The Irish ingredients specialist posted a 3.7% dip in revenues to €3.3 billion in the half year ended 30 June 2026, pointing to ongoing geopolitical crises, the cost-of-living crisis suppressing consumer spending, and heightened consumer focus on health and functional food and beverage products.
As a counterpoint, Kerry said its growth was still broadly ahead of food and drink end markets, spearheaded by innovations in its foodservice and retail offerings.
In total, the group’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €558 million in the period, up from €556 million a year earlier.
The business reported free cash flow of €262 million, with cash conversion of 76% based on average working capital and 85% based on the working capital movement at the balance sheet date.
Subsequently, the group updated its guidance for 2030 and now forecasts volume growth of 3% to 5%, based on strong end-market outperformance and a continuation of current market conditions.
It also expects an EBITDA margin of 20% to 21% by the end of the decade, building on the “strong progress and margin expansion” achieved in recent years.
Commenting on the results, chief executive Edmond Scanlon said: “We are pleased to report a strong performance in the first half, reflecting a step up in volume growth in the second quarter and continued strong margin expansion.
“We delivered volume growth across three regions, with strong growth and market outperformance in the Americas, a solid performance in Europe and good growth in APMEA.”
“We continued to evolve and develop our business in the period, including good strategic progress in expanding our manufacturing footprint across a number of emerging markets, further development of our taste and biotechnology solutions capabilities, and continued execution of Accelerate 2.0 through our footprint optimisation and digital excellence programme.”
He continued: “Our continued strong end-market outperformance highlights the strength and relevance of our strategic positioning across our markets, channels and customer base.
“Our inbuilt business resiliency positions us well through this period of market uncertainty, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline.”
