Kerry Group is well placed to take advantage of major global consumer trends such as clean label, plant-based diets and the increased focus on nutrition, a leading industry analyst has said, following a solid quarter for the group.
Cathal Kenny of Davy Stockbrokers was commenting following the publication of a third-quarter interim management statement by Kerry, in which it reported a 3.1% growth in business volumes, and a 10.0% increase in reported revenue.
Division Performance
Volumes at its consumer food business were down 0.7% however, due to the conclusion of a major contract during the period – if this is excluded, the Consumer Foods arm rose by 0.6%.
Kerry's Taste & Nutrition arm posted a 3.9% increase in business volumes, as well as a 20 basis point increase in trading margin.
"Kerry’s Taste & Nutrition (T&N) division has sustained good volume growth through its third quarter – the out-turn is reassuring in the context of inconsistent results from its peer set," commented Kenny.
He added that the division's footprint was "further enhanced" with the addition of a number of technology-led bolt-on acquisitions during the period.
"Kerry’s expanding and relevant capability set is well positioned to address, in partnership with its customers, the major global consumer trends – clean label, plant-based diets, nutrition and authentic taste," Kenny added. "We envisage no material change to forecasts."
Full-Year Guidance
Kerry Group has reaffirmed its earnings guidance for the full year, with chief executive Edmond Scanlon saying that he was "pleased" with the group's performance in the year to date, due to volume growth and margin expansion.
"We enjoyed strong growth in developing markets, as we further deploy our
technology and continue our strategic footprint expansion," he said. "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.
"We reaffirm our full year 2019 guidance of adjusted earnings per share growth of 7% to 9% on a constant currency basis.”
© 2019 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.
