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Kerry Group unveils its Interim Management Report 2020

Unprecedented first half due to Covid-19 impact reported, with business recovering well across the second quarter.

Kerry Group, the global taste & nutrition and consumer foods group, reports business performance for the half year ended 30 June 2020.

The report shows:

· Strong response to Covid-19 pandemic aligned to key priorities of our people, customers and communities, as restrictions on movement impacted performance, particularly in the foodservice channel

· Group revenue of €3.4 billion, reflecting a business volume reduction of 6.0%

· Group trading margin of 9.3% (H1 2019: 10.7%)

· Adjusted EPS of 132.1 cent (H1 2019: 164.1 cent)

· Basic EPS of 120.4 cent (H1 2019: 135.5 cent)

· Free cash flow of €107m (H1 2019: €195m)

· Interim dividend per share of 25.9 cent (Interim 2019: 23.5 cent)

Edmond Scanlon, Chief Executive Officer, commented: “The first half of 2020 has been an unprecedented period due to the Covid-19 pandemic, and I am immensely proud of the tremendous efforts of our people in supporting our customers and local communities throughout this period, aligned to our purpose to Inspire Food and Nourish Life. We had a strong start to the year, prior to restrictions on movement impacting business performance as we moved through the first quarter. As anticipated, we have seen a significant impact on our Taste & Nutrition business – particularly our foodservice channel, where the impact was most pronounced in April, with the channel recovering well since then. Performance in our retail channel improved in the second quarter, primarily through increased consumer demand for authentic cooking, plant-based offerings and health and wellness products.

In spite of the challenges arising from Covid-19, we continued to make good progress on a number of fronts aligned to our key strategic priorities. Our global operations and supply chain continue to demonstrate resilience and engagement with our customers has been overwhelmingly positive, which gives us confidence in the trajectory of business recovery. We will emerge a stronger organisation, as this period of uncertainty continues to enhance Kerry’s role as our customers’ most valued partner.”