Preliminary Statement of Results 31 December 2023

Companies

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

UK 100

Latest directors dealings

1 hour ago Trekor Metals Limited
1 hour ago ECR Minerals
1 hour ago Zotefoams
15 hours ago Luceco
15 hours ago Helios Towers

All directors dealings today

Revenue
Reported revenue of €8,020.3m (2022: €8,771.9m) was 8.6% lower than the previous year mainly driven by the unfavourable impact of the disposals and foreign currency in the year.
The table below presents the revenue performance components for the Group and reporting segments.
						Reported Revenue
2023	Volume	Price	Currency⁶	Acquisitions	Disposals	Performance

Taste & Nutrition	1.1%	1.1%	(3.4%)	1.2%	(6.0%)	(6.0%)


Dairy Ireland	(6.5%)	(9.3%)	(0.8%)	-	-	(16.6%)


Group	(0.9%)	(0.7%)	(2.9%)	1.0%	(5.1%)	(8.6%)

⁶ This includes the impact of transaction and translation currency

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 930188 \| corpaffairs@kerry.com

Website

www.kerry.com

Consolidated Income Statement
for the financial year ended 31 December 2023
					Before				Before
					Non-		Non-		Non-	Non-
					Trading		Trading		Trading	Trading
					Items		Items	Total	Items	Items	Total
					2023		2023	2023	2022	2022	2022
	Notes				€'m		€'m	€'m	€'m	€'m	€'m

Continuing operations
Revenue		2			8,020.3		-	8,020.3	8,771.9	-	8,771.9


Earnings before interest, tax, depreciation and amortisation				1/2	1,165.1		-	1,165.1	1,216.1	-	1,216.1

Depreciation (net) and intangible asset amortisation					(299.1)		-	(299.1)	(304.3)	-	(304.3)
Non-trading items		3			-		8.8	8.8	-	(146.2)	(146.2)


Operating profit					866.0		8.8	874.8	911.8	(146.2)	765.6

Finance income					21.8		-	21.8	6.6	-	6.6
Finance costs					(72.1)		-	(72.1)	(72.8)	-	(72.8)
Share of joint ventures' results after taxation					(1.9)		-	(1.9)	(0.4)	-	(0.4)


Profit before taxation					813.8		8.8	822.6	845.2	(146.2)	699.0


Income taxes					(103.1)		8.6	(94.5)	(114.5)	22.0	(92.5)


Profit after taxation					710.7		17.4	728.1	730.7	(124.2)	606.5


Attributable to:
Equity holders of the parent								728.3			606.4
Non-controlling interests								(0.2)			0.1


								728.1			606.5


Earnings per A ordinary share						Cent						Cent

- basic			4			410.4						341.9
- diluted			4			409.7						341.3

Consolidated Statement of Comprehensive Income
for the financial year ended 31 December 2023
		2023		2022
	Note	€'m		€'m

Profit after taxation		728.1		606.5

Other comprehensive income:

Items that are or may be reclassified subsequently to profit or loss:
Fair value movements on cash flow hedges		(1.6)		5.9
Cash flow hedges - reclassified to profit or loss from equity		1.3		(2.8)
Net change in cost of hedging		0.1		0.8
Deferred tax effect of fair value movements on cash flow hedges		(0.4)		(0.2)
Exchange difference on translation of foreign operations		(129.0)		152.2
Cumulative exchange difference on translation recycled on disposal	3	(1.5)		14.9
Items that will not be reclassified subsequently to profit or loss:
Re-measurement on retirement benefits obligation		(33.5)		(13.4)
Deferred tax effect of re-measurement on retirement benefits obligation		7.1		7.6


Net (expense)/income recognised directly in total other comprehensive income		(157.5)		165.0


Total comprehensive income		570.6		771.5


Attributable to:
Equity holders of the parent		570.8		771.4
Non-controlling interests		(0.2)		0.1


		570.6		771.5


Consolidated Balance Sheet
as at 31 December 2023
		31 December	31 December
		2023	2022
	Note	€'m	€'m

