Preliminary Statement of Results 31 December 2021

Companies

Kerry Group 'A' Shares (CDI) (KYGA)

UK 100

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Date: 16 February 2022 LEI: 635400TLVVBNXLFHWC59
KERRY GROUP PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021 Good finish to a year of strong growth and business development OVERVIEW
> Grouprevenueof€7.4billionreflecting 8.0% volume growth > Taste & Nutrition volumes +8.3% (Q4: +7.2%) > Consumer Foods volumes +6.0% (Q4: +7.1%) > Pricing of +1.2% > Group EBITDA of €1.1 billion representing an EBITDA margin of 14.7% > Grouptradingmargin +40bps to 11.9% > AdjustedEPSof380.8 cent- up 12.1% on a constant currency basis > BasicEPSof 430.6cent(2020:313.0 cent) > Freecashflowof€566m reflecting 84% cash conversion > Finaldividendpershareof66.7cent(total 2021 dividend up 10.1% to 95.2 cent) > 2022 adjusted earnings per share guidance of 5% to 9% growth on a constant currency basis
Edmond Scanlon, Chief Executive Officer
"We ended the year on a strong note with excellent growth across our business. In 2021 we achieved strong overall growth across all regions with Group revenue of €7.4 billion, driven by volume growth of 8.0%. In the Taste & Nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservice with business volumes in all regions above 2019 levels in the fourth quarter. This growth was well spread across our end use markets, with Beverage, Bakery and Meat delivering particularly strong performances. The year was important for Kerry from a strategic perspective. We continued to enhance our position as a market-leading taste and nutrition company with a number of strategic portfolio developments, while further enhancing our local footprint to support our growth ambitions, which we outlined as part of our strategic update at the Capital Markets Day in October. While recognising that current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle. Our earnings guidance range for 2022 reflects the Group's strong growth prospects and the net effect of recent portfolio developments."

Performance Group reported revenue in the year increased by 5.7% to €7.4 billion. This reflected strong volume growth of 8.0% against lower prior year comparatives and increased pricing of 1.2%, partially offset by the impact of adverse translation currency of 1.8% and business disposals net of acquisitions of 1.7%. Taste & Nutrition delivered strong volume growth across all regions and Consumer Foods achieved strong volume growth across the business. Group trading profit increased by 9.8% to €875.5m. This represented trading profit margin expansion of 40bps which was driven by the recovery of operating leverage, portfolio mix and net contribution of acquisitions and disposals, partially offset by pricing, supply chain oncosts and KerryExcel investments. Constant currency adjusted earnings per share increased by 12.1% to 380.8 cent (2020: 9.4% decrease). Basic earnings per share increased to 430.6 cent (2020: 313.0 cent). The Board recommends a final dividend of 66.7 cent per share, an increase of 10.1% on the final 2020 dividend. Together with the interim dividend of 28.5 cent per share, this brings the total dividend for the year to 95.2 cent, an increase of 10.1% on 2020. Net capital expenditure amounted to €315m (2020: €311m) and research and development expenditure was €297m (2020: €282m) as the Group continued to invest in its strategic priorities of taste, nutrition and emerging markets. The Group achieved free cash flow of €566m (2020: €412m) representing cash conversion of 84% in the year.
Strategic Portfolio Developments
The Group announced a number of important strategic developments in the year with acquisitions aligned to our strategic priorities and key growth platforms. In the area of Food Waste - specifically in Food Protection and Preservation, we completed the acquisition of Niacet¹, which is a global market leader in technologies for food protection and preservation. It brings a complementary product portfolio and enhances Kerry's leadership position in this fast-growing market. We also completed the bolt-on acquisition of National Vinegar Co.¹, adding further fermentation capacity and supporting the Group's growth strategy in natural preservation. Under Health & Bio-Pharma - we strengthened our capabilities across our proactive health portfolio in the areas of probiotics, scientifically backed innovative botanical extracts and nutritional lipids with the acquisition of Biosearch¹, while agreement was reached for the acquisition of Natreon¹, which has leading capability in Ayurvedic and botanical extracts. We significantly enhanced our biotechnology capabilities with the acquisition of Enmex¹, which is a well-established enzyme manufacturer based in Mexico, serving food, beverage and other consumer markets. Since year end, we reached agreement to acquire c. 92% of the issued share capital of c-LEcta², with management to retain the balance. Based in Leipzig, Germany, c-LEcta is a leading biotechnology innovation company specialising in precision fermentation, optimised bio-processing and bio-transformation for the creation of high-value targeted enzymes and ingredients. It is a leading innovator in disruptive new sciences for the pharmaceutical market, with a strong pipeline of functional bioactives across food, beverage and other consumer markets. We expanded our presence within Emerging Markets with the bolt-on acquisition of Afribon¹, which is a producer of flavours for a range of food and beverage applications and expands our presence in East Africa. Since year end, we reached agreement to acquire Almer², which is a dairy taste business based in Johor Bahru, Malaysia. During the year we also completed the disposal of our Consumer Foods Meats and Meals Business³ to Pilgrim's Pride.
¹ See Note 6 Business combinations for further details
² See Note 7 Events after the balance sheet date for further details
³ See Note 3 Non-trading items for further details

