REG - Kerry Group PLC - Preliminary Statement of Results 31 December 2024
18/02/2025 07:15
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RNS Number : 4292X Kerry Group PLC 18 February 2025
Date: 18 February 2025
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Preliminary Statement of Results for the year ended 31 December 2024
Strong Business Performance and Strategic Development
FY 2024 KEY HIGHLIGHTS
> Group revenue of €8.0bn (Revenue from continuing operations €6.9bn)
> Taste & Nutrition volume growth of +3.4% with Q4 +4.1% | Group volumes
+3.3%
> Taste & Nutrition EBITDA margin +110bps | Group +120bps
> Group EBITDA increased by 7.4% to €1,251m (EBITDA from continuing operations
+6.9% to €1,188m)
> Adjusted EPS of 467.5 cent - reflecting a 9.7% increase in constant currency
(+8.7% reported currency)
> Basic EPS of 424.5 cent (2023: 410.4 cent)
> Free cash flow of €766m reflecting 95% cash conversion
> ROACE of 10.6% (+60bps)
> Final dividend of 89.0 cent per share (total 2024 dividend up 10.1% to 127.1
cent)
> Progress on sustainability commitments including nutritional reach to 1.36
billion consumers
> EBITDA margin target refreshed post completion of Kerry Dairy Ireland
transaction
Note: For presentation and comparative purposes within this release, Group
numbers presented include continuing and discontinued operations. Continuing
operations exclude Kerry Dairy Ireland, a reporting segment, which was
divested on 31 December 2024, and is presented as discontinued operations
within the financial statements.
Edmond Scanlon, Chief Executive Officer
"We are pleased to report a strong performance across the year, with earnings
per share growth of 9.7% reflecting continued volume progression in Taste
& Nutrition and strong margin expansion across the business.
Volume growth was led by strong performance in the Americas through
foodservice innovations and increased nutritional renovation across a broad
range of customers, while APMEA delivered a good performance given market
conditions and Europe progressed through the year.
We continued to strategically evolve our portfolio, including further
developing our Biotechnology Solutions capability and the significant
divestment of Kerry Dairy Ireland, which resulted in Kerry becoming a
pure-play taste and nutrition company.
As we look to 2025, Kerry remains strongly positioned for good market
outperformance due to our unique positioning with our customers as an
innovation and renovation partner. We expect to deliver good volume growth and
strong margin expansion, resulting in constant currency adjusted earnings per
share growth of 7% to 11%, after the dilution from the Kerry Dairy Ireland
disposal."
See FY 2025 Outlook section for full guidance detail
Markets and Performance
While a number of markets remained subdued, 2024 represented a more normalised
year relative to recent history. Customer innovation activity was more
weighted towards renovation of existing products, with an increased focus on
nutritional profile enhancement and cost optimisation. A significant level of
new product innovation concentrated on addressing increased consumer demand
for new taste experiences and providing relative value options.
Group revenue for the year was €7,981 million, comprising volume growth of
3.3%, an overall pricing reduction of 1.9%, favourable transaction currency of
0.2%, unfavourable translation currency of 0.9%, contribution from
acquisitions of 0.7% and the adverse effect from disposals of 1.9%, resulting
in an overall decrease of 0.5%. Revenue from continuing operations for the
year was €6,929m (2023: €6,975m).
Group EBITDA increased by 7.4% to €1,251m, with Group EBITDA margin
increasing by 120bps to 15.7%, driven by benefits from the Accelerate
Operational Excellence Programme, portfolio developments, operating leverage,
product mix and the net effect from pricing. EBITDA from continuing operations
for the year was €1,188m (2023: €1,112m).
Constant currency adjusted earnings per share increased by 9.7% to 467.5 cent
(2023: +1.2%) and 8.7% in reported currency (2023: -2.4%). Basic earnings per
share increased to 424.5 cent (2023: 410.4 cent).
Research and development expenditure amounted to €310m (2023: €301m) and
net capital expenditure was €350m (2023: €303m) as the Group continued to
invest to develop its capabilities and global footprint. Free cash flow was
€766m (2023: €701m) representing cash conversion of 95% primarily driven
by business growth.
The Board proposes a final dividend of 89.0 cent per share, an increase of
10.1% on the final 2023 dividend. Together with the interim dividend of 38.1
cent per share, this brings the total dividend for the year to 127.1 cent, an
increase of 10.1% on 2023. During 2024, the Group paid €205m in dividends
and also repurchased €557m of A ordinary shares as part of its share buyback
programmes.
Further progress was made in the year against Kerry's Beyond the Horizon
sustainability strategy and commitments, including increasing its nutritional
reach to 1.36 billion consumers globally. Kerry achieved a 50% reduction(1) in
Scope 1 & 2 carbon emissions and a 38% reduction(1) in food waste across
the Group's operations.
¹ Progress vs 2017 baseline.
Strategic Developments
2024 represented a significant step in Kerry's history, becoming a pure-play
global business to business taste and nutrition company, following the
divestment of Kerry Dairy Ireland. In November, agreement was reached for the
sale of the Dairy Ireland business(2) to Kerry Co-Operative Creameries Limited
for a total expected consideration of €500 million, with Phase 1 of the
transaction for a 70% shareholding completing on 31 December 2024.
The Group also continued to develop its Biotechnology Solutions platform in
the year with the carve-out acquisition of part of the global lactase enzymes
business(3) of Novonesis, combined with the follow-on acquisition of the
LactoSens(®) lactose testing technology assets and related business(3) from
DirectSens GmbH, along with the announcement of a €15 million investment in
its Biotechnology Hub in Leipzig, Germany. These developments further
bolstered Kerry's position and expanded its offering into lactose-free dairy
products, while extending Kerry's enzyme manufacturing capabilities and
footprint to three continents.
(2) See Discontinued Operations note 4 in the Preliminary Statement of Results
2024 for further details.
(3) See Business Combinations note 8 in the Preliminary Statement of Results
2024 for further details.
Business Performance
Taste & Nutrition
Volume Progression with Strong Margin Expansion
2024 Performance
Revenue €6,929m +3.4%(4)
EBITDA €1,256m +5.9%
EBITDA margin 18.1% +110bps
(4) volume growth
> Volume growth of 3.4% (Q4: +4.1%) - well ahead of food and beverage end
markets
> Growth led by Snacks, Beverage and Bakery
> Pricing -2.1% (Q4: -1.2%) reflected easing input cost deflation in the year
> EBITDA of €1,256m with margins +110bps driven by cost efficiencies,
portfolio developments, operating leverage, product mix and the net effect of
pricing
Reported revenue of €6,929m reflected volume growth of 3.4%, an overall
pricing reduction of 2.1%, favourable transaction currency of 0.2%,
unfavourable translation currency of 1.2% and the adverse effect of disposals
net of acquisitions of 1.0%.
Taste & Nutrition delivered a good year of volume growth with continued
progression through the year. This represented a significant outperformance
relative to food and beverage end markets, supported by continued product
renovation activity with many customers to enhance nutritional profiles.
Foodservice performed strongly with volume growth of 6.8%, supported by new
menu innovations, seasonal products and solutions designed to reduce
operational costs and simplify processes, while growth in the retail channel
of 1.8% reflected good performances in the Americas and APMEA.
The year's growth was led by innovations incorporating Kerry's broad range of
taste and proactive health technologies. This was supported by strong
performance across savoury taste, botanicals and natural extracts, along with
Tastesense(TM) salt and sugar reduction technologies. Proactive health also
delivered excellent growth, most notably in technologies for digestive,
cognitive and women's health.
Business volumes in emerging markets increased by 6.5%, with good growth
across the Middle East, Africa, LATAM and Southeast Asia.
Within the Pharma & Other EUM, growth in supplements was partially offset
by softer volumes in cell nutrition.
Americas Region
> Volumes +4.1% (Q4: +5.9%)
> Growth led by Snacks, Beverage and Bakery EUMs
> Retail achieved good growth with continued strong growth in Foodservice
> LATAM achieved good growth led by Mexico
Reported revenue in the Americas region was €3,764m reflecting volume growth
of 4.1%, an overall pricing reduction of 1.6%, unfavourable translation
currency of 1.2% and the adverse effect from disposals net of acquisitions of
1.5%. This strong volume performance included a good finish to the year and
good broad-based growth across end markets and channels.
Within North America, Snacks achieved excellent growth, with innovations
utilising Kerry's range of savoury taste profiles and Tastesense(TM) salt
reduction technologies, given an increased level of customer focus on
improving the nutritional profiles of their products.
The Beverage category remained highly dynamic through the year, with a
significant level of innovation driving strong growth in Kerry's coffee
extracts, proactive health and Tastesense(TM) sugar reduction technologies.
Growth in Bakery was supported by performance in preservation and taste
systems.
Foodservice delivered strong volume growth through new and improved signature
taste profiles, integrated solutions to reduce cost and complexity, and
continued strong growth with new and emerging chains. Good growth was achieved
in the retail channel, given continued renovation activity with many customer
and retailer brands through the year.
LATAM delivered strong growth, led by performance in Mexico in Snacks and
Beverage, while Brazil performed well, particularly in the second half of the
year.
Europe Region
> Volumes -0.1% (Q4: +0.8%)
> Meals, Bakery and Beverage performed well
> Foodservice delivered good growth, with retail volumes turning positive in Q4
Reported revenue in the Europe region was €1,455m reflecting volume and
pricing reductions of 0.1% and 3.5% respectively, favourable translation
currency of 0.9% and the adverse effect from disposals net of acquisitions of
1.4%. Volume performance improved through the year with a return to growth in
the second half, supported by recovery in the retail channel.
Within the Food EUM, Meals and Bakery delivered good growth through solutions
incorporating Kerry's food protection, preservation and authentic taste
technologies, while performance in Dairy reflected strong prior year
comparatives. Beverage performed well with new innovations in functional and
refreshing beverages supported by a number of new innovations with Kerry's
proactive health portfolio. Foodservice continued to deliver good growth with
launches in meat applications across a number of customers, combined with
increased seasonal and limited time offering activity within the region.
APMEA Region
> Volumes +4.8% (Q4: +3.3%)
> Beverage, Snacks and Meat EUMs performed well
> Foodservice achieved strong growth with good growth in retail
Reported revenue in the APMEA region was €1,661m reflecting volume growth of
4.8%, an overall pricing reduction of 2.3%, favourable transaction currency of
0.6%, unfavourable translation currency of 2.8% and the effect from
acquisitions net of disposals of 0.5%.
Volume growth within the region reflected strong growth in the Middle East,
Africa and Southeast Asia, with challenging market conditions in China
deteriorating through the fourth quarter.
