LONDON (Alliance News) - Kerry Group PLC on Thursday reaffirmed its annual guidance on the back of robust revenue and volume growth in its first quarter.
For the three months to March, the Irish nutrition and consumer foods company's revenue was up 10% overall. This was due to volume growth of 3.3% and lower average raw material prices. Revenue also benefited from acquisition contribution and favourable currency translation.
"We are encouraged by our progress in the quarter and reaffirm our full year 2019 guidance of adjusted earnings per share growth of 6% to 10% in constant currency," said Kerry Chief Executive Edmond Scanlon.
Kerry's group trading margin rose by 10 base percentage points overall, with Taste & Nutrition's margin up by 10 base percentage points. Consumer Foods' margin dropped 10 base percentage points on higher investment in savings and efficiencies programme.
Kerry's net debt increased due to acquisitions and stood at EUR1.9 billion as at March 31, rising from EUR1.62 billion at the end of 2018. In mid-December, Kerry announced the EUR325 million acquisition of Ariake USA and Southeastern Mills North American coatings and seasonings business.
"We have made a solid start to the year with overall business performance in line with expectations. The group continued to deliver volume growth ahead of the market while expanding trading margin. We are pleased with our innovation pipeline and the continued enhancement of our product mix. Our industry-leading business model and unique taste and nutrition positioning continue to deliver significant value for our customers in meeting rapidly evolving consumer needs. The recently announced acquisitions have performed very well and we are pleased with the progress made on their integration," said Scanlon.
Shares in Kerry were up 3.1% at EUR101.40 on Thursday morning.
Kerry (KYGA)