Kerry upbeat on recovery despite 4.5% drop in revenue

Kerry Group CEO Edmond Scanlon

Kerry Group shares jumped after its management said the business is beginning to see a sustained recovery in trading, despite sales being down by over 4% so far this year.

In its latest trading update, the Tralee-headquartered international food, ingredients, and nutrition group said total revenue for the first nine months of the year fell by 4.5% as Covid restrictions impacted sales volumes.

However, Kerry said it saw good recovery in its taste and nutrition, foodservice, and consumer foods divisions in the third quarter.

It added that it expects the recovery to continue through the current quarter and to see a return to volume growth.

Kerry also reinstated its earnings guidance for the first time since the start of the Covid crisis.

For the current year, as a whole, Kerry expects earnings per share to fall by between 8% and 11%.

Kerry said it will also continue to pursue acquisition opportunities. 

It said its balance sheet remains strong enough to facilitate both organic and acquisition-led growth, and net debt currently stands at €1.8bn.

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

"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."