Kerry Group has reported a group revenue for 2023 of €8 billion, a decrease of €800 million on 2022, according to its results for last year.
The group’s earnings before interest, tax, depreciation, and amortization (EBITDA) were €1.2 billion, largely unchanged from 2022, while EBITDA margin (EBITDA/total revenue) was 14.5%, a slight increase on 2022 (13.9%).
The group volume growth decreased slightly, by 0.9%, in 2023, following a 6.1% increase in 2022.
The company’s net cash from operating activities increased to over €1 billion last year, from €722 million in 2022.
Free cash flow stood at €701 million in 2023, at a cash conversion ratio of 92%, compared to the 2022 figure of €640 million at a cash conversion ratio of 82%.
Basic earnings per share increased 20% to 410.4c/share compared to 341.9c/share in 2022.
Total dividend per share for 2023 was 115.4c/share, up 10.1% on the 104.8c/share figure for 2022.
Of the €8 billion revenue, 86% was accounted for through the taste and nutrition division, and 14% through Dairy Ireland, while for the €1.2 billion earnings, 96% came from taste and nutrition and only 4% from Dairy Ireland.
In terms of the end use for Kerry Group’s products, 67% went into food, 26% to beverages, and 7% to pharmaceuticals.
69% of the group’s output went into retail and 31% went into food services.
The report also noted an increase in total remuneration for Kerry Group chief executive officer (CEO) Edmond Scanlon, who’s total pay was about €4.6 million (up from €3.9 million in 2022), comprised of a basic salary of €1.3 million and various benefits and incentive mechanisms.
Commenting on the group’s 2023 results, Scanlon said: “Our taste and nutrition business delivered volume growth, which importantly represented an outperformance of our markets, while also recognising it followed two very strong years of growth.
“This was driven by continued strong performance in our foodservice channel, where we are uniquely positioned.
“2023 represented a turbulent year for Dairy Ireland, given the significant change in market conditions,” Scanlon added.
He said Dairy Ireland’s overall performance reflected “the sharp reduction in dairy market prices”.
“Overall volumes were lower through the year due to supply conditions and elevated input costs impacting overall market demand dynamics, particularly within Dairy Ingredients across the middle part of the year,” the CEO added.
Looking forward to this year, Scanlon said: “At the outset of 2024, while consumer market volumes remain relatively muted, Kerry has a good innovation pipeline and remains strongly positioned for market volume outperformance and good margin expansion.”