Irish food group Kerry reported growth in the third quarter of the year as demand remained strong despite inflationary pressures.
The company also upgraded its full-year earnings guidance and now expects adjusted earnings per share to grow 6-8pc this year on a constant currency basis.
Revenues across the group increased by 16.6pc.
This growth was largely attributed to volume growth of 6.6pc, as well as increased pricing of 10.6pc.
Kerry said this was partially offset by the trade-off of consumer staples and food products in the period.
The group’s margin on its earnings before interest, tax, depreciation and amortization fell by 40 basis points.
This decline was as a result of “the significant impact” of cost inflation. Kerry added that a key focus for the group remained the resilience of its supply chains due to inflationary pressures and geopolitical volatility.
The influence of rising inflation was also evident in consumer preferences in the period, with demand for value options increasing.
The group’s taste and nutrition division – notably meat, snacks and bakery – saw 8.5pc overall growth, despite prices increasing by 7.5pc to pass rising costs.
Kerry’s dairy division saw 1.8pc volume growth, with prices up 36.6pc as a result of significant increases in dairy prices and other input costs.
Within its dairy consumer products, significant price increases affected consumer demand, leading to overall category volumes.
Net debt was €2.4 billion at the end of September.
Chief executive Edmond Scanlon said the group was managing the “unprecedented inflationary price environment”.
While we recognize the current level of uncertainty in the market, we feel very well positioned as we continue to support our customers to address the various market challenges and opportunities,” he said.