Kerry Group has reported "strong volume growth and margin expansion" in the third quarter (Q3) of the year.

In a interim management statement published today (Thursday, October 22), the taste and nutrition business outlined year-to-date volume growth of 3.6% and Q3 growth of 4.1% which it said was "well ahead of end market growth".

The statement shows EBITDA (earnings before interest, taxes, depreciation and amortisation) margin expansion of 50 basis points.

Kerry Group said this was primarily driven by its business efficiency and optimisation programme, Accelerate 2.0, combined operating leverage and product mix, net price, and the positive impact from disposals.

The company said the performance also reflected increased investment in research and development and an adverse translation currency impact.

Kerry has maintained its constant currency adjusted earnings per share guidance of 6% to 10% growth in 2026.

Kerry Group

Reported year-to-date revenue decreased by 0.6%, with revenue comprising volume growth of 3.6%, a net pricing reduction of 0.6%, adverse transaction currency of 0.2%, a reduction from disposals net of acquisitions of 0.9% and adverse translation currency of 2.5%.

Kerry Group said the adverse translation currency impact was primarily driven by the significant weakening of the US Dollar compared to the Euro.

Based on prevailing exchange rates the foreign currency translation impact is expected to be favourable for the remainder of the year, the business added.

Volume growth

Kerry Group said the volume growth in the first nine months of the year "reflected continued strong end market outperformance and further progression across each of the three regions".

The growth was led by "good activity" in the snacks, meat, dairy and beverage end use markets.

The company said this was driven by its range of taste and biotechnology-enabled solutions, including salt and sugar reduction technologies.

Foodservice delivered volume growth of 5% in the period, driven by a range of new signature taste menu innovations and seasonal product launches.

While growth in the retail channel was boosted by ongoing product renovation and innovation in high-growth areas.

Business volumes in emerging markets increased by 4.9% in the period, with good growth in the Middle East and Africa.

Edmond Scanlon, chief executive officer of Kerry Group, said the performance reflected "a further step-up in volume growth across all three regions in the third quarter, combined with continued strong margin expansion".

"The volume growth achieved in the third quarter reflects very strong growth in the Americas, a further step-up in APMEA [Asia Pacific, Middle East and Africa] and good growth in Europe.

"Growth in the period was led by good innovation activity in the foodservice channel and continued product renovation activity in the retail channel.

"From a strategic perspective, we continued to develop our business, including further investment in our taste and biotechnology-enabled solutions capacity and capabilities across our regions," he said.

"Our inbuilt business resiliency positions us well through this period, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline," Scanlon added.

At the end of September, Kerry's net debt was €2.4 billion, reflecting cash generation, timing of capital investments and the share buyback programme.

The business is planning to launch a further share buyback programme of up to €300 million of Kerry Group plc ordinary shares after the existing programme is completed.