They can’t believe it’s not better.
Irish butter, cheese and sausage maker Kerry Group has warned on profits after under-estimating the effect the continued weakness of sterling following the UK’s Brexit vote would have on its business.
The company behind Dairygold butter and Wall’s sausages, which makes much of its money in the British currency but reports its finances in euros, said back in February that it expected earnings per share growth of 5 per cent to 9 per cent this year “at prevailing exchange rates”.
On Thursday morning, Kerry chief executive Stan McCarthy said:
Taking into account increased currency translation headwinds of 4% and a 2% improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3% to 7% on a reported basis.
In the half year to June Kerry’s group revenues rose 5 per cent to €3.2bn, reflecting 4 per cent growth in sales volumes. Pre-tax profit rose to €281m from €257m.