DAVY VIEW

Kerry’s FY20 and CAGNY presentations struck a confident tone on model relevancy and growth potential. Several thematic drivers underpin a more positive outlook for volume growth. Growth drivers include the espousal of sustainable nutrition, the growing relevancy of Kerry’s burgeoning proactive health platform and the deepening of co-creation partner ethos, underpinned by its integrated solutions model and associated technology stack. Following a challenging COVID-related period, we believe Kerry’s Taste & Nutrition (T&N) division has reached a growth inflection point. We lift our outer year volume growth forecasts for T&N by 50bps to 4.5%. We reiterate our ‘Outperform’ call.