Kerry Group's net profit fell 6.5% over the first half of the year to €222m as revenue grew by 0.3% to just over €3 billion.

The company said it expects a challenging international trading environment going into the second half of the year and is guiding that its earnings will be towards the middle to lower end of the range it had previously signalled to investors.

Business volumes grew by 3.2% in the period reflecting a strong performance in American markets, lower volume growth in the EMEA region, and strong business growth in Asia.

The company’s net pricing was 2.2% lower as raw material costs fell 4%.

Currency effects during the first six months of 2016 had an adverse 3.7% translation impact relative to revenue.

Kerry’s taste and nutrition division achieved 3.5% growth in business volumes and pricing was 2.2% lower during H1, while Kerry Foods' business volumes grew by 2.3% and pricing was reduced by 2.1%.

Meanwhile, group trading profit increased by 7.4% to €322m, and the group trading profit margin increased by 70 basis points to 10.6%.

Commenting on the results, Kerry Group Chief Executive Stan McCarthy said: "Despite the challenging market landscape we delivered a solid financial performance in the first half of 2016, with continued margin expansion, strong cash generation and a 7.5% increase in adjusted earnings per share.

“While we are confident of delivering an underlying trading performance in the full year as previously guided; taking into account the increased currency headwinds of 5% at current exchange rates, growth in adjusted earnings per share in 2016 is expected to be towards the middle to lower end of the 6% to 10% range of 320 to 332 cent per share.”