Food technology and ingredients company Kerry Group has reported a 10.3% increase in revenues for the first quarter of 2023 and said that consumer demand remained resilient.
In a trading statement ahead of its AGM today, Kerry said that overall growth was led by the dairy, snacks and pharma markets, as customers continued to navigate the heightened inflationary environment.
Kerry said its Taste & Nutrition division saw solid overall volume growth in the first quarter despite the effect of increased pricing.
The company said its performance in the Americas Region was hit by customer inventory reductions particularly in the North America retail channel.
But its foodservice business performed well with continued growth and business development in back-of-house efficiency solutions and seasonal menu offerings.
It said the Europe region achieved another strong quarter of growth, while managing significant price inflation.
Meanwhile, growth in the APMEA region was mainly driven by strong performances in the Middle East and Southeast Asia, while China recovered through the period as market conditions improved.
Kerry said its Dairy Ireland business's performance was reflective of market conditions with volume reductions of 5.8% and increased pricing of 14.4%.
Overall volumes in Dairy Ireland were lower and pricing was higher given the heightened year-on-year inflationary cost environment, it added.
Looking ahead, Kerry said that while market conditions are currently uncertain, it remains strongly positioned for growth with a good innovation pipeline.
"The group will continue to manage input cost fluctuations with its well-established pricing model. Kerry will continue to invest capital and develop its portfolio aligned to its strategic priorities," it said.
"The group expects to achieve adjusted earnings per share growth in 2023 of 1% to 5% on a constant currency basis," it added.
Edmond Scanlon, Kerry Group's chief executive, said the company's performance in the first quarter was driven by good volume growth in APMEA and Europe.
"We continued to make good strategic progress through footprint expansion and portfolio evolution with the sale of our Sweet Ingredients Portfolio, further enhancing and developing our business in areas where we can add most value," the CEO said.
"While recognising the current market uncertainty, we believe we remain strongly positioned for growth and we reiterate our full year constant currency earnings guidance," he added.
Shares in the company were lower in Dublin trade today.
