Kerry Group has reported revenue of €3.5bn for the first half of the year after seeing sales volume growth of three per cent.
The food group increased EBITDA 7.5 per cent to €556m, and its EBITDA margin has risen 100bps to 16.1 per cent due to its transformation programme, operating leverage, product mix and the positive effect of acquisitions and disposals.
Profit after tax, meanwhile, rose four per cent year-on-year from €291.5m to €303.1m.
Constant currency adjusted earnings per share increased 9.8 per cent to 209.2 cent while basic earnings per share rose 9.4 per cent to 192.4 cent.
Free cash flow declined year-on-year from €445m to €309m following the disposal of Kerry Dairy Ireland, and the group generated €459m from operations, up from €431m a year ago.
The Americas accounted for turnover of €1.9bn while Europe contributed €731m, up 1.1 per cent and down 0.4 per cent, respectively, from the same period in 2024, while the rest of the world accounted for €821m (+3.3 per cent).
In Europe, performance was driven by foodservice, specifically new quick service restaurant launch activity, while the retail channel was mired by "continued soft market dynamics".
The European business also achieved growth in nutritional beverages and bakery texture systems and had to overcome the negative effects of the Kerry Dairy Ireland disposal.
Overall, Kerry's performance during the half was driven by 4.6 per cent volume growth in foodservice with new menu items, seasonal launches and continued product renovation, and 5.6 per cent volume growth in emerging markets in south-east Asia and Latin America.
“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 per cent," said Edmond Scanlon, chief executive of Kerry Group.
"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."
Kerry's net debt rose from €1.9bn to nearly €2.1bn during the period as strong cash generation was offset by dividends and a €300m share buyback programme announced in April.
The group said it "strong end market outperformance" in H1 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 said.
"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 seven per cent to 11 per cent growth in the full year."
Photo: Edmond Scanlon. (Pic: Sam Boal/ Rollingnews.ie)
