REG - Kerry Group PLC - KERRY GROUP INTERIM MANAGEMENT REPORT 2025
Wed 07:02
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RNS Number : 0807T Kerry Group PLC 30 July 2025
30 July 2025
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP PLC
Half Year Results 2025
Volume Growth and Strong Margin Expansion
HIGHLIGHTS(1)
> Group revenue increased to €3.5bn
> Volume growth of 3.0% (Q2: +3.0%)
> EBITDA margin increased by 100bps to 16.1% (Q2: +110bps)
> Group EBITDA of €556m (H1 2024: €517m)
> Adjusted EPS of 209.2 cent - up 9.8% on a constant currency basis
(7.8% reported growth)
> Free cash flow of €309m reflecting 89% cash conversion
> Interim dividend per share increase of 10.2% to 42.0 cent
> Full year constant currency adjusted EPS guidance maintained
(1) Continuing operations (post divestment of Kerry Dairy Ireland, which is
presented as discontinued operations in the financial statements). Adjusted
EPS growth is based on total adjusted group earnings in the prior year of
194.1 cent.
Edmond Scanlon, Chief Executive Officer
"The first half of the year reflected a good performance particularly given
market conditions, where we delivered volume growth and strong margin
expansion, driving constant currency EPS growth of 9.8%.
Volume growth was led by a strong performance in the Americas, with Europe in
line with expectations, and growth in APMEA reflective of variable market
dynamics. Our strong EBITDA margin expansion was driven by efficiencies
delivered through Accelerate Operational Excellence as well as portfolio and
product mix benefits.
We continued to strategically develop our business, including expanding our
capacity within APMEA and LATAM, and further investing in our taste and
bio-fermentation technology capabilities across the business.
Looking to the remainder of the year, while recognising a heightened level of
market uncertainty, we remain well positioned for volume growth and strong
margin expansion, as we continue to support our customers as an innovation and
renovation partner."
Markets and Performance
The demand environment across food and beverage markets remained soft through
the period, reflective of cautious consumer behaviour, given the level of
macroeconomic and geopolitical uncertainty across different geographies.
Customer innovation centred around new and differentiated flavour
combinations, products with functional health benefits and relative value
options. Renovation activity around enhancing nutritional characteristics of
products continued to be a key area of focus for customers, particularly in
the North American market.
Reported revenue increased by 1.3% to €3.5bn in the period, comprising
volume growth of 3.0%, pricing of 0.2%, a favourable transaction currency
impact of 0.3%, unfavourable translation currency of 1.9%, contribution from
acquisitions of 0.6% and the effect from disposals of 0.9%.
EBITDA increased by 7.5% to €556m, with EBITDA margin increasing by 100bps
to 16.1%, driven by benefits from the Accelerate Operational Excellence
programme, operating leverage, product mix, and the positive effect from
acquisitions and disposals.
Constant currency adjusted earnings per share increased by 9.8% to 209.2 cent
and an increase of 7.8% in reported currency. Basic earnings per share
increased by 9.4% to 182.4 cent.
Free cash flow was €309m with cash conversion of 89%(2) reflective of an
investment in working capital lapping a significantly favourable working
capital benefit in the comparative period (H1 2024: Free Cash Flow
€445m(3)). Cash generated from operations was €459m (H1 2024: €431m(3)).
The interim dividend of 42.0 cent per share reflects an increase of 10.2% over
the 2024 interim dividend. During the period, the Group repurchased €256m of
Kerry Group plc 'A' ordinary shares under its share buyback programmes.
(2) Cash conversion calculated based on average working capital.
(3) Note: H1 2024 includes Kerry Dairy Ireland.
Business Review
Continued strong end market outperformance
> Volume growth of 3.0%
> Growth led by Beverage, Bakery and Snacks EUMs
> Pricing of 0.2% reflected limited overall input cost inflation
Business volume growth in the period was well ahead of food and beverage end
markets, supported by continued product renovation activity in the retail
channel and continued innovation in the foodservice channel.
Growth in the period was led by Beverage, Bakery and Snacks end markets,
supported by strong growth in savoury taste and Tastesense(TM) salt and sugar
reduction technologies, as well as integrated solutions and Kerry's
botanicals, natural extracts and proactive health ingredients.
Volume growth in foodservice of 4.6% represented a significant channel
outperformance in the period, given soft traffic data. This growth was driven
by strong innovation activity including new menu items, seasonal launches and
continued product renovation. Growth in the retail channel was supported by a
step-up in retailer brand innovation and nutritional enhancement renovation
activity with a range of customers.
Business volumes in emerging markets increased by 5.6% in the period, led by a
strong performance in Southeast Asia and LATAM.
Within the Pharma & other EUM, volume growth was driven by cell nutrition
and proactive health ingredients for supplement applications.
Regional Review
Americas Region
H1 2025 Performance
Revenue €1,911m +3.7%(4)
EBITDA margin 18.5% +90bps
(4) volume performance
> Volume growth of +3.7% (Q2: +3.9%) led by Snacks, Bakery and
Beverage EUMs
> Retail achieved good growth with Foodservice performing well
> LATAM growth led by Brazil and Central America
> EBITDA margin increase driven by Accelerate Operational Excellence
benefits, operating leverage and product mix
Reported revenue in the region increased by 1.1% to €1,911m reflecting
volume growth of 3.7%, pricing of 0.1%, a favourable transaction currency
impact of 0.4%, an unfavourable translation currency impact of 3.2%,
contribution from acquisitions of 0.4% and the effect from disposals of 0.3%.
Growth in the first half of the year reflected good performances in both North
America and LATAM.
Within North America, Snacks delivered strong growth through innovations
utilising Kerry's range of savoury taste profiles and Tastesense(TM)
salt-reduction technologies with global and emerging brands, given continued
customer focus on improving the nutritional profiles of their products. Growth
in Bakery was driven by taste and texture solutions as well as enzymes, while
performance within the Meat end market reflected softer overall category
volumes. In Beverage, good performance was achieved within the refreshing and
low/no alcohol categories through botanicals and natural extracts. Business
developments within the region included the continued investment in
enhancement of coffee extraction capabilities for food and beverage taste
applications.
Within the retail channel, growth was supported by renovation activity across
customer and retailer brands, while foodservice growth was led by performance
with quick service and fast casual restaurants.
Within LATAM, strong growth was achieved in Brazil and Central America across
the Snacks and Meals end markets in particular.
Europe Region
H1 2025 Performance
Revenue €731m +0.2%(4)
EBITDA margin 15.2% +90bps
(4) volume performance
> Volume growth of +0.2% (Q2: +0.3%)
> Beverage and Bakery performed well
> Foodservice delivered good growth
> EBITDA margin increase primarily driven by Accelerate Operational
Excellence and portfolio benefits
Reported revenue in the region decreased by 0.4% to €731m reflecting volume
growth of 0.2%, pricing of 0.6%, a favourable translation currency impact of
0.4%, contribution from acquisitions of 1.4% and the effect from disposals of
3.0%.
Performance in the region was driven by growth in foodservice through seasonal
and new launch activity with quick service restaurants, while performance in
the retail channel reflected continued soft market dynamics.
Within Beverage, good growth was achieved in nutritional beverages with
Kerry's integrated taste technologies and proactive health ingredients. Growth
in Bakery was led by texture systems, with performance in Meals reflecting
softer overall market dynamics.
Business developments in the period included strong progress in the
development of the new Biotechnology Innovation Centre in Leipzig, Germany,
enzyme capacity expansion in Cork, Ireland, and the expansion of Kerry's cocoa
taste capabilities in Grasse, France.
APMEA Region
H1 2025 Performance
Revenue €821m +4.2%(4)
EBITDA margin 15.0% +60bps
(4) volume performance
> Volumes +4.2% (Q2: +3.2%)
> Bakery, Beverage and Meals delivered good growth
> Foodservice achieved very good growth with a solid performance in
retail
> EBITDA margin increase driven by Accelerate Operational Excellence
benefits, operating leverage and product mix
Reported revenue in the region increased by 3.3% to €821m, reflecting volume
growth of 4.2%, a pricing reduction of 0.1%, a favourable transaction currency
impact of 0.2%, an unfavourable translation currency impact of 1.0%,
contribution from acquisitions of 0.4% and the effect from disposals of 0.4%.
Performance in the region was primarily driven by strong growth in Southeast
Asia, solid growth in the Middle East and Africa, with volumes in China
remaining challenged.
Growth in Bakery was driven by food protection and preservation systems, as
well as reformulation activity in cocoa to address supply challenges. Beverage
continued to achieve good growth across refreshing, nutritional and functional
beverages through integrated solutions incorporating Kerry's natural extracts,
botanicals and Tastesense(TM) sugar reduction technologies with local and
regional customers. Performance in Meals was supported by growth in local
culinary taste innovations, while performance in Snacks was impacted by
disruption to order patterns during the period.
Foodservice delivered strong volume growth with leading regional coffee chains
and quick service restaurants, while growth in the retail channel was driven
by Kerry's range of local authentic taste profiles.
Business developments in the period included continued investment and
expansion of Kerry's local taste capacity in the Middle East and East Africa.
