Global ingredients supplier Kerry has revealed its preliminary statement of results for the year ended 31st December 2024, reporting increased volume growth and group earnings.
Kerry said that 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 €6,929 million (2023: €6,975 million).
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 7.4% to reach €1,251 million, with the EBITDA margin increasing by 120bps to 15.7%. EBITDA from continuing operations for the year was €1,188 million (2023: €1,112 million).
Constant currency adjusted earnings per share increased by 9.7% to 467.5 cent (2023: +1.2%) and 8.7% in reported currency (2023: -2.4%). Basic earnings per share increased to 424.5 cent (2023: 410.4 cent).
Research and development expenditure amounted to €310 million (2023: €301 million) and net capital expenditure was €350 million (2023: €303 million) as the Group continued to invest to develop its capabilities and global footprint. Free cash flow was €766 million (2023: €701 million), representing cash conversion of 95% primarily driven by business growth.
Kerry said its Taste & Nutrition division delivered a good year of volume growth with continued progression through the year. This represented a significant outperformance relative to food and beverage end markets, supported by continued product renovation activity with many customers to enhance nutritional profiles.
It also said that foodservice performed strongly with volume growth of 6.8%, supported by new menu innovations, seasonal products and solutions designed to reduce operational costs and simplify processes, while growth in the retail channel of 1.8% reflected “good performances” in the Americas and APMEA.
Edmond Scanlon, Kerry chief executive, said: “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.
“Volume growth was led by strong performance in the Americas through foodservice 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.
“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.
“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.”
Outlook for 2025
Kerry said it remains “well positioned” for strong market outperformance “given its positioning with customers as an innovation and renovation partner”. It said it would continue to evolve strategically and develop its taste and nutrition portfolio in areas where it can create the most value.
While “recognising uncertain market conditions”, Kerry expects to deliver good volume growth and strong margin expansion, resulting in constant currency adjusted earnings per share growth of 7% to 11%, net of dilution from the Kerry Dairy Ireland disposal.