Beverage achieved good growth most notably through refreshing beverage
innovations with Kerry's botanicals, natural extracts and Tastesense(TM) sugar
reduction technologies. Snacks delivered strong growth with leading global and
regional brands, given continued innovation and increased demand for Kerry's
range of authentic local savoury taste profiles. Growth in Meat was driven by
strong performance across savoury taste and preservation systems.
Foodservice achieved strong volume growth with leading regional coffee chains
and quick service restaurants in particular, while growth in the retail
channel was supported by good performance across Kerry's range of local
authentic taste solutions with regional leaders.
Dairy Ireland
Good EBITDA performance led by Dairy Consumer Products
2024 Performance
Revenue €1,315m 1.6%(5)
EBITDA €63m +17.6%
EBITDA margin 4.8% +60bps
(5) volume growth
The business achieved a good EBITDA performance of €63m with margin
expansion of 60bps in the year, reflective of Dairy Consumer Products' growth
and mix development, combined with recovery in Dairy Ingredients.
Revenue increased in the year to €1,315m, with volume growth of 1.6% and
pricing of 2.2%.
Dairy Consumer Products achieved strong growth, led by performances in
snacking and branded cheese ranges. Dairy Ingredients volumes reflected soft
overall supply conditions, which improved through the year.
As previously announced, the transaction for the initial disposal of 70% of
Kerry Dairy Ireland by Kerry Group plc to Kerry Co-Operative Creameries
Limited completed on 31 December(6).
(6) See Discontinued Operations note 4 in the Preliminary Statement of Results
2024 for further details.
FINANCIAL REVIEW
Strong business performance and strategic execution
The Financial Review provides an overview of the Group's financial performance
for the year ended 31 December 2024 and the Group's financial position at that
date.
The Group had strong overall financial performance for the year ended 2024.
This was underpinned by volume growth combined with strong EBITDA margin
progression and cash generation.
From a strategic perspective, €557m was returned to shareholders in 2024
through share buybacks and the Group completed the Phase 1 70% divestment of
Dairy Ireland on 31 December 2024.
The Key Financial Performance Indicators outlined below are used to track
business and operational performance and help to drive value creation. The
Group has a long-term track record of delivery with a disciplined financial
approach of targeting continued growth while meeting return on investment
objectives.
Growth 2024 2023
Continuing Discontinued Continuing Discontinued
Operations Operations* Total Operations Operations* Total
€'m €'m €'m €'m €'m €'m
Revenue 6,929 1,052 7,981 6,975 1,045 8,020
EBITDA 1,188 63 1,251 1,112 53 1,165
EBITDA margin 17.1% 15.7% 15.9% 14.5%
Depreciation (net) (212) (23) (235) (198) (22) (220)
Computer software amortisation (29) (0) (29) (27) (0) (27)
Finance costs (net) (53) (1) (54) (50) (0) (50)
Share of joint ventures' results after taxation (1) - (1) (2) - (2)
Adjusted earnings before taxation 893 39 932 835 31 866
Income taxes (excluding non-trading items) (117) (6) (123) (98) (5) (103)
Adjusted earnings after taxation 776 33 809 737 26 763
Brand related intangible asset amortisation (59) (0) (59) (52) 0 (52)
Non-trading items (net of related tax) (44) 28 (16) 16 1 17
Profit after taxation 673 61 734 701 27 728
* Inter-segment revenue eliminations form part of discontinued operations, see
note 4 for further information.
Revenue
Group revenue for the year was €7,981m (2023: €8,020), comprising volume
growth of 3.3%, an overall pricing reduction of 1.9%, favourable transaction
currency of 0.2%, unfavourable translation currency of 0.9%, contribution from
acquisitions of 0.7% and the effect from disposals of 1.9%, resulting in an
overall decrease of 0.5%. Revenue from continuing operations for the year was
€6,929m (2023: €6,975m).
EBITDA & Margin %
Group EBITDA increased by 7.4% to €1,251m (2023: €1,165m), with Group
EBITDA margin increasing by 120bps to 15.7%, driven by benefits from the
Accelerate Operational Excellence Programme, portfolio developments, operating
leverage, product mix and the net effect from pricing. EBITDA from continuing
operations for the year was €1,188m (2023: €1,112m).
Computer Software Amortisation
Computer software amortisation increased to €29m (2023: €27m) reflecting
continued investment in our digital enablement initiatives.
Brand Related Intangible Asset Amortisation
Brand related intangible asset amortisation increased to €59m (2023:
€52m), which is reflective of recent acquisition activity.
Finance costs
Net finance costs for the year of €54m (2023: €50m) reflected the interest
due on €1bn senior notes issued in September 2024 offset by increased
deposit interest earned on cash. The Group's average cost of finance for the
year was 2.8% (2023: 2.4%).
Taxation
The tax charge for the year before non-trading items was €123m (2023:
€103m) representing an effective tax rate of 14.1% (2023: 12.7%), an
increase year-on-year reflecting the timing of in-year recognition of deferred
assets in 2023.
Non-Trading Items
During the year, the Group incurred a non-trading charge of €16m (2023:
€17m credit) net of tax. This was made up of a charge from continuing
operations of €44m net of tax, and offset by a credit from discontinued
operations of €28m net of tax. The charge primarily relates to investments
in the Accelerate Operational Excellence transformation programme, which
predominantly reflects costs of streamlining operations, project management
costs, and consultancy fees, incurred to deliver manufacturing and supply
chain excellence. The offsetting credit relates to the profit on the 70%
divestment of Dairy Ireland.
The credit in the prior year is primarily related to the profit on the
divestment of the Sweet Ingredients Portfolio offset in part by the Accelerate
Operational Excellence transformation programme.
Foreign Exchange
Group results are impacted by year-on-year fluctuations in exchange rates
versus the Euro. The primary rates driving the currency impact in the figures
above were Brazilian Real and Malaysian Ringgit which had average rates of
5.78 (2023: 5.40) and 4.96 (2023: 4.93) respectively.
Cash & Returns
Free Cash Flow
In 2024, the Group achieved a strong free cash flow of €765.6m (2023:
€701.3m) reflecting 95% cash conversion in the year.
2024 2023
Free Cash Flow €'m €'m
EBITDA 1,250.8 1,165.1
Movement in average working capital 28.9 38.4
Pension contributions paid less pension expense (12.1) (13.5)
Finance costs paid (net) (43.9) (65.8)
Income taxes paid (108.2) (119.5)
Purchase of non-current assets (344.3) (315.0)
Sales proceeds on disposal of non-current assets (5.6) 11.6
Free cash flow 765.6 701.3
Cash conversion(7) 95% 92%
(7) Cash conversion is free cash flow expressed as a percentage of adjusted
earnings after tax.
( )
( )
2024 2023
Returns €'m €'m
Adjusted profit 862.7 813.5
Average capital employed 8,172.3 8,172.8
Return on average capital employed (ROACE) 10.6% 10.0%
The increase in ROACE is primarily due to increased profits year-on-year.
Share Buyback
During the year, the Board approved two share buyback programmes totalling
€600m, in addition to the €300m programme that was launched in November
2023. These programmes are underpinned by the Group's strong balance sheet and
cash flow and are aligned to the Company's Capital Allocation Framework.
During 2024, the total number of shares acquired was 6,757,726 at a cost of
€556.5m. Since the year end, and up to 31 January 2025, the Company has
purchased an additional 458,271 shares returning an additional €43.3m to
shareholders.
Net Debt
Net debt at the end of the year was €1,925.8m (2023: €1,604.1m). The
increase during the year reflects strong business cash generation offset by
acquisition spend and the share buyback programme.
Key Financial Ratios
Our credit metrics remain strong and we have a well spread debt maturity
profile. Our strong balance sheet, combined with the establishment of our new
€3bn EMTN programme positions Kerry very well for the continued strategic
development of our business.
2024 2023
Times Times
Net debt:EBITDA 1.6 1.5
EBITDA:Net interest 21.7 21.8
Share Price and Market Capitalisation
The share price on 31 December 2024 was €93.25 (2023: €78.66) giving a
market capitalisation of €15.5bn (2023: €13.8bn). Total shareholder return
for 2024 was 20.1% (2023: -5.3%).
Financing
Undrawn committed facilities at the end of the year were €1,500m (2023:
€1,500m) while undrawn standby facilities were €344m (2023: €335m).
During 2024, the Group exercised the first of the two 1-year extension options
on the €1,500m revolving credit facilities. The facility contains two
one-year extension options, exercisable on the 1st and 2nd anniversaries of
the facility and which, if exercised, would extend the maturity date of the
facility to June 2030. In August 2024, the Group established a €3bn EMTN
programme for future Euro public bond issuances. In September 2024, the Group
issued €1bn of new public bonds under this programme and the Group has
€950m of senior notes repayable in September 2025.
Of the cash at bank and in hand at year end, €227.0m (2023: €50.8m) was on
short term deposit under a Sustainable Deposits programme.
Dividend and Annual General Meeting
During the year, the Group paid an interim dividend of 38.1 cent per A
ordinary share, which was an increase of 10.1% versus the 2023 interim
dividend. The Board has proposed a final dividend of 89.0 cent per A ordinary
share, payable on 9 May 2025 to shareholders registered on the record date of
11 April 2025. When combined with the interim dividend, the total dividend for
the year amounts to 127.1 cent per share (2023: 115.4 cent per share), which
is an increase of 10.1% over last year's dividend. The Group's aim is to have
double-digit dividend growth each year. Over 38 years as a listed company, the
Group has grown its dividend at a compound rate of 16%.
Kerry's Annual General Meeting is scheduled to take place on 1 May 2025.
FY 2025 Outlook
Kerry remains well positioned for strong market outperformance given its
unique positioning with customers as an innovation and renovation partner.
Kerry will continue to evolve strategically and develop its taste and
nutrition portfolio in areas where it can create the most value.
While recognising uncertain market conditions, we expect to deliver good
volume growth and strong margin expansion, resulting in constant currency
adjusted earnings per share growth of 7% to 11%, net of dilution from the
Kerry Dairy Ireland disposal.
Note: Guidance range based on adjusted earnings per share of €467.5 cent for
FY 2024 | Guidance range stated post ~2% dilution in 2025 from the Phase 1
disposal of Kerry Dairy Ireland, which completed on 31 December 2024 |
Foreign currency translation expected to be a tailwind of +1% to +2% on
earnings per share in 2025 | Guidance based on average number of shares in
issue of ~165m.
Financial Targets Post Divestment of Kerry Dairy Ireland
Following the divestment of Kerry Dairy Ireland on 31 December, the Group is
refreshing its current medium-term financial targets for 2022-26 to reflect
Kerry's new business profile as a pure-play Taste & Nutrition company. It
is also introducing an expanded 2028 Group EBITDA margin target of 19-20% and
a target for adjusted earnings per share growth.
