Kerry Group has updated its full-year earnings guidance from 6% to 8% on the back of strong business growth in the third quarter (Q3).
In an interim management statement published today (Thursday, October 27), the company said group-reported revenue increased by 16.1% in the period.
This included business volume growth of 6.6% and increased pricing of 10.6%.
The margin for earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 40 basis points, mainly due to input cost inflation.
The company said that overall demand continued to be strong in Q3 but noted that the resilience of supply chains remains a key focus due to “geopolitical volatility and inflationary pressures”.
Kerry’s taste and nutrition division delivered volume growth of 8.2% in Q3 across all regions, despite the effect of increased pricing.
The snacks, meat, bakery and beverage markets all posted strong performances.
The company’s Dairy Ireland business showed “solid” overall volume growth of 1.8% in the quarter.
The report noted that “the heightened inflationary cost environment” caused significant price increases across the business.
Although Kerry said that overall market conditions remain uncertain, it believes that the company is “well positioned” to support its customers.
Commenting on the latest financial statement, Edmond Scanlon, Kerry Group chief executive said:
“We achieved excellent growth across the period through a combination of strong business volumes and pricing, as we continue to manage through this unprecedented inflationary pricing environment in collaboration with our customers.
“Our volume growth was broad based across our regions, channels and markets, led by excellent performances in Snacks, Beverage, Meat and Bakery in particular.
“We also made good strategic progress with further footprint expansion and strategic acquisitions,” he continued.
“While we recognise the current level of uncertainty in the marketplace, we feel very well positioned as we continue to support our customers in addressing the various market challenges and opportunities.
“Given we have now reported the third quarter, we are updating our full-year earnings guidance to 6% to 8% growth on a constant currency basis,” Scanlon concluded.