Financial Review
% H1 2025 H1 2024
change €'m €'m
Continuing operations
Revenue 1.3% 3,463.1 3,419.2
EBITDA 7.5% 555.9 517.2
EBITDA margin 16.1% 15.1%
Depreciation (net) (109.3) (101.6)
Computer software amortisation (17.9) (18.0)
Finance costs (net) (26.5) (27.8)
Share of joint ventures' results after taxation (0.9) (1.0)
Adjusted earnings before taxation 401.3 368.8
Income taxes (excluding non-trading items) (53.6) (49.5)
Adjusted earnings after taxation 347.7 319.3
Brand related intangible asset amortisation (29.6) (27.5)
Non-trading items (net of related tax) (15.0) (20.2)
Profit from continuing operations 303.1 271.6
Discontinued operations
Profit from discontinued operations - 19.9
Profit after taxation 303.1 291.5
Attributable to:
Equity holders of the parent - continuing operations 302.8 271.6
Equity holders of the parent - discontinued operations - 19.9
Non-controlling interests 0.3 -
303.1 291.5
EPS EPS
Continuing and Discontinued operations cent cent
Basic EPS 9.4% 182.4 166.7
Brand related intangible asset amortisation 17.8 15.8
Non-trading items (net of related tax) 9.0 11.6
Adjusted EPS 7.8% 209.2 194.1
Impact of exchange rate translation 2.0%
Adjusted EPS growth in constant currency 9.8%
See Financial Definitions section for definitions, calculations, and
reconciliations of Alternative Performance Measures.
Revenue
Continuing Group revenue for the period was €3,463.1m (H1 2024:
€3,419.2m), comprising volume growth of 3.0%, an overall pricing increase of
0.2%, favourable transaction currency of 0.3%, unfavourable translation
currency of 1.9%, contribution from acquisitions of 0.6% and the effect from
disposals of 0.9%, resulting in an overall increase of 1.3%. In Europe
disposal revenue primarily reflects the exit of a manufacturing agreement post
the finalisation of the Kerry Dairy Ireland separation in the current year.
Revenue Reconciliation
Continuing operations
Reported
Volume Transaction Translation revenue
H1 2025 performance Price currency Acquisitions Disposals currency performance
Europe 0.2% 0.6% - 1.4% (3.0%) 0.4% (0.4%)
APMEA 4.2% (0.1%) 0.2% 0.4% (0.4%) (1.0%) 3.3%
Americas 3.7% 0.1% 0.4% 0.4% (0.3%) (3.2%) 1.1%
Group 3.0% 0.2% 0.3% 0.6% (0.9%) (1.9%) 1.3%
EBITDA & Margin %
Group EBITDA on a continuing basis increased by 7.5% to €555.9m (H1 2024:
€517.2m). Continuing EBITDA margin of 16.1% (H1 2024: 15.1%) increased by
100bps primarily driven by the benefits from the Accelerate Operational
Excellence Programme, operating leverage, product mix and the positive effect
from portfolio developments.
Finance Costs (net)
Finance costs (net) were €26.5m (H1 2024: €27.8m). Interest income
increased year on year due to interest on the vendor loan note, fixed dividend
income from the retained investment in Kerry Dairy Ireland and higher deposit
interest rates on a higher cash balance, offset by interest on the €1bn
senior notes issued in September 2024.
Taxation
The tax charge for the period before non-trading items was €53.6m (H1 2024:
€49.5m) representing an effective tax rate of 14.4% (H1 2024: 14.5%) and is
reflective of the geographical mix of earnings.
Non-Trading Items
During the period, the Group incurred an overall non-trading charge of
€15.0m (H1 2024: €20.2m charge) net of tax. The charge in the period is
primarily related to the completion of the Accelerate Operational Excellence
Transformation Programme and the launch of the Accelerate 2.0 programme.
Foreign Exchange Rates
Group results are impacted year on year by fluctuations in exchange rates
versus the euro which resulted in an adverse translation impact of 1.9% on
revenue. The impact was more pronounced on the retranslation of net assets
primarily due to the weakening of the USD versus the EUR through the period.
The primary rates driving the currency impact on net assets were USD, CNY and
GBP which had closing rates of 1.17 (FY 2024: 1.04), 8.39 (FY 2024: 7.53) and
0.85 (FY 2024: 0.83) respectively.
Free Cash Flow
The Group achieved free cash flow of €308.6m (H1 2024: €445.4m) reflecting
89% cash conversion in the period.
Continuing and Discontinued operations H1 2025 H1 2024
Free Cash Flow €'m €'m
EBITDA 555.9 552.2
Movement in average working capital (65.6) 79.5
Pension contributions paid less pension expense (1.8) (2.4)
Finance costs paid (net) (11.5) (14.2)
Income taxes paid (47.8) (49.5)
Capital expenditure (net) (120.6) (120.2)
Free cash flow 308.6 445.4
Cash conversion 89% 131%
Cash conversion is free cash flow expressed as a percentage of adjusted
earnings after taxation.
H1 2024 includes Kerry Dairy Ireland which was divested on 31 December 2024.
Return on Average Capital Employed (ROACE)
Group ROACE at the period end was 10.7% (H1 2024: 10.3%) reflective of the
increase in profits in the period and the movement in average capital
employed.
Net Debt
Net debt at the end of the period was €2,055.8m (31 December 2024:
€1,925.8m). The increase relative to December reflects strong business cash
generation offset by the dividends and the Share Buyback Programme.
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.
Liquidity Analysis
The Group's balance sheet is in a strong position with a Net debt to EBITDA
ratio of 1.7 times.
H1 2025 H1 2024
Times Times
Net debt:EBITDA 1.7 1.6
EBITDA:Net interest 22.7 23.2
Principal Risks and Uncertainties
Details of the principal risks and uncertainties facing the Group can be found
in the 2024 Annual Report on pages 49 to 54 and continue to be the principal
risks and uncertainties facing the Group for the remaining six months of the
financial year. These risks include but are not limited to; portfolio
management, geopolitical, emerging markets and macroeconomic environment,
business acquisition and divestiture, climate change and environmental,
people, food safety and quality, healthy & safety, margin management,
cyber security and ICT resilience, operational and supply chain resilience,
intellectual property, legal, regulatory and ethical compliance, taxation and
treasury. The Group continues to manage the interdependency of these risks and
actively manages all risks through its control and risk management process.
Dividend
The Board has declared an interim dividend of 42.0 cent per share, compared to
the prior year interim dividend of 38.1 cent, payable on 7 November 2025 to
shareholders on the record date 10 October 2025.
Share Buyback Programme
In April 2025, 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 20 June 2025 and will end no
later than 27 February 2026. In the period from 20 June 2025 to 30 June 2025
the Company purchased 144,699 shares at a total cost of €13.5m.
The previous Share Buyback Programme announced in November 2024, commenced on
12 November 2024, and was completed on 20 June 2025. In the period to 30 June
2025, the Company acquired 2,537,893 shares at a cost of €242.7m resulting
in a total number of shares acquired as part of this programme of 3,181,972 at
a total cost of €300.3m including transaction costs of €0.3m.
Board & Management Changes
The Board announces the intention of Mr. Gerry Behan to retire from his
position at Kerry Group plc and as an Executive Board Director as of 31
December 2025, and over the coming months will be transitioning his
responsibilities to members of the Executive leadership team. Chairman Tom
Moran commented "on behalf of the Board, I would like to extend our gratitude
to Gerry for his exceptional contribution to the growth and development of
Kerry across a long and distinguished career since joining in 1986, and we
wish him the very best for the future".
Future Prospects
Kerry's strong end market outperformance in the first half of the year
demonstrates the strength of its strategic positioning within its markets,
channels and across its customer base.
Looking to the remainder of the year, while recognising a heightened level of
market uncertainty, Kerry remains well positioned for volume growth and strong
margin expansion, as it supports its customers as an innovation and renovation
partner.
Kerry expects volume growth for the full year to be similar to the first half,
with margin expansion in the second half ahead of expectations, and maintains
its constant currency adjusted earnings per share guidance of 7% to 11% growth
in the full year.
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 headwind of 4%-5% on adjusted earnings
per share in 2025 | Guidance based on average number of shares in issue of
~165m.
Responsibility Statement
The Directors are responsible for preparing the Half Yearly Financial Report
in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007
as amended ('the Regulations'), the Central Bank (Investment Market Conduct)
Rules 2019, the Disclosure Guidance and Transparency Rules of the UK's
Financial Conduct Authority and with IAS 34 'Interim Financial Reporting' as
issued by IASB and as adopted by the European Union.
The Directors confirm that to the best of their knowledge:
> the Group Condensed Consolidated Interim Financial Statements for the
half year ended 30 June 2025 have been prepared in accordance with the
international accounting standard applicable to interim financial reporting
adopted pursuant to the procedure provided for under Article 6 of the
Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of
19 July 2002;
> the Interim Management Report includes a fair review of the
important events that have occurred during the first six months of the
financial year, and their impact on the Group Condensed Consolidated Interim
Financial Statements for the half year ended 30 June 2025, and a description
of the principal risks and uncertainties for the remaining six months; and
> the Interim Management Report includes a fair review of the related
party transactions that have occurred during the first six months of the
current financial year and that have materially affected the financial
position or the performance of the Group during that period, and any changes
in the related parties' transactions described in the last Annual Report that
could have a material effect on the financial position or performance of the
Group in the first six months of the current financial year.
