Taste and nutrition firm Kerry Group has reiterated its full-year earnings per share guidance following continued growth in volume and margin in the first nine months of its financial year.
Kerry Group saw volume growth of 2.2% in the first nine months despite reduced overall revenue of 3.0%, according to an interim statement released by the company.
Group EBITDA margin increased by 140bps, driven by benefits from its Accelerate Operational Excellence Programme, a positive impact from portfolio developments, operating leverage, product mix, and the net effect from pricing.
Taste & Nutrition Division
The company's Taste & Nutrition division saw volume growth ahead of its end markets, with the food service division registering 6.8% growth.
It was driven by new menu innovations, seasonal products, and solutions for nutritional, sustainability and operational enhancements, the company added.
In the third quarter, it achieved volume growth of 3.2%, driven by snacks, beverages and bakery EUMs.
Growth in the retail channel also improved, reflecting good performances in the Americas and APMEA.
In Europe, the division's volume returned to positive in the third quarter (+0.7), while overall volume for the nine months remained negative at -0.5%.
Dairy Ireland
Dairy Ireland achieved volume growth of 0.4% in the first nine months and a 5.7% increase in the third quarter.
The unit saw EBITDA margin expansion of 120bps on a year-to-date basis driven by growth in Dairy Consumer Products and mix development, as well as recovery in Dairy Ingredients.
Edmond Scanlon, chief executive officer, added, “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.
“We remain on track to achieve our full-year guidance, and today we reiterate our range of 7% to 10% constant currency adjusted earnings per share growth."
