Group revenue of €4.1bn was reported, representing 5.1% organic growth. The figures also show Group EBITDA of €518m (H1 2022: €518m) and an Interim dividend per share of 34.6 cent (H1 2022: 31.4 cent).
Edmond Scanlon, Chief Executive Officer, said: “We delivered a good performance in the first half of the year recognising varying conditions across our markets. Strong volume growth was achieved in APMEA and Europe led by our performance in the foodservice channel, while North America saw customers work through elevated inventory levels. We continue to see good levels of customer innovation activity, and our margins reached an inflection point in the second quarter.
We also made good strategic progress, particularly in executing on our emerging markets strategy with significant acquisitions and investments across APMEA and LATAM. With Kerry’s strong local footprint and track record of growth across emerging markets, these complementary strategic developments will support our future growth ambitions.
While recognising current market conditions, we remain strongly positioned for growth and reiterate our full year constant currency earnings guidance.”
According to Kerry, market demand remained resilient considering industry inflation and stocking dynamics, while customer innovation activity primarily focused on adding new taste profiles, improving products’ nutritional characteristics and providing more relative value options for consumers.
Group reported revenue in the first half of the year increased by 1.6% to €4.1 billion, reflecting business volume growth of 0.6%, pricing of 4.5% and a contribution from acquisitions of 1.1%, partially offset by the effect of disposals of 4.5% and adverse translation currency of 0.1%.
The Group made important strategic developments, including two highly complementary acquisitions which add to Kerry’s strong local emerging markets footprint.
As previously announced, the acquisition of Proexcar¹ strengthened Kerry's capabilities and leading position within the Latin American meat market, while also providing a platform for further strategic growth within the ANDEAN region. Located in Colombia with c.120 employees, the company produces clean-label functional ingredients.
On 31 July, the Group completed the acquisition of Greatang², which strongly complements Kerry’s leading authentic taste position in China, broadening and deepening its capability and portfolio of local taste solutions, most notably in the significant foodservice hotpot market. Headquartered in Shanghai with c.120 employees, Greatang’s authentic and innovative taste solutions will expand Kerry’s strategic positioning and capability as an innovation partner for local foodservice chains and with local and international customers within the meals and snacks markets.
The Group also completed the sale of the trade and assets of its Sweet Ingredients Portfolio³ to IRCA during the first half of the year.