On behalf of the Board
Edmond Scanlon Marguerite Larkin
Chief Executive Officer Chief Financial Officer
29 July 2025
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 45 931 000 | corpaffairs@kerry.com
WEBSITE
www.kerry.com
RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2025
Kerry Group plc
Condensed Consolidated Income Statement
for the half year ended 30 June 2025
Before Re-presented*
Non-Trading Non-Trading Half year Half year Year
Items Items ended ended ended
30 June 2025 30 June 2025 30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Unaudited Unaudited Audited
Notes €'m €'m €'m €'m €'m
Continuing operations
Revenue 2 3,463.1 - 3,463.1 3,419.2 6,929.1
Earnings before interest, tax, depreciation and amortisation 2 555.9 - 555.9 517.2 1,188.0
Depreciation (net) and intangible asset amortisation 2 (156.8) - (156.8) (147.1) (299.4)
Non-trading items 3 - (18.1) (18.1) (24.3) (55.8)
Operating profit 399.1 (18.1) 381.0 345.8 832.8
Finance income 5 23.9 - 23.9 11.4 34.8
Finance costs 5 (50.4) - (50.4) (39.2) (88.3)
Share of joint ventures' results after taxation (0.9) - (0.9) (1.0) (0.9)
Profit before taxation 371.7 (18.1) 353.6 317.0 778.4
Income taxes (53.6) 3.1 (50.5) (45.4) (105.0)
Profit from continuing operations 318.1 (15.0) 303.1 271.6 673.4
Discontinued operations
Profit from discontinued operations - - - 19.9 61.0
Profit after taxation 318.1 (15.0) 303.1 291.5 734.4
Attributable to:
Equity holders of the parent - continuing operations 302.8 271.6 673.4
Equity holders of the parent - discontinued operations - 19.9 61.0
Non-controlling interests 0.3 - -
303.1 291.5 734.4
Earnings per A ordinary share - attributable to equity holders of the parent Cent Cent Cent
Basic Earnings Per Share (cent)
Continuing operations 6 182.4 155.4 389.2
Discontinued operations 6 - 11.3 35.3
182.4 166.7 424.5
Diluted Earnings Per Share (cent)
Continuing operations 6 182.0 155.2 388.6
Discontinued operations 6 - 11.3 35.2
182.0 166.5 423.8
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
Condensed Consolidated Statement of Comprehensive Income
for the half year ended 30 June 2025
Re-presented*
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Profit after taxation 303.1 291.5 734.4
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss:
Fair value movements on cash flow hedges 2.2 6.3 1.8
Cash flow hedges - reclassified to profit or loss from equity (0.2) (0.3) (1.9)
Net change in cost of hedging 0.6 0.3 0.6
Deferred tax effect of fair value movements on cash flow hedges (0.3) (1.0) (0.5)
Exchange difference on translation of foreign operations
- Continuing operations (493.6) 90.6 206.9
- Discontinued operations - 0.3 -
Cumulative exchange difference on translation recycled on disposal
- Continuing operations - - 0.4
- Discontinued operations - - (0.6)
Items that will not be reclassified subsequently to profit or loss:
Re-measurement on retirement benefits obligation (8.7) 9.8 10.8
Deferred tax effect of re-measurement on retirement benefits obligation 0.9 (2.4) (2.9)
Net (expense)/income recognised directly in total other comprehensive income (499.1) 103.6 214.6
Total comprehensive (expense)/income (196.0) 395.1 949.0
Attributable to:
Equity holders of the parent - continuing operations (196.3) 374.9 888.6
Equity holders of the parent - discontinued operations - 20.2 60.4
Non-controlling interests - continuing operations 0.3 - -
(196.0) 395.1 949.0
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
Condensed Consolidated Balance Sheet
as at 30 June 2025
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
Notes €'m €'m €'m
Non-current assets
Property, plant and equipment 1,961.0 2,199.7 2,106.7
Intangible assets 5,466.5 5,859.4 5,778.1
Financial asset investments 52.9 52.4 59.2
Investments in joint ventures 38.0 38.8 38.9
Other non-current financial instruments 8 295.9 138.3 295.7
Retirement benefits asset 9 92.5 100.3 100.7
Deferred tax assets 93.6 82.9 93.3
8,000.4 8,471.8 8,472.6
Current assets
Inventories 995.4 1,185.0 1,050.7
Trade and other receivables 1,123.4 1,380.3 1,235.5
Cash at bank and in hand 10 1,460.0 659.5 1,610.0
Other current financial instruments 31.4 5.3 113.6
Tax assets 23.1 - 26.6
Assets classified as held for sale 1.0 1.1 3.5
3,634.3 3,231.2 4,039.9
Total assets 11,634.7 11,703.0 12,512.5
Current liabilities
Trade and other payables 1,518.1 1,904.6 1,742.5
Borrowings and overdrafts 10 950.8 0.4 950.3
Other current financial instruments 12.9 8.8 32.3
Tax liabilities 173.8 165.4 179.0
Provisions 5.9 13.0 7.0
Deferred income 1.0 4.3 1.0
2,662.5 2,096.5 2,912.1
Non-current liabilities
Borrowings 10 2,484.2 2,434.1 2,482.7
Other non-current financial instruments 10 - 13.6 0.5
Retirement benefits obligation 9 28.1 40.4 33.4
Other non-current liabilities 101.1 123.4 134.2
Deferred tax liabilities 388.6 410.5 400.9
Provisions 50.5 55.8 50.6
Deferred income 10.3 14.4 10.8
3,062.8 3,092.2 3,113.1
Total liabilities 5,725.3 5,188.7 6,025.2
Net assets 5,909.4 6,514.3 6,487.3
Equity
Share capital 12 20.5 21.5 20.8
Share premium 398.7 398.7 1,879.2
Other reserves (264.1) 68.5 205.6
Retained earnings 5,752.5 6,024.1 4,380.2
Equity attributable to equity holders of the parent 5,907.6 6,512.8 6,485.8
Non-controlling interests 1.8 1.5 1.5
Total equity 5,909.4 6,514.3 6,487.3
Condensed Consolidated Statement of Changes in Equity
for the half year ended 30 June 2025
Attributable to equity holders of the parent
Non-
Share Share Other Retained Controlling Total
Capital Premium Reserves Earnings Total Interests Equity
Notes €'m €'m €'m €'m €'m €'m €'m
Group:
At 1 January 2024 21.9 398.7 (44.6) 6,145.3 6,521.3 1.5 6,522.8
Profit after taxation - - - 291.5 291.5 - 291.5
Other comprehensive income - - 97.2 6.4 103.6 - 103.6
Total comprehensive income - - 97.2 297.9 395.1 - 395.1
Shares (purchased)/cancelled during the financial period (0.4) - 0.4 (278.7) (278.7) - (278.7)
Dividends paid 7 - - - (140.4) (140.4) - (140.4)
Share-based payment expense - - 15.5 - 15.5 - 15.5
At 30 June 2024 - unaudited 21.5 398.7 68.5 6,024.1 6,512.8 1.5 6,514.3
Profit after taxation - - - 442.9 442.9 - 442.9
Other comprehensive income - - 110.0 1.0 111.0 - 111.0
Total comprehensive income - - 110.0 443.9 553.9 - 553.9
Shares issued during the financial period 2.1 1,480.5 - - 1,482.6 - 1,482.6
Shares (purchased)/cancelled during the financial period (2.8) - 2.8 (2,023.0) (2,023.0) - (2,023.0)
Dividends paid 7 - - - (64.8) (64.8) - (64.8)
Share-based payment expense - - 24.3 - 24.3 - 24.3
At 31 December 2024 - audited 20.8 1,879.2 205.6 4,380.2 6,485.8 1.5 6,487.3
Profit after taxation - - - 302.8 302.8 0.3 303.1
Other comprehensive expense - - (491.0) (8.1) (499.1) - (499.1)
Total comprehensive (expense)/income - - (491.0) 294.7 (196.3) 0.3 (196.0)
Shares issued during the financial period - - - - - - -
Shares (purchased)/cancelled during the financial period (0.3) - 0.3 (255.9) (255.9) - (255.9)
Share premium reduction 13 - (1,480.5) - 1,480.5 - - -
Dividends paid 7 - - - (147.0) (147.0) - (147.0)
Share-based payment expense - - 21.0 - 21.0 - 21.0
At 30 June 2025 - unaudited 20.5 398.7 (264.1) 5,752.5 5,907.6 1.8 5,909.4
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 2024 1.9 0.3 151.9 (201.5) 4.2 (1.4) (44.6)
Other comprehensive income - - - 90.9 6.0 0.3 97.2
Shares cancelled during the financial period 0.4 - - - - - 0.4
Share-based payment expense - - 15.5 - - - 15.5
At 30 June 2024 - unaudited 2.3 0.3 167.4 (110.6) 10.2 (1.1) 68.5
Other comprehensive income/(expense) - - - 115.8 (6.1) 0.3 110.0
Shares cancelled during the financial period 2.8 - - - - - 2.8
Share-based payment expense - - 24.3 - - - 24.3
At 31 December 2024 - audited 5.1 0.3 191.7 5.2 4.1 (0.8) 205.6
Other comprehensive (expense)/income - - - (493.6) 2.0 0.6 (491.0)
Shares cancelled during the financial period 0.3 - - - - - 0.3
Share-based payment expense - - 21.0 - - - 21.0
At 30 June 2025 - unaudited 5.4 0.3 212.7 (488.4) 6.1 (0.2) (264.1)
Condensed Consolidated Statement of Cash Flows
for the half year ended 30 June 2025
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
Notes €'m €'m €'m
Cash flows from operating activities
Profit before taxation 353.6 340.5 841.8
Adjustments for:
Depreciation (net) 109.3 113.0 234.8
Intangible asset amortisation 47.5 45.6 87.8
Share of joint ventures' results after taxation 0.9 1.0 0.9
Non-trading items income statement charge 3 18.1 24.3 31.6
Finance costs (net) 4/5 26.5 27.8 53.9
Change in working capital (86.9) (87.6) (43.4)
Pension contributions paid less pension expense (1.8) (2.4) (12.1)
Payments on non-trading items (12.2) (27.2) (50.7)
Exchange translation adjustment 3.6 (4.3) (3.8)
Cash generated from operations 458.6 430.7 1,140.8
Income taxes paid (47.8) (49.5) (108.2)
Finance income received 14.8 6.6 23.8
