UK– Ingredients giant Kerry Group has reported strong performance for the first half of 2024, recording significant growth in sales volume, margins and revenues.
Operational revenue crossed the €3.9 billion (US$4.2 billion) mark in the reported period. The company’s consolidated EBITDA margin increased to €552 million (US$597.7 million), compared to €518 million (US$560.8 million) recorded in the first half of 2023.
The company’s Taste & Nutrition segment recorded a 3.1% increase in sales volume in Q2 2024, which contributed to a company-wide sales volume increase of 1.7%.
The company also announced its interim dividend per share increased by 10.1% to 38.1% in the reported period.
The Taste & Nutrition segment also reported a 130-basis point margin increase EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), contributing to a company-wide margin increase of 160 basis points.
The company’s Dairy Ireland segment reported an EBITDA margin of €35 million (US$37.9 million), a significant increase from the €29 million (US$31.4 million) recorded in the first half of 2023.
According to Kerry Group, the strong performance of its Taste & Nutrition segment was spearheaded by strong performance in the foodservice sector across the company’s three main operating regions. Players were actively looking for solutions to help streamline operations, upscale operations and diversify offerings.
Edmond Scanlon, Kerry Group’s CEO, said, “We are pleased to report a good performance across the first half of the year. Taste & Nutrition delivered good volume growth ahead of our end markets, with strong profit growth and margin expansion across the business, contributing to our earnings per share growth of 9.1% in the period.”
The ingredients giant attributed the strong performance in its retail channel to good performance in Asia, Middle East and the Americas, which was spearheaded by a significant growth in snack applications.
The company offered viable ingredient solutions through its leading range of savory taste profiles and Tastesense salt-reduction technologies.
The company reiterated its commitment to invest in the organic development of its various business channels as part of its capital allocation strategy. The ingredients giant is also expected to complete the Lactase Enzymes business acquisition as part of its investment strategy.
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