Kerry Group PLC, a leading provider of taste and nutrition solutions, reported strong half-year results for 2025, showcasing volume growth and margin expansion despite a soft demand environment in the food and beverage sector. Here’s a summary of the key highlights and financial performance
### **Key Highlights**
1. **Revenue Growth**
Group revenue increased to **€3.5 billion**, driven by **3.0% volume growth** (Q2: +3.0%).
Revenue growth was supported by acquisitions (+0.6%) and partially offset by disposals (-0.9%).
2. **EBITDA and Margin Expansion**
**EBITDA increased by 7.5% to €556 million**, with a **100 basis points (bps) improvement in EBITDA margin to 16.1%** (Q2: +110 bps).
Margin expansion was driven by operational efficiencies, portfolio benefits, and product mix improvements.
3. **Profitability**
**Adjusted EPS grew by 9.8% on a constant currency basis to 209.2 cent** (reported growth: 7.8%).
Basic EPS increased by **9.4% to 182.4 cent**.
4. **Cash Flow and Dividends**
**Free cash flow of €309 million**reflecting **89% cash conversion**.
**Interim dividend per share increased by 10.2% to 42.0 cent**.
5. **Strategic Developments**
Expanded capacity in APMEA and LATAM regions.
Invested in taste and bio-fermentation technology capabilities.
Continued focus on innovation and renovation to support customers.
### **Regional Performance**
**Americas** Strong volume growth of **3.7%**, led by Snacks, Bakery, and Beverage end markets. EBITDA margin improved by **90 bps to 18.5%**.
**Europe** Modest volume growth of **0.2%**, with Beverage and Bakery performing well. EBITDA margin increased by **90 bps to 15.2%**.
**APMEA** Robust volume growth of **4.2%**, driven by Southeast Asia and the Middle East. EBITDA margin improved by **60 bps to 15.0%**.
### **Financial Metrics**
**Net Debt** Increased to **€2.056 billion** (31 December 2024: €1.926 billion), reflecting strong cash generation offset by dividends and share buybacks.
**ROACE (Return on Average Capital Employed):** Improved to **10.7%** (H1 2024: 10.3%).
**Net Debt to EBITDA Ratio** Remained healthy at **1.7 times**.
### **Future Outlook**
Kerry Group expects **volume growth for the full year to be similar to H1**, with **margin expansion in H2 ahead of expectations**.
Maintains **constant currency adjusted EPS guidance of 7% to 11% growth** for the full year.
Recognizes heightened market uncertainty but remains well-positioned to support customers through innovation and renovation.
### **Corporate Updates**
**Share Buyback Programme** Approved a new €300 million buyback program, with €256 million repurchased in H1 2025.
**Board Changes** Gerry Behan to retire as Executive Board Director by 31 December 2025.
Kerry Group’s H1 2025 performance underscores its resilience and strategic focus, positioning it for continued growth despite challenging market conditions.
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue (€'m) | 3,463.1 | 3,419.2 | +1.3% |
| EBITDA (€'m) | 555.9 | 517.2 | +7.5% |
| EBITDA Margin (%) | 16.1 | 15.1 | +100bps |
| Adjusted EPS (cent) | 209.2 | 194.1 | +7.8% (reported), +9.8% (constant currency) |
| Free Cash Flow (€'m) | 308.6 | 445.4 | -30.7% |
| Net Debt (€'m) | 2,055.8 | 1,843.9 | +11.5% |
| Net Debt to EBITDA (times) | 1.7 | 1.6 | +6.3% |