Kerry Group Plc · EURONEXT:KRZ

Kerry — FY2024 Earnings Presentation

35 slides from Kerry's earnings presentation, Feb 20, 2025

  1. Slide 1: Enabling better food and beverage

    ENABLING better food and beverage 20 February 2025

  2. 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

  3. Slide 3: Edmond Scanlon, CEO, Kerry Group

    EDMOND SCANLON CEO, Kerry Group © Kerry 2025 | 3

  4. Slide 4: Overview: A pure-play taste & nutrition business

    Overview 1 A PURE-PLAY TASTE & NUTRITION BUSINESS – UNDERPINNED BY SCIENCE & TECHNOLOGY 2 SIGNIFICANT MARKET OPPORTUNITY THROUGH INNOVATION & RENOVATION 3 DELIVERING ON OUR BALANCED FINANCIAL MODEL & TARGETS © Kerry 2025 | 4

  5. Slide 5: Kerry Today – A Pure-Play Taste & Nutrition Business

    Kerry Today – A Pure-Play Taste & Nutrition Business STRONG FINANCIAL PROFILE… LOCALISED PRESENCE… KEY GROWTH DIFFERENTIATORS… €7bn 124 Revenue1 Manufacturing facilities Sustainable Nutrition €1.2bn 70+ EBITDA1 Technology and innovation centres €766m 1.4bn Foodservice Emerging markets Free Cash Flow

  6. Slide 6: Taste & Nutrition – A History of Growth & Business Evolution

    Taste & Nutrition – A History of Growth & Business Evolution Business Development and Transformation Taste and Nutrition Ingredients and Flavours Global Expansion €7bn €4bn €3bn €1bn 1986 2000 2010 2017 2024 Taste & Nutrition business above profile excludes the divested Sweet Ingredients Portfolio a

  7. Slide 7: Key Recent Business Developments

    Key Recent Business Developments Portfolio Transformation Technology Investment Strategic Business Development Strategic Acquisitions Proactive Health Sustainable ~€3bn Nutrition Food Enzymes Protection & investment in science & Preservation technology eco-system¹ ARIAKE U.S.A. Emerging Foodservice

  8. Slide 8: Go-Forward Earnings Growth Model

    Go-Forward Earnings Growth Model EPS Growth HSD+ Revenue Volume Growth MSD range EBITDA Margin Expansion 50bps + Strategic Capital Allocation Note: Average adjusted earnings per share (EPS) growth target in constant currency terms from 2025-2028 | HSD = High-single-digit | Revenue volume growth targ

  9. Slide 9: Mastering Complexity Through our Business Model

    Mastering Complexity Through our Business Model A Well-balanced, Diversified Global Business END USE CUSTOMER TECHNOLOGY GEOGRAPHY CHANNEL MARKET TYPE Technology Americas 55% Food 68% Meat 22% Global 34% Retail 68% Integrated Taste Applications Europe 21% Beverage 27% Snacks 11% Technologies 82% Reg

  10. Slide 10: Leading Research, Development & Applications Capabilities

    Leading Research, Development & Applications Capabilities R&D FOCUS AREAS ~€3bn TASTE BIOTECHNOLOGY • Natural Extracts • Microbial Fermentation • Modulation • Antimicrobial Extracts investment in science & • Dairy & Non-Dairy technology eco-system¹ • Proteins & Protein Hydrolysates • Smoke & Reactio

  11. Slide 11: Dynamic Market with Significant Penetration Growth Opportunity

    Dynamic Market with Significant Penetration Growth Opportunity Our growing MARKET PENETRATION OPPORTUNITY €85 BILLION • Nutritional enhancement speciality ingredients and • Cleaner labels flavours markets today. • Sustainability enhancement • Cost reduction solutions €15bn+ CONSUMER DYNAMICS • Healt

  12. Slide 12: Market Penetration Opportunity – Examples

    Market Penetration Opportunity – Examples SODIUM SUGAR SUSTAINABILITY REDUCED COST REDUCTION REDUCTION ENHANCEMENTS & COMPLEXITY ~ 30% 5X 20% 25%+ REDUCTION GROWTH INCREASE INCREASE required to reach in low/no sugar in sustainability in US foodservice wage WHO guidelines compared to a standard produ

  13. Slide 13: Enabling Better Food and Beverage

    Enabling Better Food and Beverage SOLVING OUR WITH DIFFERENTIATED CUSTOMERS’ CHALLENGES SOLUTIONS → Elevated Nutrition → Improved Taste → Cleaner Labels → Process Improvement → Clinical Health Benefits → Enhanced Sustainability → Speed to Market → New Innovation Platforms → Extended Shelf Life → Nov

  14. Slide 14: Elizabeth Horvath, VP Marketing, North America

    ELIZABETH HORVATH VP Marketing, North America © Kerry 2025 | 14

  15. Slide 15: Market Context & Dynamics in North America

    Market Context & Dynamics in North America Impacting our customers & driving our opportunity Consumer Financial Accelerated Health Regulations & Policy Gen Z Power No Sacrifices (In)Stability & Wellness © Kerry 2025 | 15

  16. Slide 16: Leading to: Core reformulation, LTO innovation, joint partner value

    …Leading to: 1. Core reformulation 2. LTO innovation 3. Joint partner value creation

  17. Slide 17: Core Reformulation: Mastering Category Leadership in Sauces

    Core Reformulation Mastering Category Leadership in Sauces SHAKE OFF THE SALT. Pasta Sauce Situation Challenge Solution Benefit Quality Centre of store Reduce sodium Unique, new 30% less sodium category Tastesense Salt Maintain category solution Better for Category leader leadership consumers Combin

