Kerry Group Reports 5.9% Revenue Decline in H1 2024 Amid Price Decreases

Ireland 31.07.2024

Source: The DairyNews

Kerry Group has announced a 5.9% decline in revenues year-on-year to €3.9 billion for the first half of 2024, driven by a 4% decrease in prices. Despite the drop in revenue, the company's taste & nutrition division saw a sales volume increase of 3.1%, reaching €3.4 billion, and group EBITDA rose by 6.6% (€34 million) to €552 million.

However, profit after tax fell sharply by 19.6% from €357.9 million to €291.5 million, primarily due to the €241 million revenue shortfall and higher operational costs.

Key Financial Highlights:

Revenue Decline: Down 5.9% year-on-year to €3.9 billion.
EBITDA Increase: Up 6.6% to €552 million.
Profit After Tax: Fell 19.6% to €291.5 million.
Sales Volumes: Increased by 1.7% in H1, with a 1.5% surge in Q2.
Earnings Per Share: Increased 9.1% on a constant currency basis to 194.1 cent.
Interim Dividend: Approved a 10.1% increase to 38.1 cent per share.
Share Buyback: Repurchased €279 million in shares with plans for further buybacks.

In its Irish dairy business, earnings increased by €6 million to €35 million despite a 1.9% drop in revenue to €592 million. Sales volumes and prices both declined by 1.9% and 6.9%, respectively. Nonetheless, Kerry Group expanded its Cheesestrings manufacturing capacity by extending its plant in Charleville and introduced the SMUG hybrid range of oat and dairy-based milk, cheese, and butter products.

CEO's Statement: "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," said Edmond Scanlon, CEO of Kerry Group.