Kerry Group said volumes rose more than 4 per cent in the third quarter as the company’s strategy to target high-growth protein and health and wellness markets drove demand.
But the weakening of the dollar against the euro led to a decline in revenue over the year to date, with an adverse currency translation of 2.5 per cent for the period. The food group said it expects the impact of exchange rates to become favourable for the rest of the year.
Volume growth was ahead of the wider market, with the year to date rise at 3.6 per cent. Kerry said continued customer innovation and renovation activity aimed at address a range of consumer needs contributed to its end market volume outperformance in the third quarter. Kerry has been targeting high protein and health and wellness markets, while also improving nutritional profiles, optimising costs and addressing supply chain challenges.
A net pricing reduction of 0.6 per cent, linked to input cost deflation, exchange rates and a reduction from disposals, led to the revenue decline of 0.6 per cent in the year to date.
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Growth was led by Kerry’s snacks, meat, dairy and beverage sectors. There was also string volume growth of 5 per cent in the foodservice market, and the retail channel was supported by continued product renovation activity and innovation in high-growth areas.
Chief executive Edmond Scanlon said the company had put in a strong performance over the period, reflecting very strong growth in the Americas, a step-up in Asia Pacific, Middle East and Africa, and good growth in Europe.
“While macro and geopolitical uncertainty continue to impact market conditions, our strong end market outperformance highlights the strength and relevance of our strategic positioning across our markets, channels and customer base,” he said. “Our inbuilt business resiliency positions us well through this period, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline.”
