Kerry reported revenue in the first half of 2023 increased by 1.6% to €4.1 billion, reflecting business volume growth of 0.6%, pricing of 4.5% and a contribution from acquisitions of 1.1%, partially offset by the effect of disposals of 4.5% and adverse translation currency of 0.1%.
The company's EBITDA in the first half of the year was €518.0 million (H1 2022: €517.7 million), it is said that organic growth was offset by the effect of disposals net of acquisitions. According to the report, Kerry's EBITDA margin decreased by 20bps to 12.6%, as benefits from cost efficiency initiatives and portfolio developments were more than offset by the mathematical impact of passing through input cost inflation.
Taste & Nutrition Segment Highlights
Taste & Nutrition reported revenue increased by 2.7% to €3,539 million driven by volume growth and positive pricing, partially offset by adverse translation currency and the effect of disposals net of acquisitions.
- Volume growth of 1.4% with Q2 growth of 1.6% against strong comparatives
- Growth led by Food EUM across Dairy, Snacks and Meat
- Pricing +5.4% (Q2: +3.6%) reflecting the management of input cost inflation
- EBITDA Margin -20bps (Q2: +40bps) with benefits from cost efficiencies and portfolio evolution more than offset by the impact of passing through input cost inflation
Americas Region Highlights
- Volumes -2.2% (Q2: -2.7%)
- Retail channel saw softer market conditions while foodservice performed well
- Within the Food EUM, good volume growth was achieved in Snacks and Dairy
- LATAM delivered solid growth
Europe Region Highlights
- Volumes +4.6% (Q2: +5.3%)
- Dairy, Snacks and Meat delivered strong growth
- Foodservice achieved excellent growth with a solid performance in retail
Dairy Ireland Highlights
- Volumes -2.5% (Q2: -0.5%) as growth in Dairy Consumer Products more than offset by lower volumes in Dairy Ingredients
- Pricing +0.4% with reduced pricing in Q2 reflective of dairy markets
- EBITDA margin reduction driven by the significant impact from changes in dairy sales prices
Kerry chief executive officer Edmond Scanlon commented, “We delivered a good performance in the first half of the year recognizing varying conditions across our markets. Strong volume growth was achieved in APMEA and Europe led by our performance in the foodservice channel, while North America saw customers work through elevated inventory levels. We continue to see good levels of customer innovation activity, and our margins reached an inflection point in the second quarter.
We also made good strategic progress, particularly in executing on our emerging markets strategy with significant acquisitions and investments across APMEA and LATAM. With Kerry’s strong local footprint and track record of growth across emerging markets, these complementary strategic developments will support our future growth ambitions.
While recognizing current market conditions, we remain strongly positioned for growth and reiterate our full year constant currency earnings guidance.”