Non-current assets
Property, plant and equipment		2,133.0	2,099.3
Intangible assets		5,826.3	5,720.0
Financial asset investments		52.0	58.9
Investments in joint ventures		39.8	41.7
Other non-current financial instruments		125.0	0.3
Retirement benefits asset		98.0	95.6
Deferred tax assets		80.2	71.9


		8,354.3	8,087.7


Current assets
Inventories		1,100.2	1,354.4
Trade and other receivables		1,279.0	1,423.8
Cash at bank and in hand		943.7	970.0
Other current financial instruments		13.7	59.5
Assets classified as held for sale	6	1.5	388.0


		3,338.1	4,195.7


Total assets		11,692.4	12,283.4


Current liabilities
Trade and other payables		1,773.1	1,966.5
Borrowings and overdrafts		37.1	701.1
Other current financial instruments		7.5	18.4
Tax liabilities		173.0	190.9
Provisions		18.3	15.3
Deferred income		4.5	3.4
Total liabilities directly associated with assets classified as held for sale	6	-	19.7


		2,013.5	2,915.3


Non-current liabilities
Borrowings		2,432.6	2,432.6
Other non-current financial instruments		9.7	20.3
Retirement benefits obligation		49.7	30.2
Other non-current liabilities		207.5	142.6
Deferred tax liabilities		395.6	452.3
Provisions		46.4	50.5
Deferred income		14.6	16.0


		3,156.1	3,144.5


Total liabilities		5,169.6	6,059.8


Net assets		6,522.8	6,223.6


Equity
Share capital		21.9	22.1
Share premium		398.7	398.7
Other reserves		(44.6)	64.3
Retained earnings		6,145.3	5,736.8


Equity attributable to equity holders of the parent		6,521.3	6,221.9
Non-controlling interests		1.5	1.7


Total equity		6,522.8	6,223.6

Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2023
							Attributable to equity holders of the parent
												Non-
	Share							Share	Other	Retained		controlling	Total
	Capital							Premium	Reserves	Earnings	Total	interests	equity
	Note				€'m			€'m	€'m	€'m	€'m	€'m	€'m

Group:

At 1 January 2022	22.1							398.7	(129.6)	5,310.0	5,601.2	-	5,601.2

Profit after taxation	-							-	-	606.4	606.4	0.1	606.5
Other comprehensive income/(expense)		-						-	171.0	(6.0)	165.0	-	165.0


Total comprehensive income	-							-	171.0	600.4	771.4	0.1	771.5

Shares issued during the financial year			-					-	-	-	-	-	-
Dividends paid	5				-			-	-	(173.6)	(173.6)	-	(173.6)
Share-based payment expense	-							-	22.9	-	22.9	-	22.9
Non-controlling interests arising on acquisition				-				-	-	-	-	1.6	1.6


At 31 December 2022	22.1							398.7	64.3	5,736.8	6,221.9	1.7	6,223.6

Profit after taxation	-							-	-	728.3	728.3	(0.2)	728.1
Other comprehensive expense	-							-	(130.7)	(26.8)	(157.5)	-	(157.5)


Total comprehensive (expense)/income -								-	(130.7)	701.5	570.8	(0.2)	570.6

Shares issued during the financial year			-					-	-	-	-	-	-
Shares (purchased)/cancelled during the financial year					(0.2)			-	(0.2)	(101.7)	(101.7)	-	(101.7)
Dividends paid	5			-				-	-	(191.3)	(191.3)	-	(191.3)
Share-based payment expense						-		-	21.6	-	21.6	-	21.6


At 31 December 2023	21.9							398.7	(44.6)	6,145.3	6,521.3	1.5	6,522.8

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 2022	1.7	0.3	107.4	(238.1)	1.4	(2.3)	(129.6)

Other comprehensive income	-	-	-	167.1	3.1	0.8	171.0
Share-based payment expense	-	-	22.9	-	-	-	22.9


At 31 December 2022	1.7	0.3	130.3	(71.0)	4.5	(1.5)	64.3

Other comprehensive (expense)/income	-	-	-	(130.5)	(0.3)	0.1	(130.7)
Shares cancelled during the financial year	0.2	-	-	-	-	-	0.2
Share-based payment expense	-	-	21.6	-	-	-	21.6


