Ingredients supplier Kerry Group has published its interim management statement for the first quarter, reporting “strong” end market outperformance.
Volume led growth of 3.1%, which Kerry said was led by the Meat, Snacks and Dairy categories. A 1.3% decrease in pricing reflected overall input cost deflation in places.
Foodservice continued its “strong market outperformance” with volume growth of 4.6%, driven by new menu innovations, seasonal products and continued product renovation. Kerry reported growth in the retail channel was supported by continued product renovation activity and innovation in high-growth areas with a range of customers.
While growth in the Americas region reached 3.4%, the Europe region saw a 0.4% volume increase due to “subdued market conditions” given cautious consumer behaviour. Performance in the Europe Dairy category was supported by good growth in taste and protein masking solutions, while category volumes in the Bakery category were “challenged”.
Volumes in the Asia-Pacific, Middle East and Africa region were up by 4.6%, led by the Meat, Bakery and Snacks categories.
“While recognising the uncertainty around the ongoing geopolitical volatility, our business remains strongly positioned for volume growth and margin expansion.”
Edmond Scanlon, chief executive officer at Kerry Group, commented: “We are pleased to deliver a good start to the year, with volume growth across all three regions and continued margin expansion.
“The volume growth we achieved in the first quarter was driven by continued strong growth and market outperformance in the Americas, with good growth in APMEA and a solid performance in Europe. We continued to deliver strong EBITDA margin expansion in the period, led by efficiencies delivered through our Accelerate 2.0 programme.
“Our extensive local footprint, unique technology capability, and the strength of our business model positions us well to navigate through this period of geopolitical and macroeconomic uncertainty, as we proactively support our customers as their innovation and renovation partner.
“While recognising the uncertainty around the ongoing geopolitical volatility, our business remains strongly positioned for volume growth and margin expansion.”