Markets
Market conditions have been highly dynamic across the year, with a strong overall demand environment combined with high degrees of variability across geographies and channels. At-home consumption remained strong, with foodservice improving as consumers embraced the opportunities for more out-of-home social engagement and food consumption. The extent of consumer demands continues to increase in areas such as plant-based, functional food for specific health requirements, taste without compromise and products with an improved sustainability impact. These heightened and complex consumer demands are presenting greater challenges for our customers, as they continue to balance these with current industry labour and supply chain dynamics. This is leading to the need for a greater level of support from value-add partners and increasing the level of collaborative innovation in our industry.
Business Reviews Taste & Nutrition Strong growth in retail channel, with foodservice volumes finishing the year above 2019 levels
	2021					Growth
Revenue	€6,273m					+8.3%¹
EBITDA margin	17.5%
Trading margin	14.6%					+40bps
¹ volume growth
> Volume growth driven by Beverage and Food EUMs - led by Meat and Bakery > Retail channel volume growth of 5.4% with foodservice growth of 18.0% against lower comparatives > Pricing of 1.3% reflected increases in input costs through the year > Trading margin improvement of 40bps primarily driven by operating leverage
Taste & Nutrition reported revenue increased by 9.0% to €6.3 billion in the year. This reflected strong volume growth of 8.3%, increased pricing of 1.3% and contribution from acquisitions net of disposals of 2.1%, partially offset by the impact of adverse translation currency of 2.7%. Kerry's key growth platforms performed well in the year, with particularly strong growth achieved in food waste applications supported by the acquisition of Niacet and also in plant-based applications with new launches incorporating our Radicle™ plant-based range. We achieved excellent growth across a number of our end use markets, supported by innovations with our leading taste solutions for nutritionally optimised products and our proactive nutrition portfolio. Kerry's overall growth was supported by an increased number of customer launches through the year, where we played an important role in improving the sustainability impact of our customers' products. In emerging markets we achieved strong growth across all regions, with overall volume growth of 14.4%.
Americas Region
> Volume growth of 6.7% > Retail channel delivered strong growth led by Beverage, Bakery and Meat > Foodservice channel delivered very good growth with a strong finish to the year
Revenue in the region increased by 4.9% to €3.2 billion in the year. This reflected strong volume growth of 6.7%, increased pricing of 1.2% and contribution from acquisitions of 1.8%, partially offset by the impact of adverse translation currency of 4.8%. The strong growth within the region was achieved despite the impact of supply chain and labour challenges across the industry. Within the North American retail channel, the Beverage EUM achieved excellent growth driven by Kerry's portfolio of proactive nutrition, botanicals and taste modulation technologies. Within the Food EUM, Bakery delivered very strong growth through taste, preservation and clean label solutions. Performance in Meals and Cereal & Sweet were impacted by product repositioning within these categories, while Snacks had good growth supported by new launches in healthier snacking. Meat achieved good overall growth through food protection and preservation, with strong business development and growth in plant-based alternatives. The foodservice channel in North America continued to deliver very good growth, with a strong finish to the year across quick service restaurants and coffee chains in particular, supported by Kerry's brands and solutions to reduce complexity in back-of-house operations. In LATAM we had strong growth across the region. Volume growth in Brazil was driven by performance in Beverage and ice cream, while growth in Mexico was led by Snacks. Within the global Pharma EUM, cell nutrition delivered good growth, which was offset by weaker volumes in excipients as a result of supply chain delays in the year. During the year, we commenced production at our new state-of-the-art facility in Rome, Georgia, and within our taste facility in Irapuato, Mexico. These facilities will be important contributors to future growth within the region.
Europe Region
> Volume growth of 9.9% > Retail channel delivered strong growth led by Meat, Bakery and Dairy > Foodservice channel performance improved significantly with increased out-of-home consumption through the year
Revenue in the region increased by 14.6% to €1.6 billion in the year. This reflected very strong volume growth of 9.9%, increased pricing of 1.8%, contribution from acquisitions of 2.3% and the impact of favourable transaction currency of 0.1% and favourable translation currency of 0.5%. The level of growth achieved in the region reflected strong progress across the year, while recognising softer prior year comparatives. Growth in the retail channel was driven by performance within the Food EUM. Meat achieved excellent growth through a number of plant-based meat alternative innovations, launches with natural preservation and increased demand for healthier coating systems. Bakery and Confectionery delivered a very strong performance through texture systems and indulgent innovations. Dairy achieved strong growth in premium and dairy-free ice cream ranges, while international dairy markets reflected increased demand versus supply dynamics. Within the Beverage EUM, there was good growth with low/non-alcoholic beverages incorporating Kerry's botanicals, natural extracts and sugar reduction technologies. The foodservice channel achieved excellent growth particularly in the UK and Southern Europe. This growth was broad-based across our end use markets, as customers extended their menu ranges and reintroduced limited time offers as the year progressed. Russia and Eastern Europe continued to deliver very strong growth across both retail and foodservice channels, led by Meat and Snacks.
APMEA Region
> Volume growth of 11.3% > Retail channel delivered excellent growth led by Meat, Beverage and Bakery > Foodservice channel delivered strong overall growth - with variations across the region
Revenue in the region increased by 14.8% to €1.4 billion in the year. This reflected very strong volume growth of 11.3%, increased pricing of 1.1% and contribution from acquisitions of 3.3%, partially offset by the impact of adverse transaction currency of 0.1% and adverse translation currency of 0.8%. The overall growth across the region was led by strong performances in China and the Middle East. Growth in the retail channel was well spread across Kerry's markets. Within the Food EUM, Meat had strong growth through local authentic taste innovations and a number of plant-based launches. Growth in the Bakery EUM was led by savoury taste innovations with a number of local leaders across the region. Within the Beverage EUM, growth was driven by innovations across tea, coffee and refreshing beverage through solutions incorporating Kerry's natural extracts, Tastesense™ sugar reduction technology and proactive nutrition portfolio. The foodservice channel delivered strong overall growth and a good finish to the year. This was achieved despite COVID-19 related restrictions impacting performance across the region at various stages, most notably in South East Asia. During the year, we continued to make good progress in expanding our capacity and deploying our technology capabilities in the region. We opened our new taste facility in Durban, South Africa in the final quarter, which will be an important strategic step in our expansion within the continent. We made good progress in the development of our new taste facility at our Jeddah, Saudi Arabia operation and we also announced the development of a new taste facility in Karawang, Indonesia.

Consumer Foods Strong volume growth \| Significant change in business from sale of Meats and Meals portfolio
		2021					Growth
Revenue		€1,144m					+6.0%¹
EBITDA margin		8.7%
Trading margin		7.2%					-60bps
¹ volume growth
> Volume - strong growth across the business with an excellent finish to the year > Pricing of 0.5% reflecting increases in input costs and market pricing > Trading margin decrease of 60bps as underlying improvement was more than offset by the impact of portfolio divestment
Consumer Foods reported revenue decreased in the year by 10.5% to €1.1 billion. This reflected strong volume growth of 6.0%, increased pricing of 0.5%, a favourable transaction currency impact of 0.1% and a favourable translation currency impact of 1.7%, which were more than offset by the impact of business disposal of 18.8% due to the sale of the Meats and Meals business. Volume growth in the division reflected a strong performance while recognising the lower prior year comparatives. The sale of the Meats and Meals business completed on 27 September 2021, resulting in the separation and realignment of the remaining dairy-related activities within the Consumer Foods Business. Meats¹ delivered good overall growth in the year, driven by the continued strong performance of Richmond's meat-free range and the performance of Fridge Raiders. Meals¹ achieved strong growth supported by chilled meals health and wellness ranges and performance of the Oakhouse Foods home delivery business. Dairy delivered strong overall growth with an excellent final quarter. This was led by volume growth in the Strings & Things snacking range, with spreadable butter ranges also delivering a strong performance.
¹ Comments on Meats and Meals business performance represent the nine-month period prior to disposal on 27 September 2021. See Note 3 Non-trading items for further details.
Financial Review
				%			2021			2020
				change			€'m			€'m
Revenue				5.7%			7,350.6			6,953.4
Tradingprofit				9.8%			875.5			797.2
Tradingmargin							11.9%			11.5%
Computersoftwareamortisation							(34.6)			(28.4)
Finance costs (net)							(69.9)			(72.4)
Adjustedearningsbeforetaxation							771.0			696.4
Incometaxes(excludingnon-tradingitems)							(96.2)			(85.1)
Adjustedearningsaftertaxation				10.4%			674.8			611.3
Brandrelatedintangibleassetamortisation							(46.2)			(41.7)
Non-tradingitems(netofrelatedtax)							134.4			(15.5)
Profitaftertaxation							763.0			554.1
							EPS			EPS
							cent			cent
Basic EPS				37.6%			430.6			313.0
Brandrelatedintangibleassetamortisation							26.0			23.6
Non-tradingitems(netofrelatedtax)							(75.8)			8.8
Adjusted* EPS				10.2%			380.8			345.4
Impact of exchange rate translation				1.9%
Adjusted* EPS growth in constant currency				12.1%						(9.4%)
* Before brand related intangible asset amortisation and non-trading items (net of related tax).