  18. Slide 18: Joint Partner Value Creation: Ensuring Supply with Additional Value

    Joint Partner Value Creation Ensuring Supply with Additional Value CITRUS CRISIS, SOLVED. Refreshing Beverage Situation Challenge Solution Benefit Quality Large private Global citrus Citrus extension Reduced cost label beverage supply shortage technology manufacturer Supply chain Rising costs Vibran

  19. Slide 19: Kerry's unique foodservice positioning

    Kerry’s unique foodservice positioning 1. Leading technology portfolio 2. Embedded customer innovation partnerships 3. Unique foodservice business model

  20. Slide 20: LTO Innovation: Winning with Our Unique Business Model

    LTO Innovation Winning with Our Unique Business Model LIMITLESS MENU EVOLUTION Total Menu Solutions Situation Challenge Solution Benefit Quality Rapidly growing Scaling at pace Deep technology Unprecedented foodservice portfolio same store sales chain Clean label with growth sustainability Embedded

  21. Slide 21: Marguerite Larkin, CFO, Kerry Group

    MARGUERITE LARKIN CFO, Kerry Group © Kerry 2025 | 21

  22. Slide 22: Key Messages

    Key Messages 1 Strong business performance 2 Growth-led financial model 3 Strategic capital allocation framework © Kerry 2025 | 22

  23. Slide 23: Business Performance in 2024

    Business Performance in 2024 STRONG PERFORMANCE ACROSS OUR KEY METRICS GROWTH RETURN SUSTAINABILITY Volume Growth1 Carbon Reduction3 Cash Conversion % +3.4% 50% 95% EBITDA Margin1 Food Waste Reduction3 17.1% +120bps ROACE 38% Constant Currency 10.6% Nutritional Reach Adjusted EPS Growth2 +60bps +9.7

  24. Slide 24: Volume Growth – Supported by Strong Strategic Positioning

    Volume Growth – Supported by Strong Strategic Positioning CONSISTENTLY OUTPERFORMING MARKETS IN RECENT DRIVEN BY KEY GROWTH YEARS THROUGH VOLATILE MARKET BACKDROP… DIFFERNTIATORS Sustainable Nutrition Taste & Nutrition volume growth (2022-24) +4.1% Target volume growth Emerging 4-6% Foodservice mark

  25. Slide 25: Strong EBITDA Margin Progression | Refreshed Target

    Strong EBITDA Margin Progression | Refreshed Target PROGRESSING TOWARDS GROUP 18%+ TARGET BY 2026 | NEW PROGRAMME KERRY ACCELERATE 2.0 TO MEET 2028 TARGET RANGE 19-20% (by 2028) +240bps 18-19% (by 2026) 17.1% +100 bps 14.7% +150 bps -150 bps +140 bps 2021 Net Price Kerry Dairy Ireland Op. Leverage,

  26. Slide 26: Free Cash Flow and Return on Average Capital Employed

    Free Cash Flow and Return on Average Capital Employed GENERATING STRONG FREE CASH FLOW… …AND IMPROVING RETURNS 95% 10.6% 10.3% 10.0% €766m 80%+ 92% Free Cash Flow 10-12% Conversion Target Target range €701m 82% €640m 2022 2023 2024 2022 2023 2024 © Kerry 2025 | 26

  27. Slide 27: Medium-Term Targets Post Divestment of Kerry Dairy Ireland

    Medium-Term Targets Post Divestment of Kerry Dairy Ireland → Refreshed margin target → Targeting high-single-digit adjusted EPS growth going forward Current Medium-Term Financial Targets (2022-26) On average across the plan Growth Return Volume Growth¹ 4-6% Cash Conversion 80%+ EBITDA Margin² 18-19%

  28. Slide 28: Capital Allocation Priority Framework

    Capital Allocation Priority Framework Reinvestment Capital Returns 1st Capital Investment Dividends 2nd 4-5% of revenue Double-digit growth M&A Share Buybacks 3rd Disciplined strategic approach Evaluate ongoing based on market conditions 4th and strategic alternatives Supported by a Strong Financial

  29. Slide 29: Capital Allocation – Recent History

    Capital Allocation – Recent History Reinvestment Capital Returns CAPITAL INVESTMENT DIVIDENDS 38 years of double-digit ✓ Strategic development of manufacturing footprint dividend per share growth ✓ Global network of technology and innovation centres ✓ Efficiency Initiatives and manufacturing excelle

  30. Slide 30: Edmond Scanlon, CEO, Kerry Group

    EDMOND SCANLON CEO, Kerry Group © Kerry 2025 | 30

  31. Slide 31: Summary: A pure-play taste & nutrition business

    Summary 1 A PURE-PLAY TASTE & NUTRITION BUSINESS – UNDERPINNED BY SCIENCE & TECHNOLOGY 2 SIGNIFICANT MARKET OPPORTUNITY THROUGH INNOVATION & RENOVATION 3 DELIVERING ON OUR BALANCED FINANCIAL MODEL & TARGETS © Kerry 2025 | 31

  32. Slide 32: Enabling better food and beverage

    ENABLING better food and beverage 20 February 2025

  33. Slide 33: Appendix

    KERRY APPENDIX

  34. Slide 34: Financial Metric Definitions

    Financial Metric Definitions Volume Growth Free Cash Flow This represents the sales growth period-on-period, excluding pass- Free cash flow is EBITDA plus movement in average working capital, through pricing on input costs, currency impacts, acquisitions, capital expenditure net (purchase of assets,

  35. Slide 35: Enabling better food and beverage

    ENABLING better food and beverage 20 February 2025

Kerry Group — FY2024 Earnings Presentation on 6ix