Kerry Group posts strong recovery in Q3

Kerry Group shares (LON: KYGA) climbed over 3% on Wednesday morning after posting a trading update for the nine months ended 30 September 2020.

The company saw a strong recovery in Q3 for the foodservice channel, which was boosted since April.

Group reported revenue decreased by 4.5% and at the end of September, net debt stood at €1.8bn.

Kerry Group has resumed providing full-year earnings guidance and expects a strong recovery for the final quarter of this year.

Developing market volumes has declined by 2.9% for the year to date, with continued recovery in Q3, which was led by good growth in China.

The Americas region also saw business volumes continuing to recover, with the third quarter declining by 2.8%.

Edmond Scanlon, the chief executive, said: “This year has seen unprecedented variability and complexity across our industry. 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.

“In the foodservice channel, we have seen a strong recovery since April, as restaurants reopened and adapted their operations and menus to cater for increased consumer demand for takeaway, online and delivery. Performance in the retail channel remained strong, primarily through growth in authentic cooking, plant-based offerings and health and wellness products.

“We continued to make good progress on a number of strategic fronts. During the third quarter we reached agreement to acquire Bio-K Plus International probiotics in Canada and Jining Nature Group, a leading savoury taste business in China. We also recently launched our 2030 sustainability strategy – Beyond the Horizon. This details Kerry’s sustainability targets and will be central to Kerry’s growth strategy, as we continue to innovate with our customers and expand our reach of sustainable nutrition solutions globally.”

Kerry Group shares (LON: KYGA) are trading +3.44% at 108,10. The high this year to date was 125,50.