Food group Kerry has reported a 3.2% increase in business volumes for the nine months to the end of September as it reaffirmed its outlook for the full year. 

In an interim statement, Kerry said its reported revenues increased by 4.3%. It said this reflected its business volume growth, lower pricing and a 7.7% positive currency translation impact.  

But despite improving global economic conditions, Kerry said that consumer demand in developed markets remained weak. 

Developing markets continue to be impacted by geopolitical issues and significant currency fluctuations, the company added.

Kerry said the Irish and UK consumer foods' markets remained highly competitive, but added that its "repositioned" Kerry Foods portfolio performed well against this background.

In Ireland, Kerry's Denny products achieved a good brand performance in the breakfast category.

Dairygold held brand market share in the dairy spreads sector and Charleville continued to grow brand share in cheese, the company added.

The company also reaffirmed its earnings guidance for the full year in a range of 6% to 9%.

Kerry's Americas Region in its Taste and Nutrition division continued to report "good growth" despite the impact of significant currency devaluation on consumer spending in Latin America. Business volumes in the division rose by 3.5%.

Business volumes rose by 0.8% in its EMEA region as its developed markets proved more stable in the three months to September. However geopolitical instability continued to impact development in regional developing markets, it added.

The company also noted that its new €100m global technology and innovation centre in Naas, Co Kildare was completed during the period. 

In its Consumer Foods division, Kerry said that the Irish and UK markets remain highly competitive with business volumes up 2.6% in the nine months to the end of September.

During October, the company announced a $735m deal to buy US based Red Arrow Products, Island Oasis and Biothera's Wellmune business, which Kerry said will significantly expand its portfolio of taste and nutrition solutions. 

Shares in the company were lower in Dublin trade today.