -------  ------- 
Basic EPS                                         (2.3%)    313.0    320.4 
Brand related intangible asset amortisation                  23.6     21.4 
Non-trading items (net of related 
 tax)                                                         8.8     51.9 
--------------------------------------------  ----------  -------  ------- 
Adjusted* EPS                                    (12.3%)    345.4    393.7 
Impact of retranslating prior year 
 adjusted earnings per share at current 
 year average exchange rates                                    -   (12.3) 
--------------------------------------------  ----------  -------  ------- 
Adjusted* EPS in constant currency                (9.4%)    345.4    381.4 
--------------------------------------------  ----------  -------  ------- 
 

* Before brand related intangible asset amortisation and non-trading items (net of related tax).

Revenue

Group revenue was EUR7.0 billion (2019: EUR7.2 billion) reflecting a reported decrease of 4.0%. This comprised a volume decrease of 2.9% primarily due to the impact of COVID-19, positive pricing of 0.3%, an adverse transaction currency impact of 0.1%, an adverse translation currency impact of 2.3% and contribution from business acquisitions of 1.0%.

2019: Group reported revenue +9.6%, volume growth +2.8%, pricing flat, translation currency +2.1%, contribution from business acquisitions of +4.7%.

Taste & Nutrition revenue was EUR5.8 billion (2019: EUR6.0 billion) reflecting a reported revenue decrease of 4.4%. This comprised a volume decrease of 3.0% due to the impact of COVID-19, positive pricing of 0.1%, an adverse transaction currency impact of 0.1%, an adverse translation currency impact of 2.6% and contribution from business acquisitions of 1.2%.

2019: Taste & Nutrition reported revenue +12.5%, volume growth +4.0%, pricing increase +0.1%, translation currency +2.6%, acquisitions +5.8%.

Consumer Foods revenue was EUR1.28 billion (2019: EUR1.31 billion) reflecting a reported revenue decrease of 2.1%. This comprised a volume decrease of 2.6%, positive pricing of 1.2% and an adverse translation currency impact of 0.7%. Excluding the impact of the ready meals contract exit, volume would have increased by 2.2%.

2019: Consumer Foods reported revenue (2.4%), volume reduction (2.2%), pricing (0.5%), translation currency +0.3%.

Trading Profit & Margin

Group trading profit decreased by 11.7% to EUR797.2m (2019: EUR902.7m) due to the impact of COVID-19. The Group had a trading margin of 11.5%, a decrease of 100bps, primarily reflecting operating deleverage from lower volumes in Taste & Nutrition and COVID -- related costs partially offset by cost mitigation actions.

Taste & Nutrition had a trading margin of 14.2%, a decrease of 110bps reflecting significant operating deleverage and COVID -- related costs partially offset by cost mitigation actions.

Consumer Foods had a trading margin of 7.8%, an increase of 20bps, reflecting efficiencies delivered from the 2019 Realignment Programme and cost mitigation actions partially offset by net COVID -- related costs and negative net pricing in a challenging market.

The trading profit reflects an EBITDA of EUR1.0 billion (2019: EUR1.1 billion) and an EBITDA margin of 14.4% (2019: 15.1%).

Finance Costs (net)

Finance costs (net) for the year decreased by EUR9.2m to EUR72.4m (2019: EUR81.6m) primarily due to lower interest rates. The Group's average interest rate for the year was 3.0% (2019: 3.7%).

Taxation

The tax charge for the year before non-trading items was EUR85.1m (2019: EUR98.6m) representing an effective tax rate of 13.0% (2019: 13.0%) and is reflective of the geographical mix of earnings.

Acquisitions

During the year, the Group completed three acquisitions at a total consideration of EUR280.0m. These acquisitions were aligned to the Group's strategic priorities for growth; enhancing both the Group's taste and nutrition technologies, expanding its presence in developing markets and in the foodservice channel.

Non-Trading Items

During the year, the Group incurred a non-trading item charge of EUR15.5m (2019: EUR91.7m) net of tax. The charge in the year primarily related to costs associated with the integration of business acquisitions.

Adjusted EPS in Constant Currency

Adjusted EPS in constant currency decreased by 9.4% to 345.4 cent (2019: +8.3%) due to the impact of COVID -- 19 on business performance.

Basic EPS

Basic EPS decreased by 2.3% to 313.0 cent (2019: 320.4 cent). Basic EPS is calculated after accounting for brand related intangible asset amortisation of 23.6 cent (2019: 21.4 cent) and a non-trading item charge of 8.8 cent net of related tax (2019: 51.9 cent).

Return on Average Capital Employed

ROACE in the year was 9.8% (2019: 11.8%) reflecting the impact of COVID -- 19 on current year profits.

Exchange Rates

Group results are impacted by year-on-year fluctuations in exchange rates versus the euro. The average rates below are the principal rates used for the translation of results. The closing rates below are used to translate assets and liabilities at year end.

 
                          Average Rates    Closing Rates 
                          2020     2019    2020     2019 
=======================  =======  ======  =======  ====== 
Australian Dollar         1.66     1.61    1.59     1.60 
-----------------------  -------  ------  -------  ------ 
Brazilian Real            5.75     4.44    6.38     4.53 
-----------------------  -------  ------  -------  ------ 
British Pound Sterling    0.89     0.88    0.90     0.85 
-----------------------  -------  ------  -------  ------ 
Chinese Yuan Renminbi     7.86     7.73    8.03     7.82 
-----------------------  -------  ------  -------  ------ 
Malaysian Ringgit         4.77     4.65    4.92     4.60 
-----------------------  -------  ------  -------  ------ 
Mexican Peso              24.34   21.59    24.46   21.19 
-----------------------  -------  ------  -------  ------ 
Russian Ruble             81.16   72.28    90.68   69.34 
-----------------------  -------  ------  -------  ------ 
South African Rand        18.62   16.20    18.02   15.77 
-----------------------  -------  ------  -------  ------ 
US Dollar                 1.13     1.12    1.23     1.12 
-----------------------  -------  ------  -------  ------ 
 

Balance Sheet

A summary balance sheet as at 31 December is provided below:

 
                                 2020     2019 
                                EUR'm    EUR'm 
============================  =======  ======= 
Property, plant & equipment   1,990.6  2,062.9 
Intangible assets             4,687.1  4,589.7 
Other non-current assets        170.6    179.5 
Current assets                2,594.8  2,672.2 
----------------------------  -------  ------- 
Total assets                  9,443.1  9,504.3 
----------------------------  -------  ------- 
Current liabilities           1,696.3  2,014.0 
Non-current liabilities       3,091.3  2,928.1 
Total liabilities             4,787.6  4,942.1 
----------------------------  -------  ------- 
Net assets                    4,655.5  4,562.2 
----------------------------  -------  ------- 
Shareholders' equity          4,655.5  4,562.2 
----------------------------  -------  ------- 
 

Property, Plant & Equipment

Property, plant and equipment decreased by EUR72.3m to EUR1,990.6m (2019: EUR2,062.9m) primarily due to the depreciation charge and the impact of foreign exchange translation partially offset by additions made in the period. Net capital expenditure in the year (including computer software) amounted to EUR310.7m (2019: EUR315.3m). The level of capital investment supports the Group's growth initiatives and included the strategic development of its Georgia, US facility, creating a world -- leading manufacturing facility to meet increasing demand for integrated solutions across a variety of protein applications .

Intangible Assets & Acquisitions

Intangible assets increased by EUR97.4m to EUR4,687.1m (2019: EUR4,589.7m) due to the acquisitions made in the year partially offset by the amortisation charge and the impact of foreign exchange translation.

