Kerry Group is handling the current economic uncertainty relatively well, thanks to its geographic diversification.
That's according to the global taste and nutrition company's interim management statement for the first quarter of this year (Q1 2025).
The EBITDA (Earnings before interest, taxes, depreciation, and amortisation) margin improved by 90 basis points, mainly due to cost efficiencies, acquisitions, better use of existing operations, and a stronger range of high-value products.
Kerry sold 3.1% more products in Q1, mainly due to higher demand in fast-growing developing countries, led by South-East Asia, and in the hospitality sector.
It reported that its biggest areas of growth were beverages, baked goods, and snacks.
Prices increased slightly by 0.2%, as input costs rose marginally, but overall revenue rose by 6.3%.
The company owes €1.9 billion in net debt, has bought back €185 million of its own shares, and plans to buy back €300 million more.
Kerry is currently placing strong emphasis on developing healthier products with less sugar or salt, and more natural ingredients, to meet consumer trends.
The statement speculates that changes in currency rates may reduce earnings by three to four per cent, but the company still expects to meet its profit goals.
The company still expects profits per share to grow by 7% to 11% this year, excluding currency effects.
Kerry has proposed a final dividend of €0.89 per share, which is due to be voted on at the company’s Annual General Meeting this afternoon (2pm) at The Rose Hotel in Tralee.
Kerry’s Chief Executive Officer, Edmond Scanlon, said that despite ongoing economic changes, the company’s strong local presence, unique products, and solid business model put it in a good position to navigate the current volatility.
Edmond Scanlon Executive Director of Kerry ( Cnt of Pic ) pictured at the Kerry Group PLC Annual General Meeting held at the Rose Hotel Tralee Co Kerry.Photo By: Domnick Walsh © Eye Focus LTD .
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