Kerry Group (KRZ) Investor Day 2024 summary

Strategic Positioning and Growth Opportunities

• Positioned for market outperformance with a diversified portfolio, strong presence in the Americas, food service, and emerging markets, and a focus on sustainable nutrition solutions.

• Food service and emerging markets are key growth differentiators, supported by local teams, innovation partnerships, and a robust local model with 9,000+ employees and 44 manufacturing facilities.

• Renovation and penetration opportunities, especially in sodium and sugar reduction, are valued at €15 billion.

• Technology portfolio evolution enables integrated solutions, combining taste, nutrition, and biotechnology, with a focus on health, clean labels, and sustainability.

• Aims to reach over 2 billion consumers with sustainable nutrition solutions by 2030.

Financial Performance and Guidance

• Achieved €8bn group revenue and €1.2bn EBITDA in FY2023, with long-term revenue CAGR of 9%, EBITDA CAGR of 12%, and double-digit dividend growth since 1986.

• Targeting mid-single-digit volume growth, with 2024 margin progression of ~100bps to 18% and margin expansion to 19-20% by 2026, with potential to exceed 20% beyond 2026.

• Returns increased to 10.3% in H1, aiming for 10-12% medium-term, supported by volume growth and margin expansion.

• Foodservice revenue grew from ~€150m in 2000 to €2.1bn in 2023, consistently outperforming the market by 2-3% annually since 2017.

• Strong cash conversion and €300 million share buyback announced, maintaining a disciplined capital allocation framework.

Innovation, Technology, and R&D

• Over €3 billion invested in RD&A over 10 years, with €300 million annual spend, 1,200+ scientists, 1,400+ patents, and 70+ innovation centers.

• Biotechnology business now €1.3 billion, with new investments including a €15 million global hub in Leipzig and expansion in clean label, protein, and personalized nutrition.

• Focused on taste and biotechnology, leveraging enzyme-modified products, fermentation, enzymes, and bioinformatics for new solutions.

• Digital and AI are being adopted to enhance product concepting, diagnostics, and process automation, with R&D spend expected to gradually increase.

• Drives innovation through 70+ technology and innovation centers and 33 development and application centers worldwide.