Current Assets

Current assets decreased by EUR77.4m to EUR2,594.8m (2019: EUR2,672.2m) due to decreased inventory and trade and other receivables.

Retirement Benefits

At the balance sheet date, the total net deficit for all defined benefit schemes (after deferred tax) was EUR43.6m (2019: EUR8.6m). The increase in the net deficit was driven primarily by lower discount rates which increased schemes' liabilities. However, this was partially offset by strong returns on schemes' assets. The net deficit expressed as a percentage of market capitalisation at 31 December 2020 was 0.2% (2019: 0.04%).

Free Cash Flow

In 2020, the Group achieved free cash flow of EUR412.0m (2019: EUR514.6m).

 
                                                      2020     2019 
Free Cash Flow                                       EUR'm    EUR'm 
=================================================  =======  ======= 
Trading profit                                       797.2    902.7 
Depreciation (net)                                   200.7    191.4 
Movement in average working capital                (102.5)   (89.5) 
Pension contributions paid less pension expense     (23.4)   (26.7) 
-------------------------------------------------  -------  ------- 
Cash flow from operations                            872.0    977.9 
-------------------------------------------------  -------  ------- 
Finance costs paid (net)                            (74.6)   (80.8) 
Income taxes paid                                   (74.7)   (67.2) 
Purchase of non-current assets                     (310.7)  (315.3) 
-------------------------------------------------  -------  ------- 
Free cash flow                                       412.0    514.6 
-------------------------------------------------  -------  ------- 
Cash conversion(1)                                     67%      74% 
 
 

(1) Cash conversion is free cash flow expressed as a percentage of adjusted earnings after taxation.

Total Net Debt

Total net debt at the end of the year was EUR1,945.1m (2019: EUR1,972.2m). Lease liabilities are included in total net debt for 2020 and 2019.

Financing

Undrawn committed facilities at the end of the year were EUR1,100m (2019: EUR1,100m) while undrawn standby facilities were EUR320.0m (2019: EUR330.0m).

In early 2020, the Group repaid US$208m of maturing private placement notes. During the second quarter of 2020, the Group completed a EUR200m tap issuance onto its 2025 Senior Notes and exercised the first of the two 'plus one year' extension options on the revolving credit facility to further extend the maturity date of this facility to June 2025.

Of the cash at bank and in hand at year end, EUR75m was on short term deposit under a Sustainable Deposits programme.

Key Financial Ratios

The Group's balance sheet is in a strong position with a Net debt to EBITDA* ratio of 1.9 times. At this ratio the Group has significant liquidity headroom to support future growth plans. The Group's debt is not subject to financial covenants, other than EUR163.0m of US$ Private Placements. Group Treasury monitors compliance with all financial covenants and at 31 December the key ratios are as follows:

 
                                                               2020       2019 
                                                Covenant      Times      Times 
Net debt: EBITDA*                            Maximum 3.5        1.9        1.8 
EBITDA: Net interest*                        Minimum 4.0       13.8       13.2 
-----------------------------------  -------------------  ---------  --------- 
* Calculated in accordance with lenders' facility agreements which 
 take account of adjustments as outlined in the financial definitions. 
 

Share Price and Market Capitalisation

The Company's shares traded in the range EUR91.95 to EUR125.60 during the year. The share price at 31 December 2020 was EUR118.50 (2019: EUR111.10) giving a market capitalisation of EUR20.9 billion (2019: EUR19.6 billion). Total Shareholder Return for 2020 was 7.4% (2019: 29.3%).

Annual Report and Annual General Meeting

The Group's Annual Report will be published at the end of March and the Annual General Meeting will be held on 29 April 2021.

Strategic Review

The Group is conducting a strategic review of its dairy-related businesses in Ireland and the UK. This business has activities across both Taste & Nutrition and Consumer Foods businesses. We note that there is no certainty that this review will lead to a transaction. Further communication will be made in due course as appropriate.

Future Prospects

The scale and pace of change seen over the last 12 months has led to customers fundamentally reassessing their portfolios, ways of working and business models. This has created an environment where customers are more open to change and are looking for partners to help them pivot at pace, to address both short-term challenges and opportunities, while also allowing them to target more meaningful, purposeful, step change innovations as they look out into the future. Sustainability, localisation, speed to market and innovation process agility have been elevated in importance as customers strive to win market share. Against this backdrop, Kerry's proactive approach and co-creation business model is ideally placed to support customers through these changing market dynamics.

Looking to the year ahead, within Taste & Nutrition, we see strong growth prospects in the retail channel, with continued recovery in foodservice, underpinned by a very good innovation pipeline and strong customer engagement. The shorter-term impact from COVID-19 will continue through Q1, where we are expecting flat to positive volume growth in this quarter, with an overall outlook for strong recovery and good growth in the full year.

Our Consumer Foods business has a good growth outlook supported by continued innovation and the strength of our brands.

We will continue to invest for growth and enablement of our business model, while continuing to pursue M&A opportunities aligned to our strategic growth priorities. Kerry's unique business model, broad taste and nutrition portfolio and industry-leading integrated solutions capabilities are more critical than ever, as we support our customers through this dynamic environment.

Disclaimer: Forward Looking Statements

This Announcement contains forward looking statements which reflect management expectations based on currently available data. However actual results may differ materially from those expressed or implied by these forward looking statements. These forward looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise.

 
   CONTACT INFORMATION 
  ============================================= 
 
   Media 
   James Dunny , Director of External 
    Communications 
   +353 45 930188 | corpaffairs@kerry.com 
 
   Investor Relations 
   Marguerite Larkin , Chief Financial 
    Officer 
   +353 66 7182292 | investorrelations@kerry.ie 
 
   William Lynch , Head of Investor 
    Relations 
   +353 66 7182292 | investorrelations@kerry.ie 
 
   Website 
   www.kerrygroup.com 
 
 

RESULTS FOR THE YEARED 31 DECEMBER 2020

 
 Consolidated Income Statement 
 for the financial year ended 31 December 
  2020 
                                                Before      Non-              Before      Non- 
                                           Non-Trading   Trading         Non-Trading   Trading 
                                                 Items     Items     Total     Items     Items     Total 
                                                  2020      2020      2020      2019      2019      2019 
                                       Notes     EUR'm     EUR'm     EUR'm     EUR'm     EUR'm     EUR'm 
 
 Continuing operations 
 Revenue                                 2     6,953.4         -   6,953.4   7,241.3         -   7,241.3 
                                               _______   _______   _______   _______   _______   _______ 
 
 Trading profit                          2       797.2         -     797.2     902.7         -     902.7 
 
 Intangible asset amortisation                  (70.1)         -    (70.1)    (64.3)         -    (64.3) 
 Non-trading items                       3           -    (19.4)    (19.4)         -   (110.9)   (110.9) 
                                               _______   _______   _______   _______   _______   _______ 
 Operating profit                                727.1    (19.4)     707.7     838.4   (110.9)     727.5 
 
 Finance income                                    0.2         -       0.2       0.3         -       0.3 
 Finance costs                                  (72.6)         -    (72.6)    (81.9)         -    (81.9) 
                                               _______   _______   _______   _______   _______   _______ 
 Profit before taxation                          654.7    (19.4)     635.3     756.8   (110.9)     645.9 
 
 Income taxes                                   (85.1)       3.9    (81.2)    (98.6)      19.2    (79.4) 
                                               _______   _______   _______   _______   _______   _______ 
 