At 31 December 2023	1.9	0.3	151.9	(201.5)	4.2	(1.4)	(44.6)

Consolidated Statement of Cash Flows
for the financial year ended 31 December 2023
						2023	2022
				Notes		€'m	€'m

Cash flows from operating activities
Profit before taxation						822.6	699.0
Adjustments for:
Depreciation (net)						219.6	221.6
Intangible asset amortisation						79.5	82.7
Share of joint ventures' results after taxation						1.9	0.4
Non-trading items income statement charge			3			(8.8)	146.2
Finance costs (net)						50.3	66.2
Change in working capital						185.5	(224.0)
Pension contributions paid less pension expense						(13.5)	(15.7)
Payments on non-trading items						(99.8)	(85.4)
Exchange translation adjustment						(14.2)	(27.2)


Cash generated from operations						1,223.1	863.8
Income taxes paid						(119.5)	(80.0)
Finance income received						13.9	5.4
Finance costs paid						(79.7)	(67.4)


Net cash from operating activities						1,037.8	721.8


Investing activities
Purchase of assets						(281.9)	(221.0)
Proceeds from the sale of assets (net of disposal expenses)						11.6	38.1
Capital grants received						3.3	1.4
Purchase of businesses (net of cash acquired)		8				(131.1)	(353.8)
Payments relating to previous acquisitions						(9.7)	(1.8)
Purchase of investments						(3.0)	(10.4)
Purchase of share in joint ventures						-	(20.4)
Disposal of businesses (net of disposal expenses)	3					316.4	(15.2)


Net cash used in investing activities						(94.4)	(583.1)


Financing activities
Dividends paid					5	(191.3)	(173.6)
Purchase of own shares						(101.7)	-
Payment of lease liabilities						(36.4)	(35.1)
Issue of share capital						-	-
Repayment of borrowings						(695.9)	(3.0)
Cash inflow from interest rate swaps on repayment of borrowings						34.4	-
Proceeds from borrowings						4.1	2.0


Net cash movement due to financing activities						(986.8)	(209.7)


Net decrease in cash and cash equivalents						(43.4)	(71.0)
Cash and cash equivalents at beginning of the financial year						969.8	1,033.8
Exchange translation adjustment on cash and cash equivalents						(17.4)	7.0


Cash and cash equivalents at end of the financial year						909.0	969.8


Reconciliation of Net Cash Flow to Movement in Net Debt
Net decrease in cash and cash equivalents						(43.4)	(71.0)
Cash flow from debt financing						657.4	1.0


Changes in net debt resulting from cash flows						614.0	(70.0)
Fair value movement on interest rate swaps (net of adjustment to borrowings)						1.0	1.4
Exchange translation adjustment on net debt						(2.3)	(29.7)


Movement in net debt in the financial year						612.7	(98.3)
Net debt at beginning of the financial year - pre lease liabilities						(2,148.2)	(2,049.9)


Net debt at end of the financial year - pre lease liabilities						(1,535.5)	(2,148.2)
Lease liabilities						(68.6)	(69.2)


Net debt at end of the financial year						(1,604.1)	(2,217.4)


Notes to the Financial Statements
for the financial year ended 31 December 2023

1. Accounting policies

The financial information included within this statement has been extracted from the audited financial statements of Kerry Group plc for the financial year ended 31 December 2023. The financial information set out in this document does not constitute full statutory financial statements for the financial years ended 31 December 2023 or 2022 but is derived from same. The consolidated financial statements of Kerry Group plc have been prepared in accordance with International Financial Reporting Standards as issued by the IASB ('IFRS Accounting Standards'), International Financial Reporting Interpretations Committee ('IFRIC') interpretations and those parts of the Companies Act, 2014 applicable to companies reporting under IFRS Accounting Standards. The financial statements comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, and the notes to the financial statements. The Group's financial statements have also 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. IFRS adopted by the EU differs in certain respects from IFRS Accounting Standards issued by the IASB. References to IFRS hereafter refer to IFRS adopted by the EU.

