Kerry Group has reported revenue of €3.9 billion in the first six months of 2024 (H1), which is down by 5.9% compared to the same period last year (€4.12 billion).
The company said that group revenue comprised volume growth of 1.7%, pricing deflation of 4%, unfavourable translation currency of 0.9% and the effect from disposals net of acquisitions of 2.7%.
However, group EBITA (operating profit before interest, tax, amortisation of goodwill and other intangibles and exceptional items) increased by 6.6% to €552 million (H1 2023: €518 million).
The financial review, published today (Wednesday, July 31), shows that profit after tax in the first six months of the year was €291.5 million, compared to €357.9 million in H1 2023.
Kerry Group
The company’s Taste and Nutrition division reported volume growth of 3.1% in the period resulting in revenue of €3.4 billion against a 3.1% fall in pricing.
EBITDA in the division rose by 5.5% to €551 million compared to the first half of 2023.
Kerry said that demand across food and beverage markets remained “relatively muted” through the first half of the year, due to inflation across many regions.
Growth in the period was led by innovations incorporating Kerry’s range of taste and proactive health technologies
Revenue for Kerry Dairy Ireland, the company’s dairy division, stood at €592 million in H1 2024, which included a 1.9% drop in revenues and a 6.9% fall in pricing.
Dairy consumer products volume growth was led by Kerry’s snacking and branded cheese ranges.
Dairy ingredients’ volumes “reflected softer overall supply across the period given local market conditions”, the financial report said.
The division achieved EBITDA of €35 million in the first half of the year, which was up by 20%.
Shares
The board of Kerry Group confirmed an interim dividend of 38.1c/share, an increase of 10.1% over the 2023 interim dividend (34.6c/share).
Given the financial performance in the first half of the year and Kerry’s innovation pipeline, the company updated its full year constant currency adjusted earnings per share guidance to 7% to 10% (previously 5.5% to 8.5%).
During the period, the company repurchased €279 million of Kerry Group plc ‘A’ ordinary shares as part of its share buyback programmes.
The group said that once the current programme is completed, it intends to initiate a further share buyback due to “good cash generation and current market conditions”.
Commenting on the results, Edmond Scanlon, Kerry Group chief executive officer, said that the company had reported “a good performance across the first half of the year”.
“Taste & Nutrition delivered good volume growth ahead of our end markets, with strong profit growth and margin expansion across the business, contributing to our earnings per share growth of 9.1% in the period.
“Taste & Nutrition volume growth was led by strong performances in the foodservice channel across all three regions, as we continue to support established foodservice chains evolve and develop their businesses, while working with emerging leaders to upscale their operations and offerings,” he said.
The company said that it has a good innovation pipeline and remains well positioned for good volume growth and strong margin expansion, while recognising consumer market demand remains relatively subdued.
The group added that it will continue to develop its business and portfolio aligned to its strategic priorities.
“Given the strength of our financial performance and our innovation pipeline, today we are updating our full year constant currency adjusted earnings per share guidance to 7% to 10%,” Scanlon said.