Kerry Group Reports 3.3% Volume Growth in First Half of 2026

Kerry Group reported volume growth of 3.3% in the first half of 2026, supported by stronger
second-quarter trading and growth across all three of its geographic regions.

Group revenue reached EUR3.34 billion in the six months to June 30, down 3.7% on a
reported basis from EUR3.46 billion a year earlier. The decline reflected lower pricing,
disposals and adverse currency movements, including the impact of the weaker US dollar
against the euro.

EBITDA increased slightly to EUR558.1 million from EUR555.9 million, while the EBITDA
margin rose by 60 basis points to 16.7%. Kerry attributed the improvement primarily to
efficiencies delivered through its Accelerate 2.0 programme, alongside operating leverage,
product mix and pricing benefits.

Adjusted earnings per share rose by 7.9% on a constant-currency basis to 214.1 cents. Free
cash flow declined to EUR262.3 million from EUR308.6 million, reflecting higher capital
expenditure, working-capital investment and adverse foreign-exchange movements.

The company said growth during the period was led by its snacks, meat, dairy and beverage
end-use markets. Foodservice volumes increased by 4.8%, supported by menu innovation,
seasonal launches and product renovation, while emerging-market volumes rose by 5%.

Bakery performance varied by region. In APMEA, bakery recorded good growth through
solutions combining Kerry’s taste, texture and enzyme technologies. The company said this
performance was supported by strong customer reformulation activity. The region delivered
overall volume growth of 4.9%, with growth led by dairy, meat, bakery and snacks.

In Europe, however, performance in meals and bakery reflected challenging category
volumes. Overall European volume growth was 0.5%, with beverage, dairy and snacks
providing the main support. Revenue in the region fell to EUR687.1 million from EUR731.4
million, although the EBITDA margin increased by 80 basis points to 16%.

The Americas remained Kerry’s largest region, generating revenue of EUR1.82 billion and
volume growth of 3.7%. Growth was led by snacks, meat and beverage, with the snacks
business benefiting from innovation and reformulation projects using savoury taste profiles
and salt-reduction technologies.

Edmond Scanlon, chief executive officer of Kerry Group, said: “We are pleased to report a
strong performance in the first half, reflecting a step up in volume growth in the second
quarter and continued strong margin expansion. We delivered volume growth across all
three regions, with strong growth and market outperformance in the Americas, a solid
performance in Europe and good growth in APMEA.”

Kerry also announced updated financial targets to 2030. The company is targeting annual
volume growth of 3% to 5% and an EBITDA margin of 20% to 21% by the end of the decade.
It also expects high-single-digit-plus adjusted earnings-per-share growth on a constant-
currency basis, cash conversion of at least 85% and return on average capital employed of
12% to 13%.

The group maintained its guidance for constant-currency adjusted earnings-per-share
growth of 6% to 10% in 2026. It expects foreign-currency translation to reduce full-year
earnings per share by between 1% and 2%.