Kerry Group, a leading ingredients business, has reported an impressive growth of 8.5% in the first quarter of 2023. The company’s chief executive officer, Edmond Scanlon, attributed this great performance to good volume growth in the Asia Pacific, Middle East and Africa (APMEA) and Europe regions, driven by strong growth in the foodservice channel. Meanwhile, customers in the North American retail channel worked through elevated inventory levels.
Kerry Group continued to make strategic progress through footprint expansion and portfolio evolution, including the sale of its Sweet Ingredients Portfolio, which will further enhance and develop its business in areas where the company can add value.
Despite the heightened inflationary environment, consumer demand remained resilient through the period, with Kerry Group reporting an overall revenue increase of 10.3%. This comprised of increased business volumes of 0.2%, increased pricing of 8.3%, favourable translation currency of 1.5% and contribution from business acquisitions net of disposals of 0.3%.
Growth was led by the Dairy, Snacks and Pharma markets, and Kerry Group managed input cost inflation effectively through its pricing model, reporting an EBITDA margin reduction of 70bps. The Group delivered solid overall volume growth through its Taste & Nutrition division, with good growth in APMEA and Europe, and prices reflected the management of input cost inflation.
Taste & Nutrition demonstrated strong performance in the foodservice channel, with quick service restaurants and coffee chains leading new menu development and seasonal products. However, the north American retail channel experienced subdued growth due to customers’ inventory management.
Lastly, Kerry Group expects to achieve adjusted earnings per share growth in 2023 of 1% to 5% on a constant currency basis. While market conditions remain uncertain, the company is strongly positioned for growth and plans to invest capital and develop its portfolio in alignment with strategic priorities.
