DAVY VIEW

The overarching takeaway from Kerry’s Q1 conference call was the scale and intensity of customer engagement, underlining a growing partnership ethos. The current crisis is placing a greater emphasis on supply chain responsiveness, toolkits and agility – as such, we expect Kerry to emerge from the crisis with a stronger proposition. The scale of dislocation across the sector is unprecedented and is most acute in foodservice, a key channel for Kerry, which prompts us to lower our FY20 group operating profit forecast by 15%. While 2020 is shaping up as a volatile year, we view any dislocation as transitory. Kerry’s long-term growth algorithm remains structurally robust.