Following the successful completion of the Accelerate Operational Excellence
programme, which has delivered savings ahead of schedule, Kerry is commencing
its business efficiency programme Accelerate 2.0. This will focus on driving
enhanced business performance and productivity through a combination of
footprint optimisation and Kerry digital excellence enablement initiatives
across operations, commercial, research & development and global business
services. It is expected to deliver projected recurring annual savings of
€100m by 2028 with a cost of €140m. This programme will be a key enabler
of achieving the Group's 2028 EBITDA margin target.
Going forward, the Group is targeting high single digit constant currency
adjusted earnings per share growth, following the significant portfolio
transformation in recent years.
Current Medium-Term Financial Targets (2022-26)
On average across the plan
Growth Return
Volume Growth(8) 4-6% Cash Conversion 80%+
EBITDA Margin(9) 18-19% by 2026 ROACE
10-12%
Additional Financial Targets
EBITDA Margin(9) 19-20% by 2028 Adjusted EPS Growth(10) HSD+
(8) Taste & Nutrition business volume growth target assumes end market
growth of 1%+.
(9) Assumes neutral currency and raw materials.
(10) Average adjusted earnings per share growth in constant currency terms
(2025-2028).
See Financial Definitions section for definitions, calculations and
reconciliations of Alternative Performance Measures.
Disclaimer: Forward Looking Statements
This Announcement contains forward looking statements which reflect management
expectations based on currently available data. However actual results may
differ materially from those expressed or implied by these forward looking
statements. These forward looking statements speak only as of the date they
were made, and the Company undertakes no obligation to publicly update any
forward looking statement, whether as a result of new information, future
events or otherwise.
CONTACT INFORMATION
INVESTOR RELATIONS
Marguerite Larkin, Chief Financial Officer
+353 66 7182292 | investorrelations@kerry.ie
William Lynch, Head of Investor Relations
+353 66 7182292 | investorrelations@kerry.ie
MEDIA
Catherine Keogh, Chief Corporate Affairs Officer
+353 45 930188 | corpaffairs@kerry.com
WEBSITE
www.kerry.com
Consolidated Income Statement
for the financial year ended 31 December 2024
Re-presented*
Before Before
Non- Non- Non- Non-
Trading Trading Trading Trading
Items Items Total Items Items Total
2024 2024 2024 2023 2023 2023
Notes €'m €'m €'m €'m €'m €'m
Continuing operations
Revenue 2 6,929.1 - 6,929.1 6,974.9 - 6,974.9
Earnings before interest, tax, depreciation and amortisation 2 1,188.0 - 1,188.0 1,111.7 - 1,111.7
Depreciation (net) and intangible asset amortisation (299.4) - (299.4) (277.5) - (277.5)
Non-trading items 3 - (55.8) (55.8) - 8.1 8.1
Operating profit 888.6 (55.8) 832.8 834.2 8.1 842.3
Finance income 34.8 - 34.8 21.8 - 21.8
Finance costs (88.3) - (88.3) (71.8) - (71.8)
Share of joint ventures' results after taxation (0.9) - (0.9) (1.9) - (1.9)
Profit before taxation 834.2 (55.8) 778.4 782.3 8.1 790.4
Income taxes (117.2) 12.2 (105.0) (98.4) 8.7 (89.7)
Profit from continuing operations 717.0 (43.6) 673.4 683.9 16.8 700.7
Discontinued operations
Profit from discontinued operations 33.2 27.8 61.0 26.8 0.6 27.4
Profit after taxation 750.2 (15.8) 734.4 710.7 17.4 728.1
Attributable to:
Equity holders of the parent - continuing operations 673.4 700.9
Equity holders of the parent - discontinued operations 61.0 27.4
Non-controlling interests - continuing operations - (0.2)
734.4 728.1
Earnings per A ordinary share Cent Cent
Basic Earnings Per Share (cent)
Continuing operations 5 389.2 395.0
Discontinued operations 5 35.3 15.4
424.5 410.4
Diluted Earnings Per Share (cent)
Continuing operations 5 388.6 394.3
Discontinued operations 5 35.2 15.4
423.8 409.7
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
Consolidated Statement of Comprehensive Income
for the financial year ended 31 December 2024
Re-presented*
2024 2023
Notes €'m €'m
Profit after taxation 734.4 728.1
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss:
Fair value movements on cash flow hedges 1.8 (1.6)
Cash flow hedges - reclassified to profit or loss from equity (1.9) 1.3
Net change in cost of hedging 0.6 0.1
Deferred tax effect of fair value movements on cash flow hedges (0.5) (0.4)
Exchange difference on translation of foreign operations
- Continuing operations 206.9 (129.0)
Cumulative exchange difference on translation recycled on disposal
- Continuing operations 3 0.4 (1.5)
- Discontinued operations 4 (0.6) -
Items that will not be reclassified subsequently to profit or loss:
Re-measurement on retirement benefits obligation 10.8 (33.5)
Deferred tax effect of re-measurement on retirement benefits obligation (2.9) 7.1
Net income/(expense) recognised directly in total other comprehensive income 214.6 (157.5)
Total comprehensive income 949.0 570.6
Attributable to:
Equity holders of the parent - continuing operations 888.6 543.4
Equity holders of the parent - discontinued operations 60.4 27.4
Non-controlling interests - continuing operations - (0.2)
949.0 570.6
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
Consolidated Balance Sheet
as at 31 December 2024
31 December 31 December
2024 2023
€'m €'m
Non-current assets
Property, plant and equipment 2,106.7 2,133.0
Intangible assets 5,778.1 5,749.8
Financial asset investments 59.2 52.0
Investments in joint ventures 38.9 39.8
Other non-current financial instruments 295.7 125.0
Retirement benefits asset 100.7 98.0
Deferred tax assets 93.3 80.2
8,472.6 8,277.8
Current assets
Inventories 1,050.7 1,100.2
Trade and other receivables 1,235.5 1,279.0
Cash at bank and in hand 1,610.0 943.7
Other current financial instruments 113.6 13.7
Tax assets 26.6 -
Assets classified as held for sale 3.5 1.5
4,039.9 3,338.1
Total assets 12,512.5 11,615.9
Current liabilities
Trade and other payables 1,742.5 1,773.1
Borrowings and overdrafts 950.3 37.1
Other current financial instruments 32.3 7.5
Tax liabilities 179.0 173.0
Provisions 7.0 18.3
Deferred income 1.0 4.5
2,912.1 2,013.5
Non-current liabilities
Borrowings 2,482.7 2,432.6
Other non-current financial instruments 0.5 9.7
Retirement benefits obligation 33.4 49.7
Other non-current liabilities 134.2 132.4
Deferred tax liabilities 400.9 394.2
Provisions 50.6 46.4
Deferred income 10.8 14.6
3,113.1 3,079.6
Total liabilities 6,025.2 5,093.1
Net assets 6,487.3 6,522.8
Equity
Share capital 20.8 21.9
Share premium 1,879.2 398.7
Other reserves 205.6 (44.6)
Retained earnings 4,380.2 6,145.3
Equity attributable to equity holders of the parent 6,485.8 6,521.3
Non-controlling interests 1.5 1.5
Total equity 6,487.3 6,522.8
Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2024
Attributable to equity holders of the parent
Non-
Share Share Other Retained controlling Total
Capital Premium Reserves Earnings Total interests equity
Note €'m €'m €'m €'m €'m €'m €'m
Group:
At 1 January 2023 22.1 398.7 64.3 5,736.8 6,221.9 1.7 6,223.6
Profit after taxation - - - 728.3 728.3 (0.2) 728.1
Other comprehensive expense - - (130.7) (26.8) (157.5) - (157.5)
Total comprehensive (expense)/income - - (130.7) 701.5 570.8 (0.2) 570.6
Shares issued during the financial year - - - - - - -
Shares (purchased)/cancelled during the financial year (0.2) - 0.2 (101.7) (101.7) - (101.7)
Dividends paid 6 - - - (191.3) (191.3) - (191.3)
Share-based payment expense - - 21.6 - 21.6 - 21.6
At 31 December 2023 21.9 398.7 (44.6) 6,145.3 6,521.3 1.5 6,522.8
Profit after taxation - - - 734.4 734.4 - 734.4
Other comprehensive income - - 207.2 7.4 214.6 - 214.6
Total comprehensive income - - 207.2 741.8 949.0 - 949.0
Shares issued during the financial year 2.1 1,480.5 - - 1,482.6 - 1,482.6
Shares (purchased)/cancelled during the financial year (3.2) - 3.2 (2,301.7) (2,301.7) - (2,301.7)
Dividends paid 6 - - - (205.2) (205.2) - (205.2)
Share-based payment expense - - 39.8 - 39.8 - 39.8
At 31 December 2024 20.8 1,879.2 205.6 4,380.2 6,485.8 1.5 6,487.3
Other Reserves comprise the following:
Share-
Capital Other Based Cost of
Redemption Undenominated Payment Translation Hedging Hedging
Reserve Capital Reserve Reserve Reserve Reserve Total
€'m €'m €'m €'m €'m €'m €'m
At 1 January 2023 1.7 0.3 130.3 (71.0) 4.5 (1.5) 64.3
Other comprehensive (expense)/income - - - (130.5) (0.3) 0.1 (130.7)
Shares cancelled during the financial year 0.2 - - - - - 0.2
Share-based payment expense - - 21.6 - - - 21.6
At 31 December 2023 1.9 0.3 151.9 (201.5) 4.2 (1.4) (44.6)
Other comprehensive income/(expense) - - - 206.7 (0.1) 0.6 207.2
Shares cancelled during the financial year 3.2 - - - - - 3.2
Share-based payment expense - - 39.8 - - - 39.8
At 31 December 2024 5.1 0.3 191.7 5.2 4.1 (0.8) 205.6
Consolidated Statement of Cash Flows
for the financial year ended 31 December 2024
2024 2023
Notes €'m €'m
Cash flows from operating activities
Profit before taxation 841.8 822.6
Adjustments for:
Depreciation (net) 234.8 219.6
Intangible asset amortisation 87.8 79.5
Share of joint ventures' results after taxation 0.9 1.9
Non-trading items income statement charge/(income) 3 31.6 (8.8)
Finance costs (net) 53.9 50.3
Change in working capital (43.4) 185.5
Pension contributions paid less pension expense (12.1) (13.5)
Payments on non-trading items (50.7) (99.8)
Exchange translation adjustment (3.8) (14.2)
Cash generated from operations 1,140.8 1,223.1
Income taxes paid (108.2) (119.5)
Finance income received 23.8 13.9
Finance costs paid (67.7) (79.7)
Net cash from operating activities 988.7 1,037.8
Investing activities
Purchase of assets (305.8) (281.9)
(Outflow)/inflow from the sale of assets (net of disposal expenses) (5.6) 11.6
Capital grants received 2.3 3.3
Purchase of businesses (net of cash acquired) 8 (166.4) (131.1)
Payments relating to previous acquisitions (1.6) (9.7)
Purchase of investments (1.8) (3.0)
Disposal of businesses (net of disposal expenses) 3/4 (27.7) 316.4
Net cash used in investing activities (506.6) (94.4)
Financing activities
Dividends paid 6 (205.2) (191.3)
Purchase of own shares (556.5) (101.7)
Payment of lease liabilities (40.8) (36.4)
Issue of share capital - -
Repayment of borrowings (2.5) (695.9)
Cash inflow from interest rate swaps on repayment of borrowings 3.3 34.4
Proceeds from borrowings 994.0 4.1
Net cash movement due to financing activities 192.3 (986.8)
Net increase/(decrease) in cash and cash equivalents 674.4 (43.4)
Cash and cash equivalents at beginning of the financial year 909.0 969.8
Exchange translation adjustment on cash and cash equivalents 24.2 (17.4)
Cash and cash equivalents at end of the financial year 1,607.6 909.0
