Food and ingredients company Kerry Group said business volumes rose by 2.4 per cent in the nine months to the end of September, despite challenging market conditions.

The group said pricing decreased by 0.2 per cent during the period under review, while revenues were 2 per cent lower due to largely to currency fluctuations.

Chief executive Stan McCarthy said sales growth was constrained in developed markets due to weaker consumer sentiment and a competitive retail environment.

Kerry said its primary consumer foods markets in Ireland and the UK, while showing early signs of recovery, remain highly competitive.

Kerry’s ingredients and flavours division achieved a 3.6 per cent increase in continuing business volumes despite a 0.2 per cent fall in pricing. Its consumer foods division recorded business volumes that were 1.2 per cent lower versus the same period a year earlier. Pricing was marginally lower at 0.3 per cent, the group said.

At the end of September, net debt stood at €1.3 billion, compared to €1.1 billion at the half-year stage. The group’s trading margin performance increased by 60 basis points.

The group said it expects to deliver 7 per cent to 9 per cent growth in adjusted earnings per share for the full year.