Kerry Group report positive 2018 start

TRALEE based food and ingredients giant Kerry Group has reported a 3.7 per cent growth in business volumes in the three months to 31 March.

The performance was driven by a 4.3 per cent growth in volumes of its nutrition business which accounts for around 80pc of its overall business.

The consumer foods business, which includes brands such as Dairygold, Cheestrings, and Denny, grew by 1.6 per cent during the three month period.

“We are pleased with the start we have made to 2018, which is in line with our expectations as communicated in February,” Edmond Scanlon, chief executive of Kerry Group, said.

“The group continued to deliver healthy volume growth and underlying margin expansion. The acquisitions completed over the past year are performing well and integration is progressing to plan.” he said.

Group trading profit margin was maintained, reflecting a 20 basis points improvement in taste and nutrition, with underlying margin improvement in consumer foods being offset by the sterling transaction impact, resulting in a 60 basis points margin reduction in the division.

Kerry group reaffirmed its full year 2018 guidance of adjusted earnings per share growth of six per cent to 10pc in constant currency.

Reported revenues increased by 0.1 per cent, which the group said reflected the business volume growth and positive pricing, an adverse transaction currency impact of 0.1 per cent, contribution from acquisitions of four per cent, and an adverse translation currency impact of 8.4 per cent.

The interim statement was issued to coincide with Kerry Group’s AGM which was held last Thursday.