Q1 Interim Management Statement 2025

1 May 2025

LEI: 635400TLVVBNXLFHWC59

KERRY GROUP

Q1 Interim Management Statement 2025

Good volume growth and strong margin expansion.

FIRST QUARTER HIGHLIGHTS1

¹ Continuing operations (post divestment of Kerry Dairy Ireland, which was presented as discontinued operations in the FY2024 financial statements).

Performance and Markets

Reported revenue increased by 6.3% in the period, comprising volume growth of 3.1%, positive pricing of 0.2%, favourable transaction currency of 0.5%, favourable translation currency of 1.7% and contribution from acquisitions net of disposals of 0.8%. Continuing business EBITDA margin increased by 90bps primarily driven by cost efficiencies, contribution from acquisitions, operating leverage and portfolio mix.

End market conditions in the period reflected generally cautious consumer behaviour, given the level of macroeconomic uncertainty across different geographies. Customer product innovation centred around new and differentiated flavour combinations and healthier options, while product renovation activity focused on enhancing product nutritional characteristics and solutions to address challenges in global raw material supply chains.

Business Review

Growth led by performance in foodservice and emerging markets

> Volume growth of 3.1%

> Growth led by Beverage, Bakery and Snacks

> Pricing of 0.2% reflected input cost inflation in places

The business delivered good volume growth in the period given overall consumer market demand.

Foodservice continued its outperformance with volume growth of 4.7%, driven by new menu innovations, seasonal products, and solutions to reduce operational cost and complexity. Growth in the retail channel was supported by an increase in nutritional enhancement renovation activity with a range of customers.

Growth in the period was led by Beverage, Bakery and Snacks end markets, supported by strong growth in savoury taste and Tastesense™ salt and sugar reduction technologies, as well as integrated solutions incorporating Kerry's botanicals, natural extracts and enzymes.

Business volumes in emerging markets increased by 6.4% in the period, led by a strong performance in Southeast Asia.

Within the Pharma & Other EUM, volume growth was driven by cell nutrition and excipients.

Regional Review

Americas Region

> Volume growth of 3.5%

> Growth led by Bakery, Snacks and Dairy

> Retail delivered good growth with foodservice performing well

> LATAM growth led by Brazil and Central America

Growth in the period reflected good performances in both North America and LATAM.

Within North America, Bakery achieved strong growth driven by integrated solutions incorporating Kerry's taste and texture systems as well as enzymes. Snacks delivered strong growth through innovations utilising Kerry's range of savoury taste profiles and Tastesense™ salt reduction technologies, given continued customer focus on improving the nutritional profiles of their products. Growth in Dairy was driven by the strong performance of taste technologies, while performance within the Meat end market reflected softer overall category volumes.

Within the retail channel, growth was supported by renovation activity across customer and retailer brands, while growth in the foodservice channel was led by quick service and fast casual restaurants.

Within LATAM, strong growth was achieved in Brazil and Central America across the Snacks and Meals end markets in particular.

Europe Region

> Volume growth of 0.1%

> Beverage and Bakery achieved good growth

> Good performance in foodservice, with softer dynamics in the retail channel

Good growth was achieved in Beverage supported by new refreshing beverage innovations incorporating Kerry's integrated taste technologies and proactive health ingredients, with increased customer innovation activity for Kerry's all-natural citrus flavour extender technology across beverage applications against a backdrop of global supply chain challenges. Growth in Bakery was led by performance in texture systems, with softer dynamics within the Meals and Dairy markets.

Growth in foodservice was led by quick service restaurants and coffee chains, while softer retail channel volumes reflected subdued demand.

APMEA Region

> Volume growth of 5.1%

> Strong performance in Southeast Asia and the Middle East

> Growth led by Beverage, Bakery and Snacks

Performance in the region was primarily driven by strong growth in Southeast Asia, the Middle East and Africa, with volumes in China remaining challenged.

Beverage achieved strong growth across refreshing, nutritional and functional beverages through integrated solutions incorporating Kerry's natural extracts, botanicals and Tastesense™ sugar reduction technologies with local and regional customers. Performance in Bakery was driven by food protection and preservation systems, as well as customer reformulation activity in areas including cocoa, given supply challenges. Volume growth in Snacks was driven by continued strong performance in savoury taste with leading global and regional customers.

Foodservice delivered strong volume growth with leading regional coffee chains and quick service restaurants, while growth in the retail channel was driven by Kerry's range of local authentic taste profiles.

During the period there was continued investment in expanding capacity in Southeast Asia and Africa to meet local customer demands.

Financial Review

At the end of March, net debt was €1.9 billion reflecting cash generation, capital investment and the share buyback programme. Kerry's consolidated balance sheet remains strong, which will facilitate the continued strategic development and growth of the business.

As of the end of March, Kerry had repurchased €185m of ordinary shares from the €300m programme that was initiated in November 2024. Aligned to its Capital Allocation Framework, Kerry intends to initiate a further share buyback programme of up to €300 million of Kerry Group plc ordinary shares post the completion of the existing programme. A formal announcement will be made prior to its launch. As previously announced, Kerry has proposed a final dividend of 89.0 cent per share for approval at the Annual General Meeting.

Outlook

Against the backdrop of highly dynamic macroeconomic conditions and the continually evolving tariff and global trade landscape, Kerry's extensive local footprint, global sourcing network, and customer-centric business model positions it well to navigate through this period.

While recognising a heightened level of market uncertainty, Kerry remains well positioned for good volume growth and strong margin expansion, as it supports its customers as an innovation and renovation partner.

Kerry maintains its full year constant currency earnings per share guidance growth of 7% to 11%.

Note: Guidance range based on adjusted earnings per share of €467.5 cent for FY 2024 | Guidance range stated post ~2% dilution in 2025 from the Phase 1 disposal of Kerry Dairy Ireland, which completed on 31 December 2024 | Foreign currency translation expected to be a headwind of 3-4% on earnings per share in 2025 | Guidance based on average number of shares in issue of ~165m.

Disclaimer: Forward Looking Statements

This Announcement contains forward looking statements which reflect management expectations based on currently available data. However actual results may differ materially from those expressed or implied by these forward looking statements. These forward looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise.