Q3 Interim Management Statement 2026
22 October 2026
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Q3 Interim Management Statement 2026
Strong Q3 Volume Growth & Margin Expansion
Q3 YEAR-TO-DATE HIGHLIGHTS
> Volume growth of 3.6% (Q3: +4.1%) well ahead of end market growth
> Pricing of -0.6% (Q3: +0.2%)
> EBITDA margin expansion of 50bps primarily driven by Accelerate 2.0
> Share buyback - intention to initiate a further programme
> Full year constant currency EPS guidance maintained
Edmond Scanlon, Chief Executive Officer
"We are pleased to report a strong performance in the period, reflecting a further step-up in volume growth across all three regions in the third quarter, combined with continued strong margin expansion. The volume growth achieved in the third quarter reflects very strong growth in the Americas, a further step-up in APMEA and good growth in Europe. Growth in the period was led by good innovation activity in the foodservice channel and continued product renovation activity in the retail channel.
From a strategic perspective, we continued to develop our business, including further investment in our taste and biotechnology-enabled solutions capacity and capabilities across our regions. We made strong progress in our Accelerate 2.0 programme through continued footprint optimisation and digital excellence deployment. We recently held an investor day in Beloit, WI, where we provided further insight into our leading market positions and growth plans aligned to our newly announced 2030 targets.
While macro and geopolitical uncertainty continue to impact market conditions, our strong end market outperformance highlights the strength and relevance of our strategic positioning across our markets, channels and customer base. Our inbuilt business resiliency positions us well through this period, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline."
Markets and Performance
Kerry's level of end market volume outperformance increased in the third quarter, driven by continued customer innovation and renovation activity. Customer innovation activity increased in many markets, particularly in areas of higher consumer demand including new taste experiences, high protein and health & wellness. Customer renovation focus centred on addressing a variety of consumer needs across the customer base including improved nutritional profiles, enhanced taste, cost optimisation and supply chain challenges.
Volume growth in the period was achieved through Kerry's broad range of taste and biotechnology-enabled solutions, including savoury taste, Tastesense™ salt and sugar reduction technologies, botanicals, natural extracts, taste solutions for high-protein applications, bio-fermentation based preservation systems and enzymes.
Revenue for the first nine months of the year comprised of good volume growth of 3.6%, a net pricing reduction of 0.6% reflective of overall year-to-date input cost deflation, adverse transaction currency of 0.2%, a reduction from disposals net of acquisitions of 0.9% and adverse translation currency of 2.5%, resulting in a reported year-to-date revenue decrease of 0.6%. The adverse translation currency impact was primarily driven by the significant weakening of the US$ versus the Euro, and based on prevailing exchange rates the foreign currency translation impact is expected to be favourable for the remainder of the year.
Group EBITDA margin expansion of 50bps was primarily driven by Accelerate 2.0, combined with benefits from operating leverage and product mix, net price, and the positive impact from disposals, as well as reflecting increased investment in R&D and an adverse translation currency impact.
Business Review
Continued good volume progression and margin expansion
> Volume growth of 3.6% (Q3: +4.1%)
> Growth led by Snacks, Meat, Dairy and Beverage end use markets (EUMs)
> Pricing -0.6% (Q3: +0.2%) with deflation in H1 turning to inflation in Q3
> EBITDA margin expansion of 50bps
Volume growth in the first nine months of the year reflected continued strong end market outperformance and further progression across each of the three regions.
Growth was led by good activity in the Snacks, Meat, Dairy and Beverage end use markets. This was driven by Kerry's leading capabilities across savoury taste and Tastesense™ salt and sugar reduction technologies, integrated solutions incorporating Kerry's botanicals and natural extracts, enzymes and bio-fermentation based preservation systems.
Foodservice delivered strong volume growth of 5.0% in the period, driven by a range of new signature taste menu innovations, seasonal product launches, and solutions to address back-of-house complexity. Growth in the retail channel was supported by continued product renovation activity and innovation in high-growth areas across global, regional and local customers.
Business volumes in emerging markets increased by 4.9% in the period, reflecting good growth in the Middle East and Africa. Within the Pharma & Other EUM, performance was led by excipients.
The Accelerate 2.0 programme continued with good progress in footprint optimisation in both North America and Europe. Kerry's digital excellence deployment progressed well through the period, with the ongoing rollout of initiatives across manufacturing operations, commercial enablement activities and global business service centres.
Regional ReviewAmericas Region
> Volume growth of 4.0% (Q3: +4.6%) led by Snacks, Meat and Beverages EUMs
> Strong performance in foodservice with good growth in retail
> LATAM achieved good growth led by Mexico
Strong volume growth was achieved in the period, driven by very good performances in both North America and LATAM.
Within North America, strong growth was achieved in Snacks through innovations and renovations utilising Kerry's range of savoury taste profiles and Tastesense™ salt reduction technologies, as well as new innovations with emerging and retail brands.
Growth in Beverage was strong across both channels. This reflected strong performance of botanicals, natural extracts and Tastesense™ sugar reduction technologies in refreshing beverages, good growth in nutritional beverages through protein masking and science-backed health and wellness claims, as well as a range of coffee-based beverage innovations. Meat delivered good growth in poultry applications across both retail and foodservice, driven by launches with new signature taste profiles, nutritional enhancements and natural preservation systems.
The strong performance in foodservice was broad-based across established chains and emerging players scaling up their businesses in the channel. In the retail channel, growth was supported by renovation activity with global customers, emerging and retail brands.
Within LATAM, strong growth was achieved in Mexico across Snacks and Beverage end use markets.
Strategic investments in the region included beverage taste capacity and capability enhancements in North America and progression of footprint expansion for savoury taste capabilities in Mexico.
Europe Region
> Volume growth of 0.7% (Q3: +1.3%)
> Growth led by Beverage, Snacks and Dairy EUMs
> Retail and foodservice broadly similar to overall regional volume performance
Volume performance in the period reflected growth across both foodservice and retail channels, and continued growth progression in the third quarter.
Beverage achieved good growth supported by new refreshing beverage innovations and the performance of low / no alcohol solutions utilising Kerry's integrated taste technologies, botanicals and Tastesense™ sugar reduction technologies. Snacks delivered good growth driven by integrated savoury taste solutions, with performance in Dairy supported by good growth in taste and protein masking solutions. Performance in Meals and Bakery reflected challenged category volumes.
Strategic investments in the region included expansion of Kerry's proactive health capacity and capabilities in Spain.
APMEA Region
> Volume growth of 5.2% (Q3: +5.7%)
> Growth led by Dairy, Meat, Snacks and Bakery EUMs
> Growth led by retail, with foodservice performing well
Volume growth in the region increased across the first 9 months of the year. This was driven by strong growth in the Middle East and Africa, a good performance in South Asia Pacific and growth in China.
Strong growth was achieved in Dairy with enzymes and dairy taste solutions. Meat delivered a strong performance through taste and texture systems across a broad range of retail and foodservice customers. Volume growth in Snacks was led by continued strong performance in savoury taste with leading global and regional customers. Bakery delivered good growth through solutions incorporating Kerry's taste, texture and enzyme technologies, supported by customer reformulation activity.
Growth in the retail channel was driven by Kerry's range of local authentic taste profiles, with growth in foodservice led 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 and further footprint expansion in the Middle East region.
Financial Review and Share Buyback Programme
At the end of September, net debt was €2.4 billion reflecting cash generation, timing of capital investments and the share buyback programme. Kerry's balance sheet remains strong, which will facilitate the continued strategic development and growth of the business.
Aligned to the Group's Capital Allocation Framework, the Group intends to initiate a further share buyback programme of up to €300 million of Kerry Group plc ordinary shares post the completion of the existing programme. A formal announcement will be made prior to its launch.
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, as it supports its customers as their key innovation and renovation partner.
While recognising macro and geopolitical uncertainty, Kerry remains strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation 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 ~1% 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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