Food group Kerry said volumes rose in the third quarter as the company remained on track to meet guidance for the year.
However, the group noted consumer demand across many food and beverage markets remained relatively muted, a consequence of the inflation experienced in many of its markets.
Revenue at the Dublin-listed group fell 3 per cent in the first nine months of the year, with a 2.2 per cent growth in volume weighed down by price deflation of 3.2 per cent. The impact of foreign exchange rates, acquisitions and disposals were also factors.
The margin on group earnings before interest, tax, depreciation and amortisation rose 140bps, as the company’s operational excellence programme, portfolio developments, product mix, and the net effect from pricing had an effect.
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The Dublin-listed group said overall volumes were up 4.3 per cent in the third quarter of the year, with its more significant taste and nutrition unit growing 3.4 per cent. Growth was driven by the Americas, a good performance in APMEA, with more positive volumes in Europe in the third quarter.
The Dairy Ireland business, which had been hit by falling prices in the first six months of the year, saw volume growth of 0.4 per cent in the year to date, with the third quarter recording a 5.7 per cent increase. Pricing was lower over the year to date, down 3.1 per cent, but the third quarter was more positive.
“We were pleased with our performance across the first nine months of the year, with continued volume progression through the period, combined with strong margin expansion,” said chief executive Edmond Scanlon.
“Volumes in the retail channel steadily improved through the period, while foodservice continued to deliver strong growth, given our unique positioning as we outlined at our recent investor day.”
The group said it was on track to achieve its full year guidance, with constant currency adjust earnings per share growth in the range of 7 per cent to 10 per cent.
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