Kerry Group has reaffirmed its guidance to hit earnings growth of 7% to 10% for this year. Announcing a third quarter trading update on Wednesday morning, Kerry Group said business volumes were up 3.5% in the third quarter, although pricing was back slightly (0.2%) as a result of lower raw material prices.

Kerry said third-quarter revenues were up more than 2% year on year, while profit margins were maintained for the period.

Kerry Group chief executive Edmond Scanlon said the company continues to outperform its markets.

“In the third quarter we have delivered good volume growth against very strong comparatives. We are encouraged by the progress we have made in 2018 and reaffirm our full-year 2018 guidance of adjusted earnings per share growth of 7% to 10% in constant currency,” said Scanlon.

By division

Taste & nutrition

Kerry’s taste and nutrition division delivered volume growth of more than 4% for the quarter, driven by a very strong 10% growth in emerging markets and 6% growth in food service. While pricing was back 0.2% for the period, reflecting lower raw material prices, Kerry was able to expand profit margins in the business by 0.2% during the period.

Consumer foods

Kerry’s consumer foods division delivered volume growth of 1.2% for the period, which was driven by good growth in ‘food to go’ sales and is ahead of the wider market. However, profit margins in the business contracted by 0.6% as a result of currency headwinds, primarily related to a weaker sterling.