Kerry Group has reported 'continued good growth' in the retail channel and a 'strong performance' in foodservice, as the business saw volumes in the third quarter rise by 6.6%.
For the first nine months of the year, business volumes rose by 8.2%, it added, while group reported revenue was up by 6.3%.
Its Taste & Nutrition division saw volumes up by 6.3% in the quarter (+8.7% for the first nine months of the year), while Consumer Foods rose by 7.5% (+5.6% for the nine-month period).
'Pleased With Overall Performance'
Commenting on the results, Edmond Scanlon said, “We are pleased with overall performance through the period. [...] The Americas had good overall volume growth, Europe delivered an excellent performance, while growth in APMEA remained strong with varying conditions across the region.
"A number of our end use markets had strong performances, with Beverage in particular achieving excellent growth."
The group recently completed the acquisition of Niacet, a preservatives business, while also divesting its Consumer Foods Meats and Meals business to US group Pilgrim's Pride.
Taste & Nutrition
Within its Taste & Nutrition arm, Kerry said that momentum was largely driven by the foodservice channel, particularly by quick-service restaurants, with the retail channel performance driven by 'launches incorporating Kerry’s authentic taste solutions, proactive nutrition portfolio and [the] Radicle plant-based range'.
In Consumer Foods, performance was driven by meal solutions, dairy snacking and meat-free ranges, with chilled meals achieving 'very strong growth,' supported by health and wellness ranges.
Kerry recently held a Capital Markets Day, at which it "shared our refreshed strategic priorities, key growth platforms and midterm targets, all key enablers of achieving our vision – to be our customers’ most valued partner, creating a world of sustainable nutrition," said Scanlon.
"Our outlook for the full year is unchanged, and we expect to deliver strong volume and earnings growth.”
Analyst Viewpoint
Commenting on Kerry's performance, analyst Cathal Kenny of Davy said, "Q3 volume growth of 6.3% for Taste & Nutrition was a commendable out-turn and modestly ahead of forecast. Noteworthy was strong volume delivery in region Europe and Emerging Markets.
"FY guidance was reiterated; as such, we envisage no material change to forecasts."
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