Kerry Group records positive start to 2023 as consumer demand remains resilient

Revenues across the group rose by 10.3pc in the first three months of the year.

This growth was mainly driven by increased pricing of 8.3pc, while volume sales remained steady, up by just 0.2pc.

The group’s margin on its earnings before interest, tax, depreciation and amortisation was down 70 basis points.

This decrease was attributed to the “mathematical impact” of passing through cost inflation to customers, which it said was partially offset from the impact of its cost saving initiatives.

The group’s taste and nutrition division – particularly pharma, snacks and bakery – reported 1.2pc volume growth, as prices increased by 7.2pc to pass through rising costs.

Kerry’s dairy division saw a 5.8pc drop in volumes in the first three months of the year.

Prices of its dairy ingredients and consumer products were up 14.4pc in this time as a result of the “heightened year-on-year inflationary cost environment.”

Within its dairy ingredients products range, sales were impacted by significant price rises, as well as the expectation of inflation turning to deflation.

Dairy consumer products recorded a strong performance due to a boost in sales for its branded cheese ranges and private label spreads in the first months of the year.

Net debt was €1.7bn at the end of September.

Kerry says it now expects to achieve adjusted earnings per share growth this year of between 1pc and 5pc on a constant currency basis.

Chief executive officer Edmond Scanlon said the group is currently navigating the “heightened inflationary pricing environment”.

“Our performance in the first quarter was driven by good volume growth in Asia-Pacific, the Middle East, Africa and Europe, led by strong growth in the foodservice channel, as customers in the North America retail channel worked through elevated inventory levels across the period,” he added.