Kerry Group Sees Consumer Food Volumes Increase By 1.2% In Q3
Kerry Group has seen its Consumer Foods volumes rise 1.2% in the third quarter of the year, while volumes at its Taste & Nutrition business rose by 4.1%.
In its interim management published today the group said that its Consumer Foods operation performed ahead of the market, driven by 'good growth' in its Food to Go businesses, while pricing during the quarter was flat, reflecting neutral raw material prices during the period.
“We are pleased with our performance to date in 2018, with volume growth well ahead of our markets and underlying margin expansion in line with expectations," said Edmond Scanlon, chief executive officer, Kerry Group.
"In the third quarter we have delivered good volume growth against very strong comparatives."
Its Richmond range 'performed well' it said, while Cheestrings and Fridge Raiders saw 'strong growth'.
However, its Convenience Meal Solutions ranges remained 'challenged' during the period due to reduced promotional activity and the good weather, the group added.
"We have also made good progress across our strategic growth priorities, including the recent acquisition announcements of Fleischmann’s Vinegar Company Inc and AATCO Food Industries LLC,'" Scanlon added.
In summary, we are encouraged by the progress we have made in 2018 and reaffirm our full year 2018 guidance of adjusted earnings per share growth of 7% to 10% in constant currency.”
Taste & Nutrition
In Taste & Nutrition, volume growth was boosted by lower raw material pricing, with the business posting a trading profit increase of 20 basis points.
'The division achieved good growth across global, regional & local customer groupings," Kerry Group said in a statement.
'Growth in developed markets was solid, whilst developing markets delivered strong broad-based growth of 9.7%. Foodservice delivered good performance in the period, growing at 5.8% against a backdrop of very strong comparatives, particularly in the latter half of 2017.'
Markets & Group Performance
In the statement the group attributed consumer demands for authenticity, clean label, premiumisation, healthfulness, convenience and new taste experiences to continue to drive product launches and innovation across the marketplace.
The group reaffirms its full year 2018 guidance of adjusted earnings per share growth of 7% to 10% on a constant currency basis.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.