Reconciliation of Net Cash Flow to Movement in Net Debt
Net increase/(decrease) in cash and cash equivalents 674.4 (43.4)
Cash flow from debt financing (994.8) 657.4
Changes in net debt resulting from cash flows (320.4) 614.0
Fair value movement on interest rate swaps (net of adjustment to borrowings) 3.4 1.0
Exchange translation adjustment on net debt 13.3 (2.3)
Movement in net debt in the financial year (303.7) 612.7
Net debt at beginning of the financial year - pre lease liabilities (1,535.5) (2,148.2)
Net debt at end of the financial year - pre lease liabilities (1,839.2) (1,535.5)
Lease liabilities (86.6) (68.6)
Net debt at end of the financial year (1,925.8) (1,604.1)
Notes to the Financial Statements
for the financial year ended 31 December 2024
1. Accounting policies
The financial information included within this statement has been extracted
from the audited financial statements of Kerry Group plc for the financial
year ended 31 December 2024. The financial information set out in this
document does not constitute full statutory financial statements for the
financial years ended 31 December 2024 or 2023 but is derived from same. The
consolidated financial statements of Kerry Group plc have been prepared in
accordance with International Financial Reporting Standards as issued by the
IASB ('IFRS Accounting Standards'), International Financial Reporting
Interpretations Committee ('IFRIC') interpretations and those parts of the
Companies Act, 2014 applicable to companies reporting under IFRS Accounting
Standards. The financial statements comprise the Consolidated Income
Statement, the Consolidated Statement of Comprehensive Income, the
Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity,
the Consolidated Statement of Cash Flows and the notes to the financial
statements. The Group's financial statements have also been prepared in
accordance with International Financial Reporting Standards ('IFRS') adopted
by the European Union ('EU') which comprise standards and interpretations
approved by the International Accounting Standards Board ('IASB'). The Group
financial statements comply with Article 4 of the EU IAS Regulation. IFRS
adopted by the EU differs in certain respects from IFRS Accounting Standards
issued by the IASB. References to IFRS hereafter refer to IFRS adopted by the
EU.
The consolidated financial statements have been prepared under the historical
cost convention, as modified by the revaluation of certain financial assets
and liabilities (including derivative financial instruments) and financial
asset investments which are held at fair value. Assets and liabilities
classified as held for sale are stated at the lower of carrying value or fair
value less costs to sell. The investments in joint ventures are accounted for
using the equity method.
In the 2024 consolidated financial statements, the 2023 Balance Sheet was
re-presented due to IFRS 3 measurement period adjustments (note 8). As a
result of this, balances were re-presented in the following note, note 2
'Analysis of results'.
Following the disposal of 70% of Kerry Dairy Holdings (Ireland) Limited
('Kerry Dairy Ireland') and related assets, and in accordance with the
requirements of IFRS 5 'Non-current assets held for sale and discontinued
operations', the results of Kerry Dairy Ireland to 31 December 2024, the date
of disposal, have been presented within profit from discontinued operations in
the Consolidated Income Statement with the prior year comparatives
re-presented accordingly.
Certain income statement headings and other financial measures included in the
consolidated financial statements are not defined by IFRS such as earnings
before interest, tax, depreciation and amortisation ('EBITDA'), non-trading
items and net debt. The Group makes this distinction to enhance the
understanding of the financial performance of the business as outlined in the
Financial Definitions.
The consolidated financial statements have been prepared on the going concern
basis of accounting. The Directors have considered the Group's business
activities and how it generates value, together with the main trends and
factors likely to affect future development, business performance and position
of the Group including liquidity and access to financing and the potential
impacts of climate, geopolitical, technological and macroeconomic environment
related risks on profitability. The going concern of the Group was also
assessed by considering the potential impact of climate related risks on
profitability and liquidity, macroeconomic and geopolitical developments,
customer inventory management and changing interest rates during the period.
There are no material uncertainties that cast significant doubt on the Group's
ability to continue as a going concern over a period of at least 12 months
from the date of approval of these financial statements.
Discontinued operations
A discontinued operation is a component of the Group's business, the
operations and cash flows of which can be clearly distinguished from the rest
of the Group and which:
- represents a separate major line of business or geographic area of operations;
- is part of a single co-ordinated plan to dispose of a separate major line of
business or geographic area of operations; or
- is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal
or when the operation meets criteria to be classified as held for sale. When
an operation is classified as a discontinued operation, the comparative income
statement and statement of comprehensive income are presented as if the
operation had been discontinued from the start of the comparative period. In
determining the amount to be presented as discontinued operations, all
intercompany items are eliminated on consolidation. These items are eliminated
against continuing operations when an arrangement will continue and are
eliminated against discontinued operations where an arrangement will not
continue. Discontinued operations are excluded from the results of continuing
operations and are presented as a single amount as profit or loss from
discontinued operations in the income statement. Net cash flows attributable
to the operating, investing and financing activities of discontinued
operations are separately disclosed in the notes to the financial statements.
The Group's accounting policies will be included in the 2024 Annual Report
& Accounts, which will be published in March, and are consistent with
those described in the 2023 Annual Report & Accounts.
Critical accounting estimates and judgements
The preparation of the Group consolidated financial statements requires
management to make certain estimations, assumptions and judgements that affect
the reported profits, assets and liabilities.
Estimates and underlying assumptions are reviewed on an ongoing basis. Changes
in accounting estimates may be necessary if there are changes in the
circumstances on which the estimate was based or as a result of new
information or more experience. Such changes are recognised in the period in
which the estimate is revised.
In particular, information about significant areas of estimation and judgement
that have the most significant effect on the amounts recognised in the
consolidated financial statements are described in the respective notes to the
consolidated financial statements.
New standards and interpretations
Certain new and revised accounting standards and new International Financial
Reporting Interpretations Committee ('IFRIC') interpretations have been
issued. The Group intends to adopt the relevant new and revised standards when
they become effective and endorsed by the EU. The Group's assessment of the
impact of these standards and interpretations is set out below.
The following Standards and Interpretations are effective for the Group in Effective Date
2024 but do not have a material effect on the results or financial position of
the Group:
- IAS 1 (Amendments) Presentation of Financial Statements 1 January 2024
- IFRS 16 (Amendments) Leases 1 January 2024
- IAS 7 & IFRS 7 (Amendments) Supplier Finance Arrangements 1 January 2024
The following Standards and Interpretations are not yet effective for the Effective Date
Group and are not expected to have a material effect on the results or
financial position of the Group:
- IAS 21 (Amendments) The Effects of Changes in Foreign Exchange Rates 1 January 2025
- IFRS 7 & IFRS 9 (Amendments) Classification and Measurement of Financial Instruments 1 January 2026
- IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027
- IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027
2. Analysis of results
For the period ended 31 December 2024 and comparative periods, the Group has
determined it has two operating segments: Taste & Nutrition and Dairy
Ireland. The Taste & Nutrition segment is a world leading provider of
taste and nutrition solutions for the food, beverage and pharmaceutical
markets. Utilising a broad range of ingredient solutions to innovate with our
customers to create great tasting products, with improved nutrition and
functionality, while ensuring a better impact for the planet. Kerry is driven
to be our customers' most valued partner, creating a world of sustainable
nutrition through solving our customers' most complex challenges with
differentiated solutions. The Taste & Nutrition segment supplies
industries across Europe, Americas and APMEA (Asia Pacific, Middle East and
Africa). The Dairy Ireland segment is a leading Irish provider of value-add
dairy ingredients and consumer products. The dairy ingredients product
portfolio includes functional proteins while our dairy consumer brands can be
found predominantly in chilled cabinets in retailers across Ireland and the
UK.
Following the sale of Kerry Dairy Ireland (which forms the Dairy Ireland
segment) as described in note 4, effective from 2025 the Group's reportable
segments will change from two to the following three segments: Europe,
Americas and APMEA. This realignment reflects the way resources will be
allocated and performance will be assessed by the Chief Operating Decision
Maker from 2025 following the sale of the Dairy Ireland segment. In the
Group's financial reporting for 2025, comparative information for 2024 will be
restated to reflect the changes in reportable segments. Segmental information
presented in these financial statements is based on the segment structure for
the financial year ended 31 December 2024, being Taste & Nutrition and
Dairy Ireland. The change in segment reporting post year end does not have a
financial impact on the Group's Consolidated Financial Statements for the
financial year ended 31 December 2024.
