Kerry Group reports growth in business volumes
Kerry Group has revealed positive growth for the first quarter ended 31 March 2016, with the convenience market recognised as a key division of growth.
Among Kerry’s brands are Richmond, Wall’s, Mattessons, and Fire and Smoke.
In an interim management statement, the group said: “Kerry has sustained a solid innovation pipeline in response to customer requirements and consumer demand for enhanced nutritional, wellness and convenience offerings. Good progress has been achieved to date in integration of businesses acquired in 2015.”
The taste and nutrition division reported a rise of 3.1% in business volumes, with the consumer foods division growing 2.1%.
“As retailers continue to address the changing marketplace in the UK and Irish consumer food sectors, market conditions remain highly competitive. However, Kerry Foods delivered a good business performance in Q1 2016, capitalising on current snacking, convenience and food-to-go trends.”
Group-wide business volumes increased 2.9%, with net pricing 1.5% lower during the period in line with lower input pricing.
Reported revenues rose by 0.9%, reflective of the business volume growth, lower pricing, and a currency translation headwind of 2.3% and the effect of acquisitions net of disposals of 1.9%.
Though based in Ireland, Kerry’s global operations also performed well for the quarter. The Americas region saw a 3.1% increase in business growth for the period.
“Red Arrow Products, acquired in December, assisted growth in the meat and savoury products sector – in particular in North America,” claimed the statement.
“Culinary systems also performed well where KFI Savoury assisted development. Demand for authentic savoury ingredients and clean-label technologies contributed to good growth in the prepared meals sector.
“The savoury snack sector exhibited good growth opportunities particular in Mexico and Central American markets.”
The chilled meals category outperformed market growth levels for Kerry Foods. “Mattessons again grew strongly in the meat snacking category, assisted by a number of successful new products launched. The UK sausage market remains highly competitive due to retailer promotional strategies. Richmond recorded good growth in the frozen sausage sector.”
Meanwhile in Ireland, the Fire and Smoke branded sliced cooked meats also maintained good growth, according to the statement.
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