Revenue
Group revenue was €7.4 billion (2020: €7.0 billion) reflecting a reported increase of 5.7%. This comprised a volume increase of 8.0%, increased pricing of 1.2%, an adverse translation currency impact of 1.8% and an adverse impact from business disposals net of acquisitions of 1.7%. 2020: Group reported revenue (4.0%), volume decrease (2.9%), pricing increase +0.3%, transaction currency (0.1%), translation currency (2.3%), contribution from business acquisitions of +1.0%. Taste & Nutrition revenue was €6.3 billion (2020: €5.8 billion) reflecting a reported revenue increase of 9.0%. This comprised a volume increase of 8.3%, increased pricing of 1.3%, an adverse translation currency impact of 2.7% and contribution from business acquisitions net of disposals of 2.1%. 2020: Taste & Nutrition reported revenue (4.4%), volume decrease (3.0%), pricing increase +0.1%, transaction currency (0.1%), translation currency (2.6%), acquisitions +1.2%. Consumer Foods revenue was €1.1 billion (2020: €1.28 billion) reflecting a reported revenue decrease of 10.5%. This comprised a volume increase of 6.0%, increased pricing of 0.5%, a favourable transaction currency impact of 0.1% and a favourable translation currency impact of 1.7%, which were more than offset by the adverse impact from the disposal of the Meats and Meals business of 18.8%. 2020: Consumer Foods reported revenue (2.1%), volume reduction (2.6%), pricing +1.2%, translation currency (0.7%). Excluding the impact of the ready meals contract exit, volume would have increased by 2.2%.
Trading Profit & Margin
Group reported trading profit was €875.5m (2020: €797.2m) and trading margin was 11.9%, representing an increase of 40bps, driven by the recovery of operating leverage and the net contribution of acquisitions and disposals, partially offset by pricing, supply chain oncosts and KerryExcel investments. Taste & Nutrition reported trading profit of €913.4m (2020: €814.2m) and trading margin of 14.6%, an increase of 40bps, driven principally by operating leverage. Consumer Foods reported trading profit of €82.1m (2020: €99.2m) and trading margin of 7.2%, a decrease of 60bps, principally reflecting the sale of the Meats and Meals business. The trading profit reflects Group EBITDA of €1.1 billion (2020: €1.0 billion) and an EBITDA margin of 14.7% (2020: 14.4%).

Computer Software Amortisation
Computer software amortisation increased by €6.2m to €34.6m (2020: €28.4m) reflecting the ongoing progression of the KerryConnect Programme including costs associated with the rollout across our sites in North America. The capitalised element of the cost of this project is being amortised over a seven-year period.

Brand Related Intangible Asset Amortisation
Brand related intangible asset amortisation increased to €46.2m (2020: €41.7m) which is reflective of recent acquisition activity.

Finance Costs (net)
Finance costs (net) for the year decreased by €2.5m to €69.9m (2020: €72.4m) primarily due to lower interest rates. The Group's average interest rate for the year was 2.7% (2020: 3.0%).

Taxation
The tax charge for the year before non-trading items was €96.2m (2020: €85.1m) representing an effective tax rate of 13.3% (2020: 13.0%) and reflective of the geographical mix of earnings.

Acquisitions
During the year, the Group completed five acquisitions for a total consideration of €1,106.5m (note 6). These acquisitions were aligned to the Group's strategic priorities, enhancing the Group's taste and nutrition capabilities, while also expanding its presence in emerging markets.

Non-Trading Items
During the year, the Group incurred a net non-trading item credit of €134.4m (2020: €15.5m charge) net of tax. The credit in the year primarily related to the gain on the disposal of the Consumer Foods Meats and Meals business, which was partially offset by costs relating to acquisition integrations.

Adjusted EPS in Constant Currency
Adjusted EPS in constant currency increased by 12.1% to 380.8 cent (2020: 9.4% decrease) reflecting the strong overall business performance in the year.

Basic EPS
Basic EPS increased by 37.6% to 430.6 cent (2020: 313.0 cent). Basic EPS is calculated after accounting for brand related intangible asset amortisation of 26.0 cent (2020: 23.6 cent) and a non-trading item credit of 75.8 cent net of related tax (2020: 8.8 cent charge).

Return on Average Capital Employed
ROACE increased to 9.9% (2020: 9.8%) reflecting business performance and the impact of portfolio developments in the year.

Exchange Rates Group results are impacted by year-on-year fluctuations in exchange rates versus the euro. The average rates below are the principal rates used for the translation of results. The closing rates below are used to translate assets and liabilities at year end.
			Average Rates						Closing Rates
			2021		2020				2021	2020
AustralianDollar			1.57		1.66				1.56	1.59
BrazilianReal			6.34		5.75				6.32	6.38
British Pound Sterling			0.86		0.89				0.84	0.90
ChineseYuanRenminbi			7.63		7.86				7.22	8.03
Malaysian Ringgit			4.92		4.77				4.73	4.92
MexicanPeso			24.06		24.34				23.30	24.46
Russian Ruble			87.24		81.16				84.07	90.68
South African Rand			17.40		18.62				18.06	18.02
US Dollar			1.19		1.13				1.13	1.23

Balance Sheet
A summary balance sheet as at 31 December is provided below:
								2021		2020
								€'m		€'m
Property,plant&equipment								2,091.3		1,990.6
Intangible assets								5,580.7		4,687.1
Othernon-currentassets								264.5		170.6
Currentassets								3,458.9		2,594.8
Totalassets								11,395.4		9,443.1
Currentliabilities								1,995.4		1,696.3
Non-currentliabilities									3,798.8	3,091.3
Totalliabilities									5,794.2	4,787.6
Net assets									5,601.2	4,655.5
Shareholders'equity									5,601.2	4,655.5

Property, Plant & Equipment
Property, plant and equipment increased by €100.7m to €2,091.3m (2020: €1,990.6m) primarily due to additions and the impact of foreign exchange translation, partially offset by the impact of business disposals and the depreciation charge. Net capital expenditure in the year (including computer software) amounted to €315.2m (2020: €310.7m). The level of capital investment supports the Group's growth initiatives and included the strategic development of its Rome, Georgia, US facility, creating a world ‐ leading manufacturing facility to meet increasing demand for integrated solutions across a variety of protein applications.

Intangible Assets & Acquisitions
Intangible assets increased by €893.6m to €5,580.7m (2020: €4,687.1m) due to a number of acquisitions made in the year including the acquisition of Niacet and the impact of foreign exchange translation, partially offset by the impact of business disposals and the amortisation charge.

Current Assets
Current assets increased by €864.1m to €3,458.9m (2020: €2,594.8m) due to increased cash at bank and in hand, increased inventory, and increased trade and other receivables.

Retirement Benefits
At the balance sheet date, the net surplus for all defined benefit schemes (after deferred tax) was €56.3m (2020: deficit of €43.6m). The improvement in the net position was driven primarily by strong returns on schemes' assets which was partially offset by an increase in schemes' liabilities. The net surplus expressed as a percentage of market capitalisation at 31 December 2021 was 0.3% (2020: 0.2%).

Free Cash Flow
In 2021, the Group achieved free cash flow of €566.1m (2020: €412.0m) reflecting 84% cash conversion in the year.
									2021	2020
FreeCashFlow									€'m	'm
Tradingprofit									875.5	797.2
Depreciation(net)									201.5	200.7
Movementinaverageworkingcapital									(37.7)	(102.5)
Pensioncontributionspaid lesspensionexpense									(14.7)	(23.4)
Finance costs paid (net)									(71.3)	(74.6)
Incometaxespaid									(72.0)	(74.7)
Purchaseofnon-currentassets (net)									(315.2)	(310.7)
Freecashflow									566.1	412.0
Cash conversion¹									84%	67%
¹ Cash conversion is free cash flow expressed as a percentage of adjusted earnings after taxation.
Total Net Debt
Total net debt at the end of the year was €2,124.1m (2020: €1,945.1m).

Financing
Undrawn committed facilities at the end of the year were €1,100m (2020: €1,100m) while undrawn standby facilities were €337.0m (2020: €320.0m). During the year, Kerry issued a €750m, 10-year Sustainability-Linked Bond (SLB) aligned with the Sustainability-Linked Bond Principles (SLBPs) administered by the International Capital Markets Association. The bond has a sustainability-linked feature that could result in an interest coupon step-up if certain KPI targets are not met by December 2030. The KPIs that have been selected reflect material environmental sustainability challenges for our industry and key focus areas under our Beyond the Horizon strategy. These KPIs and targets are as follows: > KPI 1: 55% Absolute reduction in Scope 1 & 2 greenhouse gas emissions; and > KPI 2: 50% Food waste reduction across our operations. Of the cash at bank and in hand at year end, €100.0m (2020: €75m) was on short-term deposit under a Sustainable Deposits programme.

