Food technology and ingredients company Kerry Group has today updated its full year earnings guidance to 6% to 8% growth after it reported an increase in its third quarter revenues.
In a trading update, Kerry said that group revenues for the three months to the end of September rose by 16.1%.
The company said this comprised of business volume growth of 6.6% and increased pricing of 10.6%.
Kerry said that the overall demand environment continued to be strong with consumer preferences for new taste experiences, clean label and healthier options remains strong.
But it added that the resilience of supply chains remains a key focus across the industry due to geopolitical volatility and inflationary pressures.
In its Taste & Nutrition division, Kerry reported continued strong business volume growth across regions, channels and end use markets with strong third quarter growth of 8.2%.
Kerry noted that the Snacks, Meat, Bakery and Beverage markets all achieved very strong growth.
Its Dairy Ireland division also reported "solid" growth despite seeing what the company called "significant price inflation" which resulted in significant price increases across the business.
The division saw overall volume growth of 1.8%.
Kerry added that its Dairy Ingredients delivered volume growth while prices remained significantly higher as a result of constrained global supply dynamics.
Edmond Scanlon, Kerry's chief executive, said the company achieved "excellent growth" through a combination of strong business volumes and pricing, as it continues to manage through this "unprecedented inflationary pricing environment".
He said the company's volume growth was broad based across its 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 said.
"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," the Kerry CEO said.
"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," he added.
Kerry's shares were lower in Dublin trade today.
