Kerry Group (KRZ) Q1 2025 earnings summary

Executive summary

• Achieved 3.1% volume growth in Q1 2025, outpacing end-market growth, with strong performance in Foodservice, Americas, and APMEA, while Europe remained flat.

• EBITDA margin expanded by 90 basis points, driven by cost efficiencies, acquisitions, and portfolio mix.

• Reported revenue increased by 6.3% year-over-year, with pricing up 0.2%.

• Growth led by beverage, bakery, and snacks, leveraging taste and nutritional technologies, with Foodservice and emerging markets outperforming.

• Maintained full-year constant currency EPS growth guidance of 7-11%.

Financial highlights

• Q1 2025 reported revenue grew 6.3% year-over-year, with volume up 3.1%, pricing up 0.2%, and favorable currency impacts.

• EBITDA margin increased by 90bps year-over-year.

• Net debt stood at €1.9bn at quarter end.

• Share buyback of €185m completed by March, with a new €300m program to follow.

• Revenue growth drivers included volume, price, currency, and acquisitions/disposals.

Outlook and guidance

• Maintains full-year constant currency EPS growth guidance of 7-11% for 2025.

• Expects volume growth for 2025 to be similar or better than 2024, with continued margin expansion, especially in the first half.

• Anticipates a 3-4% translation currency headwind for the full year.

• Guidance reflects ~2% EPS dilution from the Phase 1 disposal of Kerry Dairy Ireland.

• Company expects continued good volume growth and strong margin expansion despite market uncertainty.