Kerry Group sees revenues rise despite heightened market uncertainty 

Group's 6% rise in revenue in first three months of 2025 was helped by good volume growth, offsetting lower consumer demand

Edmond Scanlon, Chief Executive Officer, Kerry Group. PIC: NO FEE, MAXWELLS DUBLIN

Food giant Kerry saw revenue increase by more than 6% in the first three months of 2025, underpinned by good volume growth given overall consumer market demand.

Reiterating its full-year guidance, Kerry Group said its foodservice division continued its outperformance with volume growth of 4.7%, driven by new menu innovations, seasonal products, and solutions to reduce operational cost and complexity. 

Growth in its retail channel was supported by an increase in nutritional enhancement renovation activity with a range of customers.

The group's continuing business earnings before interest, tax, depreciation and amortisation margin increased by 90 basis points, primarily driven by cost efficiencies, contribution from acquisitions, operating leverage and its portfolio mix, Kerry said in a trading update on Thursday.

End market conditions in the period reflected generally cautious consumer behaviour, the group said, given the level of macroeconomic uncertainty across different geographies.

Volume growth in Kerry's Americas region grew by 3.5%, led by gains in its bakery, snacks and dairy divisions. Its Europe division saw much more modest growth, rising by just 0.1%, with a good performance in foodservice but softer dynamics in the retail channel.

In its Asia, Pacific, Middle East and Africa region, Kerry saw growth of more than 5%, with its performance in the region primarily driven by strong growth in Southeast Asia, the Middle East and Africa, with volumes in China remaining challenged.

Speaking earlier this year, Kerry said it expected revenue to see a €1bn reduction following the company’s decision to divest from its dairy processing division and sell it to Kerry Co-op.

“We delivered a good overall performance in the first quarter, particularly given market conditions," said CEO Edmond Scanlon. 

"We achieved good volume growth in the Americas and APMEA, with Europe similar to the prior year. Our strong EBITDA margin expansion was led by efficiencies delivered through Accelerate operational excellence.

"While recognising the heightened level of market uncertainty, we remain well positioned for good volume growth and strong margin expansion, and we maintain our full-year constant currency earnings guidance.”

Looking forward, the food group said it was well-positioned to navigate this period against the backdrop of highly dynamic macroeconomic conditions and the continually evolving tariff and global trade landscape.

"While recognising a heightened level of market uncertainty, Kerry remains well positioned for good volume growth and strong margin expansion, as it supports its customers as an innovation and renovation partner," the group added.

Kerry maintained its full-year constant currency earnings per share guidance growth of 7% to 11%.