Kerry Group says local policy should limit any tariffs hit (updated)
18/02/2025 11:10
(Updates throughout with background, comments on financial
impact of tariffs, possible upside from U.S. food regulation)
DUBLIN, Feb 18 (Reuters) - Irish food ingredients
multinational Kerry Group KYGa.I has a policy of producing
locally that should protect against possible tariffs, its chief
executive said on Tuesday, but that it is too soon to gauge any
impact this year's performance.
U.S. President Donald Trump has said in recent days that he
would impose reciprocal tariffs on every country that charges
duties on U.S. imports, increasing fears of a global trade war.
"Because of the local nature of our business, we're probably
better positioned relative to many of our competitors," Chief
Executive Edmond Scanlon told Reuters in an interview.
"There might be a few challenges. There might be a few
opportunities as well."
Kerry Group, which operates a global network of food,
beverage, biotechnology and pharmaceutical ingredient
production, has long had a policy of producing products close to
customers, using mainly local raw materials.
Its annual results that showed the majority of 6.9 billion
euros ($7.2 billion) in revenue was earned in the Americas in
2024.
But Scanlon said it was impossible to say with confidence if
the company's financial forecasts might be thrown off by
tariffs.
"We're purely in the speculation zone at the moment," he
said.
Kerry said it expected adjusted earnings per share of 7-11%
this year, compared to 9.7% in 2024 on a constant currency
basis.
Asked about food regulation under the Trump administration,
Scanlon said Kerry would be well positioned to help food
producers roll out healthier offerings, with technologies to
reduce salt, sugar and fat.
"The overall philosophy seems to be, you know, Make America
Healthy Again. And I feel we're very well positioned to help
customers to make packaged food healthier."
Kerry has not seen any evidence of customers stocking up
ahead of possible tariffs, Scanlon added.
($1 = 0.9562 euros)
(Writing by Conor Humphries;
Editing by Alison Williams and Barbara Lewis)
((conor.humphries@thomsonreuters.com; +353 1 236 1915;))