Kerry Group expects ‘modest input price deflation’ in second half

Kerry Group expects its input costs to fall in the second half of the year although the food technology and ingredients giant said the price environment remained in a state of flux.

Revenues at Kerry Group rose slightly in the first six months of the year to €4.12 billion as it continued to pass rising costs through to its customers even as input price inflation weighed on its margins. However, in a trading update on Wednesday, the group, which has its headquarters in Tralee, said demand remained resilient in the first half while margins reached “an inflection point” in the second quarter.

Total group revenues topped €4.12 billion in the six months to the end of June, 1.6 per cent ahead of the same period last year, mostly driven by a 4.5 per cent increase in pricing and business volume growth of 0.6 per cent.