Continuing Discontinued Group Continuing Discontinued Group
Operations Operations Eliminations Operations Operations Eliminations
Taste & Dairy and Taste & Dairy and
Nutrition Ireland Unallocated* Total Nutrition Ireland Unallocated* Total
2024 2024 2024 2024 2023 2023 2023 2023
€'m €'m €'m €'m €'m €'m €'m €'m
External revenue 6,879.0 1,101.6 - 7,980.6 6,936.7 1,083.6 - 8,020.3
Inter-segment revenue 50.1 213.5 (263.6) - 38.2 199.8 (238.0) -
Revenue 6,929.1 1,315.1 (263.6) 7,980.6 6,974.9 1,283.4 (238.0) 8,020.3
EBITDA** 1,256.1 62.8 (68.1) 1,250.8 1,185.9 53.4 (74.2) 1,165.1
Depreciation (net) (211.5) (23.0) (0.3) (234.8) (197.7) (21.4) (0.5) (219.6)
Intangible asset amortisation (51.4) (0.2) (36.2) (87.8) (39.0) (0.2) (40.3) (79.5)
Non-trading items - 24.2 (55.8) (31.6) - 0.7 8.1 8.8
Operating profit 993.2 63.8 (160.4) 896.6 949.2 32.5 (106.9) 874.8
Finance income 34.8 21.8
Finance costs (88.7) (72.1)
Share of joint ventures' results after taxation (0.9) (1.9)
Profit before taxation 841.8 822.6
Income taxes (107.4) (94.5)
Profit after taxation 734.4 728.1
Attributable to:
Equity holders of the parent - continuing operations 673.4 700.9
Equity holders of the parent - discontinued operations 61.0 27.4
Non-controlling interests - continuing operations - (0.2)
734.4 728.1
*Inter-segment revenue eliminations form part of discontinued operations. See
note 4 for further information. All other Group Eliminations and Unallocated
amounts form part of continuing operations.
**EBITDA represents profit before finance income and costs, income taxes,
depreciation (net of capital grant amortisation), intangible asset
amortisation, non-trading items and share of joint ventures' results after
taxation.
Segment assets and liabilities
Continuing Discontinued Group Continuing Discontinued Group
Operations Operations Eliminations Operations Operations Eliminations
Taste & Dairy and Taste & Dairy and
Nutrition Ireland Unallocated Total Nutrition Ireland Unallocated Total
2024 2024 2024 2024 2023 2023 2023 2023
€'m €'m €'m €'m €'m €'m €'m €'m
Assets 7,733.2 - 4,779.3 12,512.5 8,088.9 683.4 2,843.6 11,615.9
Liabilities (1,739.6) - (4,285.6) (6,025.2) (1,657.6) (247.7) (3,187.8) (5,093.1)
Net assets 5,993.6 - 493.7 6,487.3 6,431.3 435.7 (344.2) 6,522.8
Other segmental information
Property, plant and equipment additions 303.0 26.5 0.8 330.3 271.0 37.6 0.9 309.5
Intangible asset additions 3.7 - 23.8 27.5 1.6 - 14.3 15.9
Share of joint ventures' results after taxation 0.9 - - 0.9 1.9 - - 1.9
Revenue analysis
Disaggregation of revenue from external customers is analysed by End Use
Market (EUM), which is the primary market in which Kerry's products are
consumed and primary geographic market. An EUM is defined as the market in
which the end consumer or customer of Kerry's product operates. The economic
factors within the EUMs of Food, Beverage and Pharma & other and within
the primary geographic markets which affect the nature, amount, timing and
uncertainty of revenue and cash flows are similar.
Analysis by EUM
Continuing Discontinued Continuing Discontinued
Operations Operations Operations Operations
Taste & Dairy Taste & Dairy
Nutrition Ireland Total Nutrition Ireland Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
Food 4,533.0 1,090.3 5,623.3 4,637.3 1,051.9 5,689.2
Beverage 1,850.0 11.3 1,861.3 1,798.6 31.7 1,830.3
Pharma & other 496.0 - 496.0 500.8 - 500.8
External revenue 6,879.0 1,101.6 7,980.6 6,936.7 1,083.6 8,020.3
Analysis by primary geographic market
Disaggregation of revenue from external customers is analysed by geographical
split:
Continuing Discontinued Continuing Discontinued
Operations Operations Operations Operations
Taste & Dairy Taste & Dairy
Nutrition Ireland Total Nutrition Ireland Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
Republic of Ireland 87.6 405.9 493.5 134.7 405.3 540.0
Rest of Europe 1,367.2 626.3 1,993.5 1,382.5 600.3 1,982.8
Americas 3,763.5 31.0 3,794.5 3,772.5 32.5 3,805.0
APMEA 1,660.7 38.4 1,699.1 1,647.0 45.5 1,692.5
External revenue 6,879.0 1,101.6 7,980.6 6,936.7 1,083.6 8,020.3
Information about geographical areas
Europe Americas APMEA Total Europe Americas APMEA Total
2024 2024 2024 2024 2023 2023 2023 2023
€'m €'m €'m €'m €'m €'m €'m €'m
Assets by location 5,675.6 5,196.4 1,640.5 12,512.5 5,177.2 4,941.4 1,497.3 11,615.9
Property, plant and equipment additions 80.7 165.5 84.1 330.3 92.1 161.9 55.5 309.5
Intangible asset additions 23.8 3.4 0.3 27.5 14.3 1.6 - 15.9
The revenue and non-current assets (as defined in IFRS 8 'Operating Segments')
attributable to the country of domicile and all foreign countries of
operation, for which revenue exceeds 10% of total external Group revenue, are
set out below.
Kerry Group plc is domiciled in the Republic of Ireland and the revenues from
external customers in the Republic of Ireland were €493.5m (2023:
€540.0m). The non-current assets at 31 December 2024 located in the Republic
of Ireland are €2,245.0m (2023: €1,285.7m).
Revenues from external customers include €896.1m (2023: €939.9m) in the UK
and €2,940.3m (2023: €2,972.1m) in the USA. The non-current assets in the
UK are €243.5m (2023: €352.1m) and in the USA are €3,264.0m (2023:
€3,112.1m). For clarity the UK is included within Europe in the tables
above.
Taste & Nutrition external revenues consists of €2,242.8m (2023:
€2,186.4m) in emerging markets and €4,636.2m (2023: €4,750.3m) in
developed markets. Third party revenues in Taste & Nutrition in the
foodservice channel was €2,209.0m (2023: €2,138.0m) and €4,670.0m (2023:
€4,798.7m) in the non-foodservice channels.
There are no material dependencies or concentrations on individual customers
which would warrant disclosure under IFRS 8 'Operating Segments'. The
accounting policies of the operating segments are the same as the Group's
accounting policies as outlined in the Statement of Accounting Policies. Under
IFRS 15 'Revenue from Contracts with Customers' revenue is primarily
recognised at a point in time. Revenue recorded over time during the year was
not material to the Group.
3. Non-trading items
Re-presented*
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
Notes €'m €'m €'m €'m €'m €'m
Global Business Services expansion (ii) - - - (4.1) - (4.1)
Acquisition integration costs (iii) (4.8) - (4.8) (16.5) - (16.5)
Accelerate Operational Excellence (iv) (43.3) - (43.3) (53.5) - (53.5)
(48.1) - (48.1) (74.1) - (74.1)
(Loss)/profit on disposal of businesses and assets (i)/4 (7.7) 24.2 16.5 82.2 0.7 82.9
Non-trading items (before tax) (55.8) 24.2 (31.6) 8.1 0.7 8.8
Tax on above 12.2 3.6 15.8 8.7 (0.1) 8.6
Non-trading items (net of related tax) (43.6) 27.8 (15.8) 16.8 0.6 17.4
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
(i) Loss on disposal of businesses and assets - continuing operations
Total
2024
€'m
Property, plant and equipment - disposed (4.2)
Property, plant and equipment - impaired (0.2)
Goodwill (0.6)
Brand related intangible assets (2.0)
Inventories (0.9)
Assets classified as held for sale - disposed (0.7)
Assets classified as held for sale - impaired (1.2)
Deferred tax liability 0.5
(9.3)
Cash received 4.6
Disposal related costs (3.4)
Cumulative exchange difference on translation recycled on disposal 0.4
Loss on disposal of businesses and assets (7.7)
Total
2024
Net cash outflow on disposal: €'m
Consideration 4.6
Less: disposal related costs paid* (22.3)
(17.7)
* Includes payments that were fully provided for in prior years primarily
relating to costs associated with the divestment of the Sweet Ingredients
Portfolio in 2023.
The above table represents continuing operations. See note 4 for further
information on discontinued operations.
In 2024, the Group disposed of a non-core business and assets in Europe, APMEA
and North America for a combined consideration of €4.6m resulting in a loss
of €7.7m including an impairment of €1.4m in the Americas. A tax credit of
€2.0m arose on the disposals.
In 2023, the Group completed the sale of the trade and assets of its Sweet
Ingredients Portfolio and also disposed of small operations in South Africa
and South Korea. In addition, the Group disposed of property, plant and
equipment primarily in North America and Europe. The combined final
consideration for the divested business' and assets was €495.7m resulting in
a gain of €111.7m for the year ended 31 December 2023, with the related tax
charge of €3.8m. The profit on disposal of property, plant and equipment was
offset by an impairment charge of €15.3m in North America and a €13.5m
charge with respect to related disposal costs resulting in a net gain of
€82.2m.
(ii) Global Business Services expansion
In 2020, the Group commenced a programme to evolve, migrate and expand its
Global Business Services model to better enable the business and support
further growth. This phase of the programme completed at the end of 2023 and
the Group incurred no costs in the year ended 31 December 2024 (2023:
€4.1m). The costs in the prior year reflected relocation of resources,
advisory fees, redundancies and the streamlining of operations. The associated
tax credit was €nil (2023: €0.5m).
(iii) Acquisition integration costs
These costs of €4.8m (2023: €16.5m) reflect the relocation of resources,
the restructuring of operations in order to integrate the acquired businesses
into the existing Kerry operating model and external costs associated with
deal preparation, integration planning and due diligence. A tax credit of
€0.9m (2023: €2.8m) arose due to tax deductions available on acquisition
related costs.
(iv) Accelerate Operational Excellence
These costs of €43.3m (2023: €53.5m) predominantly reflect cost of
streamlining operations, project management costs and consultancy fees
incurred in the year relating to our Accelerate Operational Excellence
transformation programme, which was predominately completed at the end of
2024. This material transformation project deploying next generation
manufacturing processes, including advanced process controls, was combined
with building capabilities within the Group to enhance continuous improvement
in manufacturing processes which delivered step change manufacturing
excellence across the organisation. This project also focused on supply chain
excellence, optimising the Group's warehousing and distribution network. A tax
credit of €9.3m (2023: €9.1m) arose due to tax deductions available on
accelerated operational excellence costs.
4. Discontinued operations
On 12 November 2024, the Group announced that it had entered into an agreement
with Kerry Co-Operative Creameries Limited (the 'Co-Op') in relation to the
sale of the Group's shareholding in Kerry Dairy Holdings (Ireland) Limited
('Kerry Dairy Ireland') for a total expected consideration of €500 million.
Consideration is subject to adjustments for customary completion accounts
adjustments in respect of cash, debt and working capital and a potential
valuation adjustment should Kerry Dairy Ireland not achieve adjusted EBITDA
targets for fiscal year end 2025. Preliminary completion adjustments have been
processed through the Phase 1 vendor loan receivable. To the extent any
further adjustments should arise, the Group does not expect these to be
material.
