| Kerry Group Strong Business Performance and Strategic Development |
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| FY 2024 KEY HIGHLIGHTS |
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Group revenue of €8.0bn (Revenue from continuing operations €6.9bn) |
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Taste & Nutrition volume growth of +3.4% with Q4 +4.1% | Group volumes +3.3% |
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Taste & Nutrition EBITDA margin +110bps | Group +120bps |
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Group EBITDA increased by 7.4% to €1,251m (EBITDA from continuing operations +6.9% to €1,188m) |
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Adjusted EPS of 467.5 cents - reflecting a 9.7% increase in constant currency (+8.7% reported currency) |
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Basic EPS of 424.5 cents (2023: 410.4 cents) |
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Free cash flow of €766m reflecting 95% cash conversion |
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ROACE of 10.6% (+60bps) |
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Final dividend of 89.0centst per share (total 2024 dividend up 10.1% to 127.1 cents) |
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Progress on sustainability commitments, including nutritional reach to 1.36 billion consumers |
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EBITDA margin target refreshed post-completion of Kerry Dairy Ireland transaction |
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| Note: For presentation and comparative purposes within this release, Group numbers presented include continuing and discontinued operations. Continuing operations exclude Kerry Dairy Ireland, a reporting segment which was divested on 31 December 2024 and is presented as discontinued operations within the financial statements. |
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| Edmond Scanlon, Chief Executive Officer |
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| "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. |
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| Volume growth was led by strong performance in the Americas through food service 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. |
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| 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. |
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| As we look to 2025, Kerry remains strongly positioned for good market outperformance due to our unique positioning with our customers as an innovation and renovation partner. We expect to deliver good volume growth and strong margin expansion, resulting in constant currency adjusted earnings per share growth of 7% to 11%, after the dilution from the Kerry Dairy Ireland disposal." |
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| See the FY 2025 Outlook section for full guidance details. |
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| Markets and Performance |
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| While several markets remained subdued, 2024 represented a more normalised year relative to recent history. Customer innovation activity was more weighted towards the renovation of existing products, with an increased focus on nutritional profile enhancement and cost optimisation. A significant level of new product innovation concentrated on addressing increased consumer demand for new taste experiences and providing relative value options. |
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| Group revenue for the year was €7,981 million, comprising volume growth of 3.3%, an overall pricing reduction of 1.9%, favourable transaction currency of 0.2%, unfavourable translation currency of 0.9%, contribution from acquisitions of 0.7% and the adverse effect from disposals of 1.9%, resulting in an overall decrease of 0.5%. Revenue from continuing operations for the year was €6,929m (2023: €6,975m). |
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| Group EBITDA increased by 7.4% to €1,251m, with Group EBITDA margin increasing by 120bps to 15.7%, driven by benefits from the Accelerate Operational Excellence Programme, portfolio developments, operating leverage, product mix and the net effect from pricing. EBITDA from continuing operations for the year was €1,188m (2023: €1,112m). |
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| Constant currency-adjusted earnings per share increased by 9.7% to 467.5 cents (2023: +1.2%) and 8.7% in reported currency (2023: -2.4%). Basic earnings per share increased to 424.5 cents (2023: 410. content). |
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| Research and development expenditure amounted to €310m (2023: €30,1m) and net capital expenditure was €350m (2023: €303m) as the Group continued to invest to develop its capabilities and global footprint. Free cash flow was €766m (2023: €701m), representing cash conversion of 95,% primarily driven by business growth. |
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| The Board proposes a final dividend of 89. cents per share, an increase of 10.1% on the final 2023 dividend. Together with the interim dividend of 38.1 cents per share, this brings the total dividend for the year to 127.1 cents, an increase of 10.1 in 2023. During 2024, the Group paid €205m in dividends and also repurchased €557m of ordinary shares as part of its share buyback programmes. |
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| Further progress was made in the year against Kerry's Beyond the Horizon sustainability strategy and commitments, including increasing its nutritional reach to 1.36 billion consumers globally. Kerry achieved a 50% reduction in Scope 1 & 2 carbon emissions and a 38% reduction in food waste across the Group's operations. |
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| ¹ Progress vs 2017 baseline. |
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| Strategic Developments |
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| 2024 represented a significant step in Kerry's history, becoming a pure-play global business-to-business taste and nutrition company following the divestment of Kerry Dairy Ireland. In November, an agreement was reached for the sale of the Dairy Ireland business2 to Kerry Co-Operative Creameries Limited for a total expected consideration of €500 million, with Phase 1 of the transaction for a 70% shareholding completed on 31 December 2024. |
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| The Group also continued to develop its Biotechnology Solutions platform in the year with the carve-out acquisition of part of the global lactase enzymes business3 of Novonesis, combined with the follow-on acquisition of the LactoSens® lactose testing technology assets and related business3 from DirectSens GmbH, along with the announcement of a €15 million investment in its Biotechnology Hub in Leipzig, Germany. These developments further bolstered Kerry's position and expanded its offering into lactose-free dairy products while extending Kerry's enzyme manufacturing capabilities and footprint to three continents. |
