Ireland's Kerry Group has seen its Consumer Foods volumes rise 1.2% in the third quarter of the year, while volumes at its Taste & Nutrition business rose by 4.1%.
The group noted that its Consumer Foods operation performed ahead of the market, driven by 'good growth' in its Food to Go businesses, while pricing during the quarter was flat, reflecting neutral raw-material prices during the period.
Its Richmond range 'performed well' it noted, while Cheestrings and Fridge Raiders saw 'strong growth'.
However, its Convenience Meal Solutions ranges remained 'challenged' during the period, due to reduced promotional activity and the good weather, the group added.
Taste & Nutrition
In Taste & Nutrition, volume growth was boosted by lower raw-material pricing, with the business posting a trading profit increase of 20 basis points.
'The division achieved good growth across global, regional and local customer groupings," Kerry Group noted in a statement.
'Growth in developed markets was solid, whilst developing markets delivered strong, broad-based growth of 9.7%. Foodservice delivered good performance in the period, growing at 5.8% against a backdrop of very strong comparatives, particularly in the latter half of 2017.'
Good Volume Growth
Commenting on the business's performance, Edmond Scanlon, Kerry chief executive, said, "We are pleased with our performance to date in 2018, with volume growth well ahead of our markets and underlying margin expansion in line with expectations. In the third quarter, we have delivered good volume growth against very strong comparatives.
"We have also made good progress across our strategic growth priorities, including the recent acquisition announcements of Fleischmann’s Vinegar Company, Inc. and AATCO Food Industries LLC. In summary, we are encouraged by the progress we have made in 2018 and reaffirm our full-year 2018 guidance of adjusted-earnings-per-share growth of 7% to 10% in constant currency," added Scanlon.
Analyst Comment
Commenting on its performance, Liz Coen of analysts Davy Stockbrokers said, "The group has reiterated its FY2018 adjusted EPS constant currency growth of 7-10%. On first look, we do not anticipate any material revisions to our FY2018 EPS forecast.
"We remain optimistic on future prospects for Kerry," Coen added.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