 Profit after taxation attributable 
  to owners of the parent                        569.6    (15.5)     554.1     658.2    (91.7)     566.5 
                                               _______   _______   _______   _______   _______   _______ 
 
 Earnings per A ordinary share                                        Cent                          Cent 
 
  - basic                                4                           313.0                         320.4 
  - diluted                              4                           312.5                         319.9 
                                                                   _______                       _______ 
 
 
 
 Consolidated Statement of Comprehensive Income 
 for the financial year ended 31 December 2020 
                                                                           2020      2019 
                                                                          EUR'm     EUR'm 
 
 Profit after taxation attributable to owners of the parent               554.1     566.5 
 
 Other comprehensive income: 
 
 Items that are or may be reclassified subsequently to profit or 
  loss: 
 Fair value movements on cash flow hedges                                   7.9       7.2 
 Cash flow hedges - reclassified to profit or loss 
  from equity                                                               2.9       0.1 
 Net change in cost of hedging                                            (0.9)       0.6 
 Deferred tax effect of fair value movements on cash 
  flow hedges                                                             (2.0)     (1.4) 
 Exchange difference on translation of foreign operations               (282.3)      67.0 
 Fair value movement on revaluation of financial assets held at 
  fair value through other comprehensive income                           (1.3)     (1.0) 
 Disposal of financial assets fair value movement reclassified              0.7         - 
  to profit or loss 
 
 Items that will not be reclassified subsequently to profit 
  or loss: 
 Re-measurement on retirement benefits obligation                        (67.0)      14.0 
 Deferred tax effect of re-measurement on retirement benefits 
  obligation                                                               11.8     (2.0) 
                                                                        _______   _______ 
 
 Net (expense)/income recognised directly in total other 
  comprehensive income                                                  (330.2)      84.5 
                                                                        _______   _______ 
 
 Total comprehensive income                                               223.9     651.0 
                                                                        _______   _______ 
 
 
 
 
 
   Consolidated Balance Sheet                                                      31 December     31 December 
 as at 31 December 2020                                                                   2020            2019 
                                                                                         EUR'm           EUR'm 
 Non-current assets 
 Property, plant and equipment                                                         1,990.6         2,062.9 
 Intangible assets                                                                     4,687.1         4,589.7 
 Financial asset investments                                                              37.0            41.7 
 Investment in joint ventures                                                             17.8            16.2 
 Other non-current financial instruments                                                  82.0            82.7 
 Deferred tax assets                                                                      33.8            38.9 
                                                                                       _______         _______ 
 
                                                                                       6,848.3         6,832.1 
                                                                                       _______         _______ 
 Current assets 
 Inventories                                                                             975.6           993.3 
 Trade and other receivables                                                           1,042.0         1,066.3 
 Cash at bank and in hand                                                                563.1           554.9 
 Other current financial instruments                                                      14.1            57.7 
                                                                                       _______         _______ 
 
                                                                                       2,594.8         2,672.2 
                                                                                       _______         _______ 
 
 Total assets                                                                          9,443.1         9,504.3 
                                                                                       _______         _______ 
 Current liabilities 
 Trade and other payables                                                              1,543.3         1,643.0 
 Borrowings and overdrafts                                                                 2.8           190.8 
 Other current financial instruments                                                      10.0            12.1 
 Tax liabilities                                                                         132.6           140.7 
 Provisions                                                                                5.2            25.2 
 Deferred income                                                                           2.4             2.2 
                                                                                       _______         _______ 
 
                                                                                       1,696.3         2,014.0 
                                                                                       _______         _______ 
 Non-current liabilities 
 Borrowings                                                                            2,505.8         2,355.3 
 Other non-current financial instruments                                                   0.5               - 
 Retirement benefits obligation                                                           54.4            11.9 
 Other non-current liabilities                                                           144.9           167.9 
 Deferred tax liabilities                                                                330.2           338.9 
 Provisions                                                                               36.1            33.2 
 Deferred income                                                                          19.4            20.9 
                                                                                       _______         _______ 
 
                                                                                       3,091.3         2,928.1 
                                                                                       _______         _______ 
 
 Total liabilities                                                                     4,787.6         4,942.1 
                                                                                       _______         _______ 
 
 Net assets                                                                            4,655.5         4,562.2 
                                                                                       _______         _______ 
 Issued capital and reserves attributable to owners of the parent 
 Share capital                                                                            22.1            22.1 
 Share premium                                                                           398.7           398.7 
 Other reserves                                                                        (379.5)         (119.0) 
 Retained earnings                                                                     4,614.2         4,260.4 
                                                                                       _______         _______ 
 
 Shareholders' equity                                                                  4,655.5         4,562.2 
                                                                                       _______         _______ 
 
 
 
 
 
 Consolidated Statement of Changes in Equity 
 for the financial year ended 31 December 2020 
                                                              Share      Share       Other    Retained 
                                                            Capital    Premium    Reserves    Earnings     Total 
                                                    Note      EUR'm      EUR'm       EUR'm       EUR'm     EUR'm 
 Group: 
 At 31 December 2018                                           22.0      398.7     (207.3)     3,821.0   4,034.4 
 
 Adjustment on initial application of 
  IFRS 16 'Leases'                                                -          -           -       (9.4)     (9.4) 
                                                            _______    _______     _______     _______    ______ 
 Adjusted balances at 1 January 
  2019                                                         22.0      398.7     (207.3)     3,811.6   4,025.0 
 
 Profit after taxation attributable to owners of the 
  parent                                                          -          -           -       566.5     566.5 
 Other comprehensive income                                       -          -        73.9        10.6      84.5 
                                                            _______    _______     _______     _______    ______ 
 Total comprehensive income                                       -          -        73.9       577.1     651.0 
 
 Shares issued during the financial 
  year                                                          0.1          -           -           -       0.1 
 Dividends paid                                     5             -          -           -     (128.3)   (128.3) 
 Share-based payment expense                                      -          -        14.4           -      14.4 
                                                            _______    _______     _______     _______    ______ 
 At 31 December 2019                                           22.1      398.7     (119.0)     4,260.4   4,562.2 
 
 Profit after taxation attributable to owners of the 
  parent                                                          -          -           -       554.1     554.1 
 Other comprehensive expense                                      -          -     (273.0)      (57.2)   (330.2) 
                                                            _______    _______     _______     _______    ______ 
 
 Total comprehensive (expense)/income                             -          -     (273.0)       496.9     223.9 
 
 Shares issued during the financial year                          -          -           -           -         - 
 Dividends paid                                     5             -          -           -     (143.1)   (143.1) 
 Share-based payment expense                                      -          -        12.5           -      12.5 
                                                            _______    _______     _______     _______    ______ 
 
 At 31 December 2020                                           22.1      398.7     (379.5)     4,614.2   4,655.5 
                                                            _______    _______     _______     _______    ______ 
 
 
 
 
 
   Other Reserves comprise the following: 
 
 
 
                                                                    Share- 
                                        Capital           Other      Based                              Cost 
                                                                                                          of 
                             FVOCI   Redemption   Undenominated    Payment   Translation   Hedging   Hedging 
                           Reserve      Reserve         Capital    Reserve       Reserve   Reserve   Reserve     Total 
                             EUR'm        EUR'm           EUR'm      EUR'm         EUR'm     EUR'm     EUR'm     EUR'm 
 
