Kerry Group H1 2026 results: stronger volumes and margins support ambitious 2030 targets

Kerry Group PLC has reported a strong underlying performance for the first half of 2026, combining healthy volume growth with further margin expansion.

The headline revenue figure needs some unpacking. Reported sales fell by 3.7% to €3.34 billion, but this was largely shaped by adverse currency translation, disposals and lower pricing as input costs eased. Underneath those factors, volumes grew by 3.3%, accelerating to 3.5% in the second quarter.

Management has also maintained full-year earnings guidance and published a fresh set of financial targets running to 2030. These targets point to confidence in Kerry's ability to keep outperforming its end markets while lifting profitability.

Kerry Group's key H1 2026 figures

Metric	H1 2026	H1 2025	Change
Revenue	€3.34 billion	€3.46 billion	-3.7% reported
Volume growth	3.3%	3.0%	Q2 growth reached 3.5%
EBITDA	€558.1 million	€555.9 million	Higher
EBITDA margin	16.7%	16.1%	+60 basis points
Adjusted EPS	214.1 cent	209.2 cent	+2.3% reported
Constant-currency adjusted EPS growth	7.9%	9.8%	Positive growth
Free cash flow	€262.3 million	€308.6 million	Lower
Cash conversion	76%	89%	Lower
Interim dividend	46.2 cent	42.0 cent	+10.0%

EBITDA means earnings before interest, tax, depreciation and amortisation. It is commonly used to assess underlying operating performance before financing and certain accounting charges.

The underlying sales performance was better than reported revenue suggests

Kerry's reported revenue decline does not indicate falling demand across the business.

Volumes increased by 3.3%, while pricing reduced revenue by 1.0% as input costs declined. Currency translation cut 4.8% from reported revenue, mainly due to the weakening of the US dollar against the euro. Disposals net of acquisitions reduced revenue by another 1.1%.

This distinction matters. Volume growth is generally a healthier long-term driver than price increases because it shows that customers are buying more products rather than simply paying more for the same amount.

Foodservice volumes rose by 4.8%, supported by menu innovation, seasonal launches and product renovation. Emerging-market volumes increased by 5.0%, with growth in the Middle East, Africa and Latin America.

Snacks, Meat, Dairy and Beverage were the leading end markets. Kerry also reported demand for technologies covering salt and sugar reduction, natural extracts, high-protein products, enzymes and bio-fermented ingredients.

Margin expansion is the standout feature

Group EBITDA increased slightly to €558.1 million despite lower reported revenue, while the EBITDA margin improved by 60 basis points to 16.7%.

A basis point is one-hundredth of a percentage point, so the increase was equal to 0.6 percentage points.

Management primarily attributed the improvement to Accelerate 2.0, Kerry's efficiency programme covering manufacturing footprint optimisation and digital initiatives. Operating leverage, product mix, net pricing and portfolio changes also helped.

All three regions delivered margin expansion:

Region	Revenue	Volume growth	EBITDA margin	Margin change
Americas	€1.82 billion	3.7%	18.9%	+40 basis points
Europe	€687 million	0.5%	16.0%	+80 basis points
APMEA	€831 million	4.9%	15.8%	+80 basis points

The Americas remains the largest operation and delivered good growth across North America and Latin America. Europe was much slower, with volumes up just 0.5% and challenged category demand in Meals and Bakery. APMEA, covering Asia Pacific, the Middle East and Africa, produced the fastest regional growth at 4.9%.

Adjusted earnings grew, but statutory profit declined

Adjusted earnings per share increased by 7.9% on a constant-currency basis and by 2.3% in reported currency to 214.1 cent.

However, basic earnings per share fell by 3.8% to 175.5 cent. Profit after tax also declined to €282.6 million from €303.1 million.

The difference reflects higher non-trading charges and adverse currency translation. Kerry recorded a net non-trading charge of €32.2 million, up from €15.0 million, primarily relating to Accelerate 2.0 costs.

This leaves investors with a familiar trade-off. The efficiency programme is helping margins, but its implementation also carries restructuring, project management and consultancy costs.

Cash flow and debt deserve attention

Free cash flow fell to €262.3 million from €308.6 million, while cash conversion declined to 76% from 89%.

Kerry said this reflected higher capital expenditure, working-capital investment and adverse currency movements. Net capital expenditure included in the free cash flow calculation rose to €144.6 million from €120.6 million.

Net debt increased to €2.37 billion from €2.24 billion at the end of 2025. The net debt-to-EBITDA ratio rose to 2.0 times from 1.9 times at year-end, although management described the balance sheet as strong and highlighted substantial liquidity.

Shareholder distributions also contributed to the increase in debt. Kerry spent €172.9 million repurchasing shares during the half and paid €156.5 million in dividends.

The 10.0% increase in the interim dividend to 46.2 cent is encouraging, but weaker cash conversion means future progress should be assessed alongside investment requirements, buybacks and debt.

Kerry's new financial targets to 2030

The company has set the following medium-term targets:

• Average annual volume growth of 3% to 5%, based on flat end-market growth.
• An EBITDA margin of 20% to 21% by 2030, assuming neutral currency and input costs.
• High-single-digit plus constant-currency adjusted EPS growth.
• Cash conversion of at least 85%.
• Return on average capital employed, or ROACE, of 12% to 13% by 2030.

ROACE measures the return generated from the capital invested in the business. Kerry's current ROACE was 10.5%, compared with 10.7% a year earlier, so the new target requires meaningful improvement.

The margin ambition is also substantial. Moving from 16.7% to between 20% and 21% would depend on continued efficiency gains, operating leverage and a favourable portfolio mix, while maintaining investment for growth.

Guidance maintained as currency remains a headwind

Kerry continues to expect constant-currency adjusted EPS growth of 6% to 10% for 2026. Foreign currency translation is expected to reduce full-year EPS by 1% to 2%.

The positive case is built around accelerating volumes, broad regional margin expansion and a clear route towards higher long-term profitability. The weaker points are lower free cash flow, rising net debt, restructuring charges and subdued European growth.

Overall, the first half suggests Kerry's operational strategy is delivering. The next test is whether it can maintain volume momentum and convert more of its adjusted earnings into cash while pursuing its 2030 margin and return targets.

The full figures and accompanying financial statements are available in the original company announcement.