21st Mar 2019 14:06
LONDON (Alliance News) - Moody's Investors Service on Thursday affirmed Kerry Group PLC's Baa2 long term issuer rating with a stable outlook.
"The rating affirmation reflects the company's 2018 preliminary results, which are solid and broadly in line with our expectations," said Paolo Leschiutta, a senior vice president and lead analyst for Kerry.
The Irish food company reported its 2018 results on Tuesday, with revenue of EUR6.61 billion, 3.1% higher year-on-year, and business volumes up 3.5% on the prior year.
Organic growth was supported by the company's Taste & Nutrition division which reported volume growth of 4.1%, benefiting from mid-single digit growth rates in the meat, beverage and snack sectors.
"Despite the acquisitions announced during 2018, Kerry's key credit metrics will remain strong for the Baa2 rating category, but we expect the company to continue to pursue acquisitions to fuel its growth, which currently constrains upward pressure on the rating," added Leschiutta.
Meanwhile, the stable outlook reflects Kerry's good position within its rating category and the company has some headroom to accommodate additional debt-funded non-transformational acquisitions, Moody's explained.
Shares in Kerry were up 1.1% at EUR96.85 on Thursday.
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