 At 1 January 2019             1.6          1.7             0.3       63.3       (256.7)    (15.5)     (2.0)   (207.3) 
 Other comprehensive 
  (expense)/income           (1.0)            -               -          -          67.0       7.3       0.6      73.9 
 Share-based payment 
  expense                        -            -               -       14.4             -         -         -      14.4 
                           _______      _______         _______    _______       _______   _______   _______    ______ 
 At 31 December 2019           0.6          1.7             0.3       77.7       (189.7)     (8.2)     (1.4)   (119.0) 
 
 Other comprehensive 
  (expense)/income           (0.6)            -               -          -       (282.3)      10.8     (0.9)   (273.0) 
 Share-based payment 
  expense                        -            -               -       12.5             -         -         -      12.5 
                           _______      _______         _______    _______       _______   _______   _______    ______ 
 
 At 31 December 2020             -          1.7             0.3       90.2       (472.0)       2.6     (2.3)   (379.5) 
                           _______      _______         _______    _______       _______   _______   _______    ______ 
 
 
 
 Consolidated Statement of Cash 
  Flows 
 for the financial year ended                                                           2020        2019 
  31 December 2020 
                                                                           Notes       EUR'm       EUR'm 
 
 Operating activities 
 Trading profit                                                                        797.2       902.7 
 Adjustments for: 
 Depreciation (net)                                                                    200.7       191.4 
 Change in working capital                                                           (108.7)      (63.9) 
 Pension contributions paid less pension 
  expense                                                                             (23.4)      (26.7) 
 Payments on non-trading items                                                        (39.7)      (89.1) 
 Exchange translation adjustment                                                       (4.6)       (2.5) 
                                                                                     _______      ______ 
 Cash generated from operations                                                        821.5       911.9 
 Income taxes paid                                                                    (74.7)      (67.2) 
 Finance income received                                                                 0.2         0.5 
 Finance costs paid                                                                   (74.8)      (81.3) 
                                                                                     _______      ______ 
 
 Net cash from operating activities                                                    672.2       763.9 
                                                                                     _______      ______ 
 Investing activities 
 Purchase of assets (net)                                                            (276.2)     (315.6) 
 Proceeds from the sale of assets                                                        7.7        32.8 
 Capital grants received                                                                 0.1         3.0 
 Purchase of businesses (net 
  of cash acquired)                                                          6       (251.1)     (562.7) 
 Payments relating to previous 
  acquisitions                                                                         (7.5)       (5.3) 
                                                                                     _______      ______ 
 Net cash used in investing activities                                               (527.0)     (847.8) 
                                                                                     _______      ______ 
 
 Financing activities 
 Dividends paid                                                              5       (143.1)     (128.3) 
 Payment of lease liabilities                                                         (37.0)      (35.5) 
 Issue of share capital                                                                    -         0.1 
 Repayment of borrowings (net 
  of swaps)                                                                          (391.1)     (564.4) 
 Increase in borrowings                                                                462.9       950.0 
                                                                                     _______      ______ 
 Net cash movement due to financing activities                                       (108.3)       221.9 
                                                                                     _______      ______ 
 Net increase in cash and cash equivalents                                              36.9       138.0 
 Cash and cash equivalents at beginning 
  of the financial year                                                                549.7       403.9 
 Exchange translation adjustment on cash 
  and cash equivalents                                                                (26.3)         7.8 
                                                                                     _______      ______ 
 Cash and cash equivalents at end of the financial year                                560.3       549.7 
                                                                                     _______      ______ 
 Reconciliation of Net Cash Flow to Movement in Net Debt 
 Net increase in cash and cash 
  equivalents                                                                           36.9       138.0 
 Cash flow from debt financing                                                        (71.8)     (385.6) 
                                                                                     _______      ______ 
 Changes in net debt resulting 
  from cash flows                                                                     (34.9)     (247.6) 
 Fair value movement on interest rate swaps (net of adjustment to borrowings)            7.6        12.5 
 Exchange translation adjustment 
  on net debt                                                                           26.5       (4.2) 
                                                                                     _______      ______ 
 Movement in net debt in the 
  financial year                                                                       (0.8)     (239.3) 
 Net debt at beginning of the 
  financial year                                                                   (1,862.8)   (1,623.5) 
                                                                                     _______      ______ 
 
 Net debt at end of the financial year - pre lease liabilities                     (1,863.6)   (1,862.8) 
 Lease liabilities                                                                    (81.5)     (109.4) 
                                                                                     _______      ______ 
 Total net debt* at the end of the financial year                                  (1,945.1)   (1,972.2) 
                                                                                     _______      ______ 
 *Prior year has been re-presented to include lease liabilities in total net debt. 
 
 
 

Notes to the Financial Statements

for the financial year ended 31 December 2020

1. Accounting policies

The financial information included within this statement has been extracted from the audited financial statements of Kerry Group plc for the financial year ended 31 December 2020. The auditors' report was unqualified. The financial information set out in this document does not constitute full statutory financial statements for the financial years ended 31 December 2020 or 2019 but is derived from same. The consolidated financial statements of Kerry Group plc have been prepared in accordance with International Financial Reporting Standards ('IFRS'), International Financial Reporting Interpretations Committee ('IFRIC') interpretations and those parts of the Companies Act, 2014 applicable to companies reporting under IFRS. The financial statements comprise of the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the notes to the financial statements. The Group's financial statements have also been prepared in accordance with IFRS adopted by the European Union ('EU') which comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'). The Group's financial statements comply with Article 4 of the EU IAS Regulation. IFRS adopted by the EU differs in certain respects from IFRS issued by the IASB. References to IFRS hereafter refer to IFRS adopted by the EU.

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) and financial asset investments which are held at fair value. Assets classified as held for sale are stated at the lower of carrying value and fair value less costs to sell. The investments in joint ventures are accounted for using the equity method.

The consolidated financial statements have been prepared on the going concern basis of accounting. The Directors have considered the Group's business activities and how it generates value, together with the main trends and factors likely to affect future development, business performance including liquidity and access to financing and position of the Group including the impact of the current COVID-19 pandemic. Due to the uncertainty of the ongoing duration and impact of the pandemic on mobility restrictions in different countries around the world, additional stressed scenarios, reflecting different levels and timing of recovery, have been considered. This analysis indicated that, notwithstanding the current global pandemic, it does not affect the Group's ability to continue as a going concern.

There are no material uncertainties that cast a significant doubt on the Group's ability to continue as a going concern over a period of at least 12 months.

The Group's accounting policies will be included in the 2020 Annual Report & Accounts, which will be published at the end of March, and are consistent with those described in the 2019 Annual Report & Accounts.

Critical accounting estimates and judgements

Preparation of the consolidated financial statements requires management to make certain estimations, assumptions and judgements that affect the reported profits, assets and liabilities.

Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based or as a result of new information or more experience. Such changes are recognised in the period in which the estimate is revised.

In particular, information about significant areas of estimation that have the most significant effect on the amounts recognised in the consolidated financial statements are described below and in the respective notes to the consolidated financial statements.

We have considered the impact of the COVID-19 pandemic on our business and the key impacts up to 31 December 2020 include:

 
   -   All plants remained open except for a limited number of those that 
        were mandated to close temporarily in specific jurisdictions. While 
        there were changes to shift patterns and ways of working to ensure 
        the safety of employees through additional segregation and cleaning 
        routines, there were no indicators of impairment to property, plant 
        and equipment. 
   -   The Group considered the impact of the global pandemic on its impairment 
        risk around the carrying value of the goodwill and indefinite life 
        intangible assets. The long-term outlook for the Group remains positive 
        and supports our valuations and given there was significant headroom, 
        no impairment was identified. 
   -   While supporting our customers during this crisis through the carrying 
        of increased inventory and receivable balances, the Group has assessed 
        the risks and to date, does not believe there are additional risks 
        around the recovery of these assets. 
   -   The impact of the mobility restrictions globally has impacted the 
        Group's revenue and profitability, most significantly in the foodservice 
        part of the Group's business. Third party revenue in our Taste & 
        Nutrition segment from the foodservice business was EUR1,390.5m (2019: 
        EUR1,767.6m). 
 

