Kerry Group Plc · EURONEXT:KRZ
Kerry — H1 2024 Earnings Presentation
23 slides from Kerry's earnings presentation, Jul 31, 2024
Slide 1: H1 2024 Half Year Results
The Future of Sustainable Nutrition H1 2024Half Year Results 2024 31 July 2024
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer: Forward Looking Statements This presentation/announcement may contain forward looking statements with projections regarding, among other things, the Group’s strategy, revenues, earnings, EBITDA, EBITDA margin, finance costs, tax rate, capital expenditure, dividends, share buybacks, cash
Slide 3: Edmond Scanlon and Marguerite Larkin
Edmond Scanlon Marguerite Larkin Chief Executive Officer Chief Financial Officer © Kerry 2024 | 3 |
Slide 4: Strong H1 Performance and Guidance Upgrade
Strong H1 Performance and Guidance Upgrade Taste & Nutrition H1 EBITDA Full Year EPS Volume Growth Margin Expansion Guidance Range +8% 7%-10% +160bps 5.5% - 8.5% +130bps 5% - 8% +3% +1% 2022 2023 H1 2024 FY 2023 Q1 2024 H1 2024 Taste & Nutrition Group 4% average volume growth Note: Earnings per shar
Slide 5: Business Review: Taste & Nutrition Overview
Business Review: Taste & Nutrition Overview H1 2024 Performance Volume growth led by strong Revenue €3,419m +3.1%¹ foodservice performance EBITDA €551m +5.5% EBITDA margin 16.1% +130bps → Volume growth of 3.1% – ahead of food & beverage end markets → Pricing of -3.0% reflected some input cost deflat
Slide 6: Business Review: Performance by Region
Business Review: Performance by Region AMERICAS EUROPE APMEA €1,890m €708m €794m H1: +3.4% | Q2: +3.2% H1: -1.0% | Q2: -0.5% H1: +5.5% | Q2: 6.2% → North America growth led by → Performance impacted by strong → Strong performance in Middle East Snacks, Meals and Bakery comparatives and market & Afri
Slide 7: Business Review: Dairy Ireland
Business Review: Dairy Ireland H1 2024 Performance Good EBITDA performance led Revenue €592m -1.9%¹ by Dairy Consumer Products EBITDA EBITDA margin €35m 5.9% +19.9% +160bps → EBITDA margin expansion of 160bps reflective of Dairy Consumer Products’ growth and mix development, as well as recovery in D
Slide 8: H1 2024 Financial Review
H1 2024 Financial Review Marguerite Larkin Chief Financial Officer
Slide 9: H1 2024 Financial Overview
H1 2024 Financial Overview Revenue €3.9bn 1.7% volume growth EBITDA €552m H1 2023: €518m EBITDA margin 14.2% +160bps +9.1% constant currency Adjusted EPS 194.1c +7.8% reported Basic EPS 166.7c H1 2023: 201.7c ROACE 10.3% H1 2023: 10.2% Free cash flow €445m 131% cash conversion Note: Alternative perf
Slide 10: Group Revenue Analysis
Group Revenue Analysis H1 2023 H1 2024 -5.9% Translation FX Disposals Volume Price -3.3% -0.9% +1.7% -4.0% Acquisitions +0.6% © Kerry 2024 | 10 |
Slide 11: Divisional Revenue Analysis
Divisional Revenue Analysis H1 2024 Group Revenue Taste & Nutrition Business H1 Regional Volume Growth +1.7% +3.1% 5.5% €3,880m €3,419m 3.4% -1.9% €592m Group Dairy Taste & Ireland Nutrition (1.0%) Reported revenue Volume growth Americas Europe APMEA © Kerry 2024 | 11 |
Slide 12: Group EBITDA Margin Bridge
Group EBITDA Margin Bridge +160bps €552m €518m H1 2023 Operating Leverage Net Price Accelerate Programme Currency Acquisitions net H1 2024 / Portfolio Mix Cost Initiatives of Disposals EBITDA 12.6% 0.2% 0.7% 0.4% 0.0% 0.3% 14.2% MARGIN © Kerry 2024 | 12 |