Finance costs paid (26.3) (20.8) (67.7)
Net cash from operating activities 399.3 367.0 988.7
Investing activities
Purchase of assets (101.2) (103.4) (305.8)
Inflow/(outflow) from the sale of assets (net of disposal expenses) 3/4 0.4 - (5.6)
Capital grants received 0.1 - 2.3
Purchase of businesses (net of cash acquired) 11 (14.8) (78.4) (166.4)
Payments relating to previous acquisitions - (0.1) (1.6)
Purchase of investments - (1.8) (1.8)
Disposal of businesses (net of disposal expenses) 42.8 (6.8) (27.7)
Net cash used in investing activities (72.7) (190.5) (506.6)
Financing activities
Dividends paid 7 (147.0) (140.4) (205.2)
Purchase of own shares 12 (255.9) (278.7) (556.5)
Payment of lease liabilities (19.9) (16.8) (40.8)
Issue of share capital 12 - - -
Repayment of borrowings - (2.4) (2.5)
Cash inflow from interest rate swaps on repayment of borrowings - - 3.3
Proceeds from borrowings - - 994.0
Net cash movement due to financing activities (422.8) (438.3) 192.3
Net (decrease)/increase in cash and cash equivalents (96.2) (261.8) 674.4
Cash and cash equivalents at beginning of the period 1,607.6 909.0 909.0
Exchange translation adjustment on cash and cash equivalents (52.3) 11.9 24.2
Cash and cash equivalents at end of the period 10 1,459.1 659.1 1,607.6
Reconciliation of Net Cash Flow to Movement in Net Debt
Net (decrease)/increase in cash and cash equivalents (96.2) (261.8) 674.4
Cash flow from debt financing - 2.4 (994.8)
Changes in net debt resulting from cash flows (96.2) (259.4) (320.4)
Fair value movement on interest rate swaps (net of adjustment to borrowings) - 10.3 3.4
Exchange translation adjustment on net debt (31.7) 6.2 13.3
Movement in net debt in the financial period (127.9) (242.9) (303.7)
Net debt at beginning of the financial period - pre lease liabilities (1,839.2) (1,535.5) (1,535.5)
Net debt at end of the financial period - pre lease liabilities (1,967.1) (1,778.4) (1,839.2)
Lease liabilities (88.7) (65.5) (86.6)
Net debt at end of the period 10 (2,055.8) (1,843.9) (1,925.8)
Notes to the Condensed Consolidated Interim Financial Statements
for the half year ended 30 June 2025
1. Accounting policies
These Condensed Consolidated Interim Financial Statements for the half year
ended 30 June 2025 have been prepared in accordance with IAS 34 'Interim
Financial Reporting'. The Group year end financial statements have 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 and Company law. The accounting policies applied by the Group in
these Condensed Consolidated Interim Financial Statements are the same as
those detailed in the 2024 Annual Report.
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, and the results at 30 June 2024 have been presented within profit
from discontinued operations in the Consolidated Income Statement.
In preparing the Group Condensed Consolidated Interim Financial Statements,
the significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those applied to the Consolidated Financial Statements for the year
ended 31 December 2024.
Segmental analysis
Effective 1 January 2025, the Group's reportable segments changed from two to
the following three segments: Europe, Americas and APMEA (Asia Pacific, Middle
East and Africa), following the sale of Kerry Dairy Ireland in 2024. The
Americas operating and reportable segment is an aggregate of the North America
and LATAM operating segments which share similar economic characteristics.
Judgement has been applied in concluding that these operating segments share
similar economic characteristics, which is supported by the assessment that
these operating segments share similar EBITDA margins, products, production
processes, type of customers and distribution channels. In the Group's
financial reporting for 2025, comparative information for 2024 has been
restated to reflect the changes in reportable segments. Operating segments are
reported in a manner consistent with the internal financial information
provided to the Group's Chief Operating Decision Maker (the Executive
Directors) who is responsible for making strategic decisions, allocating
resources, monitoring and assessing the performance of each segment. EBITDA by
segment is the key measure utilised in assessing the performance of operating
segments within the Group. Other Corporate activities, such as the cost of
corporate stewardship, are reported under the heading 'Unallocated Corporate'.
Non-trading items, net finance costs, income taxes, borrowings, deferred tax
balances and intangible assets are managed on a centralised basis and
therefore, these items are not allocated between operating segments and are
not reported per segment in note 2.
Going concern
The Group Condensed Consolidated Interim 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 as outlined in note 10 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.
The Directors report that they have satisfied themselves that the Group is a
going concern, having adequate resources to continue in operational existence
for the foreseeable future. In forming this view, the Directors have reviewed
the Group's forecast for a period not less than 12 months, the medium-term
plan and its cashflow implications have been taken into account including
proposed capital expenditure, and compared these with the Group's committed
borrowing facilities and projected gearing ratios.
The following Amendments are effective for the Group from 1 January 2025 but Effective Date
do not 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
The Group is currently evaluating the impact of the following Standards and Effective Date
Amendments on future periods:
- IFRS 7 & IFRS 9 (Amendments) Classification and Measurement of Financial Instruments 1 January 2026
- IFRS 7 & IFRS 9 (Amendments) Contracts referencing Nature-dependent Electricity 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 30 June 2025 and comparative periods, the Group has
determined it has three operating segments: Europe, Americas and APMEA which
are leading providers of taste and nutrition solutions for the food, beverage
and pharmaceutical markets. The Group utilises a broad range of ingredient
solutions to innovate with its customers to create great tasting products,
with improved nutrition and functionality, while ensuring a better impact for
the planet. Kerry is driven to be its customers' most valued partner, creating
a world of sustainable nutrition.
Following the sale of Kerry Dairy Ireland (which formed the Dairy Ireland
segment) as described in note 4, effective from 2025 the Group's reportable
segments have changed from two to the following three segments: Europe,
Americas and APMEA. This realignment reflects the way resources are allocated
and performance is assessed by the Chief Operating Decision Maker from 2025
following the discontinuation of the Dairy Ireland segment. In the tables
below, comparative information for 2024 have been restated to reflect the
changes in reportable segments and the impact of discontinued operations.
Half year ended 30 June 2025 - Unaudited Half year ended 30 June 2024 - Unaudited Year ended 31 December 2024 - Unaudited
Unallocated Unallocated Unallocated
Europe Americas APMEA Corporate Total Europe Americas APMEA Corporate Total Europe Americas APMEA Corporate Total
€'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m
Revenue 731.4 1,910.9 820.8 - 3,463.1 734.6 1,890.2 794.4 - 3,419.2 1,504.5 3,763.5 1,661.1 - 6,929.1
EBITDA* 111.0 352.7 123.1 (30.9) 555.9 105.0 332.3 114.0 (34.1) 517.2 250.0 741.1 265.0 (68.1) 1,188.0
Depreciation (net) (20.9) (58.1) (29.5) (0.8) (109.3) (18.7) (54.5) (27.1) (1.3) (101.6) (43.8) (116.5) (51.2) (0.3) (211.8)
Intangible asset - - - (47.5) (47.5) - - - (45.5) (45.5) - - - (87.6) (87.6)
amortisation
Non-trading items - - - (18.1) (18.1) - - - (24.3) (24.3) - - - (55.8) (55.8)
Operating profit 90.1 294.6 93.6 (97.3) 381.0 86.3 277.8 86.9 (105.2) 345.8 206.2 624.6 213.8 (211.8) 832.8
Finance income 23.9 11.4 34.8
Finance costs (50.4) (39.2) (88.3)
Share of joint ventures' results after taxation (0.9) (1.0) (0.9)
Profit before taxation 353.6 317.0 778.4
Income taxes (50.5) (45.4) (105.0)
Profit after taxation from continuing operations 303.1 271.6 673.4
Profit after taxation from discontinued operations - 19.9 61.0
Profit after taxation 303.1 291.5 734.4
Attributable to:
Equity holders of the parent - continuing operations 302.8 271.6 673.4
Equity holders of the parent - discontinued operations - 19.9 61.0
Non-controlling interests 0.3 - -
303.1 291.5 734.4
* EBITDA represents profit before taxation and before finance income and
costs, depreciation (net of capital grant amortisation), intangible asset
amortisation, non-trading items and share of joint ventures' results after
taxation.
