Kerry Group Boasts Uplift in Taste & Nutrition and Consumer Foods in Q1
27 Apr 2016 --- Kerry Group, the Irish ingredients company and maker of ready-meals for supermarkets, said it delivered a “good business performance” in Q1 and that dairy was performing satisfactorily despite the continued downturn in the market.
The Dublin and London-listed food group, which is looking to focus on its more profitable ingredients unit, said although market conditions remain “challenging” it had a “solid innovation pipeline” to cater for changing consumer demand for improved nutritional, wellness and convenience offerings.
Kerry confirmed earlier guidance for the full-year as volume sales and margins improved in Q1.
It said that volumes in its Taste & Nutrition unit grew 3.1 percent year-on-year in Q1 while volume growth across Consumer Foods was up 2.1 percent.
Across Kerry’s Taste & Nutrition division, there was “sustained growth” in North America and an improved performance in Latin America despite tough currency headwinds.
Market conditions in the EMEA region remain challenging due to the deflationary environment and geopolitical instability.
Kerry maintained solid business development through Asia Pacific and good growth was achieved in the food service channel in all regions.
Across the Americas, there was volume growth of 3.1 percent, helped by a strong innovation pipeline. Red Arrow Products, the business acquired in December last year, helped growth in the meat and the savoury sectors.
Demand for authentic savory ingredients and clean-label technologies helped with good growth in the prepared meal sector. Dairy performed satisfactorily despite the significant downturn in diary market returns.
Conditions in the European meat industry remain stagnant. Dairy taste technologies performed satisfactorily despite the significant downturn in the dairy market. Sweet systems remained challenging due to the highly competitive environment.
Across its Consumer Foods unit, Kerry said its repositioning has helped it capitalize on snacking, convenience and e-tail trends.
Kerry Foods outperformed market growth in the chilled meals category, citing the Bisto and Sharwoods brands as performing well in frozen meals sector.
The Mattessons brand grew strongly in the meat snacking category helped by new product launches.
