Weakening US dollar hurts Kerry revenue despite growth across all three regions

The food giant reported an adverse translation currency of 7.9% in the first three months of 2026

Edmond Scanlon, Chief Executive Officer, Kerry Group. PIC: MAXWELLS DUBLIN

Food giant Kerry said that a weakening US Dollar led to a more than 7% fall in revenue at the beginning of this year, with the group's foreign currency translation impact expected to be significantly lower for the remainder of 2026.

In a trading update published on Thursday morning, Kerry said revenue for the period comprised good volume growth of 3.1%, an overall pricing reduction of 1.3%, reflective of input cost deflation, a reduction from disposals net of acquisitions of 1.2%, and adverse translation currency of 7.9%, resulting in an overall decrease of 7.3%.

That was despite positive volume growth across all three regions of Europe, the Americas and Asia Pacific, Middle East, and Africa (APMEA). Overall, Kerry welcomed a "strong market performance," with volume growth of 3.1%.

However, the group said the overall food and beverage end market volumes remained subdued through the first quarter of this year with "a high level of market uncertainty" given the macroeconomic backdrop. 

It noted an increased customer focus on product renovation to address a variety of needs including enhancing product nutritional profiles, cost optimisation, and supply chain challenges, while customer innovation activity also rose in many markets, orientated towards high growth areas including higher protein, proactive health and new format options.

Kerry said its volume growth in the period remained significantly ahead of food and beverage end markets, driven by good innovation activity in the foodservice channel and continued product renovation activity in the retail channel.

In its Americas region, volumes grew by 3.4% compared to the same three-month period last year, with growth led by gains in meat, snacks and dairy and a strong performance in foodservice and retail. 

In Europe, volumes grew marginally by 0.4%, with growth underpinned by beverages and dairy.

In the APMEA region, Kerry saw volume growth of 4.6%, led by meat, bakery and snacks with good growth in retail and foodservice. 

"The volume growth we achieved in the first quarter was driven by continued strong growth and market outperformance in the Americas, with good growth in APMEA and a solid performance in Europe," said Kerry chief executive Edmond Scanlon.

"While recognising the uncertainty around the ongoing geopolitical volatility, our business remains strongly positioned for volume growth and margin expansion.”