Kerry Group Plc · EURONEXT:KRZ
Kerry — Q1 2024 Earnings Presentation
17 slides from Kerry's earnings presentation, May 2, 2024
Slide 1: Q1 IMS 2024 Interim Management Statement
KERRY Q1 IMS 2024 Interim Management Statement 2 May 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, CEO and Marguerite Larkin, CFO
Edmond Scanlon Marguerite Larkin Chief Executive Officer Chief Financial Officer
Slide 4: Q1 Overview: Good Start to the Year
Q1 OVERVIEW: GOOD START TO THE YEAR → Taste & Nutrition volume growth of 3.1% - driven by strong foodservice performance → Americas returned to volume growth of 3.6% → Strong margin expansion of 140bps led by Taste & Nutrition → New €300m share buyback programme → Full year guidance updated © Kerry
Slide 5: Q1 2024 Group Financial Overview
Q1 2024 GROUP FINANCIAL OVERVIEW Group Group Net Debt Volume Growth EBITDA Margin +1.9% +140bps €1.7bn © Kerry 2024 | 5 |
Slide 6: Group Revenue Analysis
GROUP REVENUE ANALYSIS Q1 2023 Q1 2024 -9.9% Translation Disposals Currency Volume Price -5.6% -1.4% Acquisitions +1.9% -5.3% +0.5% © Kerry 2024 | 6 |
Slide 7: Business Review: Taste & Nutrition Overview
BUSINESS REVIEW: TASTE & NUTRITION OVERVIEW GOOD GROWTH DRIVEN BY STRONG FOODSERVICE PERFORMANCE → Volume growth of 3.1% despite relatively muted consumer demand → Pricing of -3.9% reflected some input cost deflation → EBITDA margin expansion of 140bps driven by cost efficiencies, portfolio developm
Slide 8: Business Review: Performance by Region
BUSINESS REVIEW: PERFORMANCE BY REGION AMERICAS EUROPE APMEA +3.6% -1.4% +4.8% → North America growth led by → Performance impacted by strong → Strong performance in Middle East, Snacks, Meals and Beverage comparatives and market with China similar to prior year conditions given market dynamics → Fo
Slide 9: Business Review: Dairy Ireland
BUSINESS REVIEW: DAIRY IRELAND SOLID START TO THE YEAR IN LINE WITH EXPECTATIONS → Volumes -3.0% reflecting good growth in Dairy Consumer Products, more than offset by the impact of market supply conditions in Dairy Ingredients → Pricing -13.7% given reduction in dairy input costs year on year → EBI
Slide 10: Other Matters
OTHER MATTERS Input Costs Currency Share Buyback Programme Returning Cash Reinvestment to Shareholders Capital Expenditure Dividends Capital Deployment Share M&A Buyback Overall deflation in Current FY 2024 outlook Commencing new €300m H1 easing in H2 remains relatively neutral share buyback program
Slide 11: 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. → Reflecting the
Slide 12: Appendix
KERRY : Appendix
Slide 13: Volume Growth Analysis
VOLUME GROWTH ANALYSIS Q1 2024 Volumes Taste & Nutrition 3.1% Regional Breakdown Q1 2024 Dairy Ireland -3.0% Americas 3.6% Group 1.9% Europe -1.4% APMEA 4.8% © Kerry 2024 | 13 |
Slide 14: Capital Returns
CAPITAL RETURNS Expected Capital Returns FY 2024 Share Buyback Programme – November 2023 €198m¹ Share Buyback Programme – May 2024 €300m Dividends ~€205m² Total ~€703m² © Kerry 2024 | 14 | ¹ Portion of the November 2023 share buyback programme completed between January 2024 and April 2024 | ² Based
Slide 15: Financial Metric Definitions
FINANCIAL METRIC DEFINITIONS Volume Growth Free Cash Flow This represents the sales performance year-on-year excluding Free cash flow is EBITDA plus movement in average working pass-through pricing on input costs, currency impacts, acquisitions capital, capital expenditure net (purchase of assets, p
Slide 16: Questions & Answers
KERRY : Questions & Answers
Slide 17: Q1 IMS 2024 Interim Management Statement
KERRY Q1 IMS 2024 Interim Management Statement 2 May 2024