Q1 Interim Management Statement 2026
Summary by AI BETAClose X
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30 April 2026
LEI: 635400TLVVBNXLFHWC59
Q1 Interim Management Statement 2026
Good Volume Growth and Margin Expansion.
FIRST QUARTER HIGHLIGHTS
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> Volume growth of 3.1% - a strong market outperformance > Pricing of -1.3% reflecting overall input cost deflation in the quarter > EBITDA margin expansion of 60bps principally driven by Accelerate 2.0 > Net debt of €2.2bn > Full year constant currency EPS guidance maintained |
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Edmond Scanlon, Chief Executive Officer |
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"We are pleased to deliver a good start to the year, with volume growth across all three regions and continued margin expansion. The volume growth we achieved in the first quarter was driven by continued strong growth and market outperformance in the Americas, with good growth in APMEA and a solid performance in Europe. We continued to deliver strong EBITDA margin expansion in the period, led by efficiencies delivered through our Accelerate 2.0 programme. Our extensive local footprint, unique technology capability, and the strength of our business model positions us well to navigate through this period of geopolitical and macroeconomic uncertainty, as we proactively support our customers as their innovation and renovation partner. While recognising the uncertainty around the ongoing geopolitical volatility, our business remains strongly positioned for volume growth and margin expansion." |
Markets and Performance
Overall food and beverage end market volumes remained subdued through the first quarter with a high level of market uncertainty given the macroeconomic backdrop. There continued to be increased customer focus on product renovation to address a variety of needs including enhancing product nutritional profiles, cost optimisation, and supply chain challenges. Customer innovation activity also increased in many markets, orientated towards high growth areas including higher protein, proactive health and new format options.
Kerry's volume growth in the period remained significantly ahead of food and beverage end markets, driven by good innovation activity in the foodservice channel and continued product renovation activity in the retail channel. This growth was achieved across a broad range of technologies, including savoury taste, Tastesense™ salt and sugar reduction technologies, botanicals, natural extracts, taste solutions for high-protein applications, enzymes and bio-fermented ingredients.
Revenue for the period comprised good volume growth of 3.1%, an overall pricing reduction of 1.3% reflective of input cost deflation, a reduction from disposals net of acquisitions of 1.2%, and adverse translation currency of 7.9%, resulting in an overall reported revenue decrease of 7.3%. The adverse translation currency impact was primarily driven by the significant weakening of the US$ versus the Euro compared to the corresponding period last year and based on prevailing exchange rates the foreign currency translation impact is expected to be significantly lower for the remainder of the year. EBITDA margin increased by 60bps primarily driven by Accelerate 2.0, combined with benefits from operating leverage, product mix, net price, and disposals, partially offset by an adverse translation currency impact.
Business Review
Continued strong end market outperformance and EBITDA margin expansion
> Volume growth of 3.1%
> Growth led by Meat, Snacks and Dairy
> Pricing -1.3% reflected overall input cost deflation in places
> EBITDA margin expansion of 60bps
The business delivered good volume growth in the period, particularly given market conditions.
Foodservice continued its strong market outperformance with volume growth of 4.6%, driven by new menu innovations, seasonal products, and continued product renovation. Growth in the retail channel was supported by continued product renovation activity and innovation in high-growth areas with a range of customers.
Growth in the period was led by Meat, Snacks and Dairy end markets. This was supported by Kerry's leading capabilities across savoury taste and Tastesense™ salt and sugar reduction technologies, and integrated solutions incorporating Kerry's botanicals and natural extracts, fermentation derived and enzymatic bio-fermentation portfolio and natural clean-label food protection and preservation systems.
Business volumes in emerging markets increased by 4.4% in the period, led by a strong performance in Africa. Within the Pharma & Other EUM, volume growth was driven by cell nutrition.
The Accelerate 2.0 programme continued to progress as planned with footprint optimisation in both North America and Europe. The expansion of Kerry's digital initiatives also continued in line with plans across manufacturing operations, commercial enablement activities and global business service centres.
Americas Region
> Volumes +3.4%
> Growth led by Meat, Snacks and Dairy
> Strong performance in foodservice with good growth in retail
> LATAM achieved good growth led by Mexico
Strong volume growth was achieved in the period, reflecting good performances in both North America and LATAM.
Within North America, strong growth was achieved in Meat, particularly in poultry applications across both retail and foodservice, with launches of new signature taste profiles, nutritional enhancements including salt reduction and growth in natural preservation systems. Snacks delivered strong growth through innovations utilising Kerry's range of savoury taste profiles and Tastesense™ salt reduction technologies, as well as new innovation with emerging brands focused on delivering science-backed health and wellness claims. Growth in Dairy was driven by the strong performance of taste technologies and enzymes.
