Kerry Group has said that it saw volume growth and "strong margin expansion" in quarter three (Q3) of the year.

Releasing its interim management statement for Q3, the business said that volume grew by 3%, which it said was "well ahead of end markets".

Kerry Group also saw EBITDA (earnings before interest, taxes, depreciation and amortisation) margin expansion of 90 basis points (0.9%), primarily driven by cost efficiencies, operating leverage, product mix and the contribution from acquisitions and disposals, the business said.

Kerry Group said the food and beverage market environment across the period reflected soft consumer demand, given macroeconomic and geopolitical uncertainty across different regions.

Reported overall revenue decreased by 1%, with revenue comprised of volume growth of 3%; positive pricing of 0.2%; favourable transaction currency of 0.2%; the contribution from acquisitions of 0.4%; the effect from disposals of 1.2%; and an adverse foreign currency translation effect of 3.6%.

The business said its full year adjusted earnings per share (EPS) guidance is maintained at 7%-11% in the full year (adjusted EPS growth is based on total adjusted group earnings in the prior year of 467.5c.

Commenting on the interim management statement for the third quarter, Kerry Group chief executive officer Edmond Scanlon said: "We delivered a good performance across the first nine months of the year, with volume growth well ahead of our markets, combined with strong margin expansion.

"We achieved good growth in the Americas supported by product launch activity, with Europe and APMEA [Asia Pacific, Middle East and Africa] delivering sequential volume growth improvement in the third quarter," Scanlon added.

He said that Kerry Group continued to develop its business, including further investment in its bio-fermentation and taste technology capabilities, combined with capacity expansion in APMEA and Latin America.

"Looking at the remainder of the year, while recognising continued market uncertainty, we remain well positioned for volume growth and strong margin expansion, as we continue to support our customers as an innovation and renovation partner," Scanlon added.

Kerry Group said its business performance was supported by good innovation activity led by the foodservice channel, combined with continued product renovation activity in the retail channel.

Growth was led by bakery, snacks and dairy end markets, supported by growth in solutions including salt and sugar reduction technologies, as well as enzymes, natural extracts and proactive health ingredients.

Volume growth in foodservice of 4.1% represented "a significant channel outperformance in the period", the company said.

It added that growth in the retail channel was supported by increased retailer brand innovation and nutritional enhancement renovation.

Business volumes in emerging markets increased by 5.3% across the period, led by a strong performance in Southeast Asia.

At the end of September, Kerry Group's net debt was €2.2 billion, reflecting cash generation, capital investment and the share buyback programme, the business said.

Kerry said its consolidated balance sheet "remains strong".