Irish agrifood business Kerry Group has said that its Consumer Foods business ‘performed well’ in the first nine months of the year, despite inflationary pressures and sterling volatility in the UK market.
The group said that business volumes in the Consumer Foods unit were up 2.5%, with pricing increasing by 1.9%. Trading profit in the division was down by 70 basis points, as the ‘underlying business margin improvement was offset by adverse sterling exchange rate movements’, the group said.
Overall, Kerry Group saw a 4.2% increase in business volumes for the nine month period, with its Taste & Nutrition business posting a 4.6% volume increase.
'Strong Business Momentum'
The company said that it ‘maintained a strong business momentum in Q3 2017, delivering good volume growth ahead of category growth rates, driven by successful innovation in response to consumer health and wellness trends’.
The period also saw some notable acquisitions, including Ganeden, an innovation company focused on patented probiotics and related technologies, and Mississippi, US based Dottley Spice, a leading supplier of seasonings and
coatings to the meat processing industry and foodservice sector in North America.
“The Kerry Business Model continues to deliver speedy innovation in response to the pace of change in the food and beverage industry,” said Kerry Group chief executive Edmond Scanlon.
“We achieved good volume growth in the first nine months of 2017 and for the full year, taking into account the 4% currency translation headwind, we expect to achieve growth in adjusted earnings per share of 4% to 6% on a reported basis to a range of 336 to 343 cent per share”.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