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) and financial asset investments which are held at fair value. Assets and liabilities classified as held for sale are stated at the lower of carrying value and fair value less costs to sell. The investments in joint ventures are accounted for using the equity method.

Certain income statement headings and other financial measures included in the consolidated financial statements are not defined by IFRS such as earnings before interest, tax, depreciation and amortisation ('EBITDA'), non-trading items and net debt. The Group makes this distinction to enhance the understanding of the financial performance of the business as outlined in the Financial Definitions.

The consolidated 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 and the potential impacts of climate, geopolitical 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, continuing inflationary cost pressures, customer inventory management and rising 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 Group's accounting policies will be included in the 2023 Annual Report & Accounts, which will be published in March, and are consistent with those described in the 2022 Annual Report & Accounts.

Critical accounting estimates and judgements
The preparation of the Group consolidated financial statements requires management to make certain estimations, assumptions and judgements that affect the reported profits, assets, and liabilities.

Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based or as a result of new information or more experience. Such changes are recognised in the period in which the estimate is revised.

In particular, information about significant areas of estimation and judgement that have the most significant effect on the amounts recognised in the consolidated financial statements are described below and in the respective notes to the consolidated financial statements.

New standards and interpretations
Certain new and revised accounting standards and new International Financial Reporting Interpretations Committee ('IFRIC') interpretations have been issued. The Group intends to adopt the relevant new and revised standards when they become effective and endorsed by the EU. The Group's assessment of the impact of these standards and interpretations is set out below.

The following Standards and Interpretations are effective for the Group in 2023 but do not have a material effect on the results or financial position of the Group:			Effective Date

-	IAS 1 (Amendments)	Presentation of Financial Statements	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

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 1 (Amendments)	Presentation of Financial Statements	1 January 2024

-	IFRS 16 (Amendments)	Leases	1 January 2024

-	IAS 7 & IFRS 7 (Amendments)	Supplier Finance Arrangements	1 January 2024

-	IAS 21 (Amendments)	The Effects of Changes in Foreign Exchange Rates	1 January 2025

2. Analysis of results

The Group has determined it has two operating segments: Taste & Nutrition and Dairy Ireland. The Taste & Nutrition segment is a world leading provider of taste and nutrition solutions for the food, beverage and pharmaceutical markets. Utilising a broad range of ingredient solutions to innovate with our customers to create great tasting products, with improved nutrition and functionality, while ensuring a better impact for the planet. Kerry is driven to be our customers' most valued partner, creating a world of sustainable nutrition through solving our customers' most complex challenges with differentiated solutions. The Taste & Nutrition segment supplies industries across Europe, Americas and APMEA (Asia Pacific, Middle East and Africa). The Dairy Ireland segment is a leading Irish provider of value-add dairy ingredients and consumer products. Our dairy ingredients product portfolio includes functional proteins, while our dairy consumer brands can be found predominantly in chilled cabinets in retailers across Ireland and the UK.

						Group				Group
						Eliminations				Eliminations
	Taste &				Dairy	and		Taste &	Dairy	and
	Nutrition				Ireland	Unallocated	Total	Nutrition	Ireland	Unallocated	Total
	2023				2023	2023	2023	2022	2022	2022	2022
	€'m				€'m	€'m	€'m	€'m	€'m	€'m	€'m

External revenue				6,936.7	1,083.6	-	8,020.3	7,387.0	1,384.9	-	8,771.9
Inter-segment revenue				38.2	199.8	(238.0)	-	29.6	154.0	(183.6)	-

Revenue			6,974.9		1,283.4	(238.0)	8,020.3	7,416.6	1,538.9	(183.6)	8,771.9


EBITDA*		1,185.9			53.4	(74.2)	1,165.1	1,220.1	70.7	(74.7)	1,216.1


Depreciation (net)							(219.6)				(221.6)
Intangible asset amortisation							(79.5)				(82.7)
Non-trading items							8.8				(146.2)


Operating profit							874.8				765.6

Finance income							21.8				6.6
Finance costs							(72.1)				(72.8)
Share of joint ventures' results after taxation							(1.9)				(0.4)


Profit before taxation							822.6				699.0
Income taxes							(94.5)				(92.5)


Profit after taxation							728.1				606.5


Attributable to:
Equity holders of the parent							728.3				606.4
Non-controlling interests							(0.2)				0.1


							728.1				606.5


*EBITDA represents profit before finance income and costs, income taxes, depreciation (net of capital grant amortisation), intangible asset amortisation, non-trading items and share of joint ventures' results after taxation.

Segment assets and liabilities
Assets	8,165.4		683.4	2,843.6	11,692.4	8,583.1	766.2	2,934.1	12,283.4
Liabilities	(1,734.1)		(247.7)	(3,187.8)	(5,169.6)	(1,897.0)	(289.4)	(3,873.4)	(6,059.8)


Net assets	6,431.3		435.7	(344.2)	6,522.8	6,686.1	476.8	(939.3)	6,223.6


Other segmental information
Property, plant and equipment additions		271.0	37.6	0.9	309.5	238.9	17.6	0.3	256.8
Depreciation (net)	197.7		21.4	0.5	219.6	200.1	20.5	1.0	221.6
Intangible asset additions	1.6		-	14.3	15.9	0.4	0.1	11.7	12.2
Intangible asset amortisation	39.0		0.2	40.3	79.5	43.0	0.2	39.5	82.7
Share of joint ventures' results	1.9		-	-	1.9	0.4	-	-	0.4
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 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
	Taste &		Dairy		Taste &	Dairy
	Nutrition		Ireland	Total	Nutrition	Ireland	Total
	2023		2023	2023	2022	2022	2022
	€'m		€'m	€'m	€'m	€'m	€'m

Food	4,637.3		1,051.9	5,689.2	4,925.2	1,286.2	6,211.4
Beverage	1,798.6		31.7	1,830.3	1,959.1	98.7	2,057.8
Pharma & other	500.8		-	500.8	502.7	-	502.7

External revenue		6,936.7	1,083.6	8,020.3	7,387.0	1,384.9	8,771.9

Analysis by primary geographic market
Disaggregation of revenue from external customers is analysed by geographical split:
	Taste &		Dairy		Taste &	Dairy
	Nutrition		Ireland	Total	Nutrition	Ireland	Total
	2023		2023	2023	2022	2022	2022
	€'m		€'m	€'m	€'m	€'m	€'m

Republic of Ireland		134.7	405.3	540.0	82.2	458.2	540.4
Rest of Europe	1,382.5		600.3	1,982.8	1,459.8	768.8	2,228.6
Americas	3,772.5		32.5	3,805.0	4,172.2	84.0	4,256.2
APMEA	1,647.0		45.5	1,692.5	1,672.8	73.9	1,746.7


External revenue		6,936.7	1,083.6	8,020.3	7,387.0	1,384.9	8,771.9

Information about geographical areas
	Europe	Americas	APMEA	Total	Europe	Americas	APMEA	Total
	2023	2023	2023	2023	2022	2022	2022	2022
	€'m	€'m	€'m	€'m	€'m	€'m	€'m	€'m

Assets by location	5,177.2	4,941.4	1,573.8	11,692.4	5,357.9	5,486.3	1,439.2	12,283.4
Property, plant and equipment additions	92.1	161.9	55.5	309.5	55.8	147.4	53.6	256.8
Intangible asset additions	14.3	1.6	-	15.9	12.1	0.1	-	12.2


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 €540.0m (2022: €540.4m). The non-current assets located in the Republic of Ireland are €1,285.7m (2022: €1,503.6m).

Revenues from external customers include €939.9m (2022: €958.9m) in the UK and €2,972.1m (2022: €3,399.8m) in the USA. The non-current assets in the UK are €352.1m (2022: €353.3m) and in the USA are €3,112.1m (2022: €3,267.1m). For clarity the UK is included within Europe in the tables above. Taste & Nutrition external revenues consists of €2,186.4m (2022: €2,218.5m) in emerging markets and €4,750.3m (2022: €5,168.6m) in developed markets. Third party revenues in Taste and Nutrition in the foodservice channel was €2,138.0m (2022: €2,055.6m) and €4,798.7m (2022: €5,331.5m) in the non-foodservice channels.

