Dairygold owner Kerry sees shares dip on volume growth of 3.7pc
Shares in Kerry Group were down slightly to €85.30 on the Irish Stock Exchange, despite the company reporting a 3.7pc growth in business volumes in the three months to March 31.
The performance was driven by a 4.3pc growth in volume of its nutrition business, which accounts for around 80pc of its overall business.
The consumer foods business, which includes brands such as Dairygold, Cheestrings, and Denny, recorded a 1.6pc growth in volume during the period. "We are pleased with the start we have made to 2018, which is in line with our expectations as communicated in February," said CEO Edmond Scanlon.
"The group continued to deliver healthy volume growth and underlying margin expansion," he said.
"The acquisitions completed over the past year are performing well and integration is progressing to plan."
Of particular note was the group's taste and nutrition growth in developing markets, where Kerry reported a 9.7pc growth in business volumes.
According to Davy analysts the results demonstrate that Kerry Group is already executing on its medium targets "underpinned by its unique business".
Pricing at the group increased by 0.9pc in the quarter.
Meanwhile, reported revenues increased by 0.1pc, which the group said reflected the business volume growth and positive pricing, an adverse transaction currency impact of 0.1pc, contribution from acquisitions of 4pc, and an adverse translation currency impact of 8.4pc.
The group's trading profit margin was maintained, reflecting a 20 basis points improvement in taste and nutrition, with the underlying margin improvement in consumer foods being offset by the sterling transaction impact, resulting in a 60 basis points margin reduction in the consumer food division.
The group reaffirmed its full year 2018 guidance of adjusted earnings per share growth of 6pc to 10pc in constant currency.