Food giant Kerry Group has seen demand for its goods “significantly impacted” outside of China since March, as the pandemic changes people’s food buying behaviours.
The Tralee-headquartered company expects the impact of the deadly virus to hit its second quarter performance more significantly than the first, according to a trading update from the group.
“Since March, the restrictions on movement have significantly impacted customer demand beyond China and across the foodservice channel,” Edmond Scanlon, CEO of Kerry Group, said.
“Based on the current restrictions, we expect the impact on second quarter performance to be much more significant than the first quarter.”
In the three months to 31 March revenue at Kerry increased by 3.4pc, while business volume growth was up 0.2pc.
However the impact of the global pandemic became more severe outside of China towards the end of March.
Kerry has now withdrawn its earnings guidance due to uncertainty around duration and impact of Covid-19.
Mr Scanlon said the company has “taken early and decisive action.”
“Our global supply chain remains robust, thanks to the tremendous efforts of our operations teams right across our entire manufacturing footprint of 150 plants,” he added.