REG - Kerry Group PLC - 3rd Quarter Results

KerryAnnouncement

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RNS Number : 4697E  Kerry Group PLC  23 October 2025

23 October 2025

LEI: 635400TLVVBNXLFHWC59

 

KERRY GROUP

Q3 Interim Management Statement 2025.

Volume growth and strong margin expansion.

Q3 YEAR-TO-DATE HIGHLIGHTS(1)

 

 >    Volume growth of 3% (Q3: +3%) - well ahead of end markets

 >    Pricing of +0.2%

 >    EBITDA margin expansion of 90bps (Q3: +80bps)

 >    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 467.5 cent.

 

 

 Edmond Scanlon, Chief Executive Officer
 "We delivered a good performance across the first nine months of the year,
 with volume growth well ahead of our markets, combined with strong margin
 expansion.

 We achieved good growth in the Americas supported by product launch activity,
 with Europe and APMEA delivering sequential volume growth improvement in the
 third quarter.

 From a strategic perspective, we continued to develop our business, including
 further investment in our bio-fermentation and taste technology capabilities,
 combined with capacity expansion in APMEA and LATAM.

 Looking to the remainder of the year, while recognising continued 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 food and beverage market environment across the period reflected soft
consumer demand, given 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 continued to be a key feature
of customer engagement, primarily focused on enhancing product nutritional
profiles.

Revenue in the period comprised of volume growth of 3.0%, positive pricing of
0.2%, favourable transaction currency of 0.2%, the contribution from
acquisitions of 0.4%, the effect from disposals of 1.2%, and an adverse
foreign currency translation effect of 3.6%, leading to a reported overall
revenue decrease of 1.0%. Continuing business EBITDA margin increased by 90bps
primarily driven by cost efficiencies, operating leverage, product mix and the
contribution from acquisitions and disposals.

Business Performance

Continued strong end market outperformance

>   Volume growth of 3% (Q3: 3.0%)

>   Growth led by Bakery, Snacks and Dairy

>   Pricing of 0.2% reflected input cost inflation in places

Business volume growth in the period was supported by good innovation activity
led by the foodservice channel, combined with continued product renovation
activity in the retail channel.

Growth was led by Bakery, Snacks and Dairy end markets, supported by strong
growth in solutions incorporating Kerry's savoury taste and Tastesense™ salt
and sugar reduction technologies, as well as enzymes, natural extracts and
proactive health ingredients.

Volume growth in foodservice of 4.1% 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
limited time offers. Growth in the retail channel was supported by increased
retailer brand innovation and nutritional enhancement renovation.

Business volumes in emerging markets increased by 5.3% across the period, led
by a strong performance in Southeast Asia. The Pharma & Other EUM
delivered good volume growth, driven by cell nutrition and proactive health
ingredients for supplement applications.

The Accelerate 2.0 programme was initiated as planned during the period. Good
progress was made in North America and Europe with the commencement of
footprint optimisation including the disposal of some related business
activities.

Regional Review

Americas Region

>   Volume growth of 3.6% (Q3: 3.5%)

>   Growth led by Snacks, Dairy & Bakery

>   Retail delivered good growth with foodservice performing well

>   LATAM growth led by Brazil and Central America

Growth in the period 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™
salt-reduction technologies with global and emerging brands, underpinned by
increased customer focus on improving the nutritional profile of their
products. Growth in Dairy was led by the strong performance of taste
technologies, while growth in Bakery was driven by taste and texture solutions
as well as enzymes.

Within the retail channel, growth was led by increased innovation and
renovation activity with global, regional 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, led by
the Snacks end market.

Business developments within the region included further investment in the
enhancement of coffee extraction capability for food and beverage taste
applications.

Europe Region

>   Volume growth of 0.4% (Q3: 0.7%)

>   Beverage and Bakery achieved good growth

>   Good performance in foodservice, with softer dynamics in retail

Performance in the region was led by Beverage, with good growth in nutritional
beverages through Kerry's integrated taste technologies and proactive health
ingredients. Growth in Bakery was led by texture systems, with performance in
Meat and Meals reflecting softer retail channel market dynamics in Western
Europe.

Foodservice channel growth was led by seasonal and new launch activity with
quick service restaurants.

Business developments in the period included the opening of the new
Biotechnology Innovation Centre in Leipzig, Germany, enzyme capacity expansion
in Cork, Ireland, and the enhancement of Kerry's cocoa taste capabilities in
Grasse, France.

APMEA Region

>   Volume growth of 4.1% (Q3: 4.1%)

>   Growth led by Bakery, Meat and Meals

>   Foodservice delivered good growth with a solid performance in retail

Performance in the region was led by strong growth in Southeast Asia, with the
Middle East and Africa delivering solid growth, and volumes in China remaining
challenged.

Growth in Bakery was driven by food protection and preservation systems, as
well as reformulation activity in areas including cocoa. Performance in Meat
was led by innovations with smoke and grill technologies, while growth in
Meals was driven by solutions incorporating Kerry's leading savoury taste
portfolio.

Foodservice delivered good volume growth with leading regional coffee chains
and quick service restaurants. Volume 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

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

Future Prospects

Kerry's strong end market outperformance in the period 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 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.

 

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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