Kerry : Interim Management Report 2022

Kerry Group Interim Management Report 2022 Friday 29 July, 2022

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Strong growth across a dynamic marketplace

OVERVIEW

• Group revenue of €4.1bn representing15.2%*organicgrowth
• Group volumes +6.8%(Q2: +8.0%)
• - Taste & Nutrition +8.6% (Q2: +10.3%)
  - Dairy Ireland +1.2% (Q2: +1.9%)
• Group pricing +8.3% (Q2: +10.4%)
• Group EBITDA of €518m with margin % maintained
• Adjusted EPS of 176.4 cent +9.0% on a constant currency basis (16.1% reported currency growth)
• Basic EPS of128.4 cent (H1 2021: 128.2 cent)
• Free cash flow of €226m reflecting 72% cash conversion
• Interim dividend per share of 31.4 cent (H1 2021: 28.5 cent)
• Divestment of Russian subsidiary completed post the period end
• Full year EPS guidance reaffirmed

Edmond Scanlon, Chief Executive Officer

"We are pleased with our overall performance and business momentum across the first half of the year despite inflationary challenges and geopolitical volatility in places, in what remains a highly dynamic marketplace. Volume growth was very strong in both retail and foodservice channels, driven by an increased level of innovation activity. This growth was broad-based across our regions, led by excellent performances in Beverage, Meat and Bakery end use markets in particular. We continued to make good progress in actively managing the unprecedented inflationary environment in conjunction with our customers, as we support them in developing their offerings to meet the rapidly evolving marketplace. We also made good strategic progress by expanding our footprint and completing a number of strategic acquisitions in the period. While recognising the marketplace is facing into a period of heightened uncertainty and volatility, this also presents significant opportunities. We remain confident in our outlook and are reaffirming our full year earnings guidance."

* Comprises volume growth of 6.8%, positive pricing of 8.3% and a favourable transaction currency impact of 0.1%.