There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8 'Operating Segments'. The accounting policies of the operating 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
			2023	2022
		Notes	€'m	€'m

Global Business Services expansion		(ii)	(4.1)	(13.6)
Acquisition integration costs		(iii)	(16.5)	(20.3)
Accelerate Operational Excellence		(iv)	(53.5)	(49.2)


			(74.1)	(83.1)

Profit/(loss) on disposal of businesses and assets		(i)	82.9	(63.1)


Non-trading items (before tax)			8.8	(146.2)
Tax on above			8.6	22.0


Non-trading items (net of related tax)			17.4	(124.2)



(i) Profit/(loss) on disposal of businesses and assets
		Businesses	*Assets	Total
		2023	2023	2023
	Note	€'m	€'m	€'m

Property, plant and equipment - disposed		(1.7)	(11.3)	(13.0)
Goodwill		(0.7)	-	(0.7)
Brand related intangible assets		(0.5)	-	(0.5)
Inventories		(1.6)	-	(1.6)
Assets classified as held for sale - disposed		(349.8)	(3.9)	(353.7)
Assets classified as held for sale - impaired	6	-	(15.3)	(15.3)
Trade and other receivables		(0.4)	-	(0.4)
Deferred tax liabilities		26.7	-	26.7
Trade and other payables		0.7	-	0.7


		(327.3)	(30.5)	(357.8)
Consideration
Cash received		356.8	13.9	370.7
Vendor loan note		125.0	-	125.0

		481.8	13.9	495.7

Disposal related costs		(43.0)	(13.5)	(56.5)


		438.8	0.4	439.2

Cumulative exchange difference on translation recycled on disposal		1.5	-	1.5


Profit/(loss) on disposal of businesses and assets		113.0	(30.1)	82.9


		Businesses	*Assets	Total
		2023	2023	2023
Net cash inflow on disposal:		€'m	€'m	€'m

Consideration		481.8	13.9	495.7
Less: cash disposed		-	-	-
Less: disposal related costs paid		(40.4)	(2.3)	(42.7)
Less: vendor loan note		(125.0)	-	(125.0)


		316.4	11.6	328.0


*Assets represent non-current assets and assets classified as held for sale.

Profit/(loss) on disposal of businesses
As previously announced, the Group completed the sale of the trade and assets of its Sweet Ingredients Portfolio during the year for a final consideration of €475.5m comprising of a cash consideration of €350.5m (following routine closing adjustments) plus a €125.0m interest bearing vendor loan note. The operational footprint disposed consisted of four manufacturing facilities in the US (in Illinois, Kansas, Missouri, and California), and six facilities across the UK, the Netherlands, Germany and France. 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'. As part of the ongoing portfolio review during the year the Group also disposed of small operations in South Africa, UK and South Korea for a consideration of €6.3m. The profit on disposal of these businesses was €113.0m, with the related tax charge of €9.8m. The profit on disposal of these businesses includes the associated costs in relation to these divestments.

In 2022 the Group divested of its subsidiaries in Russia and Belarus and sold a small cereal operation in North America. 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'. The loss on disposal of these businesses for the year end 31 December 2022 was €63.0m and the related tax credit was €4.3m.

(Loss)/profit on disposal of assets
The Group disposed of property, plant and equipment primarily in North America and Europe for a consideration of €13.9m resulting in a profit of €2.6m. This profit on disposal of property, plant and equipment was offset by an impairment charge of €15.3m in the US and a €13.5m charge with respect to related disposal costs. In addition to these charges, a number of additional assets were disposed across the group and a €3.9m loss on disposal was recognised. A tax credit of €6.0m arose on the disposal of assets for the period.