The impact of COVID-19 on the critical accounting estimates and judgements of business combinations and impairment of goodwill and intangibles, has also been assessed and is not considered material in the context of the consolidated financial statements.

New standards and interpretations

Certain new and revised accounting standards and new International Financial Reporting Interpretations Committee ('IFRIC') interpretations have been issued. The Group intends to adopt the relevant new and revised standards when they become effective and the Group's assessment of the impact of these standards and interpretations is set out below:

 
 The following Standards and Interpretations are effective for the Group in              Effective Date 
  2020 but do not have a material effect on the results or financial position 
  of the Group: 
 
 -   IFRS 3 (Amendments)                    Business Combinations                        1 January 2020 
 
 -   IFRS 9, IAS 39 & IFRS 7 (Amendments)   Interest Rate Benchmark Reform               1 January 2020 
 
 -   IAS 1 (Amendments)                     Presentation of Financial Statements         1 January 2020 
 
 -   IAS 8 (Amendments)                     Accounting Policies, Changes in Accounting   1 January 2020 
                                             Estimates and Errors 
 
 -   The Conceptual Framework               Revised Conceptual Framework for Financial   1 January 2020 
                                             Reporting 
 
 
 
 The following Standards and Interpretations are not yet effective for the               Effective Date 
  Group and are not expected to have a material effect on the results or financial 
  position of the Group: 
  -   IFRS 16 (Amendment)             Leases                                                1 June 2020 
  -   IFRS 7, IFRS 4 & IFRS 16        Interest Rate Benchmark Reform - Phase 2           1 January 2021 
       (Amendments) 
  -   IAS 1 (Amendments)              Presentation of Financial Statements               1 January 2022 
  -   IFRS 17                         Insurance Contracts                                1 January 2023 
 

2. Analysis of results

The Group has determined it has two reportable segments: Taste & Nutrition and Consumer Foods. The Taste & Nutrition segment is the global leader in taste and nutrition, serving the food, beverage and pharmaceutical industries across Ireland, Europe, Americas and APMEA. Our broad technology foundation, customer-centric business model, and industry-leading integrated solutions capability make Kerry the co-creation partner of choice. The Consumer Foods segment is a leader in our consumer foods categories in the chilled cabinet primarily in Ireland and in the UK.

 
 
                                                    Group                                                Group 
                                             Eliminations                                         Eliminations 
                        Taste    Consumer             and                    Taste    Consumer             and 
                            &       Foods     Unallocated       Total            &       Foods     Unallocated       Total 
                    Nutrition        2020            2020        2020    Nutrition        2019            2019        2019 
                         2020                                                 2019 
                        EUR'm       EUR'm           EUR'm       EUR'm        EUR'm       EUR'm           EUR'm       EUR'm 
 
 External 
  revenue             5,678.4     1,275.0               -     6,953.4      5,939.1     1,302.2               -     7,241.3 
 Inter-segment 
  revenue                74.8         3.6          (78.4)           -         78.5         4.4          (82.9)           - 
                      _______     _______         _______     _______      _______     _______         _______     _______ 
 
 Revenue              5,753.2     1,278.6          (78.4)     6,953.4      6,017.6     1,306.6          (82.9)     7,241.3 
                      _______     _______         _______     _______      _______     _______         _______     _______ 
 
 Trading profit         814.2        99.2         (116.2)       797.2        918.5        98.9         (114.7)       902.7 
                      _______     _______         _______                  _______     _______         _______ 
 
 Intangible asset 
  amortisation                                                 (70.1)                                               (64.3) 
 Non-trading items                                             (19.4)                                              (110.9) 
                                                              _______                                              _______ 
 
 Operating profit                                               707.7                                                727.5 
 
 
 Finance income                                                   0.2                                                  0.3 
 Finance costs                                                 (72.6)                                               (81.9) 
                                                              _______                                              _______ 
 
 Profit before taxation                                         635.3                                                645.9 
 Income taxes                                                  (81.2)                                               (79.4) 
                                                              _______                                              _______ 
 
 Profit after taxation attributable to owners of the 
  parent                                                        554.1                                                566.5 
                                                              _______                                                _______ 
 Segment assets and liabilities 
 
 Segment assets       6,370.1       877.2         2,195.8     9,443.1      6,268.5       925.7         2,310.1     9,504.3 
 Segment 
  liabilities       (1,295.0)     (332.9)       (3,159.7)   (4,787.6)    (1,565.7)     (311.8)       (3,064.6)   (4,942.1) 
                      _______     _______         _______     _______      _______     _______         _______       _______ 
 
 Net assets           5,075.1       544.3         (963.9)     4,655.5      4,702.8       613.9         (754.5)     4,562.2 
                      _______     _______         _______     _______      _______     _______         _______       _______ 
 
 Other segmental information 
 
 Property, plant 
  and equipment 
  additions             225.0        20.7               -       245.7        247.2        32.7             0.7       280.6 
 
 Depreciation 
  (net)                 178.5        21.7             0.5       200.7        164.6        22.7             4.1       191.4 
 
 Intangible 
  asset 
  additions               0.9         1.0            50.2        52.1          1.3         2.0            51.9        55.2 
 
 Intangible 
  asset 
  amortisation           23.7         6.4            40.0        70.1         23.0         6.8            34.5        64.3 
                      _______     _______         _______     _______      _______     _______         _______       _______ 
 
 

Revenue analysis

Disaggregation of revenue from external customers is analysed by End Use Market (EUM), which is the primary market in which Kerry's products are consumed and primary geographic market. An EUM is defined as the market in which the end consumer or customer of Kerry's product operates. The economic factors within the EUMs of Food, Beverage and Pharma and within the primary geographic markets which affect the nature, amount, timing and uncertainty of revenue and cash flows are similar.

 
 
 Analysis by EUM 
                           Taste   Consumer                  Taste   Consumer 
                               &      Foods     Total            &      Foods     Total 
                       Nutrition       2020      2020    Nutrition       2019      2019 
                            2020                              2019 
                           EUR'm      EUR'm     EUR'm        EUR'm      EUR'm     EUR'm 
 
 Food                    3,974.6    1,275.0   5,249.6      4,161.5    1,302.2   5,463.7 
 
 Beverage                1,407.1          -   1,407.1      1,507.6          -   1,507.6 
 
 Pharma                    296.7          -     296.7        270.0          -     270.0 
                         _______    _______   _______      _______    _______   _______ 
 
 External revenue        5,678.4    1,275.0   6,953.4      5,939.1    1,302.2   7,241.3 
                         _______    _______   _______      _______    _______   _______ 
 

Analysis by primary geographic market

 
 Disaggregation of revenue from external customers is analysed by geographical split: 
 
                                   Taste     Consumer                   Taste    Consumer 
                                       &        Foods     Total             &       Foods     Total 
                               Nutrition         2020      2020     Nutrition        2019      2019 
                                    2020                                 2019 
                                   EUR'm        EUR'm     EUR'm         EUR'm       EUR'm     EUR'm 
 
