The Kerry Group shared its 2024 Q1 sales report highlights. The company's revenue comprised volume growth of 1.9%, pricing deflation of 5.3%, the effect from disposals net of acquisitions of 5.1% and unfavorable translation currency of 1.4%, resulting in overall reduced revenues of 9.9% in the period. Kerry's EBITDA margin increased by 140bps driven by cost efficiencies, portfolio developments and the effect of pricing.
- Taste & Nutrition delivered good volume growth of 3.1% with Group volumes +1.9%
- Group pricing of -5.3% | Taste & Nutrition -3.9%
- Group EBITDA margin +140bps | Taste & Nutrition +140bps
- Dairy Ireland delivered a solid performance with EBITDA margin +70bps
- New €300m share buyback program – reflected in updated full-year guidance
Edmond Scanlon, Chief Executive Officer shares, “We are pleased to report a good start to the year given market dynamics. Taste & Nutrition achieved good volume growth driven by a strong performance within our foodservice channel and we delivered strong margin expansion in the period reflecting the continued development and evolution of our business. Consumer market dynamics remain similar to those outlined at our full-year results. As part of our capital allocation framework as previously indicated, we are announcing a new share buyback program, and the expected net earnings per share accretion has been reflected in our updated guidance range.”
Taste & Nutrition
Growth driven by strong foodservice performance
- Volume growth of 3.1%
- Growth led by Snacks, Meals, Meat and Beverage
- Pricing of -3.9% reflected the deflationary environment
- EBITDA margin expansion of 140bps driven by cost efficiencies, portfolio developments and effect of pricing
Americas Region
- Returned to volume growth of 3.6% in Q1
- Snacks, Meals and Beverage delivered strong growth
- Foodservice delivered strong growth with retail performing well
- LATAM growth led by Mexico
Europe Region
- Volumes -1.4% against strong comparatives
- Meals and Beverage achieved good growth
- Foodservice performed well with softer dynamics in the retail channel
APMEA Region
- Volume growth of 4.8% led by Snacks and Meat
- Growth driven by strong performance in the Middle East
- Foodservice achieved strong volume growth
Dairy Ireland
- Volumes -3.0% with good growth in Dairy Consumer Products, more than offset by the impact of market supply conditions in Dairy Ingredients
- Pricing -13.7% given reduction in dairy input costs year-on-year
- EBITDA margin expansion of 70bps reflective of the effect of pricing
Financial Review and Share Buyback Program
Kerry reported that at the end of March 2024, net debt was €1.7 billion reflecting cash generation, capital investment and the share buyback programme. Aligned to Kerry’s Capital Allocation Framework, the Group announces it will commence a share buyback program of up to €300 million of Kerry Group plc ordinary shares, subject to approval at today’s AGM. The program will commence in May 2024 and will complete by year end at the latest. A formal announcement will be made prior to its launch. As previously announced, the Group has proposed a final dividend of 80.8 cents per share for approval at the Annual General Meeting.
Board Changes
Hugh Brady, Ph.D., and Karin Dorrepaal, Ph.D., each having served as directors for over nine years, have retired from the Board of Directors effective from the conclusion of the Annual General Meeting. Christopher Rogers will succeed Brady as senior independent director and Emer Gilvarry will succeed Dorrepaal as designated employee engagement director.