During 2022, the Group disposed of property, plant and equipment primarily in North America and APMEA for a combined consideration of €51.7m resulting in a gain of €6.2m. A tax charge of €1.9m arose on the disposal of assets. In 2022, certain assets classified as held for sale based in the USA and APMEA were impaired to their fair value less costs to sell by €5.6m, consisting of €1.2m of property, plant and equipment impairment, €2.7m of goodwill impairment, €1.7m of brand related intangibles impairment and €nil of estimated costs to sell including marketing, legal, site rectification, environmental and other related expenses necessary to complete the disposals in 2023. The related tax credit was €0.5m. In addition, in 2022 there was a specific impairment charge of €0.3m and €0.4m in relation to goodwill and brand related intangibles respectively recorded in intangible assets.

(ii) 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. The Group incurred costs of €4.1m (2022: €13.6m), to conclude the three year programme, reflecting relocation of resources, advisory fees, redundancies and the streamlining of operations. The associated tax credit was €0.5m (2022: €3.0m).

(iii) Acquisition integration costs
These costs of €16.5m (2022: €20.3m) 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 €2.8m (2022: €4.5m) arose due to tax deductions available on acquisition related costs.

(iv) Accelerate Operational Excellence
These costs of €53.5m (2022: €49.2m) predominantly reflect cost of streamlining operations, project management costs and consultancy fees incurred in the year relating to our Accelerate Operational Excellence transformation programme, which will run until 2024. This material transformation project deploying next generation manufacturing processes, including advanced process controls, is combined with building capabilities within the Group to enhance continuous improvement in manufacturing processes which will deliver step change manufacturing excellence across the organisation. This project will also focus on supply chain excellence, optimising the Group's warehousing and distribution network. A tax credit of €9.1m (2022: €11.6m) arose due to tax deductions available on accelerated operational excellence costs.

4. Earnings per A ordinary share
	EPS			2023	EPS	2022
	cent			€'m	cent	€'m

Basic earnings per share
Profit after taxation attributable to equity holders of the parent			410.4	728.3	341.9	606.4


Diluted earnings per share
Profit after taxation attributable to equity holders of the parent			409.7	728.3	341.3	606.4


				2023		2022
Number of Shares	Note			m's		m's

Basic weighted average number of shares				177.4		177.4
Impact of share options outstanding				0.3		0.3


Diluted weighted average number of shares				177.7		177.7


Actual number of shares in issue as at 31 December		7		175.8		177.0

1. Revenue
Volume performance
This represents the sales performance year-on-year, 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
2023	performance		Price	currency	Acquisitions	Disposals	currency	performance

Taste & Nutrition		1.1%	1.1%	-	1.2%	(6.0%)	(3.4%)	(6.0%)
Dairy Ireland	(6.5%)		(9.3%)	(0.1%)	-	-	(0.7%)	(16.6%)


Group	(0.9%)		(0.7%)	-	1.0%	(5.1%)	(2.9%)	(8.6%)

2022

Taste & Nutrition		7.8%	8.7%	0.2%	5.6%	(1.1%)	8.2%	29.4%
Dairy Ireland	0.1%		22.8%	0.1%	-	(37.6%)	1.2%	(13.4%)


Group	6.1%		11.7%	0.2%	4.3%	(9.8%)	6.8%	19.3%

2. EBITDA
EBITDA represents operating profit after taxation before finance income and costs, income taxes, 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 year-on-year or with other businesses.

		2023				2022
		€'m				€'m

Profit after taxation		728.1				606.5
Share of joint ventures' results after taxation		1.9				0.4
Finance income		(21.8)				(6.6)
Finance costs		72.1				72.8
Income taxes		94.5				92.5
Non-trading items		(8.8)				146.2
Intangible asset amortisation		79.5				82.7
Depreciation (net)		219.6				221.6


EBITDA		1,165.1				1,216.1


3. EBITDA Margin
EBITDA margin represents EBITDA expressed as a percentage of revenue.
		2023				2022
		€'m				€'m

EBITDA		1,165.1				1,216.1
Revenue		8,020.3				8,771.9


EBITDA margin		14.5%				13.9%


4. Operating Profit
Operating profit is profit before income taxes, finance income, finance costs and share of joint ventures' results after taxation.
		2023				2022
		€'m				€'m

