Kerry Group revenue growth driven by increased sales

Kerry Group’s interim management statement said reported revenue increased 6.3% in the first three months of the year.

The increase was mostly driven by volume growth of 3.1% and currency movements of 2.3%. Price changes added 0.2% to revenue in the three months.

On a regional basis, growth was flat in Europe, 3.5% higher in the Americas and 5.1% higher in the rest of the world. The company noted that the Chinese market remains challenged.

On a divisional level, volume growth was led by food service growth of 4.7%. Sales to emerging markets were up 6.4%.

'Good performance'

KerryGroup CEO Edmond Scanlon said: “We delivered a good overall performance in the first quarter, particularly given market conditions.

"Against a backdrop of highly dynamic macroeconomic conditions, our extensive local footprint, our unique offering and the strength of our business model positions us well to navigate through this period, supporting our customers as their innovation and renovation partner.

“While recognising the heightened level of market uncertainty, we remain well positioned for good volume growth and strong margin expansion, and we maintain our full-year constant currency earnings guidance.”

Chief financial officer Marguerite Larkin addressed the trade uncertainty in a call with investors following the publication of the statement, saying: “On tariffs, we have an extensive global manufacturing footprint of 124 facilities.

"This, linked with our well-established local supply network, enables us to predominately manufacture and source within the markets we serve. We are continuing to monitor the ongoing tariffs developments and we are working with our customers to manage the implications of these.”

Kerry Group's annual general meeting will take place on Thursday 1 May in Tralee. Shares in the company were little changed following the release of the management statement.