KERRY GROUP INTERIM MANAGEMENT REPORT 2024

RNS Number : 4775Y

Kerry Group PLC

31 July 2024

31 July 2024 LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
HALF YEAR RESULTS 2024
Strong H1 Performance & Guidance Upgrade
HIGHLIGHTS

> Group revenue of €3.9bn > Taste & Nutrition volume growth of 3.1% (Q2: +3.2%) \| Group volumes +1.7% (Q2: +1.5%) > Taste & Nutrition EBITDA margin +130bps \| Group +160bps > Dairy Ireland EBITDA of €35m (H1 2023: €29m) > Group EBITDA of €552m (H1 2023: €518m) > Adjusted EPS of 194.1 cent, up 9.1% on a constant currency basis (7.8% reported currency growth) > Free cash flow of €445m reflecting 131% cash conversion > Interim dividend per share increase of 10.1% to 38.1 cent > Share repurchases of €279m in H1 \| Intention to initiate a further programme > Full year constant currency adjusted EPS guidance range of 7% to 10%


Edmond Scanlon, Chief Executive Officer
"We are pleased to report a good performance across the first half of the year. Taste & Nutrition delivered good volume growth ahead of our end markets, with strong profit growth and margin expansion across the business, contributing to our earnings per share growth of 9.1% in the period. Taste & Nutrition volume growth was led by strong performances in the foodservice channel across all three regions, as we continue to support established foodservice chains evolve and develop their businesses, while working with emerging leaders to upscale their operations and offerings. Volume growth in the retail channel was driven by good performances in the Americas and APMEA, led by very strong growth in Snack applications with Kerry's leading range of savoury taste profiles and Tastesense^® salt-reduction technologies. From a capital allocation perspective, we continued to invest to support the organic development of our business, while also completing the Lactase enzymes business acquisition and progressing our share repurchase activity through the period. Given the strength of our financial performance and our innovation pipeline, today we are updating our full year constant currency adjusted earnings per share guidance to 7% to 10%."
Markets and Performance
The demand environment across food & beverage markets remained relatively muted through the first half of the year, given the recent inflation across many geographies. Customer innovation activity focused mainly on new taste profiles and relative value options, along with product renovation to enhance nutritional characteristics of food and beverage products, while many customers initiated measures to stimulate growth towards the end of the period through increased promotional and advertising activity. Group revenue of €3.9 billion in the period comprised volume growth of 1.7%, pricing deflation of 4.0%, unfavourable translation currency of 0.9% and the effect from disposals net of acquisitions of 2.7% resulting in lower reported revenue for the period of 5.9%. Group EBITDA increased by 6.6% to €552m. Group EBITDA margin increased by 160bps to 14.2%, driven by benefits from the Accelerate Operational Excellence Programme, a positive impact from portfolio developments, operating leverage, product mix, and the net effect from pricing. Constant currency adjusted earnings per share increased by 9.1% to 194.1 cent and an increase of 7.8% in reported currency. Basic earnings per share decreased to 166.7 cent (H1 2023: 201.7 cent) primarily reflecting the profit on disposal of businesses and assets in the prior year. Free cash flow of €445m (H1 2023: €232m) represented cash conversion of 131%, driven by increased profit and an improvement in working capital on an average basis. The interim dividend of 38.1 cent per share reflects an increase of 10.1% over the 2023 interim dividend. During the period, the Group repurchased €279m of Kerry Group plc 'A' ordinary shares as part of its Share Buyback Programmes. Given good cash generation and current market conditions, the Group intends to initiate a further programme post the completion of the current programme.
Business Reviews
Taste & Nutrition
Volume growth led by strong foodservice performance

			H1 2024																														Performance


Revenue			€3,419m																														+3.1%¹


EBITDA			€551m																														+5.5%


EBITDA margin			16.1%																														+130bps

¹ volume performance
> Volume growth of 3.1% (Q2: +3.2%) was ahead of end markets > Growth led by Snacks, Meals and Beverage EUMs > Pricing -3.0% (Q2: -2.2%) reflected some input cost deflation > EBITDA margin expansion of 130bps driven by cost efficiencies, portfolio developments, operating leverage, product mix and the net effect of pricing
Taste & Nutrition delivered good volume growth ahead of its end markets, which remained relatively muted through the period. Foodservice continued to perform strongly with volume growth of 7.3%, supported by new menu innovations, seasonal products and solutions to reduce operational cost and complexity, while growth in the retail channel reflected good performances in the Americas and APMEA. Growth in the period was led by innovations incorporating Kerry's range of taste and proactive health technologies. This was supported by strong performance across savoury taste, botanicals and natural extracts, Tastesense^® salt and sugar reduction technologies, as well as proactive health technologies for digestive and cognitive need states in particular. Volume growth in food protection and preservation was driven by new clean label launches in food applications. Business volumes in emerging markets increased by 6.6% in the period, led by strong growth in the Middle East and Africa. Within the global Pharma EUM, growth in excipients was more than offset by phasing of volumes in cell nutrition. The previously announced carve-out acquisition of part of the global lactase enzyme business of Novonesis (formerly Chr. Hansen Holding A/S and Novozymes A/S) was completed during the period. This acquisition² is strongly aligned to Kerry's recent strategic enhancement of its biotechnology capabilities, while extending Kerry's enzyme manufacturing capabilities and footprint to three continents with its focus on food, beverage and pharma applications. ² See note 10 - Business Combinations in the Notes to the Condensed Interim Financial Statements for details.

Americas Region
> Volumes +3.4% (Q2: +3.2%) > Growth led by Snacks, Meals and Bakery EUMs > Retail achieved good growth with continued strong growth in Foodservice > LATAM growth led by Mexico
Reported revenue in the Americas region of €1,890m reflected good broad-based volume growth across end markets. Within North America, Snacks achieved excellent growth with new business wins incorporating Kerry's leading range of savoury taste profiles and Tastesense^® salt-reduction technologies. Meals delivered good growth through a number of new culinary taste launches across both retail and foodservice channels. Growth in Bakery was supported by performance in preservation and taste systems. Beverage performed well across botanicals, coffee extracts and Tastesense^® sugar reduction technologies, with growth in functional beverage driven by Kerry's proactive health technologies. Foodservice delivered strong volume growth in the period, supported by innovations with quick service restaurants, fast-casual outlets and coffee chains, while good growth in the retail channel was achieved across both customer and retailer brands. Within LATAM, good growth was achieved in Mexico across Beverage and Snacks, with Brazil delivering a solid performance.

Europe Region
> Volumes -1.0% (Q2: -0.5%) against strong comparatives > Meals and Beverage achieved good growth > Foodservice performed well while the retail channel reflected soft market dynamics
Reported revenue in the Europe region of €708m reflected strong comparatives and market conditions, particularly in the retail channel given recent inflation across the region. Within the Food EUM, Meals delivered good growth through solutions incorporating Kerry's food protection, preservation and authentic taste technologies, while performance in Dairy and Snacks reflected strong prior year comparatives. Beverage performed well in functional and refreshing beverages supported by a number of new innovations with Kerry's proactive health portfolio. Foodservice continued to deliver good growth supported by launches in meat and beverage applications with a number of customers, combined with increased seasonal and limited time offering activity across the region.

APMEA Region
> Volumes +5.5% (Q2: +6.2%) > Snacks, Meat and Beverage delivered good growth > Foodservice achieved strong growth with good growth in retail
Reported revenue in the APMEA region of €794m reflected strong growth in the Middle East and Africa, with volumes in China broadly similar to the prior year and Southeast Asia improving in the period. Snacks delivered very strong growth across leading global and regional brands, through innovations and increased demand for Kerry's range of authentic local savoury taste profiles. Good growth was achieved in Meat through taste and preservation systems, while Beverage performed well with refreshing beverage innovations. Foodservice delivered very strong volume growth with leading regional coffee chains and quick service restaurants. Growth in the retail channel was supported by strong demand for Kerry's range of local authentic taste solutions with regional leaders in particular.
Dairy Ireland
Good EBITDA Performance led by Dairy Consumer Products

																		H1 2024															Performance


Revenue																		€592m															-1.9%¹


EBITDA																		€35m															+19.9%


EBITDA margin																		5.9%															+160bps

¹ volume performance
The segment achieved a good EBITDA performance of €35m with margin expansion of 160bps in the first half of the year. This was driven by Dairy Consumer Products' growth and mix development as well as recovery in Dairy Ingredients. Revenue for the first half of the year of €592m included volumes of -1.9% and pricing of -6.9%. Dairy Consumer Products performed well, with volume growth led by Kerry's snacking and branded cheese ranges. Dairy Ingredients' volumes reflected softer overall supply across the period given local market conditions. During the period, Dairy Consumer Products increased its Cheestrings manufacturing capacity with the commissioning of its extended plant in Charleville, Ireland and also launched the new SMUG hybrid range of oat and dairy-based milk, cheese and butter products.
Financial Review

																	%																	H1 2024								H1 2023
																	change																	€'m								€'m


Revenue																	(5.9%)																	3,880.4								4,121.6


EBITDA																	6.6%																	552.2								518.0

EBITDA margin																																		14.2%								12.6%


Depreciation (net)																																		(113.0)								(109.0)

Computer software amortisation																																		(18.0)								(15.6)

Finance costs (net)																																		(27.8)								(27.5)

Share of joint ventures' results after taxation																																		(1.0)								(0.7)


Adjusted earnings before taxation																																		392.4								365.2

Income taxes (excluding non-trading items)																																		(53.1)								(45.8)


Adjusted earnings after taxation																																		339.3								319.4

Brand related intangible asset amortisation																																		(27.6)								(26.5)

Non-trading items (net of related tax)																																		(20.2)								65.0


Profit after taxation																																		291.5								357.9


Attributable to:

Equity holders of the parent																																		291.5								358.2

Non-controlling interests																																		-								(0.3)


																																		291.5								357.9


																																		EPS								EPS
																																		cent								cent


Basic EPS																	(17.4%)																	166.7								201.7

Brand related intangible asset amortisation																																		15.8								14.9

Non-trading items (net of related tax)																																		11.6								(36.6)


Adjusted EPS																	7.8%																	194.1								180.0

Impact of exchange rate translation																	1.3%


Adjusted EPS growth in constant currency																	9.1%


See Financial Definitions section for definitions, calculations and reconciliations of Alternative Performance Measures.
Revenue
The table below presents the revenue performance components for the Group and reporting segments.

																																											Reported
H1 2024							Volume										Price					Currency³								Acquisitions						Disposals							Revenue


Taste & Nutrition							3.1%										(3.0%)					(1.1%)								0.7%						(3.1%)							(3.4%)


Dairy Ireland							(1.9%)										(6.9%)					0.4%								-						(3.8%)⁴							(12.2%)


Group							1.7%										(4.0%)					(0.9%)								0.6%						(3.3%)							(5.9%)



																																											Reported
H1 2023							Volume										Price					Currency³								Acquisitions						Disposals							Revenue


Taste & Nutrition							1.4%										5.4%					(0.1%)								1.3%						(5.3%)							2.7%


Dairy Ireland							(2.5%)										0.4%					(0.9%)								-						-							(3.0%)


Group							0.6%										4.5%					(0.1%)								1.1%						(4.5%)							1.6%

³ This includes the impact of transaction and translation currency - see financial definitions for further breakdown. ⁴ Reduction in revenue reflects changes in contractual arrangements implemented in the current year, where Dairy Ireland has become an agent, in accordance with IFRS 15 'Revenue from Contracts with Customers'. The related revenue in H1 2024 amounted to €1m (H1 2023: €26m).

EBITDA & Margin % Group EBITDA increased by 6.6% to €552.2m (H1 2023: €518.0m). Reported EBITDA margin of 14.2% (H1 2023: 12.6%) increased by 160bps primarily driven by the benefits from the Accelerate Operational Excellence Programme, portfolio developments, operating leverage, product mix and the net effect of pricing. The EBITDA margin by business segment was 16.1% in Taste & Nutrition and 5.9% in Dairy Ireland in the period. Finance Costs (net) Finance costs (net) were €27.8m similar to the prior period (H1 2023: €27.5m). Interest income increased year on year due to interest on the vendor loan note and higher deposit interest rates, offset by increased borrowing rates on floating rate debt and overdrafts. Taxation The tax charge for the period before non-trading items was €53.1m (H1 2023: €45.8m) representing an effective tax rate of 14.5% (H1 2023: 13.5%) and reflective of the geographical mix of earnings. Non-Trading Items During the period, the Group incurred an overall non-trading charge of €20.2m (H1 2023: €65.0m credit) net of tax. The charge in the period is primarily related to the Accelerate Operational Excellence Transformation Programme. The credit in the prior year related to the profit on sale of the business/assets primarily related to the Sweet Ingredients Portfolio divestment offset by a charge relating to the Accelerate Operational Excellence Transformation Programme. Foreign Exchange Rates Group results are impacted by year on year fluctuations in exchange rates versus the euro. The primary rates driving the currency impact in the figures above were USD and GBP which had average rates of 1.09 (2023: 1.05) and 0.86 (2023: 0.85) respectively. Return on Average Capital Employed (ROACE) Group ROACE at the period end was 10.3% (H1 2023: 10.2%) reflective of the increase in profits in the period and the movement in average capital employed.
Free Cash Flow The Group achieved free cash flow of €445.4m in H1 2024 (H1 2023: €231.9m) reflecting 131% cash conversion in the period primarily driven by increased profit and an improvement in average working capital in the first six months of 2024 compared to the average working capital during the first six months of 2023. Net cash from operating activities for the period was €367.0m (H1 2023: €309.7m) reflective of the increased profits partially offset by an investment in working capital of €87.6m since the year end, predominately related to the seasonal nature of the Dairy Ireland business.

Free Cash Flow																		H1 2024 €'m																						H1 2023 €'m


EBITDA																		552.2																						518.0
Movement in average working capital																		79.5																						(103.2)
Pension contributions paid less pension expense																														(2.4)										(2.7)
Finance costs paid (net)																		(14.2)																						(19.5)
Income taxes paid																		(49.5)																						(55.0)
Capital expenditure (net)																		(120.2)																						(105.7)

Free cash flow																		445.4																						231.9
Cash conversion⁵																		131%																						73%
⁵ Cash conversion is free cash flow expressed as a percentage of adjusted earnings after taxation.
Net Debt Net debt at the end of the period was €1,843.9m (31 December 2023: €1,604.1m). The increase relative to December reflects strong business cash generation offset by acquisition spend, dividends and the Share Buyback Programme. Liquidity Analysis The Group's balance sheet is in a strong position with a Net debt to EBITDA ratio of 1.6 times.

																																H1 2024 Times									H1 2023 Times

Net debt: EBITDA																																1.6									1.6

EBITDA: Net interest																																23.2									19.0


Principal Risks and Uncertainties Details of the principal risks and uncertainties facing the Group can be found in the 2023 Annual Report on pages 97 to 103 and continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year. These risks include but are not limited to; portfolio management, business acquisition and divestiture, climate change and environmental, people, business ethics and social responsibility, food safety, quality and regulatory, health & safety, margin management, cyber and information systems security, operational and supply chain resilience, intellectual property, taxation and treasury. The Group continues to manage the interdependency of these risks and actively manages all risks through its control and risk management process. Share Buyback Programme In May 2024, the Board approved a new Share Buyback Programme of up to €300 million. The Share Buyback Programme is underpinned by the Group's strong balance sheet and cash flow and is aligned to Kerry's Capital Allocation Framework. The programme commenced on 7 May 2024 and will end no later than 19 December 2024. In the period from 7 May 2024 to 30 June 2024 the Company purchased 1,035,583 shares at a total cost of €80.1m. The €300 million Share Buyback Programme announced in October 2023, commenced on 1 November 2023 and was completed by 30 April 2024. In the period to 30 June 2024, the Company acquired 2,481,191 shares at a cost of €198.6m resulting in a total number of shares acquired as part of this programme of 3,854,452 at a total cost of €300.3m including transaction costs of €0.3m. Dividend The Board has declared an interim dividend of 38.1 cent per share, compared to the prior year interim dividend of 34.6 cent, payable on 8 November 2024 to shareholders on the record date 11 October 2024. Future Prospects Kerry has a good innovation pipeline and remains well positioned for good volume growth and strong margin expansion, while recognising consumer market demand remains relatively subdued. The Group will continue to develop its business and portfolio aligned to its strategic priorities. Given financial performance in the first half of the year and Kerry's innovation pipeline, the Group is updating its full year constant currency adjusted earnings per share guidance to 7% to 10%⁶ (previously 5.5% to 8.5%). ⁶ Foreign currency translation expected to be a headwind of ~1% on earnings per share in the full year. Guidance based on average number of shares in issue of ~173m. Responsibility Statement The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 as amended ('the Regulations'), the Central Bank (Investment Market Conduct) Rules 2019, the Disclosure Guidance and Transparency Rules of the UK's Financial Conduct Authority and with IAS 34 'Interim Financial Reporting' as issued by IASB and as adopted by the European Union. The Directors confirm that to the best of their knowledge: > the Group Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2024 have been prepared in accordance with the international accounting standard applicable to interim financial reporting adopted pursuant to the procedure provided for under Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002; > the Interim Management Report includes a fair review of the important events that have occurred during the first six months of the financial year, and their impact on the Group Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2024, and a description of the principal risks and uncertainties for the remaining six months; and > the Interim Management Report includes a fair review of the related party transactions that have occurred during the first six months of the current financial year and that have materially affected the financial position or the performance of the Group during that period, and any changes in the related parties' transactions described in the last Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.
On behalf of the Board

Edmond Scanlon																	Marguerite Larkin
Chief Executive Officer																	Chief Financial Officer

30 July 2024

Disclaimer: Forward Looking Statements
This Announcement contains forward looking statements which reflect management expectations based on currently available data. However actual results may differ materially from those expressed or implied by these forward looking statements. These forward looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise.

	CONTACT INFORMATION

	Investor Relations
	Marguerite Larkin, Chief Financial Officer
	+353 66 7182292 \| [email protected]

	William Lynch, Head of Investor Relations
	+353 66 7182292 \| [email protected]

	Media
	Catherine Keogh, Chief Corporate Affairs Officer
	+353 45 930585 \| [email protected]

	Website
	www.kerry.com


RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2024
Kerry Group plc
Condensed Consolidated Income Statement
for the half year ended 30 June 2024


																	Before
																	Non-Trading				Non-Trading								Half year						Half year							Year
																	Items				Items								ended						ended							ended
																	30 June 2024				30 June 2024								30 June 2024						30 June 2023							31 Dec. 2023
																	Unaudited				Unaudited								Unaudited						Unaudited							Audited
										Notes							€'m				€'m								€'m						€'m							€'m


Continuing operations
Revenue										2							3,880.4				-								3,880.4						4,121.6							8,020.3


Earnings before interest, tax, depreciation and amortisation										2							552.2				-								552.2						518.0							1,165.1

Depreciation (net) and intangible asset amortisation										2							(158.6)				-								(158.6)						(151.1)							(299.1)
Non-trading items										3							-				(24.3)								(24.3)						40.5							8.8


Operating profit																	393.6				(24.3)								369.3						407.4							874.8

Finance income										4							11.4				-								11.4						5.7							21.8
Finance costs										4							(39.2)				-								(39.2)						(33.2)							(72.1)
Share of joint ventures' results after taxation																	(1.0)				-								(1.0)						(0.7)							(1.9)


Profit before taxation																	364.8				(24.3)								340.5						379.2							822.6

Income taxes																	(53.1)				4.1								(49.0)						(21.3)							(94.5)


Profit after taxation																	311.7				(20.2)								291.5						357.9							728.1


Attributable to:
Equity holders of the parent																													291.5						358.2							728.3
Non-controlling interests																													-						(0.3)							(0.2)

																													291.5						357.9							728.1


Earnings per A ordinary share																													Cent						Cent							Cent
- basic									5																				166.7						201.7							410.4
- diluted									5																				166.5						201.5							409.7


Condensed Consolidated Statement of Comprehensive Income
for the half year ended 30 June 2024


																													Half year						Half year							Year
																													ended						ended							ended
																													30 June 2024						30 June 2023							31 Dec. 2023
																													Unaudited						Unaudited							Audited
																													€'m						€'m							€'m


Profit after taxation																													291.5						357.9							728.1

Other comprehensive income:

Items that are or may be reclassified subsequently to profit or loss:
Fair value movements on cash flow hedges																													6.3						1.5							(1.6)
Cash flow hedges - reclassified to profit or loss from equity																													(0.3)						0.4							1.3
Net change in cost of hedging																													0.3						0.5							0.1
Deferred tax effect of fair value movements on cash flow hedges																													(1.0)						(0.4)							(0.4)
Exchange difference on translation of foreign operations																													90.9						(89.4)							(129.0)
Cumulative exchange difference on translation recycled on disposal																													-						(0.7)							(1.5)

Items that will not be reclassified subsequently to profit or loss:
Re-measurement on retirement benefits obligation																													9.8						(27.1)							(33.5)
Deferred tax effect of re-measurement on retirement benefits obligation																													(2.4)						6.6							7.1


Net income/(expense) recognised directly in total other comprehensive income																													103.6						(108.6)							(157.5)


Total comprehensive income																													395.1						249.3							570.6


Attributable to:
Equity holders of the parent																													395.1						249.6							570.8
Non-controlling interests																													-						(0.3)							(0.2)


																													395.1						249.3							570.6



Condensed Consolidated Balance Sheet
as at 30 June 2024


																													30 June 2024						30 June 2023							31 Dec. 2023
																													Unaudited						Unaudited							Audited
																									Notes				€'m						€'m							€'m


Non-current assets
Property, plant and equipment																													2,199.7						2,068.8							2,133.0
Intangible assets																													5,859.4						5,686.5							5,749.8
Financial asset investments																													52.4						54.9							52.0
Investments in joint ventures																													38.8						41.1							39.8
Other non-current financial instruments																									7				138.3						125.7							125.0
Retirement benefits asset																									8				100.3						96.2							98.0
Deferred tax assets																													82.9						75.7							80.2


																													8,471.8						8,148.9							8,277.8


Current assets
Inventories																													1,185.0						1,312.7							1,100.2
Trade and other receivables																													1,380.3						1,329.6							1,279.0
Cash at bank and in hand																									9				659.5						660.8							943.7
Other current financial instruments																													5.3						19.3							13.7
Assets classified as held for sale																													1.1						0.6							1.5


																													3,231.2						3,323.0							3,338.1


Total assets																													11,703.0						11,471.9							11,615.9


Current liabilities
Trade and other payables																													1,904.6						1,780.1							1,773.1
Borrowings and overdrafts																									9				0.4						1.3							37.1
Other current financial instruments																													8.8						8.5							7.5
Tax liabilities																													165.4						172.3							173.0
Provisions																													13.0						12.8							18.3
Deferred income																													4.3						4.2							4.5


																													2,096.5						1,979.2							2,013.5


Non-current liabilities
Borrowings																									9				2,434.1						2,426.5							2,432.6
Other non-current financial instruments																									9				13.6						16.1							9.7
Retirement benefits obligation																									8				40.4						53.1							49.7
Other non-current liabilities																													123.4						135.1							132.4
Deferred tax liabilities																													410.5						432.1							394.2
Provisions																													55.8						57.8							46.4
Deferred income																													14.4						14.1							14.6


																													3,092.2						3,134.8							3,079.6


Total liabilities																													5,188.7						5,114.0							5,093.1


Net assets																													6,514.3						6,357.9							6,522.8


Equity
Share capital																									11				21.5						22.1							21.9
Share premium																													398.7						398.7							398.7
Other reserves																													68.5						(8.4)							(44.6)
Retained earnings																													6,024.1						5,944.1							6,145.3


Equity attributable to equity holders of the parent																													6,512.8						6,356.5							6,521.3
Non-controlling interests																													1.5						1.4							1.5


Total equity																													6,514.3						6,357.9							6,522.8



Condensed Consolidated Statement of Changes in Equity
for the half year ended 30 June 2024

											Attributable to equity holders of the parent
																																					Non-
											Share							Share						Other			Retained										Controlling						Total
											Capital							Premium						Reserves			Earnings						Total				Interests						Equity
				Note							€'m							€'m						€'m			€'m						€'m				€'m						€'m


At 1 January 2023											22.1							398.7						64.3			5,736.8						6,221.9				1.7						6,223.6

Profit after taxation											-							-						-			358.2						358.2				(0.3)						357.9
Other comprehensive expense											-							-						(87.7)			(20.9)						(108.6)				-						(108.6)


Total comprehensive (expense)/income											-							-						(87.7)			337.3						249.6				(0.3)						249.3

Dividends paid				6							-							-						-			(130.0)						(130.0)				-						(130.0)
Share-based payment expense											-							-						15.0			-						15.0				-						15.0


At 30 June 2023 - unaudited											22.1							398.7						(8.4)			5,944.1						6,356.5				1.4						6,357.9

Profit after taxation											-							-						-			370.1						370.1				0.1						370.2
Other comprehensive expense											-							-						(43.0)			(5.9)						(48.9)				-						(48.9)


Total comprehensive (expense)/income											-							-						(43.0)			364.2						321.2				0.1						321.3

Shares (purchased)/cancelled during the financial period											(0.2)							-						0.2			(101.7)						(101.7)				-						(101.7)
Dividends paid				6							-							-						-			(61.3)						(61.3)				-						(61.3)
Share-based payment expense											-							-						6.6			-						6.6				-						6.6


At 31 December 2023 - audited											21.9							398.7						(44.6)			6,145.3						6,521.3				1.5						6,522.8

Profit after taxation											-							-						-			291.5						291.5				-						291.5
Other comprehensive income											-							-						97.2			6.4						103.6				-						103.6


Total comprehensive income											-							-						97.2			297.9						395.1				-						395.1

Shares (purchased)/cancelled during the financial period											(0.4)							-						0.4			(278.7)						(278.7)				-						(278.7)
Dividends paid				6							-							-						-			(140.4)						(140.4)				-						(140.4)
Share-based payment expense											-							-						15.5			-						15.5				-						15.5


At 30 June 2024 - unaudited											21.5							398.7						68.5			6,024.1						6,512.8				1.5						6,514.3



Other Reserves comprise the following:

																										Share-
								Capital										Other								Based												Cost of
								Redemption										Undenominated								Payment		Translation					Hedging					Hedging
								Reserve										Capital								Reserve		Reserve					Reserve					Reserve				Total
								€'m										€'m								€'m		€'m					€'m					€'m				€'m


At 1 January 2023								1.7										0.3								130.3		(71.0)					4.5					(1.5)				64.3

Other comprehensive (expense)/income								-										-								-		(90.1)					1.9					0.5				(87.7)
Share-based payment expense								-										-								15.0		-					-					-				15.0


At 30 June 2023 - unaudited								1.7										0.3								145.3		(161.1)					6.4					(1.0)				(8.4)

Other comprehensive expense								-										-								-		(40.4)					(2.2)					(0.4)				(43.0)
Share-based payment expense								-										-								6.6		-					-					-				6.6
Shares cancelled during the financial period								0.2										-								-		-					-					-				0.2


At 31 December 2023 - audited								1.9										0.3								151.9		(201.5)					4.2					(1.4)				(44.6)

Other comprehensive income								-										-								-		90.9					6.0					0.3				97.2
Share-based payment expense								-										-								15.5		-					-					-				15.5
Shares cancelled during the financial period								0.4										-								-		-					-					-				0.4


At 30 June 2024 - unaudited								2.3										0.3								167.4		(110.6)					10.2					(1.1)				68.5


Condensed Consolidated Statement of Cash Flows
for the half year ended 30 June 2024

																							Half year								Half year										Year
																							ended								ended										ended
																							30 June 2024								30 June 2023										31 Dec. 2023
																							Unaudited								Unaudited										Audited
																		Notes					€'m								€'m										€'m


Cash flows from operating activities
Profit before taxation																							340.5								379.2										822.6
Adjustments for:
Depreciation (net)																							113.0								109.0										219.6
Intangible asset amortisation																							45.6								42.1										79.5
Share of joint ventures' results after taxation																							1.0								0.7										1.9
Non-trading items income statement charge/(income)																		3					24.3								(40.5)										(8.8)
Finance costs (net)																		4					27.8								27.5										50.3
Change in working capital																							(87.6)								(89.7)										185.5
Pension contributions paid less pension expense																							(2.4)								(2.7)										(13.5)
Payments on non-trading items																							(27.2)								(39.5)										(99.8)
Exchange translation adjustment																							(4.3)								(1.9)										(14.2)


Cash generated from operations																							430.7								384.2										1,223.1
Income taxes paid																							(49.5)								(55.0)										(119.5)
Finance income received																							6.6								2.8										13.9
Finance costs paid																							(20.8)								(22.3)										(79.7)


Net cash from operating activities																							367.0								309.7										1,037.8


Investing activities
Purchase of assets																							(103.4)								(99.8)										(281.9)
Proceeds from the sale of assets (net of disposal expenses)																		3					-								11.5										11.6
Capital grants received																							-								-										3.3
Purchase of businesses (net of cash acquired)																		10					(78.4)								(41.5)										(131.1)
Payments relating to previous acquisitions																							(0.1)								(1.3)										(9.7)
Purchase of investments																							(1.8)								(3.1)										(3.0)
Disposal of businesses (net of disposal expenses)																		3					(6.8)								335.5										316.4


Net cash (used in)/from investing activities																							(190.5)								201.3										(94.4)


Financing activities
Dividends paid																		6					(140.4)								(130.0)										(191.3)
Purchase of own shares																							(278.7)								-										(101.7)
Payment of lease liabilities																							(16.8)								(17.4)										(36.4)
Issue of share capital																		11					-								-										-
Repayment of borrowings																							(2.4)								(694.0)										(695.9)
Cash inflow from interest rate swaps on repayment of borrowings																							-								34.4										34.4
Proceeds from borrowings																							-								1.3										4.1


Net cash movement due to financing activities																							(438.3)								(805.7)										(986.8)


Net decrease in cash and cash equivalents																							(261.8)								(294.7)										(43.4)
Cash and cash equivalents at beginning of the period																							909.0								969.8										969.8
Exchange translation adjustment on cash and cash equivalents																							11.9								(14.3)										(17.4)


Cash and cash equivalents at end of the period																		9					659.1								660.8										909.0


Reconciliation of Net Cash Flow to Movement in Net Debt
Net decrease in cash and cash equivalents																							(261.8)								(294.7)										(43.4)
Cash flow from debt financing																							2.4								658.3										657.4


Changes in net debt resulting from cash flows																							(259.4)								363.6										614.0
Fair value movement on interest rate swaps (net of adjustment to borrowings)																							10.3								2.0										1.0
Exchange translation adjustment on net debt																							6.2								(0.3)										(2.3)


Movement in net debt in the period																							(242.9)								365.3										612.7
Net debt at beginning of the period - pre lease liabilities																							(1,535.5)								(2,148.2)										(2,148.2)


Net debt at end of the period - pre lease liabilities																							(1,778.4)								(1,782.9)										(1,535.5)
Lease liabilities																							(65.5)								(63.6)										(68.6)


Net debt at end of the period																		9					(1,843.9)								(1,846.5)										(1,604.1)


Notes to the Condensed Consolidated Interim Financial Statements
for the half year ended 30 June 2024

1. Accounting policies

These Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2024 have been prepared in accordance with International Financial Reporting Standards as issued by the IASB ('IFRS Accounting Standards'), the International Financial Reporting Interpretations Committee ('IFRIC') and in accordance with IAS 34 'Interim Financial Reporting'. The Group financial statements have also been prepared in accordance with International Financial Reporting Standards ('IFRS') adopted by the European Union ('EU') which comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'). The Group financial statements comply with Article 4 of the EU IAS Regulation. IFRS adopted by the EU differs in certain respects from IFRS Accounting Standards issued by the IASB. References to IFRS refer to IFRS adopted by the EU. The accounting policies applied by the Group in these Condensed Consolidated Interim Financial Statements are the same as those detailed in the 2023 Annual Report. In preparing the Group Condensed Consolidated Interim Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the Consolidated Financial Statements for the year ended 31 December 2023. Going concern The Group Condensed Consolidated Interim Financial Statements have been prepared on the going concern basis of accounting. The Directors have considered the Group's business activities and how it generates value, together with the main trends and factors likely to affect future development, business performance and position of the Group. Following these assessments, the Directors have concluded there are no material uncertainties that cast a significant doubt on the Group's ability to continue as a going concern over a period of at least 12 months from the date of these financial statements. The Directors report that they have satisfied themselves that the Group is a going concern, having adequate resources to continue in operational existence for the foreseeable future. In forming this view, the Directors have reviewed the Group's forecast for a period not less than 12 months, the medium-term plan and its cashflow implications have been taken into account including proposed capital expenditure, and compared these with the Group's committed borrowing facilities and projected gearing ratios.
The following Standards and Interpretations are effective for the Group from 1 January 2024 but do not have a material effect on the results or financial position of the Group:																																							Effective Date

- IAS 1 (Amendments)						Presentation of Financial Statements																																	1 January 2024

- IFRS 16 (Amendments)						Leases																																	1 January 2024

- IAS 7 & IFRS 7 (Amendments)						Supplier Finance Arrangements																																	1 January 2024


The following Standards and Interpretations are not yet effective for the Group and are not expected to have a material effect on the results or financial position of the Group:																																							Effective Date

- IAS 21 (Amendments)						The Effects of Changes in Foreign Exchange Rates																																	1 January 2025

- IFRS 7 & IFRS 9 (Amendments)						Classification and Measurement of Financial Instruments																																	1 January 2026

- IFRS 18						Presentation and Disclosure in Financial Statements																																	1 January 2027

- IFRS 19						Subsidiaries without Public Accountability: Disclosures																																	1 January 2027

2. Analysis of results

The Group has determined it has two operating segments: Taste & Nutrition and Dairy Ireland. The Taste & Nutrition segment is a world leading provider of taste and nutrition solutions for the food, beverage and pharmaceutical markets. Utilising a broad range of ingredient solutions to innovate with our customers to create great tasting products, with improved nutrition and functionality, while ensuring a better impact for the planet. Kerry is driven to be our customers' most valued partner, creating a world of sustainable nutrition through solving our customers' most complex challenges with differentiated solutions. The Taste & Nutrition segment supplies industries across Europe, Americas and APMEA (Asia Pacific, Middle East and Africa). The Dairy Ireland segment is a leading Irish provider of value-add dairy ingredients and consumer products. Our dairy ingredients product portfolio includes functional proteins while our dairy consumer brands can be found predominantly in chilled cabinets in retailers across Ireland and the UK.


Half year ended 30 June 2024 - Unaudited													Half year ended 30 June 2023 - Unaudited				Year ended 31 December 2023 - Audited

					Group										Group					Group
					Eliminations										Eliminations					Eliminations
		Taste &	Dairy		and								Taste &	Dairy	and		Taste &		Dairy	and
		Nutrition	Ireland		Unallocated							Total	Nutrition	Ireland	Unallocated	Total	Nutrition		Ireland	Unallocated							Total
		€'m	€'m		€'m							€'m	€'m	€'m	€'m	€'m	€'m		€'m	€'m							€'m


External revenue		3,392.2	488.2		-							3,880.4	3,521.0	600.6	-	4,121.6	6,936.7		1,083.6	-							8,020.3
Inter-segment revenue		27.0	104.1		(131.1)							-	18.3	73.9	(92.2)	-	38.2		199.8	(238.0)							-


Revenue		3,419.2	592.3		(131.1)							3,880.4	3,539.3	674.5	(92.2)	4,121.6	6,974.9		1,283.4	(238.0)							8,020.3


EBITDA*		551.3	35.0		(34.1)							552.2	522.8	29.2	(34.0)	518.0	1,185.9		53.4	(74.2)							1,165.1


Depreciation (net)												(113.0)				(109.0)											(219.6)
Intangible asset amortisation												(45.6)				(42.1)											(79.5)
Non-trading items												(24.3)				40.5											8.8


Operating profit												369.3				407.4											874.8


Finance income												11.4				5.7											21.8
Finance costs												(39.2)				(33.2)											(72.1)
Share of joint ventures' results after taxation												(1.0)				(0.7)											(1.9)


Profit before taxation												340.5				379.2											822.6
Income taxes												(49.0)				(21.3)											(94.5)


Profit after taxation												291.5				357.9											728.1


Attributable to:
Equity holders of the parent												291.5				358.2											728.3
Non-controlling interests												-				(0.3)											(0.2)


												291.5				357.9											728.1

*EBITDA represents profit before finance income and costs, income taxes, depreciation (net of capital grant amortisation), intangible asset amortisation, non-trading items and share of joint ventures' results after taxation.

Revenue analysis
Disaggregation of revenue from external customers is analysed by End Use Market (EUM), which is the primary market in which Kerry's products are consumed and primary geographic market. An EUM is defined as the market in which the end consumer or customer of Kerry's product operates. The economic factors within the EUMs of Food, Beverage and Pharma & other within the primary geographic markets which affect the nature, amount, timing and uncertainty of revenue and cash flows are similar.

Analysis by EUM


Half year ended 30 June 2024 - Unaudited									Half year ended 30 June 2023 - Unaudited									Year ended 31 December 2023 - Audited

	Taste &			Dairy					Taste &			Dairy							Taste &				Dairy
	Nutrition			Ireland		Total			Nutrition			Ireland			Total				Nutrition				Ireland		Total
	€'m			€'m		€'m			€'m			€'m			€'m				€'m				€'m		€'m


Food	2,224.7			479.8		2,704.5			2,329.2			573.3			2,902.5				4,637.3				1,051.9		5,689.2
Beverage	918.4			8.4		926.8			928.9			27.3			956.2				1,798.6				31.7		1,830.3
Pharma & other	249.1			-		249.1			262.9			-			262.9				500.8				-		500.8


External revenue	3,392.2			488.2		3,880.4			3,521.0			600.6			4,121.6				6,936.7				1,083.6		8,020.3


Analysis by primary geographic market
Disaggregation of revenue from external customers is analysed by geographical split:


		Half year ended 30 June 2024 - Unaudited						Half year ended 30 June 2023 - Unaudited									Year ended 31 December 2023 - Audited

			Taste &		Dairy					Taste &			Dairy							Taste &		Dairy
			Nutrition		Ireland		Total			Nutrition			Ireland	Total						Nutrition		Ireland				Total
			€'m		€'m		€'m			€'m			€'m	€'m						€'m		€'m				€'m


Republic of Ireland			34.8		176.0		210.8			56.9			233.3	290.2						134.7		405.3				540.0
Rest of Europe			673.4		278.6		952.0			714.5			322.4	1,036.9						1,382.5		600.3				1,982.8
Americas			1,890.2		13.8		1,904.0			1,936.4			17.7	1,954.1						3,772.5		32.5				3,805.0
APMEA			793.8		19.8		813.6			813.2			27.2	840.4						1,647.0		45.5				1,692.5


External revenue			3,392.2		488.2		3,880.4			3,521.0			600.6	4,121.6						6,936.7		1,083.6				8,020.3


The accounting policies of the operating segments are the same as those detailed in the Statement of accounting policies in the 2023 Annual Report. Under IFRS 15 'Revenue from Contracts with Customers' revenue is primarily recognised at a point in time. Revenue recorded over time during the period was not material to the Group.

3. Non-trading items


																Half year					Half year			Year
																ended					ended			ended
																30 June 2024					30 June 2023			31 Dec. 2023
																Unaudited					Unaudited			Audited
											Notes					€'m					€'m			€'m


Global Business Services expansion											(ii)					-					(2.8)			(4.1)
Acquisition integration costs											(iii)					(2.9)					(1.1)			(16.5)
Accelerate Operational Excellence											(iv)					(22.3)					(25.1)			(53.5)


																(25.2)					(29.0)			(74.1)

Profit/(loss) on disposal of businesses and assets											(i)					0.9					69.5			82.9

Tax on above																4.1					24.5			8.6


Non-trading items (net of related tax)																(20.2)					65.0			17.4


(i) Profit/(loss) on disposal of businesses and assets
The Group disposed of property, plant and equipment primarily in North America and Europe for a consideration of €2.2m resulting in a profit of €0.9m during the period ended 30 June 2024. A tax charge of €0.4m arose on the disposal of assets for the period.

In the period ended 30 June 2023 the Group disposed of property, plant and equipment primarily in North America and Europe for a consideration of €11.5m resulting in a profit of €6.0m. This profit on disposal of property, plant and equipment was offset by the further impairment of certain assets classified as held for sale based in North America to their fair value less costs to sell by €15.0m, consisting of property, plant and equipment of €10.5m and €4.5m of estimated costs to sell. A tax credit of €1.5m arose on the disposal of assets for the period.

In the year ended 31 December 2023 the Group disposed of property, plant and equipment primarily in North America and Europe for a consideration of €13.9m resulting in a profit of €2.6m. This profit on disposal of property, plant and equipment was offset by an impairment charge of €15.3m in North America and a €13.5m charge with respect to related disposal costs. In addition to these charges, a number of additional assets were disposed across the Group and a €3.9m loss on disposal was recognised. A tax credit of €6.0m arose on the disposal of assets for the period.

In 2023 the Group completed the sale of the trade and assets of its Sweet Ingredients Portfolio and also disposed of small operations in South Africa and South Korea for a combined final consideration of €481.8m resulting in a gain of €113.0m for the year ended 31 December 2023 (30 June 2023: €78.5m gain), with the related tax charge of €9.8m. The profit on disposal of these businesses includes the associated costs in relation to these divestments.

(ii) Global Business Services expansion
In 2020, the Group commenced a programme to evolve, migrate and expand its Global Business Services model to better enable the business and support further growth. This phase of the programme completed at the end of 2023 and the Group has incurred no costs in the period ended 30 June 2024 (30 June 2023: €2.8m; 31 December 2023: €4.1m). The costs in the prior year reflected relocation of resources, advisory fees, redundancies and the streamlining of operations. The associated tax credit was €nil (30 June 2023: €0.3m; 31 December 2023: €0.5m).

(iii) Acquisition integration costs
These costs of €2.9m (30 June 2023: €1.1m; 31 December 2023: €16.5m) reflect the restructuring of operations in order to integrate the acquired businesses into the existing Kerry operating model and external costs associated with deal preparation, integration planning and due diligence. A tax credit of €0.4m (30 June 2023: €0.1m; 31 December 2023: €2.8m) arose due to tax deductions available on acquisition related costs.

(iv) Accelerate Operational Excellence
These costs of €22.3m (30 June 2023: €25.1m; 31 December 2023: €53.5m) predominantly reflect consultancy fees, project management costs and costs of streamlining operations incurred in the period relating to our Accelerate Operational Excellence Transformation Programme, which will run until the end of 2024. This material transformation project deploying next generation manufacturing processes, including advanced process controls, is combined with building capabilities within the Group to enhance continuous improvement in manufacturing processes which will deliver step change manufacturing excellence across the organisation. This project is also focused on supply chain excellence, optimising the Group's warehousing and distribution network. A tax credit of €4.1m (30 June 2023: €5.8m; 31 December 2023: €9.1m) arose due to tax deductions available on accelerate operational excellence costs.

4. Finance income and costs


										Half year											Half year							Year
										ended											ended							ended
										30 June 2024											30 June 2023							31 Dec. 2023
										Unaudited											Unaudited							Audited
										€'m											€'m							€'m


Finance income:
Interest income on deposits										6.4											3.4							14.5
Interest income on vendor loan note										5.0											2.3							7.3


Finance income										11.4											5.7							21.8


Finance costs:
Interest payable and finance charges										(37.7)											(34.1)							(72.8)
Interest on lease liabilities										(1.5)											(0.9)							(2.6)
Interest rate derivative										(0.7)											0.2							0.2


										(39.9)											(34.8)							(75.2)
Net interest income on retirement benefits obligation										0.7											1.6							3.1


Finance costs										(39.2)											(33.2)							(72.1)


Net finance costs										(27.8)											(27.5)							(50.3)


5. Earnings per A ordinary share


										Half year											Half year							Year
										ended											ended							ended
										30 June 2024											30 June 2023							31 Dec. 2023
										Unaudited											Unaudited							Audited
										EPS											EPS							EPS
										cent					€'m						cent			€'m				cent					€'m


Basic earnings per share
Profit after taxation attributable to equity holders of the parent										166.7					291.5						201.7			358.2				410.4					728.3


Diluted earnings per share
Profit after taxation attributable to equity holders of the parent										166.5					291.5						201.5			358.2				409.7					728.3



										30 June 2024											30 June 2023							31 Dec. 2023
										Unaudited											Unaudited							Audited
Number of Shares										m's											m's							m's


Basic weighted average number of shares										174.8											177.6							177.4
Impact of share options outstanding										0.3											0.2							0.3


Diluted weighted average number of shares										175.1											177.8							177.7


6. Dividends


										Half year												Half year						Year
										ended												ended						ended
										30 June 2024												30 June 2023						31 Dec. 2023
										Unaudited												Unaudited						Audited
										€'m												€'m						€'m


Amounts recognised as distributions to equity shareholders in the period
Final 2023 dividend of 80.80 cent per A ordinary share paid 10 May 2024 (Final 2022 dividend of 73.40 cent per A ordinary share paid 12 May 2023)										140.4												130.0						130.0

Interim 2023 dividend of 34.60 cent per A ordinary share paid 10 November 2023										-												-						61.3


										140.4												130.0						191.3


Since the end of the period, the Board has declared an interim dividend of 38.1 cent per A ordinary share which amounts to €65.7m based on ordinary shares in issue at 30 June 2024. The payment date for the interim dividend will be 8 November 2024 to shareholders registered on the record date as at 11 October 2024. The Condensed Consolidated Interim Financial Statements do not reflect this dividend.

7. Other non-current financial instruments


										Half year												Half year						Year
										ended												ended						ended
										30 June 2024												30 June 2023						31 Dec. 2023
										Unaudited												Unaudited						Audited
										€'m												€'m						€'m


Vendor loan note										128.0												125.0						124.3
Forward foreign exchange contracts										0.1												0.7						0.7
Interest rate swaps										10.2												-						-


Total other non-current financial instruments										138.3												125.7						125.0


As of 30 June 2024, the Group holds an interest bearing vendor loan note which was entered into as part of the consideration for the sale of the trade and assets of the Sweet Ingredients Portfolio from the Taste & Nutrition segment (note 3). The carrying amount of the debt receivable is €128.0m, this represents the amount due from third parties, and is initially recognised at fair value of €125.0m and interest capitalised on a bi-annual basis. As the Group objective for the vendor loan note is to collect the contractual cash flows when due, the Group measures at amortised cost using the effective interest method subsequent to initial recognition adjusted for any expected credit loss assessment.

8. Retirement benefits obligation

The net surplus/(deficit) recognised in the Condensed Consolidated Balance Sheet for the Group's defined benefit post-retirement schemes was as follows:


										Schemes												Schemes
										in Surplus												in Deficit						Total
										Half year												Half year						Half year
										ended												ended						ended
										30 June 2024												30 June 2024						30 June 2024
										Unaudited												Unaudited						Unaudited
										€'m												€'m						€'m


Net recognised surplus/(deficit) before deferred tax										100.3												(40.4)						59.9
Net related deferred tax (liability)/asset										(12.5)												9.9						(2.6)


Net recognised surplus/(deficit) after deferred tax										87.8												(30.5)						57.3


At 30 June 2024, the net surplus before deferred tax for defined benefit post-retirement schemes was €59.9m (30 June 2023: €43.1m; 31 December 2023: €48.3m). This was calculated by rolling forward the defined benefit post-retirement schemes' liabilities at 31 December 2023 to reflect material movements in underlying assumptions over the period while the defined benefit post-retirement schemes' assets at 30 June 2024 are measured at market value. The increase in the net surplus before deferred tax of €11.6m was driven by favourable movements in financial assumptions which were partially offset by lower asset values. The surplus at 30 June 2024, 31 December 2023 and 30 June 2023 relates to the Irish scheme. The surplus has been recognised in accordance with IFRIC 14 'The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction' as it has been determined that the Group has an unconditional right to a refund of the surplus.


										Schemes												Schemes
										in Surplus												in Deficit						Total
										Half year												Half year						Half year
										ended												ended						ended
										30 June 2023												30 June 2023						30 June 2023
										Unaudited												Unaudited						Unaudited
										€'m												€'m						€'m


Net recognised surplus/(deficit) before deferred tax										96.2												(53.1)						43.1
Net related deferred tax (liability)/asset										(12.0)												13.0						1.0


Net recognised surplus/(deficit) after deferred tax										84.2												(40.1)						44.1



										Schemes												Schemes
										in Surplus												in Deficit						Total
										year ended												year ended						year ended
										31 Dec. 2023												31 Dec. 2023						31 Dec. 2023
										Audited												Audited						Audited
										€'m												€'m						€'m


Net recognised surplus/(deficit) before deferred tax										98.0												(49.7)						48.3
Net related deferred tax (liability)/asset										(12.3)												12.2						(0.1)


Net recognised surplus/(deficit) after deferred tax										85.7												(37.5)						48.2


9. Financial instruments

i) The following table outlines the financial assets and liabilities in relation to net debt held by the Group at the Balance Sheet date:


									Assets/(Liabilities)							Derivatives
							Financial		at Fair Value							Designated as							Assets/
							Assets/(Liabilities)		through Profit							Hedging							(Liabilities) at
							at Amortised Cost		or Loss							Instruments							FVOCI							Total
							€'m		€'m							€'m							€'m							€'m


Assets:
Interest rate swaps							-		-							10.2							-							10.2
Cash at bank and in hand							659.5		-							-							-							659.5


							659.5		-							10.2							-							669.7


Liabilities:
Interest rate swaps							-		-							(13.6)							-							(13.6)


Bank overdrafts							(0.4)		-							-							-							(0.4)
Bank loans							2.3		-							-							-							2.3
Senior Notes							(2,441.8)		5.4							-							-							(2,436.4)


Borrowings and overdrafts							(2,439.9)		5.4							-							-							(2,434.5)


Net debt - pre lease liabilities							(1,780.4)		5.4							(3.4)							-							(1,778.4)
Lease liabilities							(65.5)		-							-							-							(65.5)


Net debt at 30 June 2024 - unaudited							(1,845.9)		5.4							(3.4)							-							(1,843.9)


Assets:
Interest rate swaps							-		-							-							-							-
Cash at bank and in hand							660.8		-							-							-							660.8


							660.8		-							-							-							660.8


Liabilities:
Interest rate swaps							-		-							(15.9)							-							(15.9)


Bank overdrafts							-		-							-							-							-
Bank loans							1.5		-							-							-							1.5
Senior Notes							(2,441.8)		12.5							-							-							(2,429.3)


Borrowings and overdrafts							(2,440.3)		12.5							-							-							(2,427.8)


Net debt - pre lease liabilities							(1,779.5)		12.5							(15.9)							-							(1,782.9)
Lease liabilities							(63.6)		-							-							-							(63.6)


Net debt at 30 June 2023 - unaudited							(1,843.1)		12.5							(15.9)							-							(1,846.5)


Assets:
Interest rate swaps							-		-							-							-							-
Cash at bank and in hand							943.7		-							-							-							943.7


							943.7		-							-							-							943.7


Liabilities:
Interest rate swaps							-		-							(9.5)							-							(9.5)


Bank overdrafts							(34.7)		-							-							-							(34.7)
Bank loans							0.2		-							-							-							0.2
Senior Notes							(2,441.8)		6.6							-							-							(2,435.2)


Borrowings and overdrafts							(2,476.3)		6.6							-							-							(2,469.7)


Net debt - pre lease liabilities							(1,532.6)		6.6							(9.5)							-							(1,535.5)
Lease liabilities							(68.6)		-							-							-							(68.6)


Net debt at 31 December 2023 - audited							(1,601.2)		6.6							(9.5)							-							(1,604.1)


All Group borrowings and overdrafts and interest rate swaps are guaranteed by Kerry Group plc. No assets of the Group have been pledged to secure these items. In May 2024 the Group exercised the first of two "plus one" extension options on its €1,500m revolving credit facility to extend the maturity date of this facility to June 2029. As at 30 June 2024, the Group's debt portfolio included: - €750m of Senior Notes issued in 2015 and €200m issued in April 2020 as a tap onto the original issuance (the 2025 Senior Notes). €175m of the issuance in 2015 were swapped, using cross currency swaps, to US dollar; - €750m of Senior Notes issued in 2019 (the 2029 Senior Notes). No interest rate derivatives were entered into for this issuance; - €750m of sustainability-linked bond notes issued in 2021 (the 2031 SLB Senior Notes). No interest rate derivatives were entered into for this issuance; - €375m of a forward starting interest rate swap, with a trade date of December 2023. Effective from H1 2025, the Group will pay an annual fixed rate of 2.43% and receive 6 month EURIBOR up until the termination date in H1 2035. The swap is accounted for as a cashflow hedge of a highly probable future debt issuance replacing the 2025 Senior Notes. The adjustment to Senior Notes classified under liabilities at fair value through profit or loss of €5.4m (30 June 2023: €12.5m; 31 December 2023: €6.6m) represents the part adjustment to the carrying value of debt from applying fair value hedge accounting for interest rate risk. This amount is primarily offset by the fair value adjustment on the corresponding hedge items being the underlying cross currency interest rate swaps. ii) The Group's exposure to interest rates on financial assets and liabilities are detailed in the table below including the impact of cross currency swaps ('CCS') on the currency profile of net debt:

						Total Pre CCS					Impact of CCS								Total after CCS								Half year				Year
						Half year ended					Half year ended								Half year ended								ended				ended
						30 June 2024					30 June 2024								30 June 2024								30 June 2023				31 Dec. 2023
						Unaudited					Unaudited								Unaudited								Unaudited				Audited
						€'m					€'m								€'m								€'m				€'m


Euro						(2,338.6)					175.0								(2,163.6)								(2,103.1)				(2,039.0)
Sterling						88.6					-								88.6								88.5				93.0
US Dollar						269.8					(175.0)								94.8								20.5				139.3
Other						134.3					-								134.3								151.0				205.5


						(1,845.9)					-								(1,845.9)								(1,843.1)				(1,601.2)


iii) The following table details the maturity profile of the Group's net debt:


						On demand & up to 1 year €'m								Up to 2 years €'m						2 - 5 years €'m							> 5 years €'m					Total €'m


Cash at bank and in hand						659.5								-						-							-					659.5
Interest rate swaps						-								(13.6)						-							10.2					(3.4)
Bank overdrafts						(0.4)								-						-							-					(0.4)
Bank loans						-								-						2.3							-					2.3
Senior Notes						-								(946.7)						-							(1,489.7)					(2,436.4)


Net debt - pre lease liabilities						659.1								(960.3)						2.3							(1,479.5)					(1,778.4)
Lease liabilities (discounted)						(25.1)								(18.9)						(14.9)							(6.6)					(65.5)


At 30 June 2024 - unaudited						634.0								(979.2)						(12.6)							(1,486.1)					(1,843.9)


Cash at bank and in hand						660.8								-						-							-					660.8
Interest rate swaps						-								-						(15.9)							-					(15.9)
Bank overdrafts						-								-						-							-					-
Bank loans						(1.3)								-						2.8							-					1.5
Senior Notes						-								-						(941.3)							(1,488.0)					(2,429.3)


Net debt - pre lease liabilities						659.5								-						(954.4)							(1,488.0)					(1,782.9)
Lease liabilities (discounted)						(31.8)								(11.8)						(13.0)							(7.0)					(63.6)


At 30 June 2023 - unaudited						627.7								(11.8)						(967.4)							(1,495.0)					(1,846.5)


Cash at bank and in hand						943.7								-						-							-					943.7
Interest rate swaps						-								(9.4)						-							(0.1)					(9.5)
Bank overdrafts						(37.1)								-						-							-					(37.1)
Bank loans						-								-						2.6							-					2.6
Senior Notes						-								(946.3)						-							(1,488.9)					(2,435.2)


Net debt - pre lease liabilities						906.6								(955.7)						2.6							(1,489.0)					(1,535.5)
Lease liabilities (discounted)						(26.2)								(16.9)						(18.2)							(7.3)					(68.6)


At 31 December 2023 - audited						880.4								(972.6)						(15.6)							(1,496.3)					(1,604.1)


At 30 June 2024, the Group had cash on hand of €659.5m. At the period end, the Group had an undrawn committed Syndicate revolving credit facility of €1,500m. Cash at bank and in hand includes an amount of €56.1m held on short-term deposit.

iv) Fair value of financial instruments:
a) Fair value of financial instruments carried at fair value

The following table sets out the fair value of financial instruments carried at fair value:

													Fair Value					30 June 2024								30 June 2023					31 Dec. 2023
													Hierarchy					Unaudited								Unaudited					Audited
																		€'m								€'m					€'m


Financial assets
Interest rate swaps:				Non-current									Level 2					10.2								-					-
				Current									Level 2					-								-					-
Forward foreign exchange contracts:				Non-current									Level 2					0.1								0.7					0.7
				Current									Level 2					5.3								19.3					13.7
Financial asset investments:				Fair value through profit or loss									Level 1					38.2								42.8					39.9
				Fair value through other comprehensive income									Level 3					14.2								12.1					12.1

Financial liabilities
Interest rate swaps:				Non-current									Level 2					(13.6)								(15.9)					(9.5)
				Current									Level 2					-								-					-
Forward foreign exchange contracts:				Non-current									Level 2					-								(0.2)					(0.2)
				Current									Level 2					(8.8)								(8.5)					(7.5)
Deferred payments on acquisition of businesses:				Non-current									Level 3					(15.3)								(4.2)					(98.6)
				Current									Level 3					(75.0)								(28.4)					(2.1)


There have been no transfers between levels during the current or prior financial period.
Financial instruments recognised at fair value are analysed between those based on:
-	quoted prices in active markets for identical assets or liabilities (Level 1);
-	those involving inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly (as prices) or indirectly (derived from prices) (Level 2); and
-	those involving inputs for the assets or liabilities that are not based on observable market data (unobservable inputs) (Level 3).

b) Fair value of financial instruments carried at amortised cost

Except as defined in the following table, it is considered that the carrying amounts of financial assets and financial liabilities recognised at amortised cost in the Condensed Consolidated Interim Financial Statements approximate their fair values.
					Carrying			Fair				Carrying					Fair								Carrying				Fair
					Amount			Value				Amount					Value								Amount				Value
			Fair Value		30 June 2024			30 June 2024				30 June 2023					30 June 2023								31 Dec. 2023				31 Dec. 2023
			Hierarchy		Unaudited			Unaudited				Unaudited					Unaudited								Audited				Audited
					€'m			€'m				€'m					€'m								€'m				€'m


Financial liabilities
Senior Notes - Public			Level 2		(2,441.8)			(2,185.2)				(2,441.8)					(2,104.9)								(2,441.8)				(2,204.5)


c) Valuation principles

The fair value of financial assets and liabilities are determined as follows:

-		assets and liabilities with standard terms and conditions which are traded on active liquid markets are determined with reference to quoted market prices. This includes equity investments;
-		other financial assets and liabilities (excluding derivatives) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments. This includes interest rate swaps and forward foreign exchange contracts which are determined by discounting the estimated future cash flows;
-		the fair values of financial instruments that are not based on observable market data (unobservable inputs) requires entity specific valuation techniques; and
-		derivative financial instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments. Forward foreign exchange contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates adjusted for counterparty credit risk, which is calculated based on credit default swaps of the respective counterparties. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates adjusted for counterparty credit risk, which is calculated based on credit default swaps of the respective counterparties.

Net debt reconciliation

				Cash at bank and in hand €'m			Interest Rate Swaps €'m				Overdrafts due within 1 year* €'m			Borrowings due within 1 year* €'m					Borrowings due after 1 year* €'m				Net Debt - pre lease liabilities €'m					Lease liabilities* €'m				Net Debt €'m


At 31 December 2022 - audited				970.0			15.5				(0.2)			(700.9)					(2,432.6)				(2,148.2)					(69.2)				(2,217.4)

Cash flows				(294.9)			(34.5)				0.2			688.3					4.5				363.6					17.4				381.0
Foreign exchange adjustments				(14.3)			1.4				-			12.9					(0.3)				(0.3)					1.3				1.0
Other non-cash movements				-			1.7				-			(1.6)					1.9				2.0					(13.1)				(11.1)


At 30 June 2023 - unaudited				660.8			(15.9)				-			(1.3)					(2,426.5)				(1,782.9)					(63.6)				(1,846.5)


Cash flows				286.0			0.1				(34.7)			(1.0)					-				250.4					19.0				269.4
Foreign exchange adjustments				(3.1)			1.1				-			-					-				(2.0)					-				(2.0)
Other non-cash movements				-			5.2				-			(0.1)					(6.1)				(1.0)					(24.0)				(25.0)


At 31 December 2023 - audited				943.7			(9.5)				(34.7)			(2.4)					(2,432.6)				(1,535.5)					(68.6)				(1,604.1)


Cash flows				(296.1)			-				34.3			2.4					-				(259.4)					16.8				(242.6)
Foreign exchange adjustments				11.9			(5.7)				-			-					-				6.2					(0.6)				5.6
Other non-cash movements				-			11.8				-			-					(1.5)				10.3					(13.1)				(2.8)


At 30 June 2024 - unaudited				659.5			(3.4)				(0.4)			-					(2,434.1)				(1,778.4)					(65.5)				(1,843.9)


*Liabilities from financing activities.

10. Business combinations

The following acquisition was completed by the Group during the period to 30 June 2024:


Acquisition		Type	Completion date			Percentage acquired							Segment		Principal activity									Strategic rationale


Part of the global lactase enzymes business of Novonesis (formerly Chr. Hansen Holding A/S ("Chr. Hansen") and Novozymes A/S ("Novozymes")).		Asset & Equity	April 2024			Certain trade and assets of Chr.Hansen's global lactase enzyme business on a carve-out basis and 100% of the share capital of Nuocheng Trillion Food (Tianjin) Co., Ltd., a Chinese subsidiary of Novozymes.							Taste & Nutrition		The Lactase Enzymes Business which includes NOLA^® Products, further enhances Kerry's biotechnology solutions capability.									This acquisition adds enzyme technology which helps create lactose-free and sugar reduced dairy products, while preserving their authentic clean taste. Global demand for lactase is being driven by increased awareness of lactose intolerance, while many consumers are also choosing lactose-free for lifestyle and health reasons.


The table below provides details of the identifiable net assets, including adjustments to provisional fair values, in respect of the acquisition completed during the period to 30 June 2024:

																														Half year
																														ended 30 June 2024
																														Unaudited
																														€'m


Recognised amounts of identifiable assets acquired and liabilities assumed:

Non-current assets
	Property, plant and equipment																													51.6
	Brand related intangibles																													81.7
Current assets
	Cash at bank and in hand																													0.8
	Inventories																													6.1
	Trade and other receivables																													1.5
Current liabilities
	Trade and other payables																													(2.7)


Total identifiable assets																														139.0

Goodwill																														6.0


Total consideration																														145.0


Satisfied by:
Cash																														79.2
Deferred consideration*																														65.8


																														145.0


*The deferred consideration consists of two additional payments totalling €65.8m (DKK 491.5m) payable in the second half of 2024 based on contractual arrangements. The €65.8m represents the fair value of the expected deferred consideration. Since the period end one payment of €25.4m (DKK 189.6m) has been paid for the acquisition with the second payment payable in Q4 2024.

Net cash outflow on acquisition:

																														Half year
																														ended
																														30 June 2024
																														Unaudited
																														€'m


Cash																														79.2
Less: cash and cash equivalents acquired																														(0.8)


																														78.4


The acquisition method of accounting has been used to consolidate the business acquired in the Group's Condensed Consolidated Interim Financial Statements. Given that the valuation of the fair value of assets and liabilities recently acquired is still in progress, some of the values in the previous table are determined provisionally. For the acquisitions completed in 2023, there have been material revisions of the provisional fair value adjustments since the initial values were established as outlined in the table below. The Group performs quantitative and qualitative assessments of each acquisition in order to determine whether it is material for the purposes of separate disclosure under IFRS 3 'Business Combinations'. The acquisition completed during the period was not considered material to warrant separate disclosure under these assessments. The goodwill is attributable to the expected profitability, revenue growth, future market development and assembled workforce of the acquired business and the synergies expected to arise within the Group after the acquisition. The goodwill recognised is expected to be deductible for income tax purposes. Transaction expenses related to this acquisition of €1.8m were charged in the Group's Condensed Consolidated Income Statement during the financial period. The fair value of the financial assets includes trade and other receivables with a fair value of €1.4m and a gross contractual value of €1.5m. The revenue and profit after taxation attributable to owners of the parent to the Group contributed from date of acquisition for all business combinations effected during the period is as follows:

																														Half year
																														ended 30 June 2024
																														Unaudited
																														€'m


Revenue																														9.3
Profit after taxation attributable to equity holders of the parent																														1.1


The revenue and profit after taxation attributable to equity holders of the parent to the Group determined in accordance with IFRS as though the acquisition date for all business combinations effected during the period had been the beginning of that period would be as follows:

																									Kerry Group					Consolidated
																									excluding					Group
																						2024			2024					including
																						acquisition			acquisition					acquisition
																						Unaudited			Unaudited					Unaudited
																						€'m			€'m					€'m


Revenue																						28.0			3,871.1					3,899.1
Profit after taxation attributable to equity holders of the parent																						3.3			290.4					293.7


2023 Acquisitions
During 2023, the Group completed a total of two acquisitions both of which are 100% owned by the Group. The initial assessment of fair values to identifiable net assets acquired was performed on a provisional basis. As part of the finalisation of the expected contingent consideration and the fair value exercise in respect of the 2023 acquisitions, the Group considered the valuations applied to intangible and tangible assets acquired. The outcome of this exercise resulted in a reduction of goodwill arising on acquisition by €67.0m and a reduction in contingent consideration of €75.1m. The amendments to these fair values were made to the comparative figures during the subsequent reporting window within the measurement period imposed by IFRS 3 'Business Combinations'. The provisional fair value of these assets recorded, together with the adjustments made to those carrying values to arrive at the final fair values were as follows:


																						Provisional fair				Measurement
																						values of 2023				period
																						acquisitions				adjustments				Total
																						2023				2023				2023
																						€'m				€'m				€'m


Property, plant and equipment																						9.7				-				9.7
Goodwill arising on acquisition																						176.9				(67.0)				109.9
Other brand-related intangibles																						41.6				(9.5)				32.1


Non-current assets																						228.2				(76.5)				151.7

Current assets																						14.2				-				14.2
Non-current liabilities																						(13.5)				1.4				(12.1)
Current liabilities																						(18.8)				-				(18.8)


Total identifiable assets																						210.1				(75.1)				135.0


Total consideration																						210.1				(75.1)				135.0


11. Share capital


																						Half year			Half year					Year
																						ended			ended					ended
																						30 June 2024			30 June 2023					31 Dec. 2023
																						Unaudited			Unaudited					Audited
																						€'m			€'m					€'m


Authorised
280,000,000 A ordinary shares of 12.50 cent each																						35.0			35.0					35.0


Allotted, called-up and fully paid (A ordinary shares of 12.50 cent each)
At beginning of the financial period																						21.9			22.1					22.1
Shares issued during the financial period																						-			-					-
Shares cancelled during the financial period																						(0.4)			-					(0.2)


At end of the financial period																						21.5			22.1					21.9


Kerry Group plc has one class of ordinary share which carries no right to fixed income. Shares issued during the period During the period a total of 181,929 A ordinary shares, each with a nominal value of 12.50 cent, were issued at nominal value per share under the Long-Term and Short-Term Incentive Plans. The total number of shares in issue at 30 June 2024 was 172,457,816 (30 June 2023: 177,098,561; 31 December 2023: 175,792,661). Share Buyback Programme In May 2024, the Board approved a new Share Buyback Programme of up to €300 million. The Share Buyback Programme is underpinned by the Group's strong balance sheet and cash flow and is aligned to Kerry's Capital Allocation Framework. The programme commenced on 7 May 2024 and will end no later than 19 December 2024. In the period from 7 May 2024 to 30 June 2024 the Company purchased 1,035,583 shares at a total cost of €80.1m. At 30 June 2024 there was no financial liability recorded in relation to the Share Buyback Programme. Since the period end, and up to 26 July 2024, the Company has announced the purchase of an additional 1,109,438 shares at a total cost of €86.6m. The previous Share Buyback Programme announced in October 2023, commenced on 1 November 2023 and was completed by 30 April 2024. The total number of shares acquired during 2023 was 1,373,261 at a cost of €101.7m. During the period 1 January 2024 to 30 April 2024, an additional 2,481,191 shares were acquired at a cost of €198.6m, resulting in a total number of shares acquired as part of this programme of 3,854,452 at a total cost of €300.3m including transaction costs of €0.3m. All shares acquired were A ordinary shares with a nominal value of 12.50 cent. The shares acquired were cancelled immediately following their repurchase.
12. Events after the Balance Sheet date

Since the period end, the Group has:

-	declared an interim dividend of 38.1 cent per A ordinary share (see note 6); and
-	the Company announced the repurchase of 1,109,438 shares at a cost of €86.6m up to 26 July 2024.

There have been no other significant events, outside of the ordinary course of business, affecting the Group since 30 June 2024.

13. General information

These unaudited Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2024 are not full financial statements and were not reviewed or audited by the Group's auditors, PricewaterhouseCoopers (PwC). These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors and authorised for issue on 30 July 2024. The figures disclosed relating to 31 December 2023 have been derived from the Consolidated Financial Statements which were audited, received an unqualified audit report and have been filed with the Registrar of Companies. This report should be read in conjunction with the 2023 Annual Report which was prepared in accordance with IFRS adopted by the European Union ('EU') which comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'). The Group financial statements comply with Article 4 of the EU IAS Regulation. IFRS adopted by the EU differs in certain respects from IFRS Accounting Standards issued by the IASB. References to IFRS refer to IFRS adopted by the EU. The accounting policies applied by the Group in these Condensed Consolidated Interim Financial Statements are the same as those detailed in the 2023 Annual Report. These unaudited Condensed Consolidated Interim Financial Statements have been prepared on the going concern basis of accounting as set out in Note 1. The Directors report that they have satisfied themselves that the Group is a going concern, having adequate resources to continue in operational existence for the foreseeable future. In forming this view, the Directors have reviewed the Group's budget for a period not less than 12 months, the five year medium-term plan and have taken into account the cash flow implications of the plans, including proposed capital expenditure, and compared these with the Group's committed borrowing facilities and projected gearing ratios. Intangible assets increased by €109.6m to €5,859.4m (31 December 2023: €5,749.8m; 30 June 2023: €5,686.5m) due to business acquisitions, computer software additions and the positive impact of foreign exchange translation, offset by the measurement period adjustments relating to previous years acquisition (Note 10) and the amortisation charge for the period. In relation to seasonality, EBITDA is lower in the first half of the year due to the nature of the food business and stronger trading in the second half. While revenue is relatively evenly spread, margin has traditionally been higher in the second half of the year due to product mix and the timing of promotional activity. There is also a material change to the levels of working capital between December and June mainly due to the seasonal nature of the dairy and crop-based businesses. As permitted by the Transparency (Directive 2004/109/EC) Regulations 2007 this Interim Report is available on www.kerry.com. However, if a physical copy is required, please contact the Corporate Affairs department.

FINANCIAL DEFINITIONS

1. Revenue
Volume growth This represents the sales growth period-on-period, excluding pass-through pricing on input costs, currency impacts, acquisitions, disposals and rationalisation volumes. Volume growth is an important metric as it is seen as the key driver of organic top-line business improvement. Pricing impacts revenue growth positively or negatively depending on whether inputs move up or down. A full reconciliation to reported revenue performance is detailed in the revenue reconciliation below.
Revenue Reconciliation

					Volume							Transaction													Translation					Reported
H1 2024					performance			Price				currency						Acquisitions				Disposals			currency					performance


Taste & Nutrition					3.1%			(3.0%)				-						0.7%				(3.1%)			(1.1%)					(3.4%)

Dairy Ireland					(1.9%)			(6.9%)				-						-				(3.8%)*			0.4%					(12.2%)


Group					1.7%			(4.0%)				-						0.6%				(3.3%)			(0.9%)					(5.9%)


H1 2023


Taste & Nutrition					1.4%			5.4%				-						1.3%				(5.3%)			(0.1%)					2.7%

Dairy Ireland					(2.5%)			0.4%				(0.1%)						-				-			(0.8%)					(3.0%)


Group					0.6%			4.5%				-						1.1%				(4.5%)			(0.1%)					1.6%


*Reduction in revenue reflects changes in contractual arrangements implemented in the current year, where Dairy Ireland has become an agent, in accordance with IFRS 15 'Revenue form Contracts with Customers'. The related revenue in H1 2024 amounted to €1m (H1 2023: €26m).

2. EBITDA
EBITDA represents profit before finance income and costs, income taxes, depreciation (net of capital grant amortisation), intangible asset amortisation, non-trading items and share of joint ventures' results after taxation. EBITDA is reflective of underlying trading performance and allows comparison of the trading performance of the Group's businesses, either period-on-period or with other businesses.


																									H1 2024 €'m					H1 2023 €'m


Profit after taxation																									291.5					357.9

Share of joint ventures' results after taxation																									1.0					0.7
Finance income																									(11.4)					(5.7)
Finance costs																									39.2					33.2
Income taxes																									49.0					21.3
Non-trading items																									24.3					(40.5)
Intangible asset amortisation																									45.6					42.1
Depreciation (net)																									113.0					109.0


EBITDA																									552.2					518.0


3. EBITDA Margin
EBITDA margin represents EBITDA expressed as a percentage of revenue.

																									H1 2024 €'m					H1 2023 €'m


EBITDA																									552.2					518.0
Revenue																									3,880.4					4,121.6


EBITDA margin																									14.2%					12.6%


4. Operating Profit
Operating profit is profit before income taxes, finance income, finance costs and share of joint ventures' results after taxation.

																									H1 2024 €'m					H1 2023 €'m


Profit before taxation																									340.5					379.2

Finance income																									(11.4)					(5.7)
Finance costs																									39.2					33.2
Share of joint ventures' results after taxation																									1.0					0.7


Operating profit																									369.3					407.4


5. Adjusted Earnings Per Share and Performance in Adjusted Earnings Per Share on a Constant Currency Basis
The performance in adjusted earnings per share on a constant currency basis is provided as it is considered more reflective of the Group's underlying trading performance. Adjusted earnings is profit after taxation attributable to equity holders of the parent before brand related intangible asset amortisation and non-trading items (net of related tax). These items are excluded in order to assist in the understanding of underlying earnings. A full reconciliation of adjusted earnings per share to basic earnings per share is provided below. Constant currency eliminates the translational effect that arises from changes in foreign currency period-on-period. The performance in adjusted earnings per share on a constant currency basis is calculated by comparing current period adjusted earnings per share to the prior period adjusted earnings per share retranslated at current period average exchange rates.

																		H1 2024 EPS cent				Performance %			H1 2023 EPS cent					Performance %


Basic earnings per share																		166.7				(17.4%)			201.7					57.1%
Brand related intangible asset amortisation																		15.8				-			14.9					-
Non-trading items (net of related tax)																		11.6				-			(36.6)					-


Adjusted earnings per share																		194.1				7.8%			180.0					2.0%
Impact of retranslating prior period adjusted earnings per share at current period average exchange rates*																						1.3%								0.1%


Growth in adjusted earnings per share on a constant currency basis																						9.1%								2.1%


*Impact of H1 2024 translation was 2.3/180 cent = 1.3% (H1 2023: 0.1%).

6. Free Cash Flow
Free cash flow is EBITDA plus movement in average working capital, capital expenditure net (purchase of assets, payment of lease liabilities, proceeds from the sale of assets (net of disposal expenses) and capital grants received), pensions contributions paid less pension expense, finance costs paid (net) and income taxes paid. Free cash flow is seen as an important indicator of the strength and quality of the business and of the availability to the Group of funds for reinvestment or for return to shareholders. Movement in average working capital is used when calculating free cash flow as management believes this provides a more accurate measure of the increase or decrease in working capital needed to support the business over the course of the period rather than at two distinct points in time and more accurately reflects fluctuations caused by seasonality and other timing factors. Average working capital is the sum of each month's working capital over 6 months adjusted for the impact of acquisitions and disposals. Below is a reconciliation of free cash flow to the nearest IFRS measure, which is 'Net cash from operating activities'.

																									H1 2024 €'m					H1 2023 €'m


Net cash from operating activities																									367.0					309.7

Difference between movement in monthly average working capital and movement in the period end working capital																									167.1					(13.5)
Payments on non-trading items																									27.2					39.5
Purchase of assets																									(103.4)					(99.8)
Payment of lease liabilities																									(16.8)					(17.4)
Proceeds from the sale of assets (net of disposal expenses)																									-					11.5
Exchange translation adjustment																									4.3					1.9


Free cash flow																									445.4					231.9


7. Cash Conversion
Cash conversion is defined as free cash flow, expressed as a percentage of adjusted earnings after taxation. Cash conversion is an important metric as it measures how much of the Group's adjusted earnings is converted into cash.

																									H1 2024 €'m					H1 2023 €'m


Free cash flow																									445.4					231.9

Profit after taxation attributable to equity holders of the parent																									291.5					358.2
Brand related intangible asset amortisation																									27.6					26.5
Non-trading items (net of related tax)																									20.2					(65.0)


Adjusted earnings after taxation																									339.3					319.7


Cash conversion																									131%					73%


8. Liquidity Analysis
The Net debt: EBITDA and EBITDA: Net interest ratios disclosed are calculated using an adjusted EBITDA, adjusted finance costs (net of finance income) and an adjusted net debt value to adjust for the impact of non-trading items, acquisitions net of disposals and deferred payments in relation to acquisitions.

																									H1 2024 Times					H1 2023 Times


Net debt: EBITDA																									1.6					1.6
EBITDA: Net interest																									23.2					19.0


9. Average Capital Employed
Average capital employed is calculated by taking an average of the shareholder's equity less vendor loan note and net debt over the last three reported balance sheets.

									H1 2024 €'m							2023 €'m						H1 2023 €'m					2022 €'m				H1 2022 €'m


Equity attributable to equity holders of the parent											6,512.8						6,521.3					6,356.5					6,221.9				6,088.7
Vendor loan note										(128.0)							(124.3)					(125.0)					-				-
Net debt										1,843.9							1,604.1					1,846.5					2,217.4				2,456.3


Total capital employed										8,228.7							8,001.1					8,078.0					8,439.3				8,545.0


Average capital employed										8,102.6							8,172.8					8,354.1


10. Return on Average Capital Employed (ROACE)
This measure is defined as profit after taxation attributable to equity holders of the parent before non-trading items (net of related tax), brand related intangible asset amortisation and finance income and costs expressed as a percentage of average capital employed. ROACE is a key measure of the return the Group achieves on its investment in capital expenditure projects, acquisitions and other strategic investments.

																				12 months to H1 2024 €'m									12 months to H1 2023 €'m	FY 2023 €'m


Profit after taxation attributable to equity holders of the parent																					661.6								737.0	728.3
Non-trading items (net of related tax)																					67.8								(2.9)	(17.4)
Brand related intangible asset amortisation																					53.4								54.3	52.3
Net finance costs																					50.6								59.6	50.3


Adjusted profit																					833.4								848.0	813.5


Average capital employed																					8,102.6								8,354.1	8,172.8


Return on average capital employed																					10.3%								10.2%	10.0%


11. Net Debt
Net debt comprises borrowings and overdrafts, interest rate derivative financial instruments, lease liabilities and cash at bank and in hand. See full reconciliation of net debt in note 9 of these Condensed Consolidated Interim Financial Statements.

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END

IR KZGFNLGMGDZM

TIDM	KYGA
Share Price	€83.00-0.48%
Market Cap	€13.14bn

Date	31 Jul 2024
Time	07:00:11
Category	Results
ID	4775Y

TIDM	KYGA
Share Price	€83.00-0.48%
Market Cap	€13.14bn

Date	31 Jul 2024
Time	07:00:11
Category	Results
ID	4775Y

t

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KERRY GROUP INTERIM MANAGEMENT REPORT 2024

KERRY GROUP