Trading profit in Kerry Group's Consumer Foods division fell by 2.4% to €62 million, according to the group's H1 Interim Management Statement, issued this morning.
Revenue at the Kerry Foods division fell by 0.9% to €801 million in the period. However, the division's trading margin increased by 10 basis points to 7.8%.
In a statement, Kerry Group said that "increased fragmentation of food retailing coupled with prioritised spend and drive for value by consumers in the Irish and UK markets continued to impact performance in Kerry Food’s chilled foods categories.
"However, the division has continued to improve efficiencies through advanced lean programmes. Kerry Foods’ focus brands continue to perform well, particularly in the UK market."
In the UK, Kerry said that sausage brand Richmond grew by 4% in the period, while Cheestrings also "recorded a significant uplift in brand share".
In Ireland, while discounter activity impacted the group's sausage and cooked meats offerings, the "re-launch of Denny Gold Medal Sausage and Denny Deli Style cooked meats stabilised brand positions in Q2." Recent weeks have also seen the launch of the Yollies yoghurt lolly range.
"As stated at year-end 2013, Kerry Foods is focused on strengthening the quality of its portfolio and repositioning certain businesses," the group added. "Restructuring of the direct-to-store services to the independent and convenience retail sectors in the UK and Ireland is ongoing."
Overall, Kerry Group posted group revenue of €2.9 billion for the period, reflecting underlying sales growth of 3.2%.
