Shares surge after Kerry Group report

SHARES in Tralee based multinational food and ingredients giant Kerry Group surged by over three per cent after after the group reaffirmed its full year guidance of adjusted earnings per share growth of seven per cent to 10 per cent for 2018.

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

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

The company said its underlying margin expansion was “good,” however it was offset by the impact of currency fluctuations.

Kerry Group CEO Edmond Scanlon said he was “pleased” with the performance to date this year.

“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. In the third quarter we have delivered good volume growth against very strong comparatives,” Mr Scanlon said.

“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,” he said.

“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 seven per cent to 10 per cent in constant currency,” said Mr Scanlon.

Europe delivered a good performance for the group, with volume growth of 2.5 per cent This was driven by beverages, led by demand for sugar-reduction technologies and natural extracts. In the Americas, Kerry enjoyed strong growth of 2.8pc, particularly in its meat category.