Kerry Group has reported group volume growth of 5.6% in the first quarter of its financial year, with its Taste & Nutrition arm seeing volumes up 6.8%, and its Dairy Ireland business posting a 0.7% rise.
On a like-for-like basis, excluding the Consumer Foods Meats & Meals business disposal, volumes were up 6.3%.
First-Quarter Revenue
Having ended 2021 'on a strong note', revenue was up 8.1% in the first quarter, comprising of volume growth of 5.6%, increased pricing of 5.8%, currency effects of 5.4% and contribution from acquisitions of 4.0%.
This was offset by the impact of the business disposal of Consumer Foods Meats & Meals, of 12.7%.
Group EBITDA rose by 10 basis points, driven by recent portfolio developments, operating leverage and mix – however this was offset by input cost inflation.
“We were pleased with our start to the year despite challenging conditions in a number of markets," commented Kerry Group chief executive Edmond Scanlon.
"Taste & 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."
Performance By Division
The group's Taste & Nutrition division delivered 'strong overall growth', the group said, with its foodservice business seeing volumes up by double digits, and retail delivering 'good growth levels'.
At Dairy Ireland, the group saw volume increases across both Dairy Consumer Products and Dairy Ingredients, however it added that pricing of 18.7% reflected 'significant increases in dairy prices and raw material costs'.
"As overall market conditions remain highly dynamic, we are actively managing the inflationary environment in close collaboration with our customers," Scanlon added.
The Irish group recently announced it was suspending its operations in Russia and Belarus, due to the invasion of Ukraine.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
