Irish technology Kerry sees strong volume growth, reaffirms earnings guidance

Irish technology

Kerry has reported volume growth and margin expansion across its range of food businesses while reaffirming its full-year earnings guidance.

In trading statement for the nine months to the end of September, the Irish food and nutrition company, whose brands include include Charleville, Denny and Cheesestrings, said revenue increased by 10 per cent, reflecting business volume growth of 3.1 per cent and a pricing decrease of 0.1 per cent.

This also included an acquisition contribution of 4.7 per cent and a favourable translation currency impact of 2.3 per cent, it said.

It also reported volume growth of 3.9 per cent in its taste and nutrition division driven by meat, snacks and beverage end-use markets, but said its margins were partially offset by investments for growth and Brexit risk management costs.

The company has been on a major acquisition drive to keep up with shifting consumers trends.

Subdued marketplace

In its consumer foods division, it said volume growth was muted (-0.7 per cent), reflective of a subdued marketplace and the impact of the previously reported loss of a ready meals contract.

“We are pleased with our performance to date in the period, with volume growth ahead of our markets combined with margin expansion,” chief executive Edmond Scanlon said.

“We enjoyed strong growth in developing markets, as we further deploy our technology and continue our strategic footprint expansion.

“We continued 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,” he said.

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The company reaffirmed its full-year guidance of adjusted earnings per share growth of 7 per cent to 9 per cent on a constant currency basis.

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