Kerry 1Q Interim Shows Strength in Ingredients, Flavors Up 3.1%

Kerry Group PLC posted its first-quarter interim statement, which showed a 2.2% increase in continuing business volumes, with ingredients and flavors up 3.1%.

Despite currency headwinds and the raw material inflationary environment, the group still expects to 7% to 11% growth in adjusted earnings per share in 2013.

For the period ended March 31, reported revenues rose 0.6% and (adjusted for currency and the impact of group acquisitions net of disposals) like-for-like (LFL) revenue climbed 0.4%.The company said growth was constrained in some industry categories in developed markets but developing markets continued to provide a solid platform for sustainable growth.

The Americas region again provided good growth opportunities for Kerry technologies, and continuing business volumes grew by 2.8%. Flavor development provided good growth in dairy systems. In addition, the company said coating systems in North America showed good growth and there was excellent performance in the beverage sector.

Amid a challenging business and consumer environment across developed markets in the EMEA region, Kerry has a realignment underway to optimize customer service and technology development opportunities. The company also said Asia Pacific markets again provided excellent opportunities for Kerry’s range of taste solutions, nutritional and functional ingredients. Strong growth was recorded in the regional nutritional sector, particularly in China. Kerry Pinnacle performed well in Australia.

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