Food technology and ingredients company Kerry Group has reported a drop of 9.9% in revenues for the first quarter of 2024 and also announced a new €300m share buyback programme.
In an interim management statement ahead of its AGM today, Kerry said that consumer demand remained relatively subdued during the three months from January to March given the recent inflation across many geographies.
It said that group revenue comprised volume growth of 1.9%, pricing deflation of 5.3%, the effect from disposals net of acquisitions of 5.1% and unfavourable translation currency of 1.4%.
Kerry said its Taste & Nutrition division's growth was driven by strong foodservice performance. Volume growth of 3.1% was led by Snacks, Meals, Meat and Beverage.
But prices fell by 3.9%, which it said reflected the deflationary environment.
Its Dairy Ireland division saw a "solid" start to the year, which was in-line with expectations.
Volumes for the quarter slowed by 3% with good growth in Dairy Consumer Products, which was more than offset by the impact of market supply conditions in Dairy Ingredients.
Edmond Scanlon, Kerry's chief executive, said the company was pleased to report a good start to the year given market dynamics.
"Taste & Nutrition achieved good volume growth driven by a strong performance within our foodservice channel and we delivered strong margin expansion in the period reflecting the continued development and evolution of our business," the CEO said.
"Consumer market dynamics remain similar to those outlined at our full year results. As part of our capital allocation framework as previously indicated, we are announcing a new share buyback programme, and the expected net earnings per share accretion has been reflected in our updated guidance range," he added.
Shares in the company were higher in Dublin trade today.
