Kerry Group has reported a 10.3% revenue increase in its first quarter, its latest financial results show.
Consumer demand ‘remained resilient’ throughout the period, given the heightened inflationary environment.
This growth comprised increased business volumes of 0.2%, increased pricing of 8.3%, favourable translation currency of 1.5%, and a contribution from business acquisitions.
The global food ingredient company noted that customer innovation was primarily focused on new taste profiles, enhancing its products’ nutritional characteristics, and providing more value options for consumers.
At the end of the period, the group completed the sale of the trade and assets of its Sweet Ingredients Portfolio to IRCA.
Read More: Kerry Announces Plan To Sell Sweet Ingredients Portfolio
Edmond Scanlon, chief executive officer, said that the performance in the first quarter was driven by good volume growth in Asia-Pacific/Middle East/Africa (APMEA) and Europe, led by “strong growth” in the foodservice channel.
“Overall growth was led by the dairy, snacks and pharma markets, as customers continued to innovate their offerings while navigating the heightened inflationary environment,” Scanlon added.
“We continued to make good strategic progress through footprint expansion and portfolio evolution, with the sale of our Sweet Ingredients Portfolio, further enhancing and developing our business in areas where we can add most value.
“While recognising the current market uncertainty, we believe we remain strongly positioned for growth, and we reiterate our full-year constant-currency earnings guidance.”
Taste & Nutrition
According to the financial report, Kerry Group’s Taste & Nutrition arm delivered solid overall volume growth throughout the period, despite the effects of increased pricing.
The division showed volume growth of 1.2%, with good growth in APMEA and Europe.
Foodservice continued its momentum, with strong volume growth supported by innovation with quick-service restaurants and coffee chains on new-menu development, seasonal products, and solutions to enhance back-of-house efficiency.
Overall performance in the retail channel was muted in the period, reflecting customers’ inventory management in North America.
Read More: Kerry Group Sees Full-Year Revenue Up 18.0%
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