In its Q3 interim management statement, ingredients supplier Kerry reported volume growth of 3%.
It said its growth was led by its bakery, snacks and dairy categories, which it said was supported by “strong growth” in solutions incorporating Kerry’s savoury taste and Tastesense™ salt and sugar reduction technologies, as well as enzymes, natural extracts and proactive health ingredients.
Volume growth in foodservice of 4.1% represented a “significant channel outperformance” in the period, Kerry found, given soft traffic data. This growth was driven by “strong innovation activity” including new menu items, seasonal launches and limited time offers. Growth in the retail channel was supported by increased retailer brand innovation and nutritional enhancement renovation.
Business volumes in emerging markets also increased by 5.3% across the period, led by a “strong performance” in Southeast Asia. The Pharma & Other EUM reportedly delivered good volume growth, driven by cell nutrition and proactive health ingredients for supplement applications.
Looking at its Europe division, Kerry found that growth in its bakery division was led by texture systems, with performance in meat and meals reflecting “softer retail channel market dynamics in Western Europe”.
“We delivered a good performance across the first nine months of the year, with volume growth well ahead of our markets.”
Edmond Scanlon, chief executive officer, commented: “We delivered a good performance across the first nine months of the year, with volume growth well ahead of our markets, combined with strong margin expansion.
“We achieved good growth in the Americas supported by product launch activity, with Europe and APMEA delivering sequential volume growth improvement in the third quarter.
“From a strategic perspective, we continued to develop our business, including further investment in our bio-fermentation and taste technology capabilities, combined with capacity expansion in APMEA and LATAM. Looking to the remainder of the year, while recognising continued market uncertainty, we remain well positioned for volume growth and strong margin expansion, as we continue to support our customers as an innovation and renovation partner.”