In the retail channel, growth was supported by renovation activity across global customers and retailer brands, while growth in the foodservice channel was led by quick service and fast casual restaurants.
Within LATAM, strong growth was achieved in Mexico across the Snacks and Beverage end markets.
Strategic investments in the region included beverage taste capacity and capability enhancements in North America and the commencement of footprint expansion for savoury taste capabilities in Mexico.
Europe Region
> Volumes +0.4%
> Growth led by Beverage and Dairy EUMs
> Retail and foodservice broadly similar to overall volume performance
Volume performance in the period reflected continued subdued market conditions given cautious consumer behaviour.
Good growth was achieved in Beverage supported by new refreshing beverage innovations incorporating Kerry's integrated taste technologies, botanicals and Tastesense™ sugar reduction. Performance in Dairy was supported by good growth in taste and protein masking solutions, while category volumes in Bakery were challenged.
Retail returned to growth in the period, with performance in foodservice led by quick service restaurants and coffee chains.
Strategic investments in the region included expansion of Kerry's proactive health capacity and capabilities in Spain.
APMEA Region
> Volumes +4.6%
> Growth led by Meat, Bakery and Snacks
> Good growth in retail with solid growth in foodservice
Growth in the region was led by strong volume growth in Africa, a return to growth in China, and solid performances across the Middle East and Southeast Asia.
Strong growth was achieved in Meat through taste and texture systems across a broad range of customers in both the retail and foodservice channels. Bakery delivered good growth through solutions incorporating Kerry's taste, texture and enzyme technologies, with strong customer reformulation activity. Volume growth in Snacks was driven by continued strong performance in savoury taste with leading global and regional customers.
Growth in the retail channel was driven by Kerry's range of local authentic taste profiles, while growth in foodservice was driven by performance with leading global and regional quick service restaurants.
Strategic investments in the region included the commencement of a new local taste footprint expansion in Türkiye.
Financial Review
At the end of March, net debt was €2.2 billion reflecting cash generation, capital investment and the share buyback programme. Kerry's consolidated balance sheet remains strong, which will facilitate the continued strategic development and growth of the business.
In February 2026, the Board approved a new Share Buyback Programme of up to €300 million. The Share Buyback Programme is underpinned by the Group's strong balance sheet and cash flow and is aligned to Kerry's Capital Allocation Framework. The programme commenced on 17 February 2026 and will end on 31 December 2026 at the latest. In the period from 17 February 2026 to 31 March 2026 the Company purchased shares at a total cost of €62.6m. The previous €300m Share Buyback Programme initiated in June 2025 was completed on 16 February 2026. In the period from January to end the of March, Kerry's total share repurchases amounted to €105.2m.
As previously announced, Kerry has proposed a final dividend of 98.0 cent per share for approval at the Annual General Meeting.
Board Changes
As previously announced, Mr. Tom Moran will retire as Chair and as a Director of the Company at the conclusion of the Annual General Meeting, to be succeeded by Ms. Fiona Dawson.
Mr. Patrick Rohan, having served his three-year term of appointment, will retire from the Board at the conclusion of the 2026 AGM and will not seek re-election.
Future Prospects
Kerry's continued strong end market outperformance highlights the strength and relevance of its strategic positioning across its markets, channels and customer base.
The Group will continue to further advance its strategic business development, while supporting its customers as their innovation and renovation partner.
While recognising the uncertainty around the ongoing geopolitical volatility, Kerry remains strongly positioned for volume growth and margin expansion, supported by a good innovation pipeline.
Kerry maintains its constant currency adjusted earnings per share guidance of 6% to 10% growth in 2026.
Note: Foreign currency translation expected to be a headwind of 3% on earnings per share in 2026 | Guidance based on average number of shares in issue of ~160m.
Disclaimer: Forward Looking Statements
This Announcement contains forward looking statements which reflect management expectations based on currently available data. However actual results may differ materially from those expressed or implied by these forward looking statements. These forward looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise.
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CONTACT INFORMATION |
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INVESTOR RELATIONS |
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Marguerite Larkin, Chief Financial Officer +353 66 7182292 | investorrelations@kerry.ie |
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William Lynch, Head of Investor Relations +353 66 7182292 | investorrelations@kerry.ie |
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MEDIA |
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Catherine Keogh, Chief Corporate Affairs Officer +353 45 930 000 | corpaffairs@kerry.com |
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WEBSITE |
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www.kerry.com |
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