 Republic of Ireland               171.1        262.2     433.3         184.9       252.5     437.4 
 
 Rest of Europe                  1,204.0      1,012.8   2,216.8       1,271.5     1,049.7   2,321.2 
 
 Americas                        3,085.4            -   3,085.4       3,197.8           -   3,197.8 
 
 APMEA                           1,217.9            -   1,217.9       1,284.9           -   1,284.9 
                                 _______      _______   _______       _______     _______   _______ 
 
 External revenue                5,678.4      1,275.0   6,953.4       5,939.1     1,302.2   7,241.3 
                                 _______      _______   _______       _______     _______   _______ 
 
 
 Information about geographical areas 
 
                                   Europe     Americas     APMEA     Total     Europe     Americas     APMEA     Total 
                                     2020         2020      2020      2020       2019         2019      2019      2019 
                                    EUR'm        EUR'm     EUR'm     EUR'm      EUR'm        EUR'm     EUR'm     EUR'm 
 
 Segment assets by location       4,986.5      3,362.6   1,094.0   9,443.1    4,858.4      3,502.3   1,143.6   9,504.3 
 
 Property, plant and equipment 
  additions                          61.1        130.2      54.4     245.7       87.9        114.7      78.0     280.6 
 
 Intangible asset additions          51.6          0.5         -      52.1       54.3          0.9         -      55.2 
                                  _______      _______   _______   _______    _______      _______   _______   _______ 
 
 

Kerry Group plc is domiciled in the Republic of Ireland and the revenues from external customers in the Republic of Ireland were EUR433.3m (2019: EUR437.4m). The non-current assets located in the Republic of Ireland are EUR903.1m (EUR930.3m).

Revenues from external customers include EUR1,420.6m (2019: EUR1,527.9m) in the UK and EUR2,509.8m (2019: EUR2,597.5m) in the USA. The non-current assets in the UK are EUR692.4m (2019: EUR737.2m) and in the USA are EUR2,035.6m (2019: EUR2,142.5m).

There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8 'Operating Segments'. The accounting policies of the reportable segments are the same as the Group's accounting policies. Under IFRS 15 'Revenue from Contracts with Customers' revenue is primarily recognised at a point in time. Revenue recorded over time during the year was not material to the Group.

 
 3. Non-trading items 
                                                                  2020      2019 
                                                     Notes       EUR'm     EUR'm 
 Taste & Nutrition acquisition related and other 
  costs                                                 (i)      (17.5)    (80.7) 
 Consumer Foods Realignment Programme                  (ii)           -    (26.7) 
 Loss on disposal of businesses and assets             (iii)      (1.9)     (3.5) 
                                                               _______   _______ 
                                                                (19.4)   (110.9) 
 Tax on above                                                      3.9      19.2 
                                                               _______   _______ 
 Non-trading items (net of tax)                                 (15.5)    (91.7) 
                                                               _______   _______ 
 
 
 
 (i) Taste & Nutrition acquisition related and other costs 
 Acquisition integration and restructuring costs of EUR13.1m (2019: EUR80.7m) primarily related 
  to costs of integrating recent acquisitions into the Group's operations. These costs reflect 
  the relocation of resources, the restructuring of operations in order to integrate the acquired 
  businesses into the existing Kerry operating model and external costs associated with deal preparation, 
  integration planning and due diligence. The Group has commenced a program to evolve and restructure 
  our global business services model to better enable the business and support further growth, 
  costs incurred to date are EUR4.4m (2019: EURnil). 
 
  A tax credit of EUR3.5m (2019: EUR14.9m) arose due to tax deductions available on acquisition 
  integration and other costs. 
 
 (ii) Consumer Foods Realignment Programme 
 During 2019, the Consumer Foods business completed a programme to simplify its business model 
  in terms of footprint and resources in response to the challenging marketplace. The charge relating 
  to this in 2019 was EUR26.7m, which reflects redundancies, relocation of resources and the streamlining 
  of operations. The associated tax credit was EUR4.5m. 
 
 (iii) Loss on disposal of businesses and assets 
 During the year, the Group disposed of property, plant and equipment in North America, Europe 
  and APMEA for a consideration of EUR2.4m resulting in a loss of EUR1.9m for the year ended 31 
  December 2020. In 2019, the Group disposed of property, plant and equipment primarily in the 
  UK, US and Australia for a consideration of EUR32.8m resulting in a loss of EUR3.5m. 
 
 A tax credit of EUR0.4m (2019: a tax charge of EUR0.2m) arose on the disposal of assets and businesses. 
 
 There were no impairments of assets held for sale recorded in the financial year. 
 
 
 
 4. Earnings per A ordinary share 
                                                      EPS      2020       EPS      2019 
                                                     cent     EUR'm      cent     EUR'm 
 Basic earnings per share 
 Profit after taxation attributable to owners 
  of the parent                                     313.0     554.1     320.4     566.5 
 
   Diluted earnings per share 
 Profit after taxation attributable to owners 
  of the parent                                     312.5     554.1     319.9     566.5 
                                                  _______   _______   _______   _______ 
 
 
                                                 2020      2019 
                                                  m's       m's 
 Number of Shares 
 
 Basic weighted average number of shares        177.0     176.8 
 Impact of share options outstanding              0.3       0.3 
                                              _______   _______ 
 
 Diluted weighted average number of shares      177.3     177.1 
                                              _______   _______ 
 
 Actual number of shares in issue as 
  at 31 December                                176.7     176.5 
                                              _______   _______ 
 

5. Dividends

 
                                                                                2020      2019 
                                                                               EUR'm     EUR'm 
 Group and Company: 
 
 Amounts recognised as distributions to equity shareholders in the financial year 
 Final 2019 dividend of 55.10 cent per A ordinary share 
  paid 15 May 2020 
  (Final 2018 dividend of 49.20 cent per A ordinary share 
  paid 10 May 2019)                                                             97.3      86.7 
 
 Interim 2020 dividend of 25.90 cent per A ordinary 
  share paid 13 November 2020 
  (Interim 2019 dividend of 23.50 cent per A ordinary 
  share paid 15 November 2019)                                                  45.8      41.6 
                                                                             _______   _______ 
 
                                                                               143.1     128.3 
                                                                             _______   _______ 
 
 

Since the financial year end the Board has proposed a final 2020 dividend of 60.60 cent per A ordinary share which amounts to EUR107.1m. The payment date for the final dividend will be 14 May 2021 to shareholders registered on the record date as at 16 April 2021. The consolidated financial statements do not reflect this dividend.

6. Business combinations

During 2020, the Group completed a total of three acquisitions, all of which are 100% owned by the Group.