Key Financial Ratios
The Group's balance sheet is in a strong position. With a Net debt to EBITDA* ratio of 2.0 times, the Group has sufficient headroom to support future growth plans. During the year, the Group repaid US$200m of outstanding private placement notes. Following this repayment, the Group now has no financial arrangements that carry financial covenants.
									2021	2020
									Times	Times
Net debt: EBITDA*									2.0	1.9
EBITDA: Net interest*									14.9	13.8
* Calculated on a pro-forma basis as outlined in Financial Definitions section

Share Price and Market Capitalisation
The Company's shares traded in the range €99.95 to €130.00 during the year. The share price at 31 December 2021 was €113.25 (2020: €118.50) giving a market capitalisation of €20.0 billion (2020: €20.9 billion). Total shareholder return for 2021 was -3.7% (2020: +7.4%).

Dividend and Annual General Meeting
During the year, the Group paid an interim dividend of 28.5 cent per A ordinary share, which was an increase of 10.0% on the prior year interim dividend. The Board has proposed a final dividend of 66.7 cent per A ordinary share, payable on 6 May 2022 to shareholders registered on the record date of 8 April 2022. When combined with the interim dividend, the total dividend for the year amounts to 95.2 cent per share (2020: 86.5 cent per share), which is an increase of 10.1% over last year's dividend. The Group's aim is to have double digit dividend growth each year. Over 35 years as a listed company, the Group has grown its dividend at a compound rate of 16.3%. Kerry's Annual Report will be published in March and the General Meeting will be held on 28 April 2022.

Board Changes
The Board has appointed Mr Tom Moran as Chairman Designate to succeed Mr Philip Toomey who will retire as Chairman and as a Director of the Company at the conclusion of the Company's Annual General Meeting in April 2022. Philip Toomey was appointed Chairman of the Board in 2018 and has served as a Director since 2012. Tom Moran was appointed to the Board in September 2015. He is currently Chair of the Remuneration Committee and a member of the Governance, Nomination and Sustainability Committee. He also served as a member of the Audit Committee from December 2015 to November 2020. He was appointed Designated Workforce Engagement Director in June 2019. Tom Moran had a long and distinguished career with the Irish Public Sector where he served for ten years as Secretary General of the Irish Department of Agriculture, Food and the Marine. He has extensive leadership experience in international policy and trade negotiation. The appointment of Tom Moran as Chairman Designate follows a selection process by a sub-committee of the Board led by Dr Hugh Brady, the Senior Independent Director. On his appointment as Chairman at the conclusion of the AGM, Tom Moran will resign from the Remuneration Committee and as the Designated Workforce Engagement Director. The Board has agreed to appoint Ms Emer Gilvarry as Chairperson of the Remuneration Committee and Ms Karin Dorrepaal as Designated Workforce Engagement Director in succession to Mr Moran.

Future Prospects
Our markets remain highly dynamic with a continued good demand environment, despite the backdrop of COVID-19 and supply chain challenges right across our industry. While market conditions remain uncertain, the Group is strongly positioned for growth. Kerry's key growth platforms of Authentic Taste, Food Waste, Plant-Based and Health & Bio-Pharma underpin a strong innovation pipeline. As the industry is currently experiencing a period of heightened inflation, the Group remains confident in its ability to manage through this current cycle with its well-established pricing model and cost initiatives. Kerry will continue to strategically evolve its portfolio and invest capital aligned to its strategic priorities and key growth platforms. The Group's earnings guidance includes the net dilution from the recent portfolio changes. Kerry expects to achieve adjusted earnings per share growth in 2022 of 5% to 9% on a constant currency basis.

Disclaimer
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 & Brand Officer
	+353 45 930188 \| corpaffairs@kerry.com

	Website
	www.kerrygroup.com

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021
Consolidated Income Statement
for the financial year ended 31 December 2021
		Before			Before
		Non- Trading	Non- Trading		Non- Trading	Non-Trading
		Items	Items	Total	Items	Items	Total
		2021	2021	2021	2020	2020	2020
	Notes	€'m	€'m	€'m	€'m	€'m	€'m
Continuing operations
Revenue	2	7,350.6	-	7,350.6	6,953.4	-	6,953.4

Trading profit	2	875.5	-	875.5	797.2	-	797.2

Intangible asset amortisation		(80.8)	-	(80.8)	(70.1)	-	(70.1)
Non-trading items	3	-	91.5	91.5	-	(19.4)	(19.4)
Operating profit		794.7	91.5	886.2	727.1	(19.4)	707.7

Finance income		0.3	-	0.3	0.2	-	0.2
Finance costs		(70.2)	-	(70.2)	(72.6)	-	(72.6)
Profit before taxation		724.8	91.5	816.3	654.7	(19.4)	635.3

Income taxes		(96.2)	42.9	(53.3)	(85.1)	3.9	(81.2)
Profit after taxation attributable to owners of the parent		628.6	134.4	763.0	569.6	(15.5)	554.1

Earnings per A ordinary share
				Cent			Cent
- basic	4			430.6			313.0
- diluted	4			429.6			312.5

Consolidated Statement of Comprehensive Income
for the financial year ended 31 December 2021
		2021		2020
		€'m		€'m
Profit after taxation attributable to owners of the parent		763.0		554.1

Other comprehensive income:

Items that are or may be reclassified subsequently to profit or loss:
Fair value movements on cash flow hedges		(0.3)		7.9
Cash flow hedges - reclassified to profit or loss from equity		(0.9)		2.9
Net change in cost of hedging		-		(0.9)
Deferred tax effect of fair value movements on cash flow hedges		0.1		(2.0)
Exchange difference on translation of foreign operations		217.7		(282.3)
Cumulative exchange difference on translation recycled on disposal		16.2		-
Fair value movement on revaluation of financial assets held at fair value through other comprehensive income		-		(1.3)
Disposal of financial assets fair value movement reclassified to profit or loss		-		0.7

Items that will not be reclassified subsequently to profit or loss:
Re-measurement on retirement benefits obligation		110.2		(67.0)
Deferred tax effect of re-measurement on retirement benefits obligation		(20.0)		11.8
Net income/(expense) recognised directly in total other comprehensive income		323.0		(330.2)
Total comprehensive income		1,086.0		223.9
Consolidated Balance Sheet
as at 31 December 2021
	31 December		31 December
	2021		2020
	€'m		€'m
Non-current assets
Property, plant and equipment	2,091.3		1,990.6
Intangible assets	5,580.7		4,687.1
Financial asset investments	49.9		37.0
Investment in joint ventures	21.7		17.8
Other non-current financial instruments	34.8		82.0
Retirement benefits asset	90.3		-
Deferred tax assets	67.8		33.8
	7,936.5		6,848.3
Current assets
Inventories	1,204.2		975.6
Trade and other receivables	1,181.7		1,042.0
Cash at bank and in hand	1,039.1		563.1
Other current financial instruments	15.2		14.1
Assets classified as held for sale	18.7		-
	3,458.9		2,594.8
Total assets	11,395.4		9,443.1
Current liabilities
Trade and other payables	1,791.5		1,543.3
Borrowings and overdrafts	5.6		2.8
Other current financial instruments	40.1		10.0
Tax liabilities	141.6		132.6
Provisions	13.6		5.2
Deferred income	3.0		2.4
	1,995.4		1,696.3
Non-current liabilities
Borrowings	3,118.0		2,505.8
Other non-current financial instruments	0.5		0.5
Retirement benefits obligation	24.1		54.4
Other non-current liabilities	153.9		144.9
Deferred tax liabilities	447.3		330.2
Provisions	37.1		36.1
Deferred income	17.9		19.4
	3,798.8		3,091.3
Total liabilities	5,794.2		4,787.6
Net assets	5,601.2		4,655.5
Issued capital and reserves attributable to owners of the parent
Share capital	22.1		22.1
Share premium	398.7		398.7
Other reserves	(129.6)		(379.5)
Retained earnings	5,310.0		4,614.2
Shareholders' equity	5,601.2		4,655.5

Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2021
		Share	Share	Other	Retained
		Capital	Premium	Reserves	Earnings	Total
	Note	€'m	€'m	€'m	€'m	€'m
Group:

At 1 January 2020		22.1	398.7	(119.0)	4,260.4	4,562.2
Profit after taxation attributable to owners of the parent		-	-	-	554.1	554.1
Other comprehensive expense		-	-	(273.0)	(57.2)	(330.2)
Total comprehensive (expense)/income		-	-	(273.0)	496.9	223.9

Shares issued during the financial year		-	-	-	-	-
Dividends paid	5	-	-	-	(143.1)	(143.1)
Share-based payment expense		-	-	12.5	-	12.5
At 31 December 2020		22.1	398.7	(379.5)	4,614.2	4,655.5

Profit after taxation attributable to owners of the parent		-	-	-	763.0	763.0
Other comprehensive income		-	-	232.7	90.3	323.0
Total comprehensive income		-	-	232.7	853.3	1,086.0

Shares issued during the financial year		-	-	-	-	-
Dividends paid	5	-	-	-	(157.5)	(157.5)
Share-based payment expense		-	-	17.2	-	17.2
At 31 December 2021		22.1	398.7	(129.6)	5,310.0	5,601.2

Other Reserves comprise the following:
				Share-
		Capital	Other	Based			Cost of
	FVOCI	Redemption	Undenominated	Payment	Translation	Hedging	Hedging
	Reserve	Reserve	Capital	Reserve	Reserve	Reserve	Reserve	Total
	€'m	€'m	€'m	€'m	€'m	€'m	€'m	€'m
At 1 January 2020	0.6	1.7	0.3	77.7	(189.7)	(8.2)	(1.4)	(119.0)
Other comprehensive (expense)/income	(0.6)	-	-	-	(282.3)	10.8	(0.9)	(273.0)
Share-based payment expense	-	-	-	12.5	-	-	-	12.5
At 31 December 2020	-	1.7	0.3	90.2	(472.0)	2.6	(2.3)	(379.5)

Other comprehensive income/(expense)	-	-	-	-	233.9	(1.2)	-	232.7
Share-based payment expense	-	-	-	17.2	-	-	-	17.2
At 31 December 2021	-	1.7	0.3	107.4	(238.1)	1.4	(2.3)	(129.6)

Consolidated Statement of Cash Flows
for the financial year ended 31 December 2021
		2021	2020
	Notes	€'m	€'m
Cash flows from operating activities
Profit before taxation		816.3	635.3
Adjustments for:
Depreciation (net)		201.5	200.7
Intangible asset amortisation		80.8	70.1
Share of profit from joint ventures		(3.9)	(1.6)
Non-trading items income statement (income)/charge	3	(91.5)	19.4
Finance costs (net)		69.9	72.4
Change in working capital		(184.3)	(107.1)
Pension contributions paid less pension expense		(14.7)	(23.4)
Payments on non-trading items		(76.1)	(39.7)
Exchange translation adjustment		(0.7)	(4.6)
Cash generated from operations		797.3	821.5
Income taxes paid		(72.0)	(74.7)
Finance income received		0.4	0.2
Finance costs paid		(71.7)	(74.8)
Net cash from operating activities		654.0	672.2
Investing activities
Purchase of assets (net)		(300.4)	(276.2)
Proceeds from the sale of assets (net of disposal expenses)		4.0	7.7
Capital grants received		0.7	0.1
Purchase of businesses (net of cash acquired)	6	(1,084.9)	(251.1)
Payments relating to previous acquisitions		(18.9)	(7.5)
Purchase of investments		(4.4)	-
Disposal of business (net of disposal expenses)	3	775.2	-
Net cash used in investing activities		(628.7)	(527.0)
Financing activities
Dividends paid	5	(157.5)	(143.1)
Payment of lease liabilities		(34.9)	(37.0)
Issue of share capital		-	-
Repayment of borrowings (net of swaps)		(1,093.3)	(391.1)
Increase in borrowings		1,705.0	462.9
Net cash movement due to financing activities		419.3	(108.3)
Net increase in cash and cash equivalents		444.6	36.9
Cash and cash equivalents at beginning of the financial year		560.3	549.7
Exchange translation adjustment on cash and cash equivalents		28.9	(26.3)
Cash and cash equivalents at end of the financial year		1,033.8	560.3

Reconciliation of Net Cash Flow to Movement in Net Debt
Net increase in cash and cash equivalents		444.6	36.9
Cash flow from debt financing		(611.7)	(71.8)
Changes in net debt resulting from cash flows		(167.1)	(34.9)
Fair value movement on interest rate swaps (net of adjustment to borrowings)		(0.1)	7.6
Exchange translation adjustment on net debt		(19.1)	26.5
Movement in net debt in the financial year		(186.3)	(0.8)
Net debt at beginning of the financial year		(1,863.6)	(1,862.8)
Net debt at end of the financial year - pre lease liabilities		(2,049.9)	(1,863.6)
Lease liabilities		(74.2)	(81.5)
Total net debt at end of the financial year		(2,124.1)	(1,945.1)

The following Standards and Interpretations are effective for the Group in 2021 but do not have a material effect on the results or financial position of the Group:			Effective Date

-	IFRS 16 (Amendments)	Leases		1 April 2021
-	IFRS 7, IFRS 4 & IFRS 16 (Amendments)	Interest Rate Benchmark Reform - Phase 2		1 January 2021

The following Standards and Interpretations are not yet effective for the Group and are not expected to have a material effect on the results or financial position of the Group:				Effective Date

-	IAS 16 (Amendments)	Property, Plant and Equipment		1 January 2022
-	IAS 37 (Amendments)	Provisions, Contingent Liabilities and Contingent Assets		1 January 2022
-	IFRS 9 (Amendments)	Financial Instruments		1 January 2022
-	IFRS 3 (Amendments)	Business Combinations		1 January 2022
-	IAS 41 (Amendments)	Agriculture		1 January 2022
-	IAS 1 (Amendments)	Presentation of Financial Statements		1 January 2023
-	IFRS 17	Insurance Contracts		1 January 2023
-	IAS 8 (Amendments)	Accounting Policies, Changes in Accounting Estimates and Errors		1 January 2023
-	IAS 12 (Amendments)	Income Taxes		1 January 2023

2. Analysis of results
The Group has determined it has two reportable segments: Taste & Nutrition and Consumer Foods. The Taste & Nutrition segment is the world's leading taste and nutrition partner for the food, beverage and pharmaceutical markets. Kerry innovates with its customers to create great tasting products, with improved nutrition and functionality, whilst ensuring better impact for the planet. The Taste & Nutrition segment supplies industries across Ireland, Europe, Americas and APMEA (Asia Pacific, Middle East and Africa). The Consumer Foods segment is a leader in our consumer foods categories in the chilled cabinet primarily in Ireland and in the UK.
	Taste & Nutrition 2021	Consumer Foods 2021	Group Eliminations and Unallocated 2021	Total 2021	Taste & Nutrition 2020	Consumer Foods 2020	Group Eliminations and Unallocated 2020	Total 2020
	€'m	€'m	€'m	€'m	€'m	€'m	€'m	€'m
External revenue	6,209.0	1,141.6	-	7,350.6	5,678.4	1,275.0	-	6,953.4
Inter-segment revenue	64.3	2.3	(66.6)	-	74.8	3.6	(78.4)	-
Revenue	6,273.3	1,143.9	(66.6)	7,350.6	5,753.2	1,278.6	(78.4)	6,953.4