Profit before taxation		822.6				699.0
Finance income		(21.8)				(6.6)
Finance costs		72.1				72.8
Share of joint ventures' results after taxation		1.9				0.4


Operating profit		874.8				765.6


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 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.
	2023			2022
	EPS		Performance	EPS	Performance
	cent		%	cent	%
Basic earnings per share	410.4		20.0%	341.9	(20.6%)
Brand related intangible asset amortisation	29.5		-	28.7	-
Non-trading items (net of related tax)	(9.8)		-	70.0	-


Adjusted earnings per share	430.1		(2.4%)	440.6	15.7%

Impact of retranslating prior year adjusted earnings per share at current year average rates*			3.6%		(8.4%)


Growth in adjusted earnings per share on a constant currency basis			1.2%		7.3%


*Impact of 2023 translation was (16.0)/440.6 cent = 3.6% (2022: (8.4%)).

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, proceeds from the sale of assets (net of disposal expenses) and capital grants received), pensions 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 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'.

	2023		2022
	€'m		€'m
Net cash from operating activities	1,037.8		721.8
Difference between movement in monthly average working capital and movement in the financial year end working capital		(147.1)	22.6
Payments on non-trading items	99.8		85.4
Purchase of assets	(281.9)		(221.0)
Payment of lease liabilities	(36.4)		(35.1)
Proceeds from the sale of property, plant and equipment	11.6		38.1
Capital grants received	3.3		1.4
Exchange translation adjustment	14.2		27.2


Free cash flow	701.3		640.4



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.
	2023		2022
	€'m		€'m
Free cash flow	701.3		640.4

Profit after taxation attributable to equity holders of the parent	728.3		606.4
Brand related intangible asset amortisation	52.3		50.9
Non-trading items (net of related tax)	(17.4)		124.2


Adjusted earnings after taxation	763.2		781.5


Cash Conversion	92%		82%


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 non-trading items, acquisitions net of disposals and deferred payments in relation to acquisitions.
	2023		2022
	Times		Times

Net debt:EBITDA	1.5		1.8

EBITDA:Net interest	21.8		18.1

9. Average Capital Employed
Average capital employed is calculated by taking an average of the shareholders' equity less vendor loan note and net debt over the last three reported balance sheets.
	2023			H1 2023		2022	H1 2022	2021
	€'m			€'m		€'m	€'m	€'m

Equity attributable to equity holders of the parent			6,521.3	6,356.5		6,221.9	6,088.7	5,601.2
Vendor loan note			(124.3)	(125.0)		-	-	-
Net debt	1,604.1			1,846.5		2,217.4	2,456.3	2,124.1


Total capital employed	8,001.1			8,078.0		8,439.3	8,545.0	7,725.3


Average capital employed		8,172.8			8,236.5

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.
	2023	2022
	€'m	€'m
Profit after taxation attributable to equity holders of the parent	728.3	606.4
Non-trading items (net of related tax)	(17.4)	124.2
Brand related intangible asset amortisation	52.3	50.9
Net finance costs	50.3	66.2

Adjusted profit	813.5	847.7


Average capital employed	8,172.8	8,236.5


Return on average capital employed	10.0%	10.3%



11. Total Shareholder Return
Total shareholder return represents the change in the capital value of Kerry Group plc shares plus dividends in the financial year.
	2023	2022

Share price (1 January)	€84.24	€113.25

Interim dividend (cent)	34.6	31.4

Dividend paid (cent)	73.4	66.7

Share price (31 December)	€78.66	€84.24


Total shareholder return	(5.3%)	(24.7%)


12. Market Capitalisation
Market capitalisation is calculated as the share price times the number of shares issued.
	2023	2022

Share price (31 December)	€78.66	€84.24

Shares in issue ('000)	175,792.7	176,986.5


Market capitalisation (€'m)	13,827.9	14,909.3


13. Enterprise Value
Enterprise value is calculated as per external market sources. It is market capitalisation plus reported borrowings less total cash and cash equivalents.

14. Net Debt
Net debt comprises borrowings and overdrafts, interest rate derivative financial instruments, lease liabilities and cash at bank and in hand.