Food group Kerry said it saw continued strong business growth in the third quarter of the year despite the ongoing inflationary pressures in the market.
In an interim management statement the group said volumes grew 6.2 per cent in the third quarter, and 6.6 per cent in the year to date, while group pricing was up 15.3 per cent over the three-month period and 10.6 per cent in the year to date.
Volume growth was broad based, Kerry said, spread across geographic regions, channels and markets.
Revenue rose by 16.1 per cent during the period, with the contribution from business acquisitions of 4.8 per cent partially offset by the impact of the disposal of the consumer foods, meats and meals business.
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Group earnings before interest, tax, depreciation and amortisation margin was down 40 bps, as the impact of passing on input cost inflation was felt. This was partially offset by accretion from portfolio developments, operating leverage, portfolio mix and efficiency initiatives, Kerry said.
“We achieved excellent growth across the period through a combination of strong business volumes and pricing, as we continue to manage through this unprecedented inflationary pricing environment in collaboration with our customers,” said chief executive Edmond Scanlon.
“While we recognise the current level of uncertainty in the marketplace we feel very well positioned as we continue to support our customers in addressing the various market challenges and opportunities. Given we have now reported the third quarter, we are updating our full-year earnings guidance to 6 per cent to 8 per cent growth on a constant currency basis.”
Kerry said overall market demand remained strong, with the food service channel continuing to recover with double-digit volume growth. The Americas region saw volume growth of just under 10 per cent, led beverage, meat and bakery markets, and Europe grew by 6.2 per cent in the year to date.
Dairy Ireland, meanwhile, saw solid growth, with overall volume growth of 1.8 per cent, and third quarter growth of 1 per cent. Pricing, meanwhile, was up 36.6 per cent.
Kerry said it remained confident it could continue to manage through the current inflationary cycle and would continue to evolve its portfolio.
