Revenues increased 10% in Kerry Group in the first nine months, according to a statement from the company on Wednesday morning. This was mainly driven by acquisitions (4.7%) and volume growth (3.1%). Prices declined in the first nine months by 0.1% compared to the same period last year.
Group trading margin increased by 20 basis points driven by its ingredients and flavours business. Margins in its consumer foods business were maintained, according to the company.
Consumer foods decline
Its consumer foods business saw volumes decline 0.7% as a result of losing a major contract with Tesco earlier this year. When this contract is excluded, volumes were up marginally (0.6%). Pricing in the period was down 0.6%, which the company says is reflective of market pricing.
It said the spreads category remained challenged and the chilled meals sub-category continued to be impacted by reduced promotional activity. Kerry recently launched a plant-based range of products under the Naked Glory and Richmond brands.
Its ingredients and flavours business reported volume growth of 3.9% and a 0.1% increase in pricing.
Growth in developing countries continued to be strong, according to the group, with growth of 9.5% in the first nine months. Foodservice performed well, with growth of 5.1% despite softness in certain developed markets.
'Please with performance'
Edmond Scanlon, Kerry Group CEO, said the group was “pleased with performance” and that volume growth was ahead of its markets and was combined with margin expansion.
He added the group continues to make strategic acquisitions, and good progress has been made on the integration of acquisitions completed over the last 12 months, which are performing well.
Kerry reaffirmed its full-year outlook of adjusted earnings per share growth of 7% to 9% on a constant currency basis.
Read more
Kerry farmers protest over lack of progress on leading milk price
Conflicts of interest continue at Ornua board
Kerry Co-op consider trading again
Revenues increased 10% in Kerry Group in the first nine months, according to a statement from the company on Wednesday morning. This was mainly driven by acquisitions (4.7%) and volume growth (3.1%). Prices declined in the first nine months by 0.1% compared to the same period last year.
Group trading margin increased by 20 basis points driven by its ingredients and flavours business. Margins in its consumer foods business were maintained, according to the company.
Consumer foods decline
Its consumer foods business saw volumes decline 0.7% as a result of losing a major contract with Tesco earlier this year. When this contract is excluded, volumes were up marginally (0.6%). Pricing in the period was down 0.6%, which the company says is reflective of market pricing.
It said the spreads category remained challenged and the chilled meals sub-category continued to be impacted by reduced promotional activity. Kerry recently launched a plant-based range of products under the Naked Glory and Richmond brands.
Its ingredients and flavours business reported volume growth of 3.9% and a 0.1% increase in pricing.
Growth in developing countries continued to be strong, according to the group, with growth of 9.5% in the first nine months. Foodservice performed well, with growth of 5.1% despite softness in certain developed markets.
'Please with performance'
Edmond Scanlon, Kerry Group CEO, said the group was “pleased with performance” and that volume growth was ahead of its markets and was combined with margin expansion.
He added the group continues to make strategic acquisitions, and good progress has been made on the integration of acquisitions completed over the last 12 months, which are performing well.
Kerry reaffirmed its full-year outlook of adjusted earnings per share growth of 7% to 9% on a constant currency basis.
Read more
Kerry farmers protest over lack of progress on leading milk price
Conflicts of interest continue at Ornua board
Kerry Co-op consider trading again
This is a subscriber-only article
SHARING OPTIONS: