Kerry Group (KRZ) Q1 2026 earnings summary

Executive summary

• Achieved 3.1% volume growth in Q1 2026, outperforming end markets and the broader market, with strong margin expansion and broad-based growth across Americas, Europe, and APMEA.

• EBITDA margin expanded by 60 basis points, driven by Accelerate 2.0, operational excellence, and efficiencies.

• Foodservice channel outperformed, supported by innovation, menu launches, and product renovation; retail also saw growth from renovation and innovation.

• Maintained constant currency EPS guidance of 6%-10% for FY 2026.

• Continued strategic developments, including capacity expansions in North America, Mexico, Spain, Turkey, and a robust innovation pipeline.

Financial highlights

• Q1 volume growth of 3.1% year-over-year; pricing declined by 1.3% due to input cost deflation.

• EBITDA margin increased by 60bps, driven by operational improvements, partially offset by adverse FX impact.

• Net debt at period end stood at €2.2bn, reflecting cash generation, capital investment, and share buybacks.

• Organic growth was offset by a 7.9% adverse currency translation impact and a 1.2% revenue impact from disposals net of acquisitions.

• Reported revenue decreased by 7.3% due to currency headwinds.

Outlook and guidance

• Maintains full-year constant currency adjusted EPS growth guidance of 6%-10% for 2026.

• Expects volume growth and margin expansion to continue, with foodservice outperforming retail.

• Anticipates input cost deflation in H1, with some inflation returning in H2, especially for spices, natural oils, and distribution/energy costs.

• Currency headwind forecasted at ~3% of EPS for the full year.

• Strong innovation pipeline and strategic positioning support continued growth despite geopolitical volatility.