Kerry Group, a leading global ingredients supplier, has released its preliminary results for the fiscal year ending December 31, 2024, showcasing impressive growth in volume and overall group earnings. The financial overview highlights Kerry’s resilience and strategic initiatives within the evolving food industry landscape.
Notably, Kerry reported a total group revenue of €7,981 million. This figure reflects a robust volume growth of 3.3%, albeit accompanied by an overall pricing reduction of 1.9%. Additionally, the company experienced favorable transaction currency effects of 0.2%, but faced unfavorable translation currency impacts of 0.9%. The adjustments also included a contribution from acquisitions of 0.7% and an adverse effect stemming from disposals of 1.9%. Collectively, these factors led to an overall revenue decrease of 0.5%. Specifically, revenue from continuing operations was recorded at €6,929 million, slightly down from €6,975 million in 2023.
In terms of profitability, the group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 7.4%, reaching €1,251 million for the year. Additionally, the EBITDA margin exhibited a commendable increase of 120 basis points, rising to 15.7%. When focusing solely on continuing operations, EBITDA stood at €1,188 million, an increase from €1,112 million in the previous year.
Examining earnings per share, Kerry reported a substantial 9.7% rise in constant currency adjusted earnings, amounting to 467.5 cents, compared to a slight increase of 1.2% in 2023. In reported currency terms, the increase was 8.7%, contrasting against a decline of 2.4% the previous year. Furthermore, basic earnings per share improved to 424.5 cents, up from 410.4 cents in 2023.
Looking into the company’s investment strategies, research and development expenditure reached €310 million, a slight increase from €301 million in 2023. Net capital expenditure also saw an uptick, totaling €350 million compared to €303 million the previous year. This continuous investment underlines Kerry’s commitment to enhancing its capabilities and global presence. Notably, free cash flow was reported at €766 million, reflecting a cash conversion rate of 95%, which was primarily driven by significant business growth.
Kerry’s Taste & Nutrition division particularly distinguished itself, delivering substantial volume growth throughout the year. This growth represents a clear outperformance relative to the broader food and beverage sectors, facilitated by ongoing product renovation efforts aimed at enhancing nutritional profiles for numerous customers.
Moreover, the foodservice sector famously excelled, achieving volume growth of 6.8%. This success can be attributed to innovative menu developments, seasonal product offerings, and tailored solutions designed to streamline operations and reduce costs. Concurrently, growth in the retail channel was recorded at 1.8%, notably benefiting from strong performances in both the Americas and Asia-Pacific, Middle East, and Africa (APMEA) regions.
Edmond Scanlon, Kerry’s Chief Executive Officer, expressed his satisfaction with the year’s results. He remarked, “We are pleased to report a strong performance across the year, with earnings per share growth of 9.7% reflecting continued volume progression in Taste & Nutrition and strong margin expansion across the business.”
He further elaborated, “Volume growth was led by strong performance in the Americas through foodservice innovations and increased nutritional renovation across a broad range of customers, while APMEA delivered a good performance given market conditions and Europe progressed through the year.” This emphasis not only showcases the diverse performance across regions but also highlights Kerry’s strategic focus on innovation.
Looking at strategic movements, Scanlon noted, “We continued to strategically evolve our portfolio, including further developing our Biotechnology Solutions capability and the significant divestment of Kerry Dairy Ireland, which resulted in Kerry becoming a pure-play taste and nutrition company.” This strategic realignment underlines Kerry’s commitment to focusing on core areas of growth and expertise.
As Kerry sets its sights on 2025, the organization remains optimistic about its market position. Scanlon reiterated that the company is “well positioned for good market outperformance due to our unique positioning with our customers as an innovation and renovation partner.” He also projected strong volume growth and substantial margin expansion, anticipating an increase of 7% to 11% in constant currency adjusted earnings per share, post-dilution from the Kerry Dairy Ireland divestiture.
Outlook for 2025
Looking forward, Kerry asserts its readiness to capitalize on evolving market conditions. The company is confident in its ability to deliver robust volume growth and consistent margin expansion. The strategic focus will remain on further developing the taste and nutrition portfolio, enabling the organization to create significant value for its stakeholders.
Despite acknowledging “uncertain market conditions,” Kerry is committed to leveraging its strengths as an innovation-driven partner with its customers. This commitment firmly positions the company for sustained financial performance and market leadership in the years to come.