Trading profit	913.4	82.1	(120.0)	875.5	814.2	99.2	(116.2)	797.2

Intangible asset amortisation				(80.8)				(70.1)
Non-trading items				91.5				(19.4)

Operating profit				886.2				707.7

Finance income				0.3				0.2
Finance costs				(70.2)				(72.6)

Profit before taxation				816.3				635.3
Income taxes				(53.3)				(81.2)
Profit after taxation attributable to owners of the parent				763.0				554.1

Segment assets and liabilities
Segment assets	8,101.9	361.9	2,931.6	11,395.4	6,370.1	877.2	2,195.8	9,443.1
Segment liabilities	(1,605.4)	(235.2)	(3,953.6)	(5,794.2)	(1,295.0)	(332.9)	(3,159.7)	(4,787.6)
Net assets	6,496.5	126.7	(1,022.0)	5,601.2	5,075.1	544.3	(963.9)	4,655.5

Other segmental information
Property, plant and equipment additions	272.2	20.4	0.2	292.8	225.0	20.7	-	245.7
Depreciation (net)	183.3	17.7	0.5	201.5	178.5	21.7	0.5	200.7
Intangible asset additions	1.3	0.2	32.6	34.1	0.9	1.0	50.2	52.1
Intangible asset amortisation	28.9	3.9	48.0	80.8	23.7	6.4	40.0	70.1

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 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 and within the primary geographic markets which affect the nature, amount, timing and uncertainty of revenue and cash flows are similar.
Analysis by EUM
			Taste & Nutrition 2021		Consumer Foods 2021		Total 2021	Taste & Nutrition 2020	Consumer Foods 2020		Total 2020
			€'m		€'m		€'m	€'m	€'m		€'m
Food			4,283.3		1,141.6		5,424.9	3,974.6	1,275.0		5,249.6
Beverage			1,589.1		-		1,589.1	1,407.1	-		1,407.1
Pharma			336.6		-		336.6	296.7	-		296.7
External revenue			6,209.0		1,141.6		7,350.6	5,678.4	1,275.0		6,953.4

Analysis by primary geographic market
Disaggregation of revenue from external customers is analysed by geographical split:
			Taste & Nutrition 2021		Consumer Foods 2021		Total 2021	Taste & Nutrition 2020	Consumer Foods 2020		Total 2020
			€'m		€'m		€'m	€'m	€'m		€'m
Republic of Ireland			201.2		257.5		458.7	171.1	262.2		433.3
Rest of Europe			1,374.2		884.1		2,258.3	1,204.0	1,012.8		2,216.8
Americas			3,235.2		-		3,235.2	3,085.4	-		3,085.4
APMEA			1,398.4		-		1,398.4	1,217.9	-		1,217.9
External revenue			6,209.0		1,141.6		7,350.6	5,678.4	1,275.0		6,953.4

Information about geographical areas
	Europe	Americas		APMEA	Total		Europe	Americas	APMEA		Total
	2021	2021		2021	2021		2020	2020	2020		2020
	€'m	€'m		€'m	€'m		€'m	€'m	€'m		€'m
Segment assets by location	5,205.1	4,959.2		1,231.1	11,395.4		4,986.5	3,362.6	1,094.0		9,443.1
Property, plant and equipment additions	83.7	152.5		56.6	292.8		61.1	130.2	54.4		245.7
Intangible asset additions	33.1	1.0		-	34.1		51.6	0.5	-		52.1
The revenue and non-current assets (as defined in IFRS 8 'Operating Segments') attributable to the country of domicile and all foreign countries of operation, for which revenue exceeds 10% of total external Group revenue, are set out below. Kerry Group plc is domiciled in the Republic of Ireland and the revenues from external customers in the Republic of Ireland were €458.7m (2020: €433.3m). The non-current assets located in the Republic of Ireland are €1,598.4m (2020: €903.1m). Revenues from external customers include €1,379.5m (2020: €1,420.6m) in the UK and €2,610.7m (2020: €2,509.8m) in the USA. The non-current assets in the UK are €391.9m (2020: €692.4m) and in the USA are €3,166.1m (2020: €2,035.6m). There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8 'Operating Segments'. The accounting policies of the reportable segments are the same as the Group's accounting policies as outlined in the Statement of Accounting Policies. Under IFRS 15 'Revenue from Contracts with Customers' revenue is primarily recognised at a point in time. Revenue recorded over time during the year was not material to the Group.

3. Non-trading items
								2021		2020
						Notes		€'m		€'m
Profit/(loss) on disposal of businesses and assets						(i)		179.7		(1.9)
Acquisition integration costs						(ii)		(54.9)		(13.1)
Global Business Services expansion						(iii)		(33.3)		(4.4)
								91.5		(19.4)
Tax on above								26.3		3.9
Tax on inter-group transfer						(iv)		16.6		-
Non-trading items (net of tax)								134.4		(15.5)

(i) Profit/(loss) on disposal of businesses and assets
						Businesses		*Assets		Total
						2021		2021		2021
						€'m		€'m		€'m
Property, plant and equipment - disposed						(132.5)		(13.5)		(146.0)
Property, plant and equipment - impaired						-		(17.1)		(17.1)
Goodwill						(286.0)		-		(286.0)
Brand related intangible assets						(40.7)		-		(40.7)
Computer software						(2.7)		(0.5)		(3.2)
Inventories						(47.2)		-		(47.2)
Deferred tax liabilities						12.8		-		12.8
Assets classified as held for sale - disposed						-		(4.5)		(4.5)
Trade and other receivables						(38.1)		-		(38.1)
Trade and other payables						6.8		-		6.8
Deferred income						2.3		-		2.3
Other non-current liabilities						12.2		-		12.2
						(513.1)		(35.6)		(548.7)

Consideration
Cash received						813.6		19.4		833.0
Disposal related costs						(53.4)		(35.0)		(88.4)
						760.2		(15.6)		744.6

Cumulative exchange difference on translation recycled on disposal						(16.2)		-		(16.2)
Profit/(loss) on disposal of businesses and assets						230.9		(51.2)		179.7

						Businesses		*Assets		Total
						2021		2021		2021
Net cash inflow on disposal:						€'m		€'m		€'m
Cash						813.6		19.4		833.0
Less: disposal related costs paid						(38.4)		(15.4)		(53.8)
						775.2		4.0		779.2
* Assets represent non-current assets and assets classified as held for sale
On 27 September 2021 the Group disposed of its Meats and Meals business operating in Ireland and the UK from the Consumer Foods division and during the year also disposed of a small operation in Taste & Nutrition Europe for a consideration of €813.6m resulting in a gain of €230.9m . The consideration of €813.6m comprises of the €819.0m as previously announced for the sale of the Meats and Meals business net of working capital and debt adjustments and €2.9m for a small operation disposed of in Taste & Nutrition Europe. A tax credit of €0.5m (2020: €nil) arose on the disposal of these businesses. These businesses were not deemed to be discontinued operations and goodwill was allocated to these disposed businesses using an appropriate allocation methodology aligned with IAS 36 'Impairment of Assets'. During the year, the Group disposed of property, plant and equipment and computer software in North America, Europe and APMEA for a combined consideration of €19.4m resulting in a loss of €2.6m for the year ended 31 December 2021. In 2020, the Group disposed of property, plant and equipment primarily in North America, Europe and APMEA for a consideration of €2.4m resulting in a loss of €1.9m. A tax credit of €nil (2020: a tax credit of €0.4m) arose on the disposal of assets. In 2021, assets classified as held for sale of property, plant and equipment based in the USA and Europe were impaired to their fair value less costs to sell by €48.6m (2020: €nil), consisting of €17.1m of property, plant and equipment impairment and €31.5m of estimated costs to sell including marketing, legal, site rectification, environmental and other related expenses necessary to complete the disposals. These assets held for sale are expected to sell in 2022. The related tax credit was €12.2m (2020: €nil). (ii) Acquisition integration costs Acquisition integration costs of €54.9m (2020: €13.1m) primarily related to costs of integrating recent acquisitions into the Group's operations. These costs 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 €12.4m (2020: €3.0m) arose due to tax deductions available on acquisition related costs. (iii) Global Business Services expansion In 2020, the Group commenced a programme to evolve, migrate and expand its Global Business Services model to better enable the business and support further growth. For the year ended 31 December 2021, the Group incurred costs of €33.3m (2020: €4.4m) reflecting initial set up costs, relocation of resources, advisory fees, redundancies and the streamlining of operations. The associated tax credit was €1.2m (2020: €0.5m). (iv) Tax on inter-group transfer During 2021, a net tax credit of €16.6m (2020: €nil) arose as a result of the transfer of intangible assets between two wholly owned subsidiaries based in two different tax jurisdictions.

