Kerry Group plc has reported a solid set of half-year results for 2025, highlighting continued volume growth, strong EBITDA margin expansion, and a clear focus on innovation and reformulation.
The Group reported revenue of €3.5 billion, a 1.3% increase compared to the previous year, driven primarily by volume growth of 3.0%. Particularly noteworthy for the confectionery and snacks sectors was the continued demand for savoury taste solutions, Tastesense™ sugar and salt reduction technologies, and natural extracts—all of which remain front and centre in product development.
“We delivered volume growth and strong margin expansion, driving constant currency EPS growth of 9.8%,” said CEO Edmond Scanlon. “Our strong EBITDA margin expansion was driven by efficiencies delivered through Accelerate Operational Excellence as well as portfolio and product mix benefits.”
The Group’s EBITDA rose by 7.5% to €556 million, with margins improving by 100 basis points to 16.1%. Kerry’s adjusted EPS of 209.2 cent represents 9.8% growth on a constant currency basis, with free cash flow of €309 million, reflecting 89% cash conversion.
For bakery players watching consumer and B2B dynamics, Kerry’s results provide valuable signals:
- Bakery and Snacks were among the leading growth drivers. Kerry cited “continued innovation in the foodservice channel” and “product renovation in the retail channel,” pointing to robust demand for flavour-forward and better-for-you treats.
- Growth was underpinned by Kerry’s taste and texture systems, natural extracts, and Tastesense™ technologies, which are increasingly vital in sugar-reduction reformulation.
- Foodservice volume growth of 4.6% significantly outperformed the broader market, bolstered by seasonal launches and innovation with quick service restaurants—a channel closely linked with confectionery offerings such as desserts and snack bars.
In emerging markets, volume growth reached 5.6%, driven by strong performances in Southeast Asia and LATAM, where demand for authentic local taste profiles and cocoa reformulation stood out.
Regional performance
Americas (revenue: €1.9bn, volume growth: +3.7%) led the charge, with strong demand in Snacks and Bakery and significant activity in savoury and reduced-sugar innovations.
Europe (revenue: €731m, volume growth: +0.2%) saw “good growth in nutritional beverages” and progress in Bakery texture systems, though the region grappled with “continued soft market dynamics” in retail.
Meanwhile, APMEA (Asia Pacific, Middle East & Africa) delivered volume growth of 4.2%, led by Bakery and Beverage innovation. Kerry highlighted its work in cocoa reformulation to address supply challenges, an important development for confectionery brands navigating global commodity volatility.
“Performance in the region was primarily driven by strong growth in Southeast Asia,” the report noted, pointing to local culinary taste innovations and increased foodservice demand.
Innovation and infrastructure
Kerry’s ongoing investments signal its long-term confidence in taste-led growth. Notable developments include:
- A Biotechnology Innovation Centre in Leipzig, focusing on future food technologies.
- Enzyme capacity expansion in Ireland.
- Expansion of cocoa taste capabilities in France.
Looking ahead, Kerry remains optimistic despite macroeconomic uncertainty: “We remain well positioned for volume growth and strong margin expansion, as we continue to support our customers as an innovation and renovation partner,” said Scanlon.
The Group has maintained its full-year adjusted EPS guidance of 7–11% growth, expecting volume growth to hold steady in the second half and margin expansion to accelerate.
Editorial contact:
Editor: Kiran Grewal kgrewal@kennedys.co.uk
