Irish food ingredients giant Kerry saw revenue increase by 1.3 per cent to €3.5 billion in the first half of 2025 despite what it described as a “soft” demand environment linked to macroeconomic uncertainty.
“The demand environment across food and beverage markets remained soft through the period, reflective of cautious consumer behaviour, given the level of macroeconomic and geopolitical uncertainty across different geographies,” the company said.
Kerry Group’s revenues for the six months to the end of June rose by 1.3 per cent to €3.46 billion, it said, while profits after tax rose to €303 million.
Earnings per share for the period were 209.2 cent, up 9.8 per cent while the company also announced an interim dividend per share of 42 cent, up 10.2 per cent on the corresponding period last year.
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“The first half of the year reflected a good performance particularly given market conditions, where we delivered volume growth and strong margin expansion, driving constant currency EPS growth of 9.8 per cent,” chief executive Edmond Scanlon said.
“Looking to the remainder of the year, while recognising a heightened level of market uncertainty, we remain well positioned for volume growth and strong margin expansion, as we continue to support our customers as an innovation and renovation partner,” he said.
In a breakdown of the results, Kerry Group said revenue across its Americas unit rose by 3.7 per cent to €1.9 billion, led by snacks, bakery and beverages.
“Within the retail channel, growth was supported by renovation activity across customer and retailer brands, while foodservice growth was led by performance with quick service and fast casual restaurants,” it said.
Revenue at its Europe division rose by 0.2 per cent to €731 million.
“Performance in the region was driven by growth in foodservice through seasonal and new launch activity with quick service restaurants, while performance in the retail channel reflected continued soft market dynamics,” it said.
Kerry is starting to pass on higher costs as tariffs raise the price of ingredients it uses in its supply of products to top brands.
The group sources a range of ingredients, including citrus products, coffee, garlic, peppers and Indian spices, from outside the US, where it has almost half its business. While Kerry will try to mitigate US President Donald Trump’s tariffs as much as possible, it will have to raise prices to reflect the higher costs, Mr Scanlon said.
“We basically have no choice,” he said.
Price increases are in the low single digits. The company typically supplies components — and not finished products — to food brands, meaning the cost they contribute to a customer’s product is “quite small.”
The company said business developments in the period included strong progress in the development of the new Biotechnology Innovation Centre in Leipzig, Germany, enzyme capacity expansion in Cork, Ireland, and the expansion of Kerry’s cocoa taste capabilities in Grasse, France.
The company said its net debt position at the end of the period was just over €2 billion. “The increase relative to December reflects strong business cash generation offset by the dividends and the share buyback programme,” it said.
In April, Kerry’s board approved a new share buyback programme of up to €300 million. --Additional reporting by Bloomberg