The sale comprises two stages:
1. Phase 1, wherein the Co-Op acquired a 70% shareholding in Kerry Dairy Ireland,
with the Group retaining a 30% shareholding. Phase 1 consideration comprises
redemption of a portion of the Co-Op's shareholding in Kerry; cash receivable;
and a vendor loan receivable. The Group will be entitled to a fixed dividend
of €7.5 million per annum during the period of the joint ownership.
Prior to this transaction, the Co-Op held approximately 11% of the issued
share capital of Kerry Group plc. The following steps (the 'share exchange')
form part of Phase 1:
- Share for Share exchange: A share for share exchange whereby the Group
acquired approximately 85% of the shares in the Co-Op that were held by its
members, in exchange for issuing an amount of Kerry Group plc shares directly
to the members of the Co-Op, equal in value to approximately 85% of the Kerry
Group plc shares previously held by the Co-Op;
- Redemptions: (a) The redemption by the Group of the Co-Op's entire
shareholding in Kerry Group plc (19,045,396 shares), in exchange for a
promissory note of equivalent value, and (b) the redemption by the Co-Op of
the Co-Op shares held by the Group (as acquired in the share for share
exchange above) in exchange for a promissory note of equivalent value;
- Promissory note set off: The amounts outstanding under each promissory note
are offset against each other, which results in a promissory note balance in
favour of the Co-Op equal to approximately 15% of the market value of the
Co-Op's original 11% shareholding in Kerry Group plc and which was used by the
Co-Op to fund part of the Phase 1 consideration.
Pursuant to this share exchange, the Group's issued share capital reduced by
2,858,372 shares; the Co-Op ceased to be a shareholder of Kerry Group plc and
members of the Co-Op instead hold shares in Kerry Group plc directly. The
portion of the consideration attributable to the share redemption was
€261.9m based on a volume-weighted average share price of €91.63.
2. Phase 2, wherein the Group and the Co-Op have agreed to a put-call arrangement
that will transfer the remaining 30% shareholding in Kerry Dairy Ireland to
the Co-Op. At any time on or prior to 31 July 2035, the Co-Op will have the
right to purchase the remaining 30% shareholding in Kerry Dairy Ireland in
exchange for cash in an amount of €150 million (the 'Call Option'). In the
event that the Co-Op does not exercise the Call Option before 31 July 2030,
the Group will have the right at any time after 31 July 2030 and on or prior
to 31 July 2035, to require the Co-Op to purchase the entire 30% shareholding
in Kerry Dairy Ireland for a consideration of €150 million (the 'Put
Option'). The Phase 2 consideration of €150 million is subject to certain
adjustment mechanisms as outlined above. To the extent any such adjustments
should arise, the Group does not expect these to be material.
The agreement for the sale of Kerry Dairy Ireland was approved by Co-Op
members and by the Group's shareholders on 16 December 2024 and 19 December
2024, respectively. Pursuant to respective shareholder approval, Phase 1 of
the sale of Kerry Dairy Ireland (which forms the Dairy Ireland segment),
completed on 31 December 2024. Accordingly, the Group ceased to control Kerry
Dairy Ireland on 31 December 2024.
The Group analysed the quantitative and qualitative factors relevant to the
Kerry Dairy Ireland business and determined that the criteria for discontinued
operations presentation were met as at 31 December 2024. The operating results
of the Kerry Dairy Ireland business were therefore reported separately as
discontinued operations, net of income tax expense, in the Consolidated Income
Statement and Consolidated Statement of Comprehensive Income for the financial
years ended 31 December 2024 and 2023, respectively.
Accounting for the Group's 30% shareholding in Kerry Dairy Ireland requires
judgement relating to accounting treatment for this investment and the put and
call options that are part of the transaction. The terms and conditions of the
call option are relevant in determining the accounting treatment for the 30%
shareholding, as the Group needs to determine whether the 30% shareholding
represents a joint arrangement or an associate over which the Group has
significant influence. There is judgement in determining whether the call
option held by the Co-Op is substantive. The Co-Op's call option is
immediately exercisable and in management's judgement this gives the Co-Op
control of Kerry Dairy Ireland. The existence and effect of the immediately
exercisable call option held by the Co-Op means the Group's current interest
in Kerry Dairy Ireland is limited to the €150m call option price. As a
result, the Group doesn't have access to the economic benefits associated with
a present ownership interest in Kerry Dairy Ireland and therefore does not
have significant influence. The 30% shareholding therefore represents a
financial asset and this asset is accounted for at fair value through profit
and loss.
(i) Analysis of costs by nature
2024 2023
Notes €'m €'m
Revenue 1,315.1 1,283.4
Inter-segment revenue (263.6) (238.0)
Discontinued revenue 2 1,051.5 1,045.4
Less operating costs:
Raw materials and consumables 747.0 701.9
Other general overheads 142.0 148.6
Staff costs 108.3 105.8
Loss allowances on trade receivables - -
Foreign exchange (gains)/losses (1.2) 0.4
Change in inventories of finished goods (7.4) 35.3
Earnings before interest, tax, depreciation and amortisation 62.8 53.4
Depreciation (net):
- property, plant and equipment 23.1 21.6
- right-of-use assets 0.8 0.8
- capital grants amortisation (0.9) (1.0)
Intangible asset amortisation 0.2 0.2
Non-trading items 3 (24.2) (0.7)
Operating profit 63.8 32.5
Finance costs (0.4) (0.3)
Profit before taxation 63.4 32.2
Income taxes (2.4) (4.8)
Profit from discontinued operations 61.0 27.4
Operating profit is stated after charging:
Research and development costs 5.4 7.3
(ii) Other comprehensive income movement from discontinued operations
2024 2023
€'m €'m
Profit from discontinued operations 61.0 27.4
Cumulative exchange difference on translation recycled on disposal (0.6) -
Total comprehensive income 60.4 27.4
(iii) Cash flows (used in)/from discontinued operations
2024 2023
€'m €'m
Net cash from operating activities 27.6 38.0
Net cash used in investing activities (27.7) (35.3)
Net cash used in financing activities (0.8) (0.7)
Net cash flows for the period (0.9) 2.0
(iv) Effect of disposal on financial position of the Group
The composition of assets and liabilities disposed of are set out in the table
below:
Total
2024
€'m
Property, plant and equipment (net of grants) - disposed (205.3)
Goodwill (132.2)
Brand related intangible assets (24.4)
Computer software (0.3)
Cash disposed (10.3)
Inventories (110.0)
Trade and other receivables (224.8)
Deferred tax liabilities 15.1
Trade and other payables 191.5
Net amounts due to Kerry entities 12.3
(488.4)
Consideration
Share redemption consideration 261.9
Consideration receivable - to be satisfied in cash* 56.0
Working capital - receivable on closing* 47.5
Phase 1 vendor loan receivable** 20.6
Retained investment in Kerry Dairy Ireland 150.0
536.0
Disposal related costs (24.0)
512.0
Cumulative exchange difference on translation recycled on disposal 0.6
Profit on disposal of businesses and assets (before tax) 24.2
Tax on above 3.6
Profit on disposal of businesses and assets (net of related tax) 27.8
* These amounts of a combined €103.5m were due from the Co-Op at 31 December
2024 and were received by the Group on 8 January 2025.
** Phase 1 vendor loan receivable balance following draft completion account
adjustments.
Total
2024
Net cash outflow on disposal: €'m
Consideration received -
Less: cash disposed (10.3)
Less: disposal related costs paid (5.3)
(15.6)
5. Earnings per A ordinary share
Re-presented*
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
Basic earnings per share
Profit after taxation attributable to equity holders of the parent (€'m) 673.4 61.0 734.4 700.9 27.4 728.3
Basic earnings per share (cent) 389.2 35.3 424.5 395.0 15.4 410.4
Re-presented*
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
Diluted earnings per share
Profit after taxation attributable to equity holders of the parent (€'m) 673.4 61.0 734.4 700.9 27.4 728.3
Diluted earnings per share (cent) 388.6 35.2 423.8 394.3 15.4 409.7
2024 2023
Number of Shares Note m's m's
Basic weighted average number of shares 173.0 177.4
Impact of share options outstanding 0.3 0.3
Diluted weighted average number of shares 173.3 177.7
Actual number of shares in issue as at 31 December 7 166.4 175.8
6. Dividends
2024 2023
€'m €'m
Group and Company:
Amounts recognised as distributions to equity shareholders in the financial
year
Final 2023 dividend of 80.80 cent per A ordinary share paid 10 May 2024
(Final 2022 dividend of 73.40 cent per A ordinary share paid 12 May 2023) 140.4 130.0
Interim 2024 dividend of 38.10 cent per A ordinary share paid 8 November 2024
(Interim 2023 dividend of 34.60 cent per A ordinary share paid 10 November 64.8 61.3
2023)
205.2 191.3
Since the financial year end the Board has proposed a final 2024 dividend of
89.0 cent per A ordinary share which amounts to €148.1m based on ordinary
shares in issue at 31 December 2024. The payment date for the final dividend
will be 9 May 2025 to shareholders registered on the record date as at 11
April 2025. The consolidated financial statements do not reflect this
dividend.
7. Share Capital
2024 2023
€'m €'m
Group and Company:
Authorised
280,000,000 A ordinary shares of 12.50 cent each 35.0 35.0
Allotted, called-up and fully paid (A ordinary shares of 12.50 cent each)
At beginning of the financial year 21.9 22.1
Shares issued during the financial year 2.1 -
Shares cancelled during the financial year (3.2) (0.2)
At end of the financial year 20.8 21.9
The Company has one class of ordinary share which carries no right to fixed
income. The total number of shares in issue at 31 December 2024 was
166,440,652 (2023: 175,792,661).
Shares issued
During 2024 a total of 264,089 (2023: 179,441) A ordinary shares, each with a
nominal value of 12.50 cent, were issued at nominal value per share under the
Long-Term and Short-Term Incentive Plans.
Share exchange pursuant to Kerry Dairy Ireland Sale
Arising from the implementation of the share exchange as part of Phase 1 of
the sale of Kerry Dairy Ireland, the Company, on 31 December 2024, redeemed
and cancelled Kerry Co-Operative Creameries Limited's entire shareholding of
19,045,396 A Ordinary Shares and the Company issued a total of 16,187,024 A
Ordinary Shares directly to the members of Kerry Co-Operative Creameries
Limited and to satisfy fractional share entitlements. As a result, the
Company's issued share capital reduced by 2,858,372 shares. See note 4 for
further information regarding the sale of Kerry Dairy Ireland.
