Kerry Group has published its business performance for the first nine months of the year, reporting a revenue increase of 6.3%.

This reflects a volume increase of 8.2%, increased pricing of 0.7%, an adverse translation currency impact of 3.6% and net contribution from acquisitions and disposals of 1%.

The group trading profit margin increased by 60bps (basis points), reflecting a 60bps improvement in taste and nutrition and a 20bps improvement in consumer foods, driven principally by operating leverage.

Outlook for the full year unchanged

Edmond Scanlon, Kerry Group CEO said that the company is “pleased with overall performance through the period, reflecting continued good growth in our retail channel and strong performance in foodservice”.

“The Americas had good overall volume growth, Europe delivered an excellent performance, while growth in APMEA remained strong with varying conditions across the region,” Scanlon said.

“A number of our end use markets had strong performances, with beverage in particular achieving excellent growth.

“We have made some significant strategic developments through the year.

“At our recent capital markets day, we shared our refreshed strategic priorities, key growth platforms and mid-term targets, all key enablers of achieving our vision – to be our customers’ most valued partner, creating a world of sustainable nutrition.

“Our outlook for the full year is unchanged and we expect to deliver strong volume and earnings growth.”

Kerry Group consumer demand strong

Overall market conditions have improved through the period, with many developed markets seeing a return to more normalised economic activity.

In its statement, Kerry said that its consumer demand remains strong as retail continues to perform well, while foodservice experiences a continued improvement, as “consumers embrace the opportunity for out-of-home social engagement and food consumption”.

“Markets remain highly dynamic, as customers seek to address heightened consumer demands while balancing labour and supply-chain challenges, leading to increased innovation opportunities within our industry.”

The group’s taste and nutrition business saw a volume growth of 8.7%, with a foodservice volume growth of 21% led by performance in Europe; retail volume growth of 4.9% led by beverage and food EUMs (most notably meat and bakery); and pricing of 0.7% reflecting increases in input costs.

Consumer foods saw a volume growth of 5.6% – led by meal solutions, dairy snacking and meat-free.

At the end of September, the group’s net debt was €2.1 billion.