REG - Kerry Group PLC - Q1 Interim Management Statement 2026

KerryAnnouncement

30/04/2026 07:02

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RNS Number : 4752C  Kerry Group PLC  30 April 2026

 

 

 

 

30 April 2026

LEI: 635400TLVVBNXLFHWC59

 

Q1 Interim Management Statement 2026

Good Volume Growth and Margin Expansion.

FIRST QUARTER HIGHLIGHTS

 

 >      Volume growth of 3.1% - a strong market outperformance

 >      Pricing of -1.3% reflecting overall input cost deflation in the
 quarter

 >      EBITDA margin expansion of 60bps principally driven by
 Accelerate 2.0

 >      Net debt of €2.2bn

 >      Full year constant currency EPS guidance maintained

 

 Edmond Scanlon, Chief Executive Officer
 "We are pleased to deliver a good start to the year, with volume growth across
 all three regions and continued margin expansion.

 The volume growth we achieved in the first quarter was driven by continued
 strong growth and market outperformance in the Americas, with good growth in
 APMEA and a solid performance in Europe. We continued to deliver strong EBITDA
 margin expansion in the period, led by efficiencies delivered through our
 Accelerate 2.0 programme.

 Our extensive local footprint, unique technology capability, and the strength
 of our business model positions us well to navigate through this period of
 geopolitical and macroeconomic uncertainty, as we proactively support our
 customers as their innovation and renovation partner.

 While recognising the uncertainty around the ongoing geopolitical volatility,
 our business remains strongly positioned for volume growth and margin
 expansion."

 

Markets and Performance

Overall food and beverage end market volumes remained subdued through the
first quarter with a high level of market uncertainty given the macroeconomic
backdrop. There continued to be increased customer focus on product renovation
to address a variety of needs including enhancing product nutritional
profiles, cost optimisation, and supply chain challenges. Customer innovation
activity also increased in many markets, orientated towards high growth areas
including higher protein, proactive health and new format options.

Kerry's volume growth in the period remained significantly ahead of food and
beverage end markets, driven by good innovation activity in the foodservice
channel and continued product renovation activity in the retail channel. This
growth was achieved across a broad range of technologies, including savoury
taste, Tastesense™ salt and sugar reduction technologies, botanicals,
natural extracts, taste solutions for high-protein applications, enzymes and
bio-fermented ingredients.

Revenue for the period comprised good volume growth of 3.1%, an overall
pricing reduction of 1.3% reflective of input cost deflation, a reduction from
disposals net of acquisitions of 1.2%, and adverse translation currency of
7.9%, resulting in an overall reported revenue decrease of 7.3%. The adverse
translation currency impact was primarily driven by the significant weakening
of the US$ versus the Euro compared to the corresponding period last year and
based on prevailing exchange rates the foreign currency translation impact is
expected to be significantly lower for the remainder of the year. EBITDA
margin increased by 60bps primarily driven by Accelerate 2.0, combined with
benefits from operating leverage, product mix, net price, and disposals,
partially offset by an adverse translation currency impact.

Business Review

Continued strong end market outperformance and EBITDA margin expansion

>   Volume growth of 3.1%

>   Growth led by Meat, Snacks and Dairy

>   Pricing -1.3% reflected overall input cost deflation in places

>   EBITDA margin expansion of 60bps

The business delivered good volume growth in the period, particularly given
market conditions.

Foodservice continued its strong market outperformance with volume growth of
4.6%, driven by new menu innovations, seasonal products, and continued product
renovation. Growth in the retail channel was supported by continued product
renovation activity and innovation in high-growth areas with a range of
customers.

Growth in the period was led by Meat, Snacks and Dairy end markets. This was
supported by Kerry's leading capabilities across savoury taste and
Tastesense™ salt and sugar reduction technologies, and integrated solutions
incorporating Kerry's botanicals and natural extracts, fermentation derived
and enzymatic bio-fermentation portfolio and natural clean-label food
protection and preservation systems.

Business volumes in emerging markets increased by 4.4% in the period, led by a
strong performance in Africa. Within the Pharma & Other EUM, volume growth
was driven by cell nutrition.

The Accelerate 2.0 programme continued to progress as planned with footprint
optimisation in both North America and Europe. The expansion of Kerry's
digital initiatives also continued in line with plans across manufacturing
operations, commercial enablement activities and global business service
centres.

Americas Region

>   Volumes +3.4%

>   Growth led by Meat, Snacks and Dairy

>   Strong performance in foodservice with good growth in retail

>   LATAM achieved good growth led by Mexico

Strong volume growth was achieved in the period, reflecting good performances
in both North America and LATAM.

