Weak dollar hits Kerry Group's revenue

Group reported decline in revenue during the first half of this year largely due to 'adverse currency translation' resulting from the weakness of the dollar versus the euro

Edmond Scanlon, chief executive, Kerry Group.

Kerry Group has reported a decline in revenue during the first half of this year largely due to an “adverse currency translation” resulting from the weakness of the dollar versus the euro as earnings recorded a slight increase, the company’s latest results show.

According to the company, group revenue for the period January to June stood at €3.3bn with earnings before interest, tax, depreciation and amortization (Ebitda) of €558m — up from €556m during the same period last year.

The company reported free cash flow of €262m.

Kerry Group said revenue for this period “comprised good volume growth of 3.3%, an overall pricing reduction of 1.0% reflective of input cost deflation, a reduction from disposals net of acquisitions of 1.1% and adverse translation currency of 4.8%, resulting in an overall reported revenue decrease of 3.7%”.

“The adverse translation currency impact was primarily driven by the significant weakening of the US dollar versus the euro, and based on prevailing exchange rates, the foreign currency translation impact is expected to be favourable for the remainder of the year,” the company said.

The company said its growth during this period was driven by “good innovation activity” in the foodservice channel and continued product renovation activity in the retail channel.

Chief executive of Kerry Group Edmond Scanlon said the results reflect “step up in volume growth in the second quarter and continued strong margin expansion”.

“We delivered volume growth across all three regions, with strong growth and market outperformance in the Americas, a solid performance in Europe and good growth in Asia Pacific, Middle East, and Africa.” 

In addition to its latest results, Kerry Group also announced its medium-term financial targets and growth algorithm to 2030.

The company said it was targeting volume growth of 3-5%, with key drivers being foodservice, emerging markets and renovation.

It is targeting Ebitda margin growth of 20%-21% by 2030.

“Business efficiency initiatives, operating leverage and portfolio mix will be key contributors to future growth, balanced with continued investment in the business for growth,” the company said.

On the company’s updated financial targets for 2030, Mr Scanlon said “our revenue volume growth target range of 3-5% represents our confidence in continuing to deliver consistent strong market outperformance and is set in the context of current market conditions.

“This growth combined with our Ebitda margin target of 20-21% by 2030 will be the key drivers of delivering our high single-digit plus earnings growth over the coming years.” 

The company said there was an interim dividend of 46.2c per share reflecting an increase of 10% over the 2025 interim dividend. During the period, the group repurchased €173m of Kerry Group plc ‘A’ ordinary shares under its share buyback programmes.

Shares in the Kerry Group increased by nearly 1.8% during the start of trading on Wednesday following these results, peaking at €89.25 a share. However, by noon today, the share price fell back down to €85.75 — about where the price was when the markets closed on Tuesday evening.