3rd Quarter Results
Summary by AI BETAClose X
23 October 2025
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Q3 Interim Management Statement 2025.
Volume growth and strong margin expansion.
Q3 YEAR-TO-DATE HIGHLIGHTS1
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> 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 |
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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.
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Edmond Scanlon, Chief Executive Officer |
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"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.
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CONTACT INFORMATION |
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INVESTOR RELATIONS |
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Marguerite Larkin, Chief Financial Officer +353 66 7182292 | investorrelations@kerry.ie |
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William Lynch, Head of Investor Relations +353 66 7182292 | investorrelations@kerry.ie |
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MEDIA |
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Catherine Keogh, Chief Corporate Affairs Officer +353 45 930 000 | corpaffairs@kerry.com |
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WEBSITE |
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www.kerry.com |
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