Within North America, strong growth was achieved in Meat, particularly in
poultry applications across both retail and foodservice, with launches of new
signature taste profiles, nutritional enhancements including salt reduction
and growth in natural preservation systems. Snacks delivered strong growth
through innovations utilising Kerry's range of savoury taste profiles and
Tastesense™ salt reduction technologies, as well as new innovation with
emerging brands focused on delivering science-backed health and wellness
claims. Growth in Dairy was driven by the strong performance of taste
technologies and enzymes.

In the retail channel, growth was supported by renovation activity across
global customers and retailer brands, while growth in the foodservice channel
was led by quick service and fast casual restaurants.

Within LATAM, strong growth was achieved in Mexico across the Snacks and
Beverage end markets.

Strategic investments in the region included beverage taste capacity and
capability enhancements in North America and the commencement of footprint
expansion for savoury taste capabilities in Mexico.

Europe Region

>   Volumes +0.4%

>   Growth led by Beverage and Dairy EUMs

>   Retail and foodservice broadly similar to overall volume performance

Volume performance in the period reflected continued subdued market conditions
given cautious consumer behaviour.

Good growth was achieved in Beverage supported by new refreshing beverage
innovations incorporating Kerry's integrated taste technologies, botanicals
and Tastesense™ sugar reduction. Performance in Dairy was supported by good
growth in taste and protein masking solutions, while category volumes in
Bakery were challenged.

Retail returned to growth in the period, with performance in foodservice led
by quick service restaurants and coffee chains.

Strategic investments in the region included expansion of Kerry's proactive
health capacity and capabilities in Spain.

APMEA Region

>   Volumes +4.6%

>   Growth led by Meat, Bakery and Snacks

>   Good growth in retail with solid growth in foodservice

Growth in the region was led by strong volume growth in Africa, a return to
growth in China, and solid performances across the Middle East and Southeast
Asia.

Strong growth was achieved in Meat through taste and texture systems across a
broad range of customers in both the retail and foodservice channels. Bakery
delivered good growth through solutions incorporating Kerry's taste, texture
and enzyme technologies, with strong customer reformulation activity. Volume
growth in Snacks was driven by continued strong performance in savoury taste
with leading global and regional customers.

Growth in the retail channel was driven by Kerry's range of local authentic
taste profiles, while growth in foodservice was driven by performance with
leading global and regional quick service restaurants.

Strategic investments in the region included the commencement of a new local
taste footprint expansion in Türkiye.

Financial Review

At the end of March, net debt was €2.2 billion reflecting cash generation,
capital investment and the share buyback programme. Kerry's consolidated
balance sheet remains strong, which will facilitate the continued strategic
development and growth of the business.

In February 2026, the Board approved a new Share Buyback Programme of up to
€300 million. The Share Buyback Programme is underpinned by the Group's
strong balance sheet and cash flow and is aligned to Kerry's Capital
Allocation Framework. The programme commenced on 17 February 2026 and will end
on 31 December 2026 at the latest. In the period from 17 February 2026 to 31
March 2026 the Company purchased shares at a total cost of €62.6m. The
previous €300m Share Buyback Programme initiated in June 2025 was completed
on 16 February 2026. In the period from January to end the of March, Kerry's
total share repurchases amounted to €105.2m.

As previously announced, Kerry has proposed a final dividend of 98.0 cent per share for approval at the Annual General Meeting.

Board Changes

As previously announced, Mr. Tom Moran will retire as Chair and as a Director
of the Company at the conclusion of the Annual General Meeting, to be
succeeded by Ms. Fiona Dawson.

Mr. Patrick Rohan, having served his three-year term of appointment, will
retire from the Board at the conclusion of the 2026 AGM and will not seek
re-election.

Future Prospects

Kerry's continued strong end market outperformance highlights the strength and
relevance of its strategic positioning across its markets, channels and
customer base.

The Group will continue to further advance its strategic business development,
while supporting its customers as their innovation and renovation partner.

While recognising the uncertainty around the ongoing geopolitical volatility,
Kerry remains strongly positioned for volume growth and margin expansion,
supported by a good innovation pipeline.

Kerry maintains its constant currency adjusted earnings per share guidance of
6% to 10% growth in 2026.

Note: Foreign currency translation expected to be a headwind of 3% on earnings
per share in 2026 | Guidance based on average number of shares in issue of
~160m.

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 45 930 000 | corpaffairs@kerry.com

   WEBSITE
   www.kerry.com

 

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