‘Good progress’ for Kerry Group with sales up 3.2%

Irish food and ingredients company Kerry Group achieved "good progress" in the first nine months of the year, as it reported a 3.2 per cent increase in business volumes and reiterated its goal of delivering 6 to 9 per cent full year earnings growth.

On a group basis, business volumes increased by 3.2 per cent, while pricing declined by 2.8 per cent against a background of approximately 6 per cent lower raw material costs. Reported revenues increased by 4.3 per cent, reflecting the business volume growth and lower pricing, Kerry said, adding that it benefited from a 7.7 per cent positive currency translation impact.

In consumer foods, Kerry said that the Irish and UK markets remain “highly competitive”, but its repositioned Kerry Foods portfolio performed well. Business volumes increased by 2.6 per cent but pricing was 2.4 per cent lower.

In Ireland, Kerry said that Denny achieved "a good brand performance" in the breakfast category, while Dairygold held brand market share in the dairy spreads sector, and Charleville continued to grow brand share in cheese.

The group’s taste and nutrition platforms delivered solid growth, with vollume growth of 3.4 per cent in the nine months to end September, although pricing declined by 2.9 per cent.

Net debt stood at € 1.4 billion, up from € 1.3 billion at the half year stage, reflecting the impact of acquisitions completed during the period.

In a note, Davy Stockbrokers said it was a “ solid Q3 trading update” from the food group.