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 by 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
Half year ended 30 June 2025 - Unaudited Half year ended 30 June 2024 - Unaudited Year ended 31 December 2024 - Unaudited
Europe Americas APMEA Total Europe Americas APMEA Total Europe Americas APMEA Total
€'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m €'m
Food 527.3 1,198.3 523.6 2,249.2 547.5 1,185.5 512.1 2,245.1 1,132.6 2,371.7 1,066.4 4,570.7
Beverage 137.6 561.4 258.7 957.7 128.5 554.3 240.2 923.0 252.5 1,090.3 515.5 1,858.3
Pharma & other 66.5 151.2 38.5 256.2 58.6 150.4 42.1 251.1 119.4 301.5 79.2 500.1
Revenue 731.4 1,910.9 820.8 3,463.1 734.6 1,890.2 794.4 3,419.2 1,504.5 3,763.5 1,661.1 6,929.1
Analysis by primary geographic market
Disaggregation of revenue from external customers is analysed by geographical
split, refer to the first table.
Revenues from external customers in Europe include €48.4m (30 June 2024:
€37.4m; 31 December 2024: €92.3m) in the Republic of Ireland.
Under IFRS 15 'Revenue from Contracts with Customers' revenue is primarily
recognised at a point in time. Revenue recorded over time during the period
was not material to the Group.
3. Non-trading items
Re-presented*
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
Notes €'m €'m €'m
Acquisition integration costs (i) (3.1) (2.9) (4.8)
Accelerate Operational Excellence (ii) (12.2) (22.3) (43.3)
(15.3) (25.2) (48.1)
(Loss)/profit on disposal of businesses and assets (iii) (2.8) 0.9 (7.7)
Non-trading items (before tax) (18.1) (24.3) (55.8)
Tax on above 3.1 4.1 12.2
Non-trading items (net of related tax) - continuing operations (15.0) (20.2) (43.6)
Profit on disposal of businesses and assets - discontinued operations (iv) - - 24.2
Tax on above - - 3.6
Non-trading items (net of related tax) - discontinued operations - - 27.8
Non-trading items (net of related tax) - total (15.0) (20.2) (15.8)
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
(i) Acquisition integration costs
These costs of €3.1m (30 June 2024: €2.9m; 31 December 2024: €4.8m)
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 €0.6m (30 June 2024: €0.4m; 31 December
2024: €0.9m) arose due to tax deductions available on acquisition related
costs.
(ii) Accelerate Operational Excellence
These costs of €12.2m (30 June 2024: €22.3m; 31 December 2024: €43.3m)
predominantly reflect cost of streamlining operations, project management
costs and consultancy fees incurred in the period relating to the completion
of the Accelerate Operational Excellence transformation programme and the
launch of the Accelerate 2.0 programme, which will focus on footprint
optimisation and enabling digital excellence across the organisation. Under
footprint optimisation the Group will be leveraging the capacity utilisation
benefits realised under the Accelerate Operational Excellence programme to
support in the reduction of its manufacturing footprint across all regions
aligned to the Group's business development and growth ambitions. Kerry
Digital Excellence will focus on driving enhanced business performance and
productivity through digital enablement initiatives across operations, global
business services, commercial and research & development. A tax credit of
€2.4m (30 June 2024: €4.1m; 31 December 2024: €9.3m) arose due to tax
deductions available on accelerate operational excellence costs.
(iii) (Loss)/profit on disposal of businesses and assets
The Group disposed of property, plant and equipment primarily in the Americas
for a consideration of €2.7m resulting in a loss of €0.3m during the
period ended 30 June 2025. A tax credit of €0.1m arose on the disposal of
assets for the period. In addition, there was a final settlement of €2.5m
recorded reflecting the movement in working capital and disposal related costs
following the finalisation of the completion accounts relating to the sale of
the Group's shareholding in Kerry Dairy Holdings (Ireland) Limited.
In the period ended 30 June 2024, the Group disposed of property, plant and
equipment primarily in North America and Europe for a consideration of €2.2m
resulting in a profit of €0.9m. A tax charge of €0.4m arose on the
disposal of assets for the period.
In the year ended 31 December 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.
(iv) Profit on disposal of businesses and assets - discontinued operations
In the year ended 31 December 2024, the Group 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') resulting in a profit of €27.8m (see note 8 in the 2024
Annual Report for more details).
4. Discontinued operations
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, and the results at 30 June 2024 have been presented within profit
from discontinued operations in the Consolidated Income Statement.
(i) Income Statement extract
Half year Year
ended ended
30 June 2024 31 Dec. 2024
Unaudited Audited
€'m €'m
Revenue 461.2 1,051.5
Earnings before interest, tax, depreciation and amortisation 35.0 62.8
Depreciation (net):
- property, plant and equipment 11.4 23.1
- right-of-use assets 0.3 0.8
- capital grants amortisation (0.3) (0.9)
Intangible asset amortisation 0.1 0.2
Non-trading items - (24.2)
Operating profit 23.5 63.8
Finance costs - (0.4)
Profit before taxation 23.5 63.4
Income taxes (3.6) (2.4)
Profit from discontinued operations 19.9 61.0
(ii) Other comprehensive income movement from discontinued operations
Half year Year
ended ended
30 June 2024 31 Dec. 2024
Unaudited Audited
€'m €'m
Profit from discontinued operations 19.9 61.0
Exchange difference on translation of foreign operations 0.3 -
Cumulative exchange difference on translation recycled on disposal - (0.6)
Total comprehensive income 20.2 60.4
(iii) Cash flows (used in)/from discontinued operations
Half year Year
ended ended
30 June 2024 31 Dec. 2024
Unaudited Audited
€'m €'m
Net cash from operating activities (59.6) 27.6
Net cash used in investing activities (6.5) (27.7)
Net cash used in financing activities (0.3) (0.8)
Net cash flows for the period (66.4) (0.9)
5. Finance income and costs
Re-presented*
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Finance income:
Interest income on deposits 14.3 6.4 24.5
Interest income on vendor loan note 5.8 5.0 10.3
Other financial asset at FVPL - fair value movement** 3.8 - -
Finance income 23.9 11.4 34.8
Finance costs:
Interest payable and finance charges (48.8) (37.7) (85.9)
Interest on lease liabilities (2.8) (1.5) (3.8)
Interest rate derivative - (0.7) -
(51.6) (39.9) (89.7)
Net interest income on retirement benefits obligation 1.2 0.7 1.4
Finance costs (50.4) (39.2) (88.3)
Net finance costs (26.5) (27.8) (53.5)
* As re-presented to reflect the impact of discontinued operations. See note 4
for further information.
** The €3.8m relates to the fixed dividend receivable from Kerry Dairy
Ireland measured at fair value through profit or loss (FVPL).
6. Earnings per A ordinary share - attributable to equity holders of the
parent
30 June 2025 - Unaudited 30 June 2024 - Unaudited 31 December 2024 - Audited
Continuing Discontinued Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total Operations Operations Total
Basic earnings per share
Profit after taxation (€'m) 302.8 - 302.8 271.6 19.9 291.5 673.4 61.0 734.4
Basic earnings per share (cent) 182.4 - 182.4 155.4 11.3 166.7 389.2 35.3 424.5
30 June 2025 - Unaudited 30 June 2024 - Unaudited 31 December 2024 - Audited
Continuing Discontinued Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total Operations Operations Total
Diluted earnings per share
Profit after taxation (€'m) 302.8 - 302.8 271.6 19.9 291.5 673.4 61.0 734.4
Diluted earnings per share (cent) 182.0 - 182.0 155.2 11.3 166.5 388.6 35.2 423.8
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
m's m's m's
Number of Shares
Basic weighted average number of shares 166.0 174.8 173.0
Impact of share options outstanding 0.4 0.3 0.3
Diluted weighted average number of shares 166.4 175.1 173.3
7. Dividends
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Amounts recognised as distributions to equity shareholders in the period
Final 2024 dividend of 89.0 cent per A ordinary share paid 9 May 2025 147.0 140.4 140.4
(Final 2023 dividend of 80.8 cent per A ordinary share paid 10 May 2024)
Interim 2024 dividend of 38.1 cent per A ordinary share paid 8 November 2024 - - 64.8
147.0 140.4 205.2
Since the end of the period, the Board has declared an interim dividend of
42.0 cent per A ordinary share which amounts to €68.9m based on ordinary
shares in issue at 30 June 2025. The payment date for the interim dividend
will be 7 November 2025 to shareholders registered on the record date as at 10
October 2025. The Condensed Consolidated Interim Financial Statements do not
reflect this dividend.
8. Other non-current financial instruments
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Vendor loan note 129.4 128.0 124.6
Forward foreign exchange contracts - 0.1 0.3
Interest rate swaps - 10.2 -
Phase 1 vendor loan receivable 17.8 - 20.4
Other financial asset 148.5 - 148.5
Forward commodity contracts 0.2 - 1.9
Total other non-current financial instruments 295.9 138.3 295.7
As of 30 June 2025, the Group holds an interest bearing vendor loan note which
was entered into as part of the consideration for the sale of the trade and
assets of the Sweet Ingredients Portfolio. The carrying amount of the debt
receivable is €129.4m, this represents the amount due from third parties,
and is initially recognised at fair value of €125.0m and interest
capitalised on a bi-annual basis.
The Phase 1 vendor loan note receivable of €17.8m arose on the completion of
Phase 1 of the sale of Kerry Dairy Ireland adjusted for an expected credit
loss assessment of €0.2m.
