1st May 2025 11:38
(Alliance News) - Kerry Group PLC on Thursday backed its annual guidance, and the firm announced it plans to repurchase a further EUR300 million worth of shares.
The provider of nutrition products said revenue in the first-quarter of 2025 improved 6.3% on-year, helped by volume growth of 3.1%. It got a 0.2% boost from pricing, a 0.8% lift from acquisitions net of disposals and it reported a favourable translation currency of 1.7%.
Kerry said its earnings before interest, tax, depreciation and amortisation margin increased by 90 basis points on-year.
"We delivered a good overall performance in the first quarter, particularly given market conditions. We achieved good volume growth in the Americas and APMEA, with Europe similar to the prior year. Our strong Ebitda margin expansion was led by efficiencies delivered through Accelerate operational excellence," Chief Executive Officer Edmond Scanlon said.
"Against a backdrop of highly dynamic macroeconomic conditions, our extensive local footprint, our unique offering, and the strength of our business model positions us well to navigate through this period, supporting our customers as their innovation and renovation partner."
Looking ahead, Kerry still expects full year constant currency earnings per share growth between 7% and 11%. Adjusted earnings per share in 2024 amounted to 467.5 euro cents, a rise of 9.7% from 2023.
Kerry added: "Against the backdrop of highly dynamic macroeconomic conditions and the continually evolving tariff and global trade landscape, Kerry's extensive local footprint, global sourcing network, and customer-centric business model positions it well to navigate through this period.
"While recognising a heightened level of market uncertainty, Kerry remains well positioned for good volume growth and strong margin expansion, as it supports its customers as an innovation and renovation partner."
In the Americas region, volume growth of 3.5% was reported for the first-quarter, led by Bakery, Snacks and Dairy. Chunkier volume growth of 5.1% was seen in the Asia Pacific, Middle East & Africa grouping, with Kerry's Bakery and Snacks offerings, as well as Beverages, helping lead the charge.
Volume growth in Europe was more muted at 0.1%. Kerry hailed a "good performance in foodservice, with softer dynamics in the retail channel".
Kerry said it plans to kick off a new share buyback of up to EUR300 million following the completion of an existing programme. The current programme, also worth up to EUR300 million, was initiated in November. As of the end of March, EUR185 million worth of shares under that programme had been repurchased.
Kerry shares were flat in London on Thursday morning, last quoted at EUR96.00.
By Eric Cunha, Alliance News news editor
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