4. Earnings per A ordinary share
	EPS	2021	EPS	2020
	cent	€'m	cent	€'m
Basic earnings per share
Profit after taxation attributable to owners of the parent	430.6	763.0	313.0	554.1

Diluted earnings per share
Profit after taxation attributable to owners of the parent	429.9	763.0	312.5	554.1


		2021		2020
Number of Shares		m's		m's
Basic weighted average number of shares		177.2		177.0
Impact of share options outstanding		0.3		0.3
Diluted weighted average number of shares		177.5		177.3
Actual number of shares in issue as at 31 December		176.8		176.7

5. Dividends
		2021		2020
		€'m		€'m
Group and Company:
Amounts recognised as distributions to equity shareholders in the financial year
Final 2020 dividend of 60.60 cent per A ordinary share paid 14 May 2021		107.1		97.3
(Final 2019 dividend of 55.10 cent per A ordinary share paid 15 May 2020)

Interim 2021 dividend of 28.50 cent per A ordinary share paid 12 November 2021		50.4		45.8
(Interim 2020 dividend of 25.90 cent per A ordinary share paid 13 November 2020)
		157.5		143.1
Since the financial year end the Board has proposed a final 2021 dividend of 66.70 cent per A ordinary share which amounts to €118.0m. The payment date for the final dividend will be 6 May 2022 to shareholders registered on the record date as at 8 April 2022. The consolidated financial statements do not reflect this dividend.

6. Business combinations
During 2021, the Group completed a total of 5 acquisitions, all of which are 100% owned by the Group.
						Other
				Niacet*		Acquisitions	Total
				2021		2021	2021
				€'m		€'m	€'m
Recognised amounts of identifiable assets acquired and liabilities assumed:
Non-current assets
Property, plant and equipment				65.3		26.3	91.6
Brand related intangibles				360.4		79.6	440.0
Computer software				0.1		0.4	0.5
Current assets
Cash at bank and in hand				7.8		9.3	17.1
Inventories				15.5		10.8	26.3
Trade and other receivables				25.9		13.7	39.6
Current liabilities
Trade and other payables				(32.8)		(27.6)	(60.4)
Non-current liabilities
Deferred tax liabilities				(68.9)		(15.3)	(84.2)
Other non-current liabilities				(17.7)		(3.4)	(21.1)
Total identifiable assets				355.6		93.8	449.4
Goodwill				524.9		132.2	657.1
Total consideration				880.5		226.0	1,106.5

Satisfied by:
Cash							1,099.2
Deferred payment							7.3
							1,106.5

							Total
							2021
Net cash outflow on acquisition:							€'m
Cash							1,099.2
Less: cash and cash equivalents acquired							(17.1)
Plus: debt acquired (included in other non-current liabilities above)							2.8
							1,084.9
* Hare Topco, Inc. (trading as Niacet Corp.)
The acquisition method has been used to account for businesses acquired in the Group's financial statements. Given that the valuation of the fair value of assets and liabilities recently acquired is still in progress, some of the above values are determined provisionally. The valuation of the fair value of assets and liabilities will be completed within the measurement period. For the acquisitions completed in 2020, 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' and as a result separate disclosure was made for the Niacet acquisition. The goodwill is attributable to the expected profitability, revenue growth, future market development and assembled workforce of the acquired businesses and the synergies expected to arise within the Group after the acquisition. €11.7m of goodwill recognised is expected to be deductible for income tax purposes. Transaction expenses related to these acquisitions of €11.0m were charged in the Group's Consolidated Income Statement during the financial year. The fair value of the financial assets includes trade and other receivables with a fair value of €39.6m and a gross contractual value of €40.4m. From the date of acquisition, the acquired businesses have contributed €73.7m of revenue and €9.2m of profit after taxation attributable to owners of the parent to the Group. If the acquisition dates had been on the first day of the financial year, the acquired businesses would have contributed €241.9m of revenue and €31.2m of profit after taxation attributable to owners of the parent to the Group. From the date of acquisition, Niacet has contributed €55.9m of revenue and €8.0m of profit after taxation attributable to owners of the parent to the Group. If the acquisition date had been on the first day of the financial year, Niacet would have contributed €186.4m of revenue and €26.8m of profit after taxation attributable to owners of the parent to the Group. As previously announced, Kerry has entered into an agreement to acquire the share capital of Natreon, Inc., which has leading capability in Ayurvedic and botanical extracts with facilities in the USA and India. The closing process for this acquisition is in progress and the Group expects to complete the transaction in Q1 2022. The following acquisitions were completed by the Group during 2021:
		Completion
Acquisition	Type	date	Principal activity		Strategic rationale
National Vinegar Co.	Asset	May 2021	A producer of specialty ingredients based in the USA.		Supports the Group's growth initiatives in food protection and natural preservation.
Biosearch, S.A. (now known as Biosearch S.A.U.)	Equity	July 2021	A leading biotechnology company based in Spain with an extensive range of probiotics, botanical extracts and omega-3 oils.		Brings leading clinical research capabilities and functional food technologies across the pharmaceutical, nutraceutical and functional food sectors.
Hare Topco, Inc. (trading as Niacet Corp.)	Equity	September 2021	A global market leader in technologies for preservation. It has clear leadership positions in Bakery, Pharma, and cost-effective low-sodium preservation systems for Meat and plant based food, across both conventional and clean label solutions. Niacet is differentiated by its proprietary drying and granulation process technologies, with key manufacturing sites in the USA and the Netherlands, with customers in over 75 countries.		Brings a complementary product portfolio and enhances the Group's leadership position in this fast growing market of food protection and preservatives led by the industry drive to reduce food waste.
Afribon Limited	Equity	December 2021	A producer of flavours for a range of food and beverage applications in East Africa.		Supports the Group's growth initiatives in emerging markets.
Enmex S.A. de C.V.	Equity	December 2021	A leading producer of enzymes across the food and beverage markets based in Mexico.		Brings leading enzyme production capabilities across a number of markets.

7. Events after the balance sheet date
Since the financial year end, the Group has: - entered into an agreement to acquire 100% of the shares of Almer Malaysia Sdn Bhd, based in Malaysia and 92% of the shares of c-LEcta GmbH, based in Germany. The Group also expects to complete the previously announced acquisition of 100% of the shares of Natreon, Inc., in Q1 2022. The combined consideration for these acquisitions is expected to be €244.5m; and - proposed a final dividend of 66.70 cent per A ordinary share (note 5). There have been no other significant events, outside the ordinary course of business, affecting the Group since 31 December 2021.

