Kerry Group (KRZ) Q4 2024 earnings summary

Executive summary

• Achieved a milestone year by transitioning to a pure-play Taste and Nutrition company, completing the divestment of Dairy Ireland and focusing on value-add specialty ingredients.

• Delivered strong business performance with 3.4% volume growth in Taste & Nutrition, EBITDA margin expansion, and significant returns to shareholders.

• Adjusted EPS grew 9.7% in constant currency; ROACE increased to 10.6% (+60bps year-over-year).

• Advanced sustainability commitments, reaching 1.4 billion consumers and reducing Scope 1 and 2 emissions by 50% versus base year.

• Free cash flow reached €766m (95% conversion), with significant capital returns through share buybacks and dividends.

Financial highlights

• Group revenue reached €8.0bn, with Taste & Nutrition revenue at €6.9bn and group EBITDA up 7.4% to €1,251m; EBITDA margin rose 120bps to 15.7%.

• Adjusted EPS at 467.5c (+9.7% constant currency); basic EPS at 424.5c.

• Free cash flow of €766m, up from €701m in 2023; cash conversion improved to 95%.

• Capital returns exceeded €750m, including €557m in share buybacks and €205m in dividends.

• Net debt at €1.9bn with a net debt/EBITDA ratio of 1.6x and weighted average debt maturity of 5.6 years.

Outlook and guidance

• FY 2025 guidance: constant currency adjusted EPS growth of 7% to 11%, net of ~2% dilution from Dairy Ireland disposal.

• Medium-term targets: 4–6% volume growth, EBITDA margin 18–19% by 2026, 19–20% by 2028, and high single-digit adjusted EPS growth.

• Accelerate 2.0 efficiency program to deliver €100m annual savings by 2028 at a cost of €140m.

• ROACE target of 10–12% and cash conversion of 80%+ in the medium term.

• Foreign currency translation expected to be a 1–2% tailwind for 2025 EPS.