Saturday 19 October 2019

Growth at Kerry Group up 3.7pc in three months

Kerry Group CEO Edmond Scanlon. Photo: David Conachy
Kerry Group CEO Edmond Scanlon. Photo: David Conachy
Ellie Donnelly

Ellie Donnelly

Kerry Group has reported a 3.7pc growth in business volumes in the three months to 31 March.

The performance was driven by a 4.3pc growth in volumes 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, grew by 1.6pc during the three month period.

"We are pleased with the start we have made to 2018, which is in line with our expectations as communicated in February,” Edmond Scanlon, chief executive of Kerry Group, said.

"The group continued to deliver healthy volume growth and underlying margin expansion. The acquisitions completed over the past year are performing well and integration is progressing to plan."

Pricing 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.

Group trading profit margin was maintained, reflecting a 20 basis points improvement in taste and nutrition, with underlying margin improvement in consumer foods being offset by the sterling transaction impact, resulting in a 60 basis points margin reduction in the division.

The group reaffirmed its full year 2018 guidance of adjusted earnings per share growth of 6pc to 10pc in constant currency.

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