Kerry Group benefits from relaxation of Covid restrictions in third quarter

The reopening of restaurants and increased consumer demand for takeaway helped drive recovery

Edmond Scanlon, Chief Executive Officer, Kerry Group said he expects the recovery to continue in the final quarter. Picture: MAXWELLS

Kerry Group, the nutrition and consumer foods group, has reported a strong recovery in business since April, as Covid-19 restrictions eased somewhat in foodservice channels.

In a trading update reflecting the nine-month period ending on September 30, the Kerry Group recorded a revenue decrease of 4.5%.

This reflected a volume reduction of 4.7% and increased pricing of 0.3%. Net debt was €1.8 billion.

While foodservice channels declined 23% in the period up to September, a breakdown of the figures shows quarter two recorded a 49% decrease, while volumes decreased by just 15% in quarter three.

This recovery is due in part to the reopening of restaurants and adaptions of operations and menus to cater for increased consumer demand for takeaway, online and delivery according to the group’s Chief Executive Officer, Edmond Scanlon.

Performance in the retail channel also remained strong, he said, primarily through growth in authentic cooking, plant-based offerings and health and wellness products.

During the third quarter, the group also reached an agreement to acquire Bio-K Plus International probiotics in Canada and Jining Nature Group, a leading savoury taste business in China. It also launched its new sustainability strategy this quarter, detailing the group’s commitments to 2030 targets.

"This year has seen unprecedented variability and complexity across our industry," Kerry Group CEO Edmond Scanlon said, but "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." 

“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,” he concluded.