Kerry Group Stays the Course: FY2025 Guidance Maintained Amid Strong Q1 Growth

Kerry Group, the global leader in taste, nutrition, and consumer foods, has reaffirmed its FY2025 guidance following a robust 6.3% revenue increase in Q1 2025. This resilience underscores the company’s strategic execution amid macroeconomic challenges, positioning it as a key player in the food ingredients and consumer goods sector.

Q1 2025 Performance: A Catalyst for Confidence

Kerry’s Q1 2025 revenue rose to €2.36 billion, a 6.3% year-on-year increase, driven by strong performances across its Ingredients & Flavors and Consumer Foods divisions. The growth was fueled by volume gains in high-margin segments, including culinary systems, dairy, and savory applications. Notably, the Ingredients & Flavors division saw 7% like-for-like growth in the Americas and 5% in Europe, reflecting demand for Kerry’s innovative solutions in frozen meals, dressings, and sauces.

The Consumer Foods division also delivered, with sales up 6% to €877 million, driven by investments in chilled foods and brand positioning. Trading profit here rose 5.6% to €56 million, highlighting the division’s operational efficiency.

Maintaining FY2025 Guidance: The Numbers Behind the Strategy

Despite a projected FY2025 net sales figure of €7.3 billion (down slightly from FY2024’s €7.9 billion), Kerry has maintained its full-year guidance, citing Q1’s outperformance and its ability to manage input costs. Key financial metrics support this confidence:
- EBITDA for FY2024 reached €1.25 billion, with a margin expansion to 17.1%, signaling improved profitability.
- Free cash flow hit €766 million in 2024 (95% cash conversion), providing a strong liquidity buffer.
- The final 2025 dividend increased 10.1% to €0.89 per share, reflecting Kerry’s commitment to shareholder returns.

Regional and Segment Dynamics: Where the Growth Lies

Kerry’s success hinges on its geographic and segment diversification:
1. Americas Region: The Ingredients & Flavors division here is capitalizing on demand for frozen meal kits and plant-based products, with culinary systems sales up double digits.
2. European Market: Growth in savory applications (e.g., marinades, sauces) in the UK and mainland Europe has bolstered sales, despite regional inflationary pressures.
3. Consumer Foods: Kerry’s chilled food brands, such as Kerrygold, continue to gain traction, with premiumization trends driving value over volume.

Risks and Upcoming Milestones

While Kerry’s Q1 performance is encouraging, challenges remain:
- Input Cost Pressures: Rising commodity prices and currency fluctuations could squeeze margins, though Kerry’s hedging strategies and scale help mitigate risks.
- Competitive Landscape: Peers like DuPont Nutrition & Biosciences and Ingredion are intensifying innovation efforts, requiring Kerry to maintain R&D investments.

The Q2 2025 earnings release on July 29, 2025, will be critical to assess whether the company’s momentum is sustained. Investors should also monitor its progress in emerging markets, such as Asia-Pacific, where Kerry aims to expand its consumer foods footprint.

Conclusion: A Recipe for Long-Term Value

Kerry Group’s decision to maintain its FY2025 guidance despite a modest sales projection reflects its confidence in organic growth and operational discipline. With a 7.3% like-for-like revenue growth in Q1, strong cash flow, and a dividend increase, the company is well-positioned to navigate challenges and capitalize on secular trends