Share Buyback Programme
At the 2024 Annual General Meeting, shareholders passed a resolution
authorising the Company to purchase up to 10% of its own issued share capital.
In May 2024 and November 2024, the Board approved new Share Buyback Programmes
of up to €300 million each. The Share Buyback Programmes are underpinned by
the Group's strong balance sheet and cash flow and is aligned to Kerry's
Capital Allocation Framework.
The May 2024 Share Buyback Programme commenced on 7 May 2024 and was completed
by 12 November 2024. The total number of shares acquired as part of the May
2024 Share Buyback Programme was 3,632,456 at a cost of €300.3m including
transactions costs of €0.3m.
The November 2024 Share Buyback Programme commenced on 13 November 2024. In
the period from 13 November 2024 to 31 December 2024 the Company purchased
644,079 shares at a total cost of €57.6m. At 31 December 2024, there was no
financial liability recorded in relation to the Share Buyback Programme. Since
the period end, and up to 31 January 2025, the Company repurchased 458,271
shares at a total cost of €43.3m.
The previous Share Buyback Programme announced in October 2023, commenced on 1
November 2023 and was completed by 30 April 2024. The total number of shares
acquired during 2023 was 1,373,261 at a cost of €101.7m. During the period 1
January 2024 to 30 April 2024, an additional 2,481,191 shares were acquired at
a cost of €198.6m, resulting in total number of shares acquired as part of
this programme of 3,854,452 at a total cost of €300.3m including transaction
costs of €0.3m.
All shares acquired as part of the above Share Buyback Programmes were A
ordinary shares with a nominal value of 12.50 cent. The shares acquired were
cancelled immediately following their repurchase.
The buyback programme is conducted in accordance with the relevant provisions
of the Market Abuse Regulation 596/2014/EU ('MAR' and including MAR as in
force in the UK and as amended by the Market Abuse (Amendment) (EU Exit)
Regulations 2019) and the Commission Delegated Regulation (EU) 2016/1052
(including as in force in the UK and as amended by the FCA's Technical
Standards (Market Abuse Regulation) (EU Exit) Instrument 2019) as well as the
rules of the Central Bank of Ireland.
8. Business combinations
The following acquisitions were completed by the Group during 2024:
Completion Percentage
Acquisition Type date acquired Segment Principal activity Strategic rationale
Part of the global lactase enzymes business of Novonesis (formerly Chr. Hansen Asset & Equity April 2024 Certain trade and assets of Chr. Hansen's global lactase enzyme business on a Taste & Nutrition The Lactase Enzymes Business which includes NOLA(®) Products, further This acquisition adds enzyme technology which helps create lactose-free and
Holdings A/S ('Chr. Hansen') and Novozymes A/S ('Novozymes')). carve-out basis and 100% of the share capital of Nuocheng Trillion Food enhances Kerry's biotechnology solutions capability. sugar reduced dairy products, while preserving their authentic clean taste.
(Tianjin) Co., Ltd., a Chinese subsidiary of Novozymes. Global demand for lactase is being driven by increased awareness of lactose
intolerance, while many consumers are also choosing lactose-free for lifestyle
and health reasons.
LactoSens(®) testing technology. Asset September 2024 The LactoSens(®) testing technology assets and related business from Taste & Nutrition Lactose testing technology. To enhance Kerry's position and capability in providing the complete solution
DirectSens GmbH. as regards lactose-free dairy products.
The table below provides details of the identifiable net assets, including
adjustments to provisional fair values, in respect of the acquisitions
completed during the year ended 31 December 2024:
Total
2024
€'m
Recognised amounts of identifiable assets acquired and liabilities assumed:
Non-current assets
Property, plant and equipment 43.1
Brand related intangibles 86.8
Current assets
Cash at bank and in hand 0.8
Inventories 5.9
Trade and other receivables 3.8
Current liabilities
Trade and other payables (2.3)
Non-current liabilities
Other non-current liabilities (0.1)
Total identifiable assets 138.0
Goodwill 29.2
Total consideration 167.2
Satisfied by:
Cash 167.2
Net cash outflow on acquisition:
Total
2024
€'m
Cash 167.2
Less: cash and cash equivalents acquired (0.8)
166.4
The acquisition method has been used to account for businesses acquired in the
Group's financial statements. Given that the valuation of the fair value of
assets and liabilities recently acquired is still in progress, some of the
values are determined provisionally, primarily values relating to property,
plant and equipment and liabilities (as not all information is available at
this point in time). The valuation of the fair value of assets and liabilities
will be completed within the measurement period. For the acquisitions
completed in 2023, there have been material revisions of the provisional fair
value adjustments since the initial values were established as outlined in the
table below. The Group performs quantitative and qualitative assessments of
each acquisition in order to determine whether it is material for the purposes
of separate disclosure under IFRS 3 'Business Combinations'. None of the
acquisitions completed during the period were considered material to warrant
separate disclosure.
The goodwill is attributable to the expected profitability, revenue growth,
future market development and assembled workforce of the acquired businesses
and the synergies expected to arise within the Group after the acquisition.
€24.5m of the goodwill recognised is expected to be deductible for income
tax purposes.
Transaction expenses related to these acquisitions of €2.9m were charged in
the Group's Consolidated Income Statement during the financial year. The fair
value of the financial assets acquired includes trade and other receivables
with a fair value of €3.7m and a gross contractual value of €3.8m.
The revenue and profit after taxation attributable to equity holders of the
parent to the Group contributed from date of acquisition for all business
combinations effected during the financial year is as follows:
Total
2024
€'m
Revenue 40.7
Profit after taxation attributable to equity holders of the parent 5.3
The revenue and profit after taxation attributable to equity holders of the
parent to the Group determined in accordance with IFRS as though the
acquisition date for all business combinations effected during the financial
year had been the beginning of that financial year would be as follows:
Continuing Operations
Kerry Group Consolidated
excluding Group
2024 2024 including
acquisitions acquisitions acquisitions
€'m €'m €'m
Revenue 59.4 6,888.4 6,947.8
Profit after taxation attributable to equity holders of the parent 7.5 668.1 675.6
2023 Acquisitions
During 2023, the Group completed a total of two acquisitions both of which are
100% owned by the Group. The initial assessment of fair values to identifiable
net assets acquired was performed on a provisional basis. As part of the
finalisation of the expected contingent consideration and the fair value
exercise in respect of the 2023 acquisitions, the Group considered the
valuations applied to intangible and tangible assets acquired. The outcome of
this exercise resulted in a reduction of goodwill arising on acquisition by
€58.0m and a reduction in contingent consideration of €75.1m. The
amendments to these fair values were made to the comparative figures during
the subsequent reporting window within the measurement period imposed by IFRS
3 'Business Combinations'. The provisional fair value of these assets
recorded, together with the adjustments made to those carrying values to
arrive at the final fair values were as follows:
Provisional fair Measurement
values of 2023 period
acquisitions adjustments Total
2023 2023 2023
€'m €'m €'m
Property, plant and equipment 9.7 - 9.7
Goodwill arising on acquisition 176.9 (58.0) 118.9
Other brand-related intangibles 41.6 (18.5) 23.1
Non-current assets 228.2 (76.5) 151.7
Current assets 14.2 - 14.2
Non-current liabilities (13.5) 1.4 (12.1)
Current liabilities (18.8) - (18.8)
Total identifiable assets 210.1 (75.1) 135.0
Total consideration 210.1 (75.1) 135.0
9. Events after the balance sheet date
Since the financial year end, the Group has:
- proposed a final dividend of 89.0 cent per A ordinary share (note 6);
- subsequent to year end, the Company repurchased 458,271 shares at a cost of
€43.3m up to 31 January 2025. The Company's intention is to continue to
repurchase shares up to the announced amount of €300.0m and will end no
later than 30 June 2025 (note 7); and
- following the sale of Kerry Dairy Ireland (which formed the Dairy Ireland
segment) as described in note 4, effective 2025 the Group's reportable
segments will change from two to the following three segments: Europe,
Americas and APMEA. See note 2 for further information. In the Group's
financial reporting for 2025, comparative information for 2024 will be
restated to reflect the changes in reportable segments. Segmental information
presented in these financial statements is based on the segment structure for
the financial year ended 31 December 2024, being Taste & Nutrition and
Dairy Ireland. The change in segment reporting post year end does not have a
financial impact on the Group's Consolidated Financial Statements for the
financial year ended 31 December 2024.
There have been no other significant events, outside the ordinary course of
business, affecting the Group since 31 December 2024.
10. General information
The statutory financial statements of Kerry Group plc for the financial year
ended 31 December 2024 were approved by the Board of Directors and authorised
for issue on 17 February 2025 and will be filed with the Registrar of
Companies following the annual general meeting. The statutory financial
statements of Kerry Group plc for the financial year ended 31 December 2023,
to which an unqualified audit opinion was received, were annexed to the annual
return and filed with the Registrar of Companies.
FINANCIAL DEFINITIONS
Kerry uses a number of financial and non-financial key performance indicators
(KPIs) to measure performance across its business. These KPIs help inform
decision making, assist effective goal setting and track progress in achieving
the Group's strategic objectives. Kerry believes that long-term sustainable
success will be achieved by generating value for all stakeholders, while
developing and monitoring strategy, managing the risks that face the
organisation and embedding the Group's purpose and values. Principal financial
definitions used by the Group, together with reconciliations where the
non-IFRS measures are not readily identifiable from the financial statements,
are as follows:
1. Revenue
Volume performance
This represents the sales performance year-on-year, excluding pass-through
pricing on input costs, currency impacts, acquisitions, disposals and
rationalisation volumes.
Volume performance is an important metric as it is seen as the key driver of
organic top-line business improvement. Pricing therefore impacts revenue
performance positively or negatively depending on whether input costs move up
or down. A full reconciliation to reported revenue performance is detailed in
the revenue reconciliation below.
Revenue Reconciliation
Reported
Volume Transaction Translation revenue
2024 performance Price currency Acquisitions Disposals currency performance
Taste & Nutrition 3.4% (2.1%) 0.2% 0.8% (1.8%) (1.2%) (0.7%)
Dairy Ireland - discontinued operations 1.6% 2.2% 0.3% - (2.3%)* 0.7% 2.5%
Group 3.3% (1.9%) 0.2% 0.7% (1.9%) (0.9%) (0.5%)
2023
Taste & Nutrition 1.1% 1.1% - 1.2% (6.0%) (3.4%) (6.0%)
Dairy Ireland - discontinued operations (6.5%) (9.3%) (0.1%) - - (0.7%) (16.6%)
Group (0.9%) (0.7%) - 1.0% (5.1%) (2.9%) (8.6%)
* Reduction in revenue reflects changes in contractual arrangements
implemented in the current year, where Dairy Ireland has become an agent, in
accordance with IFRS 15 'Revenue from Contracts with Customers'. The related
revenue in 2024 amounted to €2.7m (2023: €32.5m).
