Ingredients giant Kerry sees no risk from U.S. election, China trade tension (updated)

Kerry

24/10/2024 12:06

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      Kerry one of top global food ingredient producers
    

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      Says local production shields it from trade tensions
    

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      Food and beverage 'pretty immune' from U.S. election
fallout
    

  
 (Adds quotes and details in paragraphs 3-7; Adds details from
Q3 results in paragraphs 8-9)
       DUBLIN, Oct 24 (Reuters) - Irish food ingredients
multinational Kerry Group  KYGa.I  sees no significant risk to
its business from either the upcoming U.S. elections or trade
tensions with China, Chief Executive Edmond Scanlon said in an
interview on Thursday. 
    The food and beverage sector is likely to be "pretty immune"
to changes in the regulatory environment and changes in consumer
behaviour in the wake of the Nov. 5 election in the United
States, Kerry's largest market, said Scanlon. 
    "We wouldn't be concerned about it at all," he said. 
    Asked if any post-election cut to U.S. corporate tax rates
to levels closer or lower than Ireland might prompt the company
to move its domicile, Scanlon said the company "wouldn't be
making any rash decisions on moving anywhere".
    Donald Trump has pledged to reduce the corporate tax rate to
15% from 21% for companies that make their products in the U.S.,
in line with the headline rate for larger companies in Ireland. 
    Trade tensions between China and Europe and the United
States are not a significant risk due to the fact that most of
Kerry's sales in China are produced locally, Scanlon said. 
    "In China, we're very, very local," he said. "There isn't a
huge amount of trade across borders."
    Scanlon was speaking following the publication of results
for the third quarter in which Kerry reiterated its forecast of
full-year growth in adjusted earnings per share growth of 7%-10%
despite a "relatively muted" global market. 
    Kerry clients have engaged in promotional activity in the
United States, but those promotional activities "are having a
very limited impact actually, in driving demand," Scanlon said. 

 (Writing by Conor Humphries; editing by Sarah Young and David
Evans)
 ((conor.humphries@thomsonreuters.com; +353 1 236 1915;))