Kerry reports volume growth led by meat category
Ingredients company Kerry Taste & Nutrition has released its Q1 Interim Management Statement for 2024, reporting “good” volume growth despite “relatively muted consumer demand” in a number of markets.
The business experienced volume growth of 3.1%, with growth led by the Meat, Snacks, Meals and Beverage categories. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin expansion of 140 basis points was reportedly driven by cost efficiencies, portfolio developments and the effect of pricing.
The Taste & Nutrition retail channel returned to overall growth, recognising varying market conditions across regions. Business volumes in emerging markets increased by 5.2% in the period, led by strong growth in the Middle East.
Kerry said it remains “well-positioned” for volume growth and good margin expansion, while recognising consumer demand remains relatively subdued. It updated its adjusted earnings per share guidance range to 5.5% to 8.5% growth in constant currency (previously 5% to 8%).
Edmond Scanlon, chief executive officer, said: “We are 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.
“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.”
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