8. General information
The statutory financial statements of Kerry Group plc for the financial year ended 31 December 2021 were approved by the Board of Directors and authorised for issue on 15 February 2022 and will be filed with the Registrar of Companies following the annual general meeting. The statutory financial statements of Kerry Group plc for the financial year ended 31 December 2020, to which an unqualified audit opinion was received, were annexed to the annual return and filed with the Registrar of Companies.
FINANCIAL DEFINITIONS
1. Revenue
Volume performance This represents the sales performance year-on-year, excluding pass-through pricing on raw material costs, currency impacts, acquisitions (net of disposals) and rationalisation volumes. Volume performance is an important metric as it is seen as the key driver of top-line business improvement. This is used as the key revenue metric, as Kerry operates a pass-through pricing model with its customers to cater for raw material price fluctuations. Pricing therefore impacts like-for-like revenue performance positively or negatively depending on whether raw material prices move up or down. A full reconciliation to reported revenue performance is detailed in the revenue reconciliation below. Revenue Reconciliation
						Reported
	Volume		Transaction	Acquisitions/	Translation	revenue
2021	performance	Price	currency	Disposals	currency	performance
Taste & Nutrition	8.3%	1.3%	-	2.1%	(2.7%)	9.0%
Consumer Foods	6.0%	0.5%	0.1%	(18.8%)	1.7%	(10.5%)
Group	8.0%	1.2%	-	(1.7%)	(1.8%)	5.7%

2020
Taste & Nutrition	(3.0%)	0.1%	(0.1%)	1.2%	(2.6%)	(4.4%)
Consumer Foods	(2.6%)	1.2%	-	-	(0.7%)	(2.1%)
Group	(2.9%)	0.3%	(0.1%)	1.0%	(2.3%)	(4.0%)

2. EBITDA
EBITDA represents profit before finance income and costs, income taxes, depreciation (net of capital grant amortisation), intangible asset amortisation and non-trading items.
	2021	2020
	€'m	€'m
Profit after taxation attributable to owners of the parent	763.0	554.1
Finance income	(0.3)	(0.2)
Finance costs	70.2	72.6
Income taxes	53.3	81.2
Non-trading items	(91.5)	19.4
Intangible asset amortisation	80.8	70.1
Depreciation (net of capital grant amortisation)	201.5	200.7
EBITDA	1,077.0	997.9

3. EBITDA Margin
EBITDA margin represents EBITDA, expressed as a percentage of revenue.
	2021	2020
	€'m	€'m

EBITDA	1,077.0	997.9
Revenue	7,350.6	6,953.4
EBITDA margin	14.7%	14.4%

4. Trading Profit
Trading profit refers to the operating profit generated by the businesses before intangible asset amortisation and gains or losses generated from non-trading items. Trading profit represents operating profit before specific items that are not reflective of underlying trading performance and therefore hinder comparison of the trading performance of the Group's businesses, either year-on-year or with other businesses.
	2021	2020
	€'m	€'m
Operating profit	886.2	707.7
Intangible asset amortisation	80.8	70.1
Non-trading items	(91.5)	19.4
Trading profit	875.5	797.2

5. Trading Margin
Trading margin represents trading profit, expressed as a percentage of revenue.
	2021	2020
	€'m	€'m
Trading profit	875.5	797.2
Revenue	7,350.6	6,953.4
Trading margin	11.9%	11.5%

6. Operating Profit
Operating profit is profit before income taxes, finance income and finance costs.
	2021	2020
	€'m	€'m
Profit before taxation	816.3	635.3
Finance income	(0.3)	(0.2)
Finance costs	70.2	72.6
Operating profit	886.2	707.7

7. 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 owners 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 year-on-year. The performance in adjusted earnings per share on a constant currency basis is calculated by comparing current year adjusted earnings per share to the prior year adjusted earnings per share retranslated at current year average exchange rates.
	2021		2020
	EPS	Growth	EPS	Growth
	cent	%	cent	%
Basic earnings per share	430.6	37.6%	313.0	(2.3%)
Brand related intangible asset amortisation	26.0	-	23.6	-
Non-trading items (net of related tax)	(75.8)	-	8.8	-
Adjusted earnings per share	380.8	10.2%	345.4	(12.3%)

Impact of retranslating prior year adjusted earnings per share at current year average rates*		1.9%		2.9%
Growth in adjusted earnings per share on a constant currency basis		12.1%		(9.4%)
* Impact of 2021 translation was 6.4/345.4 cent = 1.9% (2020: 2.9%)

8. Free Cash Flow
Free cash flow is trading profit plus depreciation, movement in average working capital, capital expenditure, payment of lease liabilities, pensions costs 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 year 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 12 months. Below is a reconciliation of free cash flow to the nearest IFRS measure, which is 'Net cash from operating activities'.
	2021	2020
	€'m	€'m
Net cash from operating activities	654.0	672.2
Difference between movement in monthly average working capital and movement in the financial year end working capital	146.6	4.6
Share of profit from joint ventures	3.9	1.6
Payments on acquisition integration and restructuring costs	76.1	39.7
Purchase of assets (net)	(300.4)	(276.2)
Payment of lease liabilities	(34.9)	(37.0)
Proceeds from the sale of property, plant and equipment	19.4	2.4
Capital grants received	0.7	0.1
Exchange translation adjustment	0.7	4.6
Free cash flow	566.1	412.0

9. Cash Conversion
Cash conversion is defined as free cash flow, expressed as a percentage of adjusted earnings after taxation.
	2021	2020
	€'m	€'m
Free cash flow	566.1	412.0
Profit after taxation attributable to owners of the parent	763.0	554.1
Brand related intangible asset amortisation	46.2	41.7
Non-trading items (net of related tax)	(134.4)	15.5
Adjusted earnings after taxation	674.8	611.3
Cash Conversion	84%	67%

10. 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 non-trading items, acquisitions net of disposals and deferred payments in relation to acquisitions.
	2021	2020
	Times	Times
Net debt: EBITDA	2.0	1.9
EBITDA: Net interest	14.9	13.8

11. Average Capital Employed
Average capital employed is calculated by taking an average of the shareholders' equity and net debt - pre lease liabilities over the last three reported balance sheets plus an additional €486.8m relating to goodwill written off to reserves pre conversion to IFRS.
	2021	H1 2021	2020	H1 2020	2019
	€'m	€'m	€'m	€'m	€'m
Shareholders' equity	5,601.2	4,963.1	4,655.5	4,508.5	4,562.2
Goodwill amortised (pre conversion to IFRS)	486.8	527.8	527.8	527.8	527.8
Adjusted equity	6,088.0	5,490.9	5,183.3	5,036.3	5,090.0
Net debt - pre lease liabilities	2,049.9	1,913.0	1,863.6	1,996.4	1,862.8
Total	8,137.9	7,403.9	7,046.9	7,032.7	6,952.8
Average capital employed	7,529.6		7,010.8

12. Return on Average Capital Employed (ROACE)
This measure is defined as profit after taxation attributable to owners 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.
	2021	2020
	€'m	€'m
Profit after taxation attributable to owners of the parent	763.0	554.1
Non-trading items (net of related tax)	(134.4)	15.5
Brand related intangible asset amortisation	46.2	41.7
Net finance cost	69.9	72.4
Adjusted profit	744.7	683.7
Average capital employed	7,529.6	7,010.8
Return on average capital employed	9.9%	9.8%

13. Total Shareholder Return
Total shareholder return represents the change in the capital value of Kerry Group plc shares plus dividends in the financial year.
	2021	2020
Share price (1 January)	€118.50	€111.10
Interim dividend (cent)	28.5	25.9
Dividend paid (cent)	60.6	55.1
Share price (31 December)	€113.25	€118.50
Total shareholder return	(3.7%)	7.4%

14. Market Capitalisation
Market capitalisation is calculated as the share price times the number of shares issued.
	2021	2020
Share price (31 December)	€113.25	€118.50
Shares in issue ('000)	176,848.5	176,700.0
Market capitalisation (€'m)	20,028.1	20,939.0