Ireland-based ingredients company Kerry has reported that it experienced “good volume growth” during Q1.
In its Q1 Interim Management Statement, Kerry Group highlighted its recent 2024 volume growth, with Taste & Nutrition experiencing growth of 3.1%. Growth in Taste & Nutrition was led by the Snacks, Meals and Meat categories.
Group volumes were up 1.9%, while group pricing was down 3.9%. Kerry reported that Dairy Ireland delivered a “solid” performance with its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin up 70 basis points.
Kerry said that consumer demand had remained “relatively subdued” during the period given the “recent inflation across many geographies”. Its group revenue comprised volume growth of 1.9%, pricing deflation of 5.3%, the effect from disposals net of acquisitions of 5.1% and “unfavourable” translation currency of 1.4%, resulting in overall reduced revenues of 9.9% in the period.
“We are pleased to report a good start to the year given market dynamics,” said Edmond Scanlon, chief executive at Kerry. “Taste & Nutrition achieved good volume growth driven by a strong performance within our foodservice channel and we delivered strong margin expansion in the period reflecting the continued development and evolution of our business.
“Consumer market dynamics remain similar to those outlined at our full year results. As part of our capital allocation framework as previously indicated, we are announcing a new share buyback programme, and the expected net earnings per share accretion has been reflected in our updated guidance range.”
Outlook
The company said it has a “good innovation pipeline” and said it remains “well-positioned” for volume growth and good margin expansion, while recognising consumer demand remains “relatively subdued”.
It said it would continue to develop its business and portfolio aligned to its “strategic priorities”, and highlighted that the Group was updating its adjusted earnings per share guidance range to 5.5% to 8.5% growth in constant currency, up from the previous range of 5% to 8%.
