Kerry Group has said it continues to achieve good volume growth and saw a solid financial performance in the first three months of 2011.
In an interim management statement ahead of its AGM today, the company said that revenues - adjusted for currency movements and the impact of acquisitions - increased by 14.8% in the first quarter. The increase came despite the big increase in raw material and input costs.
Kerry said that business volumes in its ingredients and flavours business grew by 4.7%, as the unit benefited from the company's integrated technology approach.
The company said its consumer foods' business performed 'satisfactorily' with good brand development in the UK market and a stable brand performance in the Irish market. Kerry said the market here continues to be driven by heavy market promotional activity.
Kerry said its capital expenditure this year is expected to be higher than in previous years as it continues it investment in its growth and efficiency programmes. The group has completed deals worth €25.8m in the first quarter, including the sale of Limerick Dairies.
'Despite exchange rate variances and the lag in cost recovery in some sectors, the group expects to achieve its full year growth target of 210 to 218 cent in adjusted earnings per share, as previously guided,' today's statement said.
