Kerry Group posted €3.3 billion in group revenue during the first half of 2026, with the Irish food and nutrition company reporting an EBITDA of €558 million.
Strong volume growth was reported despite headwinds. The company highlighted increased customer innovation activity across many markets, focusing on health and wellness products that feature higher protein content, proactive health measures, and new format options. Growth was propelled across taste and biotechnology solutions, including Tastesense salt and sugar reduction technologies, botanicals, natural extracts, taste solutions for high-protein applications, enzymes, and bio-fermented ingredients.
Edmond Scanlon, the CEO, comments that the company’s EBITDA margin expansion increased to 16.7%. He notes that the growth was propelled across the Americas, Europe, and Asia-Pacific and the Middle East and Africa (APMEA) regions.
Volume growth reportedly stayed ahead of food and beverage end markets in the period. This period was marked by geopolitical uncertainty, persistent consumer affordability challenges, and a higher consumer focus on health and wellness. The company also highlights innovation activity in the foodservice channel and continued product renovation in retail.
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Efficiency program drives margins
The increase in margins was driven by efficiencies delivered through its Accelerate 2.0 program. This multi-year strategic efficiency initiative centers on optimizing the group’s manufacturing footprint and optimizing and transforming its digital capabilities across operations, supply chain, and global business services.
According to the report, reported revenue for the period was driven by volume growth of 3.3% and an overall pricing reduction of 1%. This pricing reduction reflects input cost deflation, which resulted in an overall reported revenue decrease of 3.7%. The adverse translation currency impact was primarily driven by the significant weakening of the US dollar versus the Euro.
Group EBITDA increased to €558 million in the period, with EBITDA margin expansion primarily driven by Accelerate 2.0, combined with benefits from operating leverage, product mix, net price, and disposals.
Constant currency adjusted earnings per share increased by 7.9% to €2.14, while basic earnings per share were €1.76. This reflects business growth offset by the adverse foreign currency translation impact. Free cash flow was €262 million with cash conversion of 76%. This figure reflects business growth, increased capital expenditure, average working capital investment, and adverse foreign currency movements.
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The interim dividend of €0.46 per share reflects an increase of 10% over the 2025 interim dividend. During the period, the group repurchased €173 million of Kerry Group “A” ordinary shares.
Scanlon says the company has updated its financial targets and earnings growth algorithm to 2030. He states that the revenue volume growth target range of 3–5% represents confidence in continuing to deliver a consistent strong market outperformance. This growth, combined with an EBITDA margin target of 20–21% by 2030, will be the key drivers of delivering High-Single-Digit Plus earnings growth over the coming years.
Focus on clinical research and new facilities
Kerry’s scientific inquiries this year have branched out, spanning new areas of women’s health solutions, trials involving older populations for healthy aging products, and studies supporting GLP-1 users who experience gastrointestinal side effects from rapid weight loss drugs.
The company recently inaugurated its expanded biotechnology manufacturing facility in Carrigaline, County Cork, Ireland. This site significantly boosted industrial production of lactase enzymes. The facility caters to dairy producers of lactose-free and sugar-reduced products, aiming to scale faster with consistent commercial volumes.
