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While it has warned of “heightened market uncertainty”, it has maintained its earnings per share guidance. The 3pc volume growth it notched up during the third quarter was “well ahead” of end markets, noted the company. It also saw a margin expansion of 90 basis points on its earnings before interest, tax, depreciation and amortisation (Ebitda). Kerry said that its overall revenue declined 1pc in the quarter. That comprised volume growth of 3pc, pricing of 0.2pc, favourable transaction currency of 0.2pc, a 0.4pc contribution from acquisitions, a 1.2pc from the effect of disposals, and an adverse foreign currency translation effect of 3.6pc. Chief executive Ed Scanlon said the group had achieved “good growth” in the Americas, supported by product launch activity, with Europe, and Asia-Pacific, Middle East and Africa (Apmea) delivering sequential volume growth improvement during the 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 (Latin America),” he added. “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,” said Mr Scanlon. Kerry said that the food and beverage market environment during the third quarter reflected soft consumer demand, given the macroeconomic and geopolitical uncertainty across different geographies. The group added that within the Americas, snacks delivered strong growth through innovations that use its various savoury taste profiles and its Tastesense salt-reduction technologies. Growth in dairy was led by the strong performance of taste technologies, while growth in bakery was driven by taste and texture solutions as well as enzymes, it added, “Looking to the remainder of the year, while recognising a heightened level of market uncertainty, Kerry remains well positioned for volume growth and strong margin expansion, as it supports its customers as an innovation and renovation partner,” noted the group. It has maintained its constant currency adjusted earnings per share guidance of 7pc to 11pc growth for the full year. Davy Stockbrokers noted that Kerry’s volume growth in Europe remained subdued, at 0.7pc, during the third quarter, with a good performance in foodservice but a softer demand in retail.
