Kerry Group has today (Tuesday, February 18) reported revenue of €7.98 billion for 2024, which is down marginally (0.5%) when compared to the previous year (2023: €8.02 billion).

The company said that the 2024 revenue comprised volume growth of 3.3%, an overall pricing reduction of 1.9%, favourable transaction currency of 0.2%, unfavourable translation currency of 0.9%, contribution from acquisitions of 0.7% and the effect from disposals of 1.9%.

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 earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 7.4% to €1.25 billion (2023: €1.16 billion).

Group EBITDA margin increased by 120 basis points (bps) to 15.7%, driven by benefits from the Accelerate Operational Excellence Programme, portfolio developments, operating leverage, product mix and the net effect from pricing.

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

The board has proposed a final dividend of 89c/share. Together with the interim dividend of 38.1c/share, this brings the total dividend for the year to 127.1c, an increase of 10.1% on 2023.

Kerry Group said that while a number of markets remained subdued, 2024 represented "a more normalised year relative to recent history".

"Customer innovation activity was more weighted towards renovation of existing products, with an increased focus on nutritional profile enhancement and cost optimisation.

"A significant level of new product innovation concentrated on addressing increased consumer demand for new taste experiences and providing relative value options," it said.

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

"This represented a significant outperformance relative to food and beverage end markets, supported by continued product renovation activity with many customers to enhance nutritional profiles," Kerry Group said.

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 business achieved EBITDA of €63 million (+17.6%) with margin expansion of 60bps in the year.

This was driven by dairy consumer products’ growth and mix development, combined with recovery in dairy ingredients.

"Dairy consumer products achieved strong growth, led by performances in snacking and branded cheese ranges.

"Dairy ingredients volumes reflected soft overall supply conditions, which improved through the year," the financial report stated.

As previously reported, the transaction for the initial disposal of 70% of Kerry Dairy Ireland by Kerry Group to Kerry Co-op was completed on December 31.

Following the divestment of Kerry Dairy Ireland, Kerry Group has updated its current medium-term financial targets for 2022-26 to reflect the company's new business profile as a pure-play taste and nutrition company.

The current targets include volume growth of 4-6% in the period, along with an EBITDA margin of 18-19% by 2026.

Kerry is also introducing an expanded group EBITDA margin target of 19-20% by 2028, along with high single digit growth in earnings per share.

Following the completion of the Accelerate Operational Excellence programme, which "delivered savings ahead of schedule", Kerry is commencing its business efficiency programme, Accelerate 2.0.

This programme is expected to deliver projected recurring annual savings of €100 million by 2028, with a cost of €140 million.

It will include a "combination of footprint optimisation and Kerry digital excellence enablement initiatives".

Commenting on the financial results, Edmond Scanlon, Kerry Group chief executive officer said:

“We are pleased to report a strong performance across the year, with earnings per share growth of 9.7% reflecting continued volume progression in taste and nutrition and strong margin expansion across the business."

"As we look to 2025, Kerry remains strongly positioned for good market outperformance due to our unique positioning with our customers as an innovation and renovation partner.

"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.

Kerry’s annual general meeting (AGM) is scheduled to take place on May 1, 2025.