Kerry Group is set to embark on a new business efficiency programme later this year which is aiming to make annual savings of €100 million.

Following the completion of the Accelerate Operational Excellence programme, which “delivered savings ahead of schedule”, Kerry is now set to launch its new programme, Accelerate 2.0.

The company said that this new programme is expected to deliver projected recurring annual savings of €100 million by 2028, with a cost of €140 million.

Marguerite Larkin, Kerry Group chief financial officer said that the new efficiency programme is a "key enabler" of achieving Kerry's expanded group earnings before interest, taxes, depreciation and amortisation (EBITDA) margin target of 19-20% by 2028.

She told an investor webinar today (Tuesday, February 18) that the new efficiency programme will apply in all three regions where the company operates.

Kerry Accelerate 2.0, which will run until 2028, will focus on "footprint optimisation" and enabling digital excellence across the organisation.

The company will use the "capacity utilisation benefits" from the previous efficiency programme to support in the reduction of its manufacturing footprint.

"We have a total manufacturing footprint of 124 facilities which will reduce by circa 10% over the coming years," Larkin said.

"We're running a fairly comprehensive review evaluating the footprint, with obvious sensitivities at this juncture, taking into consideration size; capacity; growth opportunity; profitability; future capital requirement, just to mention a few.

"While it's applicable across all regions, it will be more in-depth to the developed markets of Europe and North America," she added.

The digital excellence aspect of the programme will focus on driving enhanced business performance and productivity and includes the use of new technologies, such as artificial intelligence (AI).

Ahead of the new programme, a number of digital initiatives have been piloted across the company for the past 12-18 months.

Earlier today, Kerry Group reported revenue of €7.98 billion for 2024, which is down marginally (0.5%) when compared to the previous year (2023: €8.02 billion).

Revenue from continuing operations for the year was reported at €6.9 billion (2023: €6.975 billion).

The company noted that continuing operations exclude Kerry Dairy Ireland, which was divested at the end of last year, following a joint venture deal with Kerry Co-op.

Group EBITDA for 2024 increased by 7.4% to €1.25 billion (2023: €1.16 billion).

Profit after tax in 2024 stood at €673 million, down from €743 million in the previous year.

The group’s taste and nutrition division reported revenue of €6.9 billion in 2024, with EBITDA up 5.9% to €1.25 billion.

Kerry Dairy Ireland’s revenue increased in the year to €1.32 billion, with volume growth of 1.6% and pricing of 2.2%. The dairy division achieved EBITDA of €63 million, up 17.6% on 2023.

The first phase of the transaction involving the sale of 70% of Kerry Dairy Ireland by Kerry Group to Kerry Co-op was completed on December 31.

 Edmond Scanlon, Kerry Group chief executive officer said that "Kerry remains strongly positioned for good market outperformance" this year.

“We expect to deliver good volume growth and strong margin expansion, resulting in constant currency adjusted earnings per share growth of 7% to 11%, after the dilution from the Kerry Dairy Ireland disposal,” he said.