(Alliance News) - Irish foods group Kerry Group PLC on Wednesday reported a decline in business volumes for the first nine months of 2020, leading to resumed guidance for a fall in earnings for 2020 as a whole.
For the nine months to the end of September, Kerry's business volumes dropped by 4.7%. For the third quarter alone, business volumes fell by 2.1%.
Taste & Nutrition volumes declined by 4.4% in the nine months, as the spread of Covid-19 hindered the group's performance in the food service channel. For the third quarter alone, Taste & Nutrition volumes declined by 1.9%, though this reflected a strong recovery from the 12% plunge reported for the second quarter.
Geographically for Taste & Nutrition, all regions suffered a decline for the nine-month period, with the softer declines in the Americas and Asia Pacific, Middle East & Africa.
In Consumer Foods, volumes shrank by 6.1%, as the ending of a ready-meals contract in the prior year still had an effect on performance. Before the impact of the contract exit, volumes grow by 0.1%, with a strong performance from the Richmond sausage brand and the Dairygold range.
Looking ahead, while there is still a high level of uncertainty, Kerry said it expects business volumes to return to growth in the final quarter of 2020. For the year as a whole, the group expects earnings per share to decrease by 8% to 11% on a constant currency basis.
In 2019, adjusted EPS was 393.7 euro cents.
"This year has seen unprecedented variability and complexity across our industry. The agility and ingenuity of Kerry's teams in adapting to these changing conditions has contributed to Kerry's strong recovery in the third quarter, which was in line with previous guidance," said Chief Executive Officer Edmond Scanlon.
"As we continue to manage through these unprecedented times, we expect to continue our recovery in the final quarter and return to volume growth, while today we also resume providing full year earnings guidance," Scanlon added.
Shares in Kerry Group were up 3.1% at EUR107.70 on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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