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Investing.com -- Shares of Kerry Group (ISE:KRZ) edged up 2% following the release of its annual financial results, which showed a slight increase in its preferred profitability metric despite a fall in pretax profit.
The Ireland-based food technology and ingredients company reported a decrease in pretax profit to €778.4 million for the year ended December 31, down from €790.4 million the previous year.
However, the company's earnings before interest, taxes, depreciation, and amortization (Ebitda) rose to €1.25 billion from €1.165 billion, marking an improvement over last year.
The Ebitda margin also saw an uptick, climbing 120 basis points to 15.7% from 14.5%. This increase was attributed to Kerry Group's accelerated operational excellence program and strategic portfolio developments.
Despite the overall positive response from the market, Kerry Group's revenue experienced a slight decline, falling to €7.98 billion from €8.02 billion. This was primarily due to unfavorable currency translation and the impact of disposals.
Nevertheless, the company's board expressed confidence in the future by increasing the final dividend to 89 European cents a share, up from 80.8 European cents in the previous year.
Looking forward, Kerry Group remains optimistic, expecting to deliver good volume growth and strong margin expansion. The company also projects constant-currency adjusted earnings-per-share growth of 7% to 11%, accounting for the dilution effect from the recent disposal of Kerry Dairy Ireland.
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