Kerry Group (KRZ) Investor Day 2024 summary

Strategic Growth Priorities and Market Positioning

• Focus on growth in the Americas, foodservice, and emerging markets, leveraging a broad technology portfolio and local expertise to outperform markets.

• Foodservice channel has grown at 5% CAGR from 2017–2023, outperforming the market by 2–3%, with confidence to increase outperformance to 4%+.

• Emerging markets have delivered 8% CAGR since 2017, supported by strong local teams and 44 manufacturing facilities.

• Renovation and penetration opportunities sized at €15 billion, driven by reformulation for nutrition, cost, and sustainability.

• Aims to reach over 2 billion consumers with sustainable nutrition solutions by 2030.

Financial Guidance and Performance

• Achieved €8bn group revenue and €1.2bn EBITDA in FY2023, with a long-term track record of 9% revenue CAGR, 12% EBITDA CAGR, and double-digit dividend growth since 1986.

• Targeting mid-single-digit volume growth in Taste & Nutrition, with 2024 margin progression of ~100bps to 18% and margin expansion to 19–20% by 2026.

• Biotechnology margins exceed 20%, supporting overall margin growth as the platform expands.

• Returns increased to 10.3% in H1, targeting 10–12% range medium term, with strong cash conversion and further share buybacks announced, including a new €300 million programme.

• Q3 2024 results are expected to align with market expectations, with no additional trading details until October.

Innovation, Sustainability, and Capital Allocation

• Over €3 billion invested in R&D over 10 years, with €300 million annual spend, 1,200+ scientists, and 70+ innovation centers focused on science-backed solutions.

• Announced €15 million investment in a new global biotechnology hub in Leipzig, Germany.

• Sustainability progress includes 48% reduction in Scope 1 & 2 emissions and 39% food waste reduction in 2023.

• Capital allocation prioritizes organic investment (4–5% of revenues), double-digit dividend growth, strategic M&A, and share buybacks.

• Digital and AI adoption is accelerating, supporting product concepting, diagnostics, and process automation.