Kerry Group has today (Thursday, April 28) reaffirmed its full-year earnings guidance as it reported continued strong growth in the first quarter of 2022.

In its Q1 Interim Management Statement 2022, the food and ingredients company recorded group volume grow of 5.6% up to the end of March.

The Kerry Group taste and nutrition division recorded an almost 7% increase in growth, while its dairy business grew by 0.7%.

Group reported revenue increased by 8.1% in the period and organic group growth rose by over 11%.

The earnings before interest, depreciation, tax and amortisation (EBIDTA) margin increased by ten basis points.

The report outlined that overall demand remained positive as consumers moved to more ‘normalised’ work environments and increased their social engagements.

Kerry Group noted that sustainability remains “a key factor” in consumer purchasing decisions and there is a growing awareness of overall price inflation.

“Our markets remain highly dynamic with a good overall demand environment, despite current uncertain market conditions in places.

“While our industry is experiencing a period of heightened inflation, we remain confident in our ability to manage through this current cycle with our well-established pricing model and cost initiatives.

“Kerry remains strongly positioned for growth with a good innovation pipeline. We expect to achieve adjusted earnings per share growth in 2022 of 5% to 9% on a constant currency basis,” it stated.

Kerry Group report

Commenting on financial report the Kerry Group CEO Edmond Scanlon said:

“We were pleased with our start to the year despite challenging conditions in a number of markets.

“Taste and Nutrition achieved continued strong growth, particularly in developed markets. This growth was led by the meat, snacks and bakery end use markets.

“Growth in the retail channel remained strong while foodservice continued its excellent overall growth in the period,” he said.

Scanlon also pointed to strategic investments including German biotechnology company c-LEcta² and Almer² in southeast Asia.

“As overall market conditions remain highly dynamic, we are actively managing the inflationary environment in close collaboration with our customers.

“As previously announced, we have taken the decision to suspend our operations in Russia and Belarus and we continue to work through the challenges presented in China since the introduction of localised restrictions.

“As we commence a new strategic cycle, the progress we’ve made positions us strongly for growth. We are reaffirming our full year earnings guidance,” Scanlon concluded.