 
                                                                           Total 
                                                                            2020 
                                                                           EUR'm 
 Recognised amounts of identifiable assets acquired and liabilities 
  assumed: 
 Non-current assets 
   Property, plant and equipment                                            21.2 
   Brand related intangibles                                               124.1 
 Current assets 
   Cash at bank and in hand                                                  1.2 
   Inventories                                                              11.1 
   Trade and other receivables                                              16.8 
 Current liabilities 
   Trade and other payables                                               (19.1) 
 Non-current liabilities 
   Deferred tax liabilities                                               (23.0) 
   Other non-current liabilities                                           (1.5) 
                                                                        ________ 
 Total identifiable assets                                                 130.8 
 Goodwill                                                                  149.2 
                                                                        ________ 
 Total consideration                                                       280.0 
                                                                        ________ 
 
 Satisfied by: 
 Cash                                                                      270.3 
 Deferred payment                                                            9.7 
                                                                        ________ 
                                                                           280.0 
                                                                        ________ 
 Net cash outflow on acquisition: 
                                                                           Total 
                                                                            2020 
                                                                           EUR'm 
 
 Cash                                                                      270.3 
 Less: cash and cash equivalents acquired                                  (1.2) 
 Less: prepayments made in 2019 in relation to 2020 acquisitions          (18.0) 
                                                                        ________ 
                                                                           251.1 
                                                                        ________ 
 
 

The acquisition method has been used to account for businesses acquired in the Group's financial statements. Given that the valuation of the fair value of assets and liabilities recently acquired is still in progress, some of the above values are determined provisionally. The valuation of the fair value of assets and liabilities will be completed within the measurement period. For the acquisitions completed in 2019, there have been no material revisions of the provisional fair value adjustments since the initial values were established. The Group performs quantitative and qualitative assessments of each acquisition in order to determine whether it is material for the purposes of separate disclosure under IFRS 3 'Business Combinations'. None of the acquisitions completed during the period were considered material to warrant separate disclosure.

The goodwill is attributable to the expected profitability, revenue growth, future market development and assembled workforce of the acquired businesses and the synergies expected to arise within the Group after the acquisition. EUR30.9m of goodwill recognised is expected to be deductible for income tax purposes.

Transaction expenses related to these acquisitions of EUR1.4m were charged in the Group's Consolidated Income Statement during the financial year. The fair value of the financial assets includes trade and other receivables with a fair value of EUR16.8m and a gross contractual value of EUR16.8m .

In relation to the EUR18.7m prepayments made in 2019 relating to future acquisitions, EUR18.0m is attributable to 2020 acquisitions with the EUR0.7m remaining prepayment for acquisitions yet to be completed.

From the date of acquisition, the acquired businesses have contributed EUR23.8m of revenue and EUR1.6m of profit after taxation attributable to owners of the parent to the Group. If the acquisition dates had been on the first day of the financial year, the acquired businesses would have contributed EUR75.0m of revenue and EUR5.3m of profit after taxation attributable to owners of the parent to the Group.

The following acquisitions were completed by the Group during 2020:

 
 Acquisition                         Acquired   Principal activity 
 Tecnispice, Sociedad Anónima   April      Tecnispice, located in Guatemala, is a leading 
                                                 savoury taste business serving the meat and snacks 
                                                 markets incorporating spices, herbs and seasonings. 
                                                 Global Spice, a sister company of Tecnispice, 
                                                 based in Costa Rica was also acquired as part 
                                                 of this transaction. 
 Bio-K Plus International Inc.       October    Bio-K+, based in Canada, is a leading biotechnology 
                                                 company with probiotics in beverage and supplement 
                                                 applications. 
 Shandong Tianbo Food Ingredients    November   Shandong Tianbo (Jining Nature Group) is a leading 
  Co., Ltd                                       manufacturer of savoury flavours and seasonings 
                                                 serving the meat, snacks and meals markets, based 
                                                 in China. 
 

7. Events after the balance sheet date

 
 
  Since the financial year end, the Group has proposed a final dividend of 60.60 cent per A 
   ordinary share (note 5). 
 
  There have been no other significant events, outside the ordinary course of business, affecting 
   the Group since 31 December 2020. 
 

8. General information

The statutory financial statements of Kerry Group plc for the financial year ended 31 December 2020 were approved by the Board of Directors and authorised for issue on 15 February 2021 and will be filed with the Registrar of Companies following the annual general meeting. The statutory financial statements of Kerry Group plc for the financial year ended 31 December 2019, to which an unqualified audit opinion was received, were annexed to the annual return and filed with the Registrar of Companies.

FINANCIAL DEFINITIONS

1. Revenue

Volume performance

This represents the sales performance year-on-year, excluding pass-through pricing on raw material costs, currency impacts, acquisitions (net of disposals) and rationalisation volumes.

Volume performance is an important metric as it is seen as the key driver of top-line business improvement. This is used as the key revenue metric, as Kerry operates a pass-through pricing model with its customers to cater for raw material price fluctuations. Pricing therefore impacts like-for-like revenue performance positively or negatively depending on whether raw material prices move up or down. A full reconciliation to reported revenue performance is detailed in the revenue reconciliation below.

Revenue Reconciliation

 
                                                                                                                      Reported 
                            Volume                       Transaction        Acquisitions/        Translation           revenue 
       2020            performance          Price           currency            Disposals           currency       performance 
     Taste & 
      Nutrition             (3.0%)           0.1%             (0.1%)                 1.2%             (2.6%)            (4.4%) 
     Consumer 
      Foods                 (2.6%)           1.2%                  -                    -             (0.7%)            (2.1%) 
                          ________       ________           ________             ________           ________          ________ 
     Group                  (2.9%)           0.3%             (0.1%)                 1.0%             (2.3%)            (4.0%) 
 
     2019 
     Taste & 
      Nutrition               4.0%           0.1%                  -                 5.8%               2.6%             12.5% 
     Consumer 
      Foods                 (2.2%)         (0.5%)                  -                    -               0.3%            (2.4%) 
                          ________       ________           ________             ________           ________          ________ 
     Group                    2.8%              -                  -                 4.7%               2.1%              9.6% 
                          ________       ________           ________             ________           ________          ________ 
 

2. EBITDA

 
 EBITDA represents profit before finance income and costs, income taxes, depreciation (net of 
  capital grant amortisation), intangible asset amortisation and non-trading items. 
 
 
                                                                      2020          2019 
                                                                     EUR'm         EUR'm 
 
 Profit after taxation attributable to owners of the parent          554.1         566.5 
 Finance income                                                      (0.2)         (0.3) 
 Finance costs                                                        72.6          81.9 
 Income taxes                                                         81.2          79.4 
 Non-trading items                                                    19.4         110.9 
 Intangible asset amortisation                                        70.1          64.3 
 Depreciation (net of capital grant amortisation)                    200.7         191.4 
                                                                   _______       _______ 
 EBITDA                                                              997.9       1,094.1 
                                                                   _______       _______ 
 
 

3. Trading Profit

Trading profit refers to the operating profit generated by the businesses before intangible asset amortisation and gains or losses generated from non-trading items. Trading profit represents operating profit before specific items that are not reflective of underlying trading performance and therefore hinder comparison of the trading performance of the Group's businesses, either year-on-year or with other businesses.

 
                                     2020      2019 
                                    EUR'm     EUR'm 
 Operating profit                   707.7     727.5 
 Intangible asset amortisation       70.1      64.3 
 Non-trading items                   19.4     110.9 
                                  _______   _______ 
 Trading profit                     797.2     902.7 
                                  _______   _______ 
 

4. Trading Margin

Trading margin represents trading profit, expressed as a percentage of revenue.

 
                      2020      2019 
                     EUR'm     EUR'm 
 Trading profit      797.2     902.7 
 Revenue           6,953.4   7,241.3 
                   _______   _______ 
 Trading margin      11.5%     12.5% 
                   _______   _______ 
 

5. Operating Profit

Operating profit is profit before income taxes, finance income and finance costs.