2. EBITDA
EBITDA represents profit after taxation before finance income and costs,
income taxes, depreciation (net of capital grant amortisation), intangible
asset amortisation, non-trading items and share of joint ventures' results
after taxation. EBITDA is reflective of underlying trading performance and
allows comparison of the trading performance of the Group's businesses, either
year-on-year or with other businesses.
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
Profit after taxation 673.4 61.0 734.4 700.7 27.4 728.1
Share of joint ventures' results after taxation 0.9 - 0.9 1.9 - 1.9
Finance income (34.8) - (34.8) (21.8) - (21.8)
Finance costs 88.3 0.4 88.7 71.8 0.3 72.1
Income taxes 105.0 2.4 107.4 89.7 4.8 94.5
Non-trading items 55.8 (24.2) 31.6 (8.1) (0.7) (8.8)
Intangible asset amortisation 87.6 0.2 87.8 79.3 0.2 79.5
Depreciation (net) 211.8 23.0 234.8 198.2 21.4 219.6
EBITDA 1,188.0 62.8 1,250.8 1,111.7 53.4 1,165.1
3. EBITDA Margin
EBITDA margin represents EBITDA expressed as a percentage of revenue.
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
EBITDA 1,188.0 62.8 1,250.8 1,111.7 53.4 1,165.1
Revenue 6,929.1 1,051.5 7,980.6 6,974.9 1,045.4 8,020.3
EBITDA margin 17.1% 6.0% 15.7% 15.9% 5.1% 14.5%
4. Operating Profit
Operating profit is profit before income taxes, finance income, finance costs
and share of joint ventures' results after taxation.
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
Profit before taxation 778.4 63.4 841.8 790.4 32.2 822.6
Finance income (34.8) - (34.8) (21.8) - (21.8)
Finance costs 88.3 0.4 88.7 71.8 0.3 72.1
Share of joint ventures' results after taxation 0.9 - 0.9 1.9 - 1.9
Operating profit 832.8 63.8 896.6 842.3 32.5 874.8
5. Group Income Statement
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
€'m €'m €'m €'m €'m €'m
External revenue 6,879.0 1,101.6 7,980.6 6,936.7 1,083.6 8,020.3
Inter-segment revenue 50.1 (50.1) - 38.2 (38.2) -
Revenue 6,929.1 1,051.5 7,980.6 6,974.9 1,045.4 8,020.3
EBITDA 1,188.0 62.8 1,250.8 1,111.7 53.4 1,165.1
Depreciation (net) (211.8) (23.0) (234.8) (198.2) (21.4) (219.6)
Intangible asset amortisation (87.6) (0.2) (87.8) (79.3) (0.2) (79.5)
Non-trading items (55.8) 24.2 (31.6) 8.1 0.7 8.8
Operating profit 832.8 63.8 896.6 842.3 32.5 874.8
Finance income 34.8 - 34.8 21.8 - 21.8
Finance costs (88.3) (0.4) (88.7) (71.8) (0.3) (72.1)
Share of joint ventures' results after taxation (0.9) - (0.9) (1.9) - (1.9)
Profit before taxation 778.4 63.4 841.8 790.4 32.2 822.6
Income taxes (105.0) (2.4) (107.4) (89.7) (4.8) (94.5)
Profit after taxation 673.4 61.0 734.4 700.7 27.4 728.1
6. Adjusted Earnings Per Share and Performance in Adjusted Earnings Per Share
on a Constant Currency Basis
The performance in adjusted earnings per share on a constant currency basis is
provided as it is considered more reflective of the Group's underlying trading
performance. Adjusted earnings is profit after taxation attributable to equity
holders of the parent before brand related intangible asset amortisation and
non-trading items (net of related tax). These items are excluded in order to
assist in the understanding of underlying earnings. A full reconciliation of
adjusted earnings per share to basic earnings is provided below. Constant
currency eliminates the translational effect that arises from changes in
foreign currency year-on-year. The performance in adjusted earnings per share
on a constant currency basis is calculated by comparing current year adjusted
earnings per share to the prior year adjusted earnings per share retranslated
at current year average exchange rates.
2024 2023
EPS Performance EPS Performance
Continuing and Discontinued operations cent % cent %
Basic earnings per share 424.5 3.4% 410.4 20.0%
Brand related intangible asset amortisation 33.9 - 29.5 -
Non-trading items (net of related tax) 9.1 - (9.8) -
Adjusted earnings per share 467.5 8.7% 430.1 (2.4%)
Impact of retranslating prior year adjusted earnings per share at current year 1.0% 3.6%
average rates*
Growth in adjusted earnings per share on a constant currency basis 9.7% 1.2%
* Impact of 2024 translation was (4.4)/430.1 cent = 1.0% (2023: 3.6%).
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2024 2024 2024 2023 2023 2023
EPS EPS EPS EPS EPS EPS
cent cent cent cent cent cent
Basic earnings per share 389.2 35.3 424.5 395.0 15.4 410.4
Brand related intangible asset amortisation 33.8 0.1 33.9 29.5 - 29.5
Non-trading items (net of related tax) 25.2 (16.1) 9.1 (9.6) (0.2) (9.8)
Adjusted earnings per share 448.2 19.3 467.5 414.9 15.2 430.1
Adjusted EPS Growth (%) 8.0% 27.0% 8.7%
Impact of exchange rate translation* 1.1% (1.3%) 1.0%
Growth in adjusted earnings per share on a constant currency basis 9.1% 25.7% 9.7%
* Impact of 2024 translation for continuing operations was (4.6)/414.9 cent =
1.1%
* Impact of 2024 translation for discontinued operations was 0.2/15.2 cent =
(1.3%)
7. Free Cash Flow
Free cash flow is EBITDA plus movement in average working capital, capital
expenditure net (purchase of assets, payment of lease liabilities,
(outflow)/inflow from the sale of assets (net of disposal expenses) and
capital grants received), pensions contributions paid less pension expense,
finance costs paid (net) and income taxes paid.
Free cash flow is seen as an important indicator of the strength and quality
of the business and of the availability to the Group of funds for reinvestment
or for return to shareholders. Movement in average working capital is used
when calculating free cash flow as management believes this provides a more
accurate measure of the increase or decrease in working capital needed to
support the business over the course of the year rather than at two distinct
points in time and more accurately reflects fluctuations caused by seasonality
and other timing factors. Average working capital is the sum of each month's
working capital over 12 months adjusted for the impact of acquisitions and
disposals. Below is a reconciliation of free cash flow to the nearest IFRS
measure, which is 'Net cash from operating activities'.
2024 2023
Continuing and Discontinued operations €'m €'m
Net cash from operating activities 988.7 1,037.8
Difference between movement in monthly average working capital and movement in 72.3 (147.1)
the financial year end working capital
Payments on non-trading items 50.7 99.8
Purchase of assets (305.8) (281.9)
Payment of lease liabilities (40.8) (36.4)
(Outflow)/inflow from the sale of property, plant and equipment (5.6) 11.6
Capital grants received 2.3 3.3
Exchange translation adjustment 3.8 14.2
Free cash flow 765.6 701.3
8. Cash Conversion
Cash conversion is defined as free cash flow, expressed as a percentage of
adjusted earnings after taxation. Cash conversion is an important metric as it
measures how much of the Group's adjusted earnings is converted into cash.
2024 2023
Continuing and Discontinued operations €'m €'m
Free cash flow 765.6 701.3
Profit after taxation attributable to equity holders of the parent 734.4 728.3
Brand related intangible asset amortisation 58.6 52.3
Non-trading items (net of related tax) 15.8 (17.4)
Adjusted earnings after taxation 808.8 763.2
Cash Conversion 95% 92%
9. Liquidity Analysis
The Net debt:EBITDA and EBITDA:Net interest ratios disclosed are calculated
using an adjusted EBITDA, adjusted finance costs (net of finance income) and
an adjusted net debt value to adjust for the impact of acquisitions net of
disposals and deferred payments in relation to acquisitions.
2024 2023
Times Times
Net debt:EBITDA 1.6 1.5
EBITDA:Net interest 21.7 21.8
10. Average Capital Employed - continuing operations
Average capital employed is calculated by taking an average of the
shareholders' equity less vendor loan note relating to the Sweet Ingredients
Portfolio divestment and net debt over the last three reported balance sheets.
2024 H1 2024 2023 H1 2023 2022
€'m €'m €'m €'m €'m
Equity attributable to equity holders of the parent 6,485.8 6,512.8 6,521.3 6,356.5 6,221.9
Vendor loan note (124.6) (128.0) (124.3) (125.0) -
Net debt 1,925.8 1,843.9 1,604.1 1,846.5 2,217.4
Total capital employed 8,287.0 8,228.7 8,001.1 8,078.0 8,439.3
Average capital employed 8,172.3 8,172.8
11. Return on Average Capital Employed (ROACE)
This measure is defined as profit after taxation attributable to equity
holders of the parent before non-trading items (net of related tax), brand
related intangible asset amortisation and finance income and costs expressed
as a percentage of average capital employed. ROACE is a key measure of the
return the Group achieves on its investment in capital expenditure projects,
acquisitions and other strategic investments.
2024 2023
Continuing and Discontinued operations €'m €'m
Profit after taxation attributable to equity holders of the parent 734.4 728.3
Non-trading items (net of related tax) 15.8 (17.4)
Brand related intangible asset amortisation 58.6 52.3
Net finance costs 53.9 50.3
Adjusted profit 862.7 813.5
Average capital employed 8,172.3 8,172.8
Return on average capital employed 10.6% 10.0%
12. Total Shareholder Return
Total shareholder return represents the change in the capital value of Kerry
Group plc shares plus dividends in the financial year.
2024 2023
Share price (1 January) €78.66 €84.24
Interim dividend (cent) 38.1 34.6
Dividend paid (cent) 80.8 73.4
Share price (31 December) €93.25 €78.66
Total shareholder return 20.1% (5.3%)
13. Market Capitalisation
Market capitalisation is calculated as the share price times the number of
shares in issue.
2024 2023
Share price (31 December) €93.25 €78.66
Shares in issue ('000) 166,440.7 175,792.7
Market capitalisation (€'m) 15,520.6 13,827.9
14. Enterprise Value
Enterprise value is calculated as per external market sources. It is market
capitalisation plus reported borrowings less total cash and cash equivalents.
15. Net Debt
Net debt comprises borrowings and overdrafts, interest rate derivative
financial instruments, lease liabilities and cash at bank and in hand.
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