Kerry Group (KRZ) Q2 2025 earnings summary

Executive summary

• Achieved 3.0% volume growth and 100bps EBITDA margin expansion in H1, outpacing end-market and channel growth, with constant currency EPS up 9.8%.

• Food service channel led growth, supported by innovation, new menu items, and cost-reduction solutions; retail channel benefited from retailer brand innovation and nutritional renovation.

• Outperformance driven by strong foodservice and emerging markets, especially Southeast Asia and LATAM.

• Strategic investments continued in taste, bio-fermentation technologies, and regional capacity expansion.

Financial highlights

• Revenue reached €3.5bn, with 3% volume growth and 0.2% positive pricing; EBITDA rose 7.5% to €556m, margin up 100bps to 16.1%.

• Adjusted EPS was 209.2c, up 9.8% constant currency and 7.8% reported; basic EPS 182.4c.

• Free cash flow reached €309m, with 89% average cash conversion.

• Interim dividend of 42.0c per share, up 10.2% year-on-year; €256m in share buybacks.

• Return on capital employed at 10.7%.

Outlook and guidance

• Full-year constant currency adjusted EPS guidance maintained at 7–11% growth.

• Volume growth outlook moderated to around 3%, similar to H1, due to softer end-market volumes.

• Full-year EBITDA margin expansion expectation increased to 70bps or greater.

• Foreign currency translation expected to be a 4–5% headwind on adjusted EPS for the full year.