Kerry Group shares slip as firm faces 'challenged' market
Shares in Kerry Group fell yesterday as the company reaffirmed its full-year guidance but admitted it was operating in a "challenged" market.
In a trading statement for the nine months to the end of September, the food giant said volumes climbed 3.2pc year on year but added that it continued to see issues in the likes of Europe and the US as well as elsewhere.
"Despite improving global economic conditions, consumer demand in developed markets remains weak," said the firm.
"Developing markets continue to be impacted by geopolitical issues and significant currency fluctuations," it added.
Still, the company has retained its guidance for the full year of earnings to grow by 6pc to 9pc.
A company spokesman said the numbers were a "continuation of a good ongoing trend we have in terms of volume growth in our taste and nutrition business and with good margin development across the business".
Kerry makes most of its money from its nutritions and food ingredients business these days, and that was reflected in the statement.
Overall, margins grew 40 basis points (bps) on the first nine months of last year but margins growth in the consumer foods was only half that at 20bps. Prices fell 2.4pc in the division, in part due to lower raw material costs.