- Food company Kerry reinstated earnings guidance, forecasting a return to growth in the fourth quarter on signs of recovery in its foodservice business.

'While there remains a high level of uncertainty, based on current market conditions, we expect business volumes to return to growth in the final quarter and are guiding a full year earnings per share decrease of 8-11% in constant currency,' the company said.

For the three months ended 30 September, revenue fell 4.5%, reflecting a volume reduction of 4.7%, increased pricing of 0.3%, an adverse translation currency impact of 1.1% and contribution from acquisitions of 1.0%.

Margin declined by 130bps primarily due to 'the significant operating deleverage impact resulting from the sharp decline in foodservice orders when lockdown measures were introduced globally, with additional COVIDÔÇÉrelated costs being partially offset by cost mitigation actions,' the company said.

Foodservice channel volumes declined 15% in the third quarter, a marked improvement on the 49% decline in the second quarter.

In the foodservice channel, the company reported 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.

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