Kerry Group to invest €120m on manufacturing and supply chain improvements

The group has largely sold off its consumer foods interests and wants to cut direct and indirect emissions by 55% by 2030

Kerry Group plans to spend around €120m on improving its manufacturing and supply chain operations over the coming two years.

The Tralee-headquartered global food taste and nutrition giant has set out a wide-reaching strategic target update; taking in financial targets for the next four years and environmental and sustainability commitments by 2030.

Kerry has set an EBITDA earnings margin target of more than 18% by 2026, which will be driven by growth in its core taste and nutrition division. 

The group has largely sold off its consumer foods interests.

A new ‘Accelerate Operational Excellence Transformation’ programme – which will begin next year and run until 2024 – will see the investment in manufacturing and supply chain excellence. 

That, Kerry said, will deliver a full annual recurring benefit of approximately €70m per annum from 2025.

Emissions targets

The group also wants to cut direct and indirect emissions by 55% by 2030, up from a previous target of 33%.

Kerry also said it is extending its commitment to equal gender representation across all senior management roles by 2030.

"We have made significant strategic progress in recent years, as we continue to evolve our business as the world's leading taste and nutrition partner for the food, beverage and pharmaceutical markets,” said Kerry CEO Edmond Scanlon.

He said the updated strategy “supports our vision to be our customers' most valued partner, creating a world of sustainable nutrition". 

Kerry's annual revenue volume growth target has been updated to 4%-6%, on average, across the plan.

In July, Kerry reported a 13% jump in first-half profits and a near 5% year-on-year rise in first-half group revenues.

Kerry’s share price was marginally up on the back of its latest outlook.