Food technology and ingredients company Kerry Group has reported higher half year revenues and profits and said it remains well positioned for growth for the rest of the year.
Kerry Group's revenues for the six months to the end of June rose by 1.3% to €3.463 billion from €3.419 billion while its profits after tax rose to €303.1m from €291.5m in the first half of 2024.
The board has declared an interim dividend of 42.0 cent per share, a 10% increase from the interim dividend of 38.1 cent the same time last year.
Kerry said the demand environment across food and beverage markets remained "soft" during the first half of 2025, due to cautious consumer behaviour given the level of macroeconomic and geopolitical uncertainty across different geographies.
Edmond Scanlon, Kerry's chief executive, said the first half of the year reflected a good performance particularly given market conditions, where the company delivered volume growth and strong margin expansion, driving constant currency EPS growth of 9.8%.
"Volume growth was led by a strong performance in the Americas, with Europe in line with expectations, and growth in APMEA reflective of variable market dynamics. Our strong EBITDA margin expansion was driven by efficiencies delivered through Accelerate Operational Excellence as well as portfolio and product mix benefits," he said.
"We continued to strategically develop our business, including expanding our capacity within APMEA and LATAM, and further investing in our taste and bio-fermentation technology capabilities across the business," the CEO stated.
"Looking to the remainder of the year, while recognising a heightened level of market uncertainty, we remain well positioned for volume growth and strong margin expansion, as we continue to support our customers as an innovation and renovation partner," he added.
Breaking down its divisions, Kerry Group said that revenue in its Americas unit rose by 3.7% to €1.911 billion, led by Snacks, Bakery and Beverages.
Revenue at its Europe division edged 0.2% higher to €731m, with its performance driven by growth in foodservice through seasonal and new launch activity with quick service restaurants, while performance in the retail channel reflected continued soft market dynamics.
Kerry noted that business developments in the period included strong progress in the development of the new Biotechnology Innovation Centre in Leipzig in Germany, enzyme capacity expansion in Cork and the expansion of Kerry's cocoa taste capabilities in Grasse in France.
Meanwhile, revenue at Kerry's APMEA Region rose by 4.2% to €821m, mainly driven by strong growth in Southeast Asia, solid growth in the Middle East and Africa, but with volumes in China remaining challenged.
Kerry said its strong end market outperformance in the first half of the year demonstrates the strength of its strategic positioning within its markets, channels and across its customer base.
"Looking to the remainder of the year, while recognising a heightened level of market uncertainty, Kerry remains well positioned for volume growth and strong margin expansion, as it supports its customers as an innovation and renovation partner," it said today.
Kerry said it expects volume growth for the full year to be similar to the first half, with margin expansion in the second half ahead of expectations, and maintains its constant currency adjusted earnings per share guidance of 7% to 11% growth in the full year.
Shares in the company ended lower in Dublin trade today.