Slide 13: Free Cash Flow
Free Cash Flow H1 2024 H1 2023 €m €m EBITDA 552 518 Movement in average working capital 79 (103) Pension contributions paid less pension expense (2) (3) Finance costs paid (net) (14) (19) Income taxes paid (50) (55) Capital expenditure (net)¹ (120) (106) Free cash flow 445 232 Cash conversion² 131%
Slide 14: Group Debt Maturity Profile and Strong Credit Metrics
Group Debt Maturity Profile and Strong Credit Metrics Maturity Profile of Net Debt Total Net Debt of €1.8bn Undrawn €1.5bn RCF €979m €751m €735m €13m 2024 2025 2028 2029 2031+ €634m Weighted average maturity of debt is 4.3 years Key Credit Metrics H1 2024 H1 2023 Net debt : EBITDA 1.6x 1.6x EBITDA :
Slide 15: Other Financial Matters
Other Financial Matters Finance Costs €27.8m (H1 2023: €27.5m) Pension Net surplus of €57m Non-Trading Items Accelerate Operational Excellence Programme Input Costs Deflation in H1 easing in H2 Taxation H1 Effective Tax Rate of 14.5% Interim dividend of 38.1 cent (+10.1%) Capital Returns Share Buyba
Slide 16: H1 2024 Outlook and Future Prospects
H1 2024 Outlook and Future Prospects Edmond Scanlon Chief Executive Officer
Slide 17: Outlook
Outlook → Kerry has a good innovation pipeline and remains well positioned for volume growth and good margin expansion, while recognising consumer markets remain relatively subdued → The Group will continue to develop its business and portfolio aligned to its strategic priorities → Given financial p
Slide 18: Kerry Investor Day 8th October 2024
KERRY WHERE SiG GEING-E DRIVES IMPACT Kerry Investor Day 8th October 2024
Slide 19: Revenue Components H1 2024
Revenue Components H1 2024 Transaction Translation Acquisitions / Reported Volume Price Currency Currency Disposals Growth Americas 3.4% (2.3%) (0.3%) (0.1%) (3.1%) (2.4%) Europe (1.0%) (4.2%) 0.0% 1.1% (4.1%) (8.2%) APMEA 5.5% (4.0%) 0.7% (5.4%) 0.8% (2.4%) Taste & Nutrition 3.1% (3.0%) 0.0% (1.1%)
Slide 20: EBITDA Margin by Business
EBITDA Margin by Business H1 2024 H1 2024 EBITDA H1 2023 H1 2023 EBITDA Revenue EBITDA Margin Revenue EBITDA Margin €m €m % €m €m % Taste & Nutrition 3,419.2 551.3 16.1% 3,539.3 522.8 14.8% Dairy Ireland 592.3 35.0 5.9% 674.5 29.2 4.3% Eliminations/unallocated (131.1) (34.1) (92.2) (34.0) Group 3,88
Slide 21: EPS Reconciliation
EPS Reconciliation H1 2024 H1 2023 Growth € cent € cent Basic EPS (17.4%) 166.7 201.7 Brand related intangible asset amortisation 15.8 14.9 Non-trading items (net of related tax) 11.6 (36.6) Adjusted EPS 7.8% 194.1 180.0 Impact of exchange rate translation 1.3% Adjusted EPS growth in constant curren
Slide 22: Total Net Debt as at June 2024
Total Net Debt as at 30 June 2024 Debt @ Floating Rates @ Fixed Rates €m €m €m Euro 2,261 (14) 2,275 Sterling 9 9 - US Dollar 206 206 - Other 28 28 - Gross debt 2,504 229 2,275 Cash (660) (660) - Total net debt 1,844 (431) 2,275 Gross debt 30 June 2024 9% 91% Gross debt 30 June 2023 9% 91% Weighted
Slide 23: Financial Metrics Definitions
Financial Metrics Definitions Volume Growth Free Cash Flow This represents the sales growth period-on-period, excluding Free cash flow is EBITDA plus movement in average working pass-through pricing on input costs, currency impacts, capital, capital expenditure net (purchase of assets, payment of ac