7th Nov 2018 09:57
LONDON (Alliance News) - Kerry Group PLC on Wednesday said it experienced volume growth across both of its businesses in the year to September and re-affirmed its annual guidance as a result.
The Irish nutrition and consumer foods group owns snack food Cheesestrings and sausage brand Richmond.
In the nine months to September 30, Kerry saw a 3.5% growth in business volumes, led by its Taste & Nutrition division which posted 4.1% growth for the period. This was driven by meat, beverage & snacks end-use markets.
Consumer Foods also saw volume growth, though this was more modest at 1.2%, resulting from growth in Kerry's "Food to Go" business.
Kerry also reiterated its 2018 guidance of adjusted earnings per share growth of between 7% and 10% on a constant currency basis.
Pricing dropped 0.2% in the year-to-date period. This was a consequence of lower raw materials costs, which were reflected in customer partnership agreements.
Reported revenue grew 2.2%, which Kerry said encompassed both business volume growth and pricing, as well as a 0.1% hit from currency transaction, a 4.9% hit from currency translation, and a 3.9% positive contribution from acquisitions.
Kerry maintained its trading profit margin with a 60 basis point margin reduction in Consumer Foods, resulting from a sterling transaction headwind, eroding margin improvement in Taste & Nutrition.
As at September 30, net debt stood at EUR1.4 billion, up from EUR1.34 billion at the end of 2017.
"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," said Kerry Chief Executive Officer Edmond Scanlon.
"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.
Shares in Kerry were up 1.4% at EUR92.45 on Wednesday.
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