Friday 16 November 2018

Kerry reaffirms full year guidance as business volumes continue to grow

Kerry Group CEO Edmond Scanlon
Kerry Group CEO Edmond Scanlon
Ellie Donnelly

Ellie Donnelly

Kerry Group has reaffirmed its full year guidance of adjusted earnings per share growth of 7pc to 10pc for 2018.

This comes as the company reported growth of 3.5pc in its business volumes in the nine months to 30 September.

In a trading update today the group said that its Taste & Nutrition business grew 4.1pc in the nine month period, while its Consumer Foods business showed growth of 1.2pc.

Reported sales increased by 2.2pc, and growth was recorded across all the regions that the group operates in.

Kerry Group said its underlying margin expansion was "good," however it was offset by the impact of currency fluctuations.

Commenting on the performance, Kerry Group CEO Edmond Scanlon said he was "pleased" with the performance to-date this year.

"In the third quarter we have delivered good volume growth against very strong comparatives."

"We have also made good progress across our strategic growth priorities, including the recent acquisition announcements of Fleischmann's Vinegar Company and AATCO Food Industries," Mr Scanlon added.

Net debt stood at €1.4bn at the end of September.

Europe delivered a good performance for the group, with volume growth of 2.5pc.

While in the Americas, Kerry enjoyed strong growth of 2.8pc, as consumer demand for authentic flavours, clean label and a wider range of alternative protein-based products continued to drive new product innovations.

Last month the business announced that it is to acquire Fleischmann's Vinegar Company and AATCO Food Industries for an expected total consideration of €365m.

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