 
                              2020      2019 
                             EUR'm     EUR'm 
 Profit before taxation      635.3     645.9 
 Finance income              (0.2)     (0.3) 
 Finance costs                72.6      81.9 
                           _______   _______ 
 Operating profit            707.7     727.5 
                           _______   _______ 
 

6. Adjusted Earnings Per Share and Performance in Adjusted Earnings Per Share on a Constant Currency Basis

The performance in adjusted earnings per share on a constant currency basis is provided as it is considered more reflective of the Group's underlying trading performance. Adjusted earnings is profit after taxation attributable to owners of the parent before brand related intangible asset amortisation and non-trading items (net of related tax). These items are excluded in order to assist in the understanding of underlying earnings. A full reconciliation of adjusted earnings per share to basic earnings is provided below. Constant currency eliminates the translational effect that arises from changes in foreign currency year-on-year. The performance in adjusted earnings per share on a constant currency basis is calculated by comparing current year adjusted earnings per share to the prior year adjusted earnings per share retranslated at current year average exchange rates.

 
                                                                                         2020          2019 
                                                                                          EPS           EPS 
                                                                                         cent          cent 
     Basic earnings per share                                                           313.0         320.4 
     Brand related intangible asset amortisation                                         23.6          21.4 
     Non-trading items (net of related tax)                                               8.8          51.9 
                                                                                      _______       _______ 
     Adjusted earnings per share                                                        345.4         393.7 
     Impact of retranslating prior year adjusted earnings per share at current 
      year average exchange rates                                                           -        (12.3) 
                                                                                      _______       _______ 
     Adjusted earnings per share on a constant currency basis                           345.4         381.4 
                                                                                      _______       _______ 
     Performance in adjusted earnings per share on a constant currency basis           (9.4%)          8.3% 
                                                                                      _______       _______ 
 
 

7. Free Cash Flow

Free cash flow is trading profit plus depreciation, movement in average working capital, capital expenditure, payment of lease liabilities, pensions costs less pension expense, finance costs paid (net) and income taxes paid.

Free cash flow is seen as an important indicator of the strength and quality of the business and of the availability to the Group of funds for reinvestment or for return to shareholders. Movement in average working capital is used when calculating free cash flow as management believes this provides a more accurate measure of the increase or decrease in working capital needed to support the business over the course of the year rather than at two distinct points in time and more accurately reflects fluctuations caused by seasonality and other timing factors. Average working capital is the sum of each month's working capital over 12 months. Below is a reconciliation of free cash flow to the nearest IFRS measure, which is 'Net cash from operating activities'.

 
                                                                                   2020      2019 
                                                                                  EUR'm     EUR'm 
 Net cash from operating activities                                               672.2     763.9 
 Difference between movement in monthly average working capital and movement 
  in the financial year end working capital                                         6.2    (25.6) 
 Expenditure on acquisition integration and restructuring costs                    39.7      89.1 
 Purchase of assets                                                             (276.2)   (315.6) 
 Payment of lease liabilities                                                    (37.0)    (35.5) 
 Proceeds from the sale of property, plant and equipment                            2.4      32.8 
 Capital grants received                                                            0.1       3.0 
 Exchange translation adjustments                                                   4.6       2.5 
                                                                                _______   _______ 
 Free cash flow                                                                   412.0     514.6 
                                                                                _______   _______ 
 

8. Cash Conversion

Cash conversion is defined as free cash flow, expressed as a percentage of adjusted earnings after taxation.

 
                                                                          2020          2019 
                                                                         EUR'm         EUR'm 
     Free cash flow                                                      412.0         514.6 
 
     Profit after taxation attributable to owners of the parent          554.1         566.5 
     Brand related intangible asset amortisation                          41.7          37.8 
     Non-trading items (net of related tax)                               15.5          91.7 
                                                                       _______       _______ 
     Adjusted earnings after taxation                                    611.3         696.0 
                                                                       _______       _______ 
     Cash Conversion                                                       67%           74% 
                                                                       _______       _______ 
 

9. Financial Covenants

The Net debt: EBITDA and EBITDA: Net interest ratios disclosed are calculated in accordance with lenders' facility agreements using an adjusted EBITDA, adjusted finance costs (net of finance income) and an adjusted net debt value to adjust for the impact of non-trading items, acquisitions net of disposals and deferred payments in relation to acquisitions.

 
                                                                                                2020         2019 
                                   Covenant                                                    Times        Times 
     Net debt: EBITDA                                                      Maximum 3.5           1.9          1.8 
     EBITDA: Net interest                                                  Minimum 4.0          13.8         13.2 
 
   10.   Average Capital Employed 

Average capital employed is calculated by taking an average of the shareholders' equity and net debt - pre lease liabilities over the last three reported balance sheets plus an additional EUR527.8m relating to goodwill written off to reserves pre conversion to IFRS.

 
                                                              2020       H1 2020          2019       H1 2019          2018 
                                                             EUR'm         EUR'm         EUR'm         EUR'm         EUR'm 
     Shareholders' equity                                  4,655.5       4,508.5       4,562.2       4,186.5       4,034.4 
     Goodwill amortised (pre conversion to IFRS)             527.8         527.8         527.8         527.8         527.8 
                                                           _______        ______       _______       _______       _______ 
 
     Adjusted equity                                       5,183.3       5,036.3       5,090.0       4,714.3       4,562.2 
     Net debt - pre lease liabilities                      1,863.6       1,996.4       1,862.8       1,918.2       1,623.5 
                                                           _______        ______       _______       _______       _______ 
 
     Total                                                 7,046.9       7,032.7       6,952.8       6,632.5       6,185.7 
                                                           _______        ______       _______       _______       _______ 
 
     Average capital employed                              7,010.8                     6,590.3 
                                                           _______                     _______ 
 
 
   11.   Return on Average Capital Employed (ROACE) 

This measure is defined as profit after taxation attributable to owners of the parent before non-trading items (net of related tax), brand related intangible asset amortisation and finance income and costs expressed as a percentage of average capital employed.

 
                                                                  2020      2019 
                                                                 EUR'm     EUR'm 
 Profit after taxation attributable to owners of the parent      554.1     566.5 
 Non-trading items (net of related tax)                           15.5      91.7 
 Brand related intangible asset amortisation                      41.7      37.8 
 Net finance costs                                                72.4      81.6 
                                                               _______   _______ 
 Adjusted profit                                                 683.7     777.6 
                                                               _______   _______ 
 Average capital employed                                      7,010.8   6,590.3 
                                                               _______   _______ 
 Return on average capital employed                               9.8%     11.8% 
                                                               _______   _______ 
 
 
   12.   Total Shareholder Return 

Total shareholder return represents the change in the capital value of Kerry Group plc shares plus dividends in the financial year.

 
                                   2020        2019 
 Share price (1 January)      EUR111.10    EUR86.50 
 Interim dividend (cent)           25.9        23.5 
 Dividend paid (cent)              55.1        49.2 
 Share price (31 December)    EUR118.50   EUR111.10 
                                _______     _______ 
 Total shareholder return          7.4%       29.3% 
                                _______     _______ 
 
   13.   Market Capitalisation 

Market capitalisation is calculated as the share price times the number of shares issued.

 
                                               2020            2019 
     Share price (31 December)            EUR118.50       EUR111.10 
     Shares in issue ('000)               176,700.0       176,514.9 
                                            _______         _______ 
     Market capitalisation (EUR'm)         20,939.0        19,610.8 
                                            _______         _______ 
 
   14.   Enterprise Value 

Enterprise value is calculated as per external market sources. It is market capitalisation plus reported borrowings less total cash and cash equivalents.

   15.   Total Net Debt 

Total net debt comprises borrowings and overdrafts, interest rate derivative financial instruments, lease liabilities and cash at bank and in hand.

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(END) Dow Jones Newswires

February 16, 2021 02:00 ET (07:00 GMT)