As the Group objective for the vendor loan note and vendor loan receivable is
to collect the contractual cash flows when due, the Group measures at
amortised cost using the effective interest method subsequent to initial
recognition adjusted for any expected credit loss assessment.
The Group's other financial asset of €148.5m is the carrying value of the
retained investment in Kerry Dairy Ireland of €150m net of a downwards
adjustment through profit and loss for associated credit risk of €1.5m.
9. Retirement benefits obligation
Schemes Schemes
in Surplus in Deficit Total
Half year Half year Half year
ended ended ended
30 June 2025 30 June 2025 30 June 2025
Unaudited Unaudited Unaudited
€'m €'m €'m
Net recognised surplus/(deficit) before deferred tax 92.5 (28.1) 64.4
Net related deferred tax (liability)/asset (11.5) 6.8 (4.7)
Net recognised surplus/(deficit) after deferred tax 81.0 (21.3) 59.7
At 30 June 2025, the net surplus before deferred tax for the defined benefit
post-retirement schemes was €64.4m (30 June 2024: €59.9m; 31 December
2024: €67.3m). This was calculated by rolling forward the defined benefit
post-retirement schemes' liabilities at 31 December 2024 to reflect material
movements in underlying assumptions over the period while the defined benefit
post-retirement schemes' assets at 30 June 2025 are measured at market value.
The decrease in the net surplus before deferred tax of €2.9m was driven by
lower asset values which were partially offset by favourable movements in
financial assumptions.
The surplus at 30 June 2025, 31 December 2024 and 30 June 2024 relates to the
Irish scheme. The surplus has been recognised in accordance with IFRIC 14 'The
Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction' as it has been determined that the Group has an unconditional
right to a refund of the surplus.
Schemes Schemes
in Surplus in Deficit Total
Half year Half year Half year
ended ended ended
30 June 2024 30 June 2024 30 June 2024
Unaudited Unaudited Unaudited
€'m €'m €'m
Net recognised surplus/(deficit) before deferred tax 100.3 (40.4) 59.9
Net related deferred tax (liability)/asset (12.5) 9.9 (2.6)
Net recognised surplus/(deficit) after deferred tax 87.8 (30.5) 57.3
Schemes Schemes
in Surplus in Deficit Total
Year Year Year
ended ended ended
31 Dec. 2024 31 Dec. 2024 31 Dec. 2024
Audited Audited Audited
€'m €'m €'m
Net recognised surplus/(deficit) before deferred tax 100.7 (33.4) 67.3
Net related deferred tax (liability)/asset (12.6) 8.2 (4.4)
Net recognised surplus/(deficit) after deferred tax 88.1 (25.2) 62.9
10. Financial instruments
i) The following table outlines the financial assets and liabilities in
relation to net debt held by the Group at the Balance Sheet date:
Financial Assets/
Assets/ (Liabilities) at Derivatives
(Liabilities) at Fair Value Designated as
Amortised through Profit Hedging
Cost or Loss Instruments Total
€'m €'m €'m €'m
Assets:
Interest rate swaps - - 7.9 7.9
Cash at bank and in hand 1,460.0 - - 1,460.0
1,460.0 - 7.9 1,467.9
Liabilities:
Bank overdrafts (0.9) - - (0.9)
Bank loans 1.7 - - 1.7
Senior Notes (3,436.2) 0.4 - (3,435.8)
Borrowings and overdrafts (3,435.4) 0.4 - (3,435.0)
Net debt - pre lease liabilities (1,975.4) 0.4 7.9 (1,967.1)
Lease liabilities (88.7) - - (88.7)
Net debt at 30 June 2025 - unaudited (2,064.1) 0.4 7.9 (2,055.8)
Assets:
Interest rate swaps - - 10.2 10.2
Cash at bank and in hand 659.5 - - 659.5
659.5 - 10.2 669.7
Liabilities:
Interest rate swaps - - (13.6) (13.6)
Bank overdrafts (0.4) - - (0.4)
Bank loans 2.3 - - 2.3
Senior Notes (2,441.8) 5.4 - (2,436.4)
Borrowings and overdrafts (2,439.9) 5.4 - (2,434.5)
Net debt - pre lease liabilities (1,780.4) 5.4 (3.4) (1,778.4)
Lease liabilities (65.5) - - (65.5)
Net debt at 30 June 2024 - unaudited (1,845.9) 5.4 (3.4) (1,843.9)
Assets:
Interest rate swaps - - - -
Cash at bank and in hand 1,610.0 - - 1,610.0
1,610.0 - - 1,610.0
Liabilities:
Interest rate swaps - - (16.2) (16.2)
Bank overdrafts (2.4) - - (2.4)
Bank loans 2.0 - - 2.0
Senior Notes (3,435.9) 3.3 - (3,432.6)
Borrowings and overdrafts (3,436.3) 3.3 - (3,433.0)
Net debt - pre lease liabilities (1,826.3) 3.3 (16.2) (1,839.2)
Lease liabilities (86.6) - - (86.6)
Net debt at 31 December 2024 - audited (1,912.9) 3.3 (16.2) (1,925.8)
All Group borrowings and overdrafts and interest rate swaps are guaranteed by
Kerry Group plc. No assets of the Group have been pledged to secure these
items.
In June 2025 the Group exercised the second of two "plus one" extension
options on its €1,500m revolving credit facility to extend the maturity of
this facility to June 2030.
As at 30 June 2025, the Group's debt portfolio included:
- €750m of Senior Notes issued in 2015 and €200m issued in April 2020 as a
tap onto the original issuance (the 2025 Senior Notes). €175m of the
issuance in 2015 were swapped, using cross currency swaps, to US dollar;
- €750m of Senior Notes issue in 2019 (the 2029 Senior Notes). No interest
rate derivatives were entered into for this issuance;
- €750m of sustainability-linked bond notes issued in 2021 (the 2031 SLB
Senior Notes). No interest rate derivatives were entered into for this
issuance;
- €1,000m of Senior Notes issued in 2024 under a €3,000m EMTN programme -
€500m 2033 Senior Notes and €500m 2036 Senior Notes.
The adjustment to Senior Notes classified under liabilities at fair value
through profit or loss of €0.4m (30 June 2024: €5.4m; 31 December 2024:
€3.3m) represents the part adjustment to the carrying value of debt from
applying fair value hedge accounting for interest rate risk. This amount is
primarily offset by the fair value adjustment on the corresponding hedge items
being the underlying cross currency interest rate swaps.
ii) The Group's exposure to interest rates on financial assets and liabilities
are detailed in the table below including the impact of cross currency swaps
('CCS') on the currency profile of net debt:
Total Pre CCS Impact of CCS Total after CCS
Half year Half year Half year Half year Year
ended ended ended ended ended
30 June 2025 30 June 2025 30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Unaudited Unaudited Audited
€'m €'m €'m €'m €'m
Euro (2,557.0) 175.0 (2,382.0) (2,163.6) (2,298.1)
Sterling 73.8 - 73.8 88.6 104.1
US Dollar 313.0 (175.0) 138.0 94.8 117.8
Others 106.1 - 106.1 134.3 163.3
(2,064.1) - (2,064.1) (1,845.9) (1,912.9)
iii) The following table details the maturity profile of the Group's net debt:
On demand & Up to 2 - 5
up to 1 year 2 years years > 5 years Total
€'m €'m €'m €'m €'m
Cash at bank and in hand 1,460.0 - - - 1,460.0
Interest rate swaps 7.9 - - - 7.9
Bank overdraft (0.9) - - - (0.9)
Bank loans - - 1.7 - 1.7
Senior Notes (949.9) - (745.7) (1,740.2) (3,435.8)
Net debt - pre lease liabilities 517.1 - (744.0) (1,740.2) (1,967.1)
Lease liabilities (discounted) (34.0) (22.0) (25.9) (6.8) (88.7)
At 30 June 2025 - unaudited 483.1 (22.0) (769.9) (1,747.0) (2,055.8)
Cash at bank and in hand 659.5 - - - 659.5
Interest rate swaps - (13.6) - 10.2 (3.4)
Bank overdraft (0.4) - - - (0.4)
Bank loans - - 2.3 - 2.3
Senior Notes - (946.7) - (1,489.7) (2,436.4)
Net debt - pre lease liabilities 659.1 (960.3) 2.3 (1,479.5) (1,778.4)
Lease liabilities (discounted) (25.1) (18.9) (14.9) (6.6) (65.5)
At 30 June 2024 - unaudited 634.0 (979.2) (12.6) (1,486.1) (1,843.9)
Cash at bank and in hand 1,610.0 - - - 1,610.0
Interest rate swaps (16.2) - - - (16.2)
Bank overdraft (2.4) - - - (2.4)
Bank loans - - 2.0 - 2.0
Senior Notes (947.9) - (745.2) (1,739.5) (3,432.6)
Net debt - pre lease liabilities 643.5 - (743.2) (1,739.5) (1,839.2)
Lease liabilities (discounted) (31.1) (23.0) (26.4) (6.1) (86.6)
At 31 December 2024 - audited 612.4 (23.0) (769.6) (1,745.6) (1,925.8)
At 30 June 2025, the Group had cash on hand of €1,460.0m. At the period end,
the Group had an undrawn committed Syndicate revolving credit facility of
€1,500m. Cash at bank and in hand includes an amount of €780.0m held on
short-term deposit of which €229.3m was held under a Sustainable Deposits
programme.
iv) Fair value of financial instruments:
a) Fair value of financial instruments carried at fair value
The following table sets out the fair value of financial instruments carried
at fair value:
Fair Value 30 June 2025 30 June 2024 31 Dec. 2024
Hierarchy Unaudited Unaudited Audited
€'m €'m €'m
Interest rate swaps: Non-current asset Level 2 - 10.2 -
Non-current liability Level 2 - (13.6) -
Current asset/(liability) Level 2 7.9 - (16.2)
Forward foreign exchange contracts: Non-current asset Level 2 - 0.1 0.3
Non-current liability Level 2 - - (0.5)
Current asset Level 2 23.5 5.3 10.1
Current liability Level 2 (12.9) (8.8) (16.1)
Forward commodity contracts: Non-current asset Level 3 0.2 - 1.9
Financial asset investments: Fair value through profit or loss Level 1 40.1 38.2 44.8
Fair value through other Level 3 12.8 14.2 14.4
comprehensive income
Other financial asset: Fair value through profit or loss Level 3 152.3 - 148.5
Deferred payments on acquisition Non-current liability Level 3 - (15.3) (15.3)
of businesses: Current liability Level 3 (22.9) (7.6) (7.6)
There have been no transfers between levels during the current or prior
financial period.
Financial instruments recognised at fair value are analysed between those
based on:
- quoted prices in active markets for identical assets or liabilities (Level
1);
- those involving inputs other than quoted prices included in Level 1 that are
observable for the assets or liabilities, either directly (as prices) or
indirectly (derived from prices) (Level 2); and
- those involving inputs for the assets or liabilities that are not based on
observable market data (unobservable inputs) (Level 3).
Level 3 reconciliation:
- Forward commodity contracts: The movement in the period was primarily due to
changes in market valuation.
- Financial asset investments: The movement during the period is due to the
impact of foreign exchange translation.
- Other financial assets: The movement in the current period relates to the
accrual for the fixed dividend receivable from Kerry Dairy Ireland measured at
fair value through profit or loss (FVPL) and included in finance income. See
note 5 for further information.
- Deferred payments on acquisition of businesses: The balance remained
unchanged during the period, with the only movement being its ageing towards
current classification.
b) Fair value of financial instruments carried at amortised cost
Except as defined in the following table, it is considered that the carrying
amounts of financial assets and financial liabilities recognised at amortised
cost in the Condensed Consolidated Interim Financial Statements approximate
their fair values.
Carrying Fair Carrying Fair Carrying Fair
Fair Amount Value Amount Value Amount Value
Value 30 June 2025 30 June 2025 30 June 2024 30 June 2024 31 Dec. 2024 31 Dec. 2024
Hierarchy Unaudited Unaudited Unaudited Unaudited Audited Audited
€'m €'m €'m €'m €'m €'m
Financial liabilities
Senior Notes - Public Level 2 (3,436.2) (3,255.9) (2,441.8) (2,185.2) (3,435.9) (3,242.3)
c) Valuation principles
Refer to note 25 of the 2024 Annual Report for details of the valuation
process of the financial assets and liabilities and sensitivity of the
associated fair value measurement to changes in inputs.
Net debt reconciliation
Cash at Overdrafts Interest Borrowings Borrowings Net Debt
bank and due within Rate due within due after - pre lease Lease Net
in hand 1 year* Swaps 1 year* 1 year* liabilities liabilities* Debt
€'m €'m €'m €'m €'m €'m €'m €'m
At 31 December 2023 - audited 943.7 (34.7) (9.5) (2.4) (2,432.6) (1,535.5) (68.6) (1,604.1)
Cash flows (296.1) 34.3 - 2.4 - (259.4) 16.8 (242.6)
Foreign exchange adjustments 11.9 - (5.7) - - 6.2 (0.6) 5.6
Other non-cash movements - - 11.8 - (1.5) 10.3 (13.1) (2.8)
At 30 June 2024 - unaudited 659.5 (0.4) (3.4) - (2,434.1) (1,778.4) (65.5) (1,843.9)
Cash flows 938.2 (2.0) (3.3) 0.1 (994.0) (61.0) 24.0 (37.0)
Foreign exchange adjustments 12.3 - (5.1) (0.1) - 7.1 (0.6) 6.5
Other non-cash movements - - (4.4) (947.9) 945.4 (6.9) (44.5) (51.4)
At 31 December 2024 - audited 1,610.0 (2.4) (16.2) (947.9) (2,482.7) (1,839.2) (86.6) (1,925.8)
Cash flows (97.6) 1.4 - - - (96.2) 19.9 (76.3)
Foreign exchange adjustments (52.4) 0.1 20.6 - - (31.7) 5.8 (25.9)
Other non-cash movements - - 3.5 (2.0) (1.5) - (27.8) (27.8)
At 30 June 2025 - unaudited 1,460.0 (0.9) 7.9 (949.9) (2,484.2) (1,967.1) (88.7) (2,055.8)
* Liabilities from financing activities.
11. Business combinations
The acquisition method has been used to account for businesses acquired in the
Group's Condensed Consolidated Interim 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 2024, there have been no material
revisions of the provisional fair value adjustments since the initial values
were established. 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'. The
acquisition completed during the period was not considered material to warrant
separate disclosure.
In April 2025, the Group completed an asset acquisition with coffee extraction
capabilities, in the Americas segment for a total consideration of €14.8m,
which was paid in full at closing. Net assets acquired from the Martin Bauer
Group included brand related intangibles of €0.9m, property, plant &
equipment of €6.9m with liabilities of €2.8m giving rise to goodwill of
€9.8m.
12. Share capital
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Authorised
280,000,000 A ordinary shares of 12.50 cent each 35.0 35.0 35.0
Allotted, called-up and fully paid (A ordinary shares of 12.50 cent each)
At beginning of the financial period 20.8 21.9 21.9
Shares issued during the financial period - - 2.1
Shares cancelled during the financial period (0.3) (0.4) (3.2)
At end of the financial period 20.5 21.5 20.8
Kerry Group plc has one class of ordinary share which carries no right to
fixed income.
Shares issued during the period
During the period a total of 239,513 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 and the All Employee Share Plan. The
total number of shares in issue at 30 June 2025 was 163,997,573 (30 June 2024:
172,457,816; 31 December 2024: 166,440,652).
Share Buyback Programme
In April 2025, 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 20 June 2025 and will end no
later than 27 February 2026. In the period from 20 June 2025 to 30 June 2025
the company purchased 144,699 shares at a total cost of €13.5m including
transaction costs. At 30 June 2025 there was no financial liability recorded
in relation to the Share Buyback Programme. Since the period end, and up to 25
July 2025, the Company has announced the purchase of an additional 469,760
shares at a total cost of €42.9m.
The previous Share Buyback Programme announced in November 2024, commenced on
12 November 2024 and was completed on 20 June 2025. The total number of shares
acquired during 2024 was 644,079 at a cost of €57.6m. During the period 1
January 2025 to 20 June 2025, an additional 2,537,893 shares were acquired at
a cost of €242.7m, resulting in a total number of shares acquired as part of
this programme of 3,181,972 at a total cost of €300.3m including transaction
costs of €0.3m accrued for at the period end. All shares acquired were A
ordinary shares with a nominal value of 12.50 cent. The shares acquired were
cancelled immediately following their repurchase.
13. Reserves
Share premium account
Share premium represents the excess of proceeds received over the nominal
value of new shares issued.
During the period, the share premium reserve of Kerry Group plc decreased by
€1,480.5m to €398.7m (31 December 2024: €1,879.2m; 30 June 2024:
€398.7m) increasing distributable reserves by the same amount. This capital
reduction was approved by shareholders by way of a special resolution passed
on 19 December 2024 and was confirmed by the High Court on 8 April 2025.
14. Related party transactions
(i) Trading between Parent Company and subsidiaries
Transactions in the financial period between the Parent Company and its
subsidiaries included:
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Dividends received by the Parent Company - 1,800.0 2,550.0
Cost recharges from subsidiaries of the Parent Company 20.1 13.6 31.0
Trade and other receivables to the Parent Company 1,715.3 1,800.0 2,039.5
(ii) Trading with joint ventures
Details of transactions and balances outstanding with joint ventures are as
follows:
Half year Half year Year
ended ended ended
30 June 2025 30 June 2024 31 Dec. 2024
Unaudited Unaudited Audited
€'m €'m €'m
Sale of goods 0.2 0.2 0.4
Amounts receivable 5.4 5.1 4.8
(iii) Trading with other related parties
Following the Phase 1 of the sale of Kerry Dairy Ireland to Kerry Co-Operative
Creameries Limited which completed on 31 December 2024, transactions in the
period are as follows:
Half year Year
ended ended
30 June 2025 31 Dec. 2024
Unaudited Audited
€'m €'m
Sales - goods 10.3 -
Sales - services 6.0 -
Purchases - goods 52.8 -
Trade receivables 8.4 21.9
Trade payables (6.6) (9.6)
Other receivables 5.1 -
Fixed dividend receivable on retained investment* 3.8 -
Other financial asset* 148.5 252.0
Phase 1 vendor loan receivable* 17.8 20.4
* See note 8 in these Condensed Consolidated Interim Financial Statements and
note 25 in the 2024 Annual Report for further information.
15. Events after the balance sheet date
Since the financial period end, the Group has:
- declared an interim dividend of 42.0 cent per A ordinary share (see note 7);
and
- the Company announced the repurchase of 469,760 shares at a cost of €42.9m
up to 25 July 2025.
There have been no other significant events, outside the ordinary course of
business, affecting the Group since 30 June 2025.
16. General information
These unaudited Condensed Consolidated Interim Financial Statements for the
half year ended 30 June 2025 are not full financial statements and were not
reviewed or audited by the Group's auditors, PricewaterhouseCoopers (PwC).
These Condensed Consolidated Interim Financial Statements were approved by the
Board of Directors and authorised for issue on 29 July 2025. The figures
disclosed relating to 31 December 2024 have been derived from the Consolidated
Financial Statements which were audited, received an unqualified audit report
and have been filed with the Registrar of Companies. This report should be
read in conjunction with the 2024 Annual Report which was prepared in
accordance with 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 refer to
IFRS adopted by the EU. The accounting policies applied by the Group in these
Condensed Consolidated Interim Financial Statements are the same as those
detailed in the 2024 Annual Report.
These unaudited Condensed Consolidated Interim Financial Statements have been
prepared on the going concern basis of accounting as set out in note 1. The
Directors report that they have satisfied themselves that the Group is a going
concern, having adequate resources to continue in operational existence for
the foreseeable future. In forming this view, the Directors have reviewed the
Group's budget for a period not less than 12 months, the five year medium-term
plan and have taken into account the cash flow implications of the plans,
including proposed capital expenditure, and compared these with the Group's
committed borrowing facilities and projected gearing ratios.
Property, plant and equipment decreased by €145.7m to €1,961.0m (31
December 2024: €2,106.7m; 30 June 2024: €2,199.7m) due to acquisitions and
additions of €126.3m offset by disposals of €1.4m, depreciation of
€109.3m and the impact of foreign exchange translation of €161.3m.
Intangible assets decreased by €311.6m to €5,466.5m (31 December 2024:
€5,778.1m; 30 June 2024: €5,859.4m) due to business acquisitions and
computer software additions of €18.7m offset by the amortisation charge for
the period of €47.5m and the impact of foreign exchange translation of
€282.8m.
In relation to seasonality, EBITDA is lower in the first half of the year due
to the nature of the food business and stronger trading in the second half.
While revenue is relatively evenly spread, margin has traditionally been
higher in the second half of the year due to product mix and the timing of
promotional activity.
As permitted by the Transparency (Directive 2004/109/EC) Regulations 2007 this
Interim Report is available on www.kerry.com. However, if a physical copy is
required, please contact the Corporate Affairs department.
FINANCIAL DEFINTIONS
1. Revenue
Volume performance
This represents the sales performance period-on-period, 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
H1 2025 performance Price currency Acquisitions Disposals currency performance
Europe 0.2% 0.6% - 1.4% (3.0%)* 0.4% (0.4%)
APMEA 4.2% (0.1%) 0.2% 0.4% (0.4%) (1.0%) 3.3%
Americas 3.7% 0.1% 0.4% 0.4% (0.3%) (3.2%) 1.1%
Group - continuing operations 3.0% 0.2% 0.3% 0.6% (0.9%) (1.9%) 1.3%
H1 2024
Europe (re-presented**) (0.1%) (3.9%) - 0.7% (4.7%) 1.1% (6.9%)
APMEA 5.5% (4.0%) 0.7% 1.2% (0.4%) (5.4%) (2.4%)
Americas 3.4% (2.3%) (0.3%) 0.5% (3.6%) (0.1%) (2.4%)
Group - continuing operations 3.1% (3.0%) - 0.7% (3.1%) (1.1%) (3.4%)
* Disposal revenue in Europe primarily reflects the exit of a manufacturing
agreement post the finalisation of the Kerry Dairy Ireland separation in the
current year.
** As re-presented to reflect the impact of discontinued operations. See note
4 for further information.
2. EBITDA
EBITDA represents profit before taxation and before finance income and costs,
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
period-on-period or with other businesses.
H1 2025 H1 2024
Continuing operations €'m €'m
Profit before taxation 353.6 317.0
Share of joint ventures' results after taxation 0.9 1.0
Finance income (23.9) (11.4)
Finance costs 50.4 39.2
Non-trading items 18.1 24.3
Intangible asset amortisation 47.5 45.5
Depreciation (net) 109.3 101.6
EBITDA 555.9 517.2
3. EBITDA Margin
EBITDA margin represents EBITDA expressed as a percentage of revenue.
H1 2025 H1 2024
Continuing operations €'m €'m
EBITDA 555.9 517.2
Revenue 3,463.1 3,419.2
EBITDA margin 16.1% 15.1%
4. Operating Profit
Operating profit is profit before income taxes, finance income, finance costs
and share of joint ventures' results after taxation.
H1 2025 H1 2024
Continuing operations €'m €'m
Profit before taxation 353.6 317.0
Finance income (23.9) (11.4)
Finance costs 50.4 39.2
Share of joint ventures' results after taxation 0.9 1.0
Operating profit 381.0 345.8
5. 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 period-on-period. The performance in adjusted earnings per
share on a constant currency basis is calculated by comparing current period
adjusted earnings per share to the prior period adjusted earnings per share
retranslated at current period average exchange rates.
H1 2025 H1 2024
EPS Performance EPS Performance
Continuing and Discontinued operations cent % cent %
Basic earnings per share 182.4 9.4% 166.7 (17.4%)
Brand related intangible asset amortisation 17.8 - 15.8 -
Non-trading items (net of related tax) 9.0 - 11.6 -
Adjusted earnings per share 209.2 7.8% 194.1 7.8%
Impact of retranslating prior period adjusted earnings per share at current 2.0% 1.3%
period average exchange rates*
Growth in adjusted earnings per share on a constant currency basis 9.8% 9.1%
* Impact of H1 2025 translation was (3.9)/194.1 cent = 2.0% (H1 2024: 1.3%).
Continuing Continuing Discontinued
Operations Total Operations Operations Total
H1 2025 H1 2025 H1 2024 H1 2024 H1 2024
EPS EPS EPS EPS EPS
cent cent cent cent cent
Basic earnings per share 182.4 182.4 155.4 11.3 166.7
Brand related intangible asset amortisation 17.8 17.8 15.7 0.1 15.8
Non-trading items (net of related tax) 9.0 9.0 11.6 - 11.6
Adjusted earnings per share 209.2 209.2 182.7 11.4 194.1
Adjusted EPS Growth (%) 14.5% 7.8%
Impact of exchange rate translation (%) 2.0% 2.0%
Growth in adjusted earnings per share on a constant currency basis (%) 16.5% 9.8%
6. Free Cash Flow
Free cash flow is EBITDA plus movement in average working capital, capital
expenditure net (purchase of assets, payment of lease liabilities, inflow from
the sale of assets (net of disposal expenses) and capital grants received),
pension 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 period 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 6 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'.
H1 2025 H1 2024
Continuing and Discontinued operations €'m €'m
Net cash from operating activities 399.3 367.0
Difference between movement in monthly average working capital and movement in 21.3 167.1
the period end working capital
Payments on non-trading items 12.2 27.2
Purchase of assets (101.2) (103.4)
Payment of lease liabilities (19.9) (16.8)
Inflow from the sale of assets (net of disposal expenses) 0.4 -
Capital grants received 0.1 -
Exchange translation adjustment (3.6) 4.3
Free cash flow 308.6 445.4
7. 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.
H1 2025 H1 2024
Continuing and Discontinued operations €'m €'m
Free cash flow 308.6 445.4
Profit after taxation attributable to equity holders of the parent 302.8 291.5
Brand related intangible asset amortisation 29.6 27.6
Non-trading items (net of related tax) 15.0 20.2
Adjusted earnings after taxation 347.4 339.3
Cash Conversion 89% 131%
8. 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.
H1 2025 H1 2024
Times Times
Net debt:EBITDA 1.7 1.6
EBITDA:Net interest 22.7 23.2
9. Average Capital Employed
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.
H1 2025 2024 H1 2024 2023 H1 2023
€'m €'m €'m €'m €'m
Equity attributable to equity holders of the parent 5,907.6 6,485.8 6,512.8 6,521.3 6,356.5
Vendor loan note (129.4) (124.6) (128.0) (124.3) (125.0)
Net debt 2,055.8 1,925.8 1,843.9 1,604.1 1,846.5
Total capital employed 7,834.0 8,287.0 8,228.7 8,001.1 8,078.0
Average capital employed 8,116.6 8,172.3 8,102.6
10. 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.
12 months to 12 months to
H1 2025 H1 2024 FY 2024
Continuing and Discontinued operations €'m €'m €'m
Profit after taxation attributable to equity holders of the parent 745.7 661.6 734.4
Non-trading items (net of related tax) 10.6 67.8 15.8
Brand related intangible asset amortisation 60.6 53.4 58.6
Net finance costs 52.6 50.6 53.9
Adjusted profit 869.5 833.4 862.7
Average capital employed 8,116.6 8,102.6 8,172.3
Return on average capital employed 10.7% 10.3% 10.6%
11. Net Debt
Net debt comprises borrowings and overdrafts, interest rate derivative
financial instruments, lease liabilities and cash at bank and in hand. See
full reconciliation of net debt in note 10 of these Condensed Consolidated
Interim Financial Statements.
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