Kerry has issued its interim management statement for the first quarter ended 31 March 2017. The company reported 3.8% growth in business volumes, with Taste & Nutrition up 4.1% and Consumer Foods up 2.3%.

“Our first quarter highlights a good volume driven performance across Group businesses, maintaining the momentum reported in 2016,” said Kerry Group Chief Executive Stan McCarthy. “The Group expects to achieve good revenue growth and 5% to 9% growth in adjusted earnings per share in 2017, as previously guided.”

Kerry said it achieved a solid start to the year, maintaining the positive business momentum reported in Q4 2016. While consumer spending remained constrained in many geographic markets, health conscious consumer trends continue to drive development of authentic, tasteful, nutritious, clean label, convenient food and beverage products.

Kerry said its customer alliances continue to drive a strong innovation pipeline in response to consumer requirements. In particular demand for reduced sugar, salt and artificial ingredients is accelerating product development demands across all end-use-markets in all regions.

Business development in the foodservice sector remains solid due to increased out-of-home consumption.

The Group maintained double digit volume growth in the Asia-Pacific region. Despite the uncertainty following the UK’s decision to leave the European unio, Kerry said it continued to perform well delivering sustained volume growth. However the division’s trading margin was impacted by the currency transaction impact of the sterling devaluation. Groupwide business volumes grew by 3.8% and pricing increased by 1.3% in the quarter. Reported revenues increased by 4.5% reflecting the business volume growth, positive pricing, adverse transaction currency impact of 0.4%, adverse translation currency impact of 0.6% and the effect of acquisitions of 0.4%. The Group trading profit margin was maintained, reflecting a 20 basis points improvement in Taste & Nutrition, positive underlying margin improvement in Kerry Foods offset by the aforementioned sterling transaction impactresulting in a 70 basis points margin reduction, and an increased spend on the Kerryconnect Programme.

Kerry said it is confident of delivering 5% to 9% growth in adjusted earnings per share to a range of 339.6 to 352.5 cents per share as previously guided (2016: 323.4 cents per share).