Irish manufacturer Kerry has published its Q3 Interim Management Statement for 2023, reporting 'good' growth across its Meat, Snacks and Dairy markets.
According to Kerry, its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin increased by 10 basis points (bps) due to benefits from cost efficiency initiatives and portfolio developments being partially offset by the mathematical impact of passing through overall input cost inflation.
Kerry reported revenue decreased by 4.2% in the first nine months of the year, which reflected business volume growth of 0.4%, a contribution from acquisitions of 1.1% and pricing of 1.3%. This was reportedly offset by the effect of disposals of 5.1% and adverse translation currency of 1.9%.
At the end of September, the Group's net debt was €1.8 billion, with Kerry reporting that its consolidated balance sheet remains strong, supporting the continued strategic development of the business.
Volume growth in the European Region was largely driven by the Meat, Snacks and Meals market, with Meat growth driven by culinary taste and texture system launches combined with continued "nutritional enhancement innovations".
"Challenging industry dynamics"
Edmond Scanlon, chief executive officer at Kerry, said: "We delivered a good overall performance in the period recognising varying conditions across our markets. North America saw good improvement through the third quarter, Europe performed in line with expectations while APMEA continued to deliver strong growth. Our unique positioning in foodservice supported our continued strong growth in the channel.
"We made good strategic progress through the period with further footprint expansion and strategic acquisitions, and given the Group's strong balance sheet and cash flow, we are also initiating a share buyback programme.
"Taste and Nutrition remains strongly positioned for volume growth and margin expansion while recognising current market conditions, however Dairy Ireland performance continues to be impacted by challenging industry dynamics. Given this context, we expect our constant currency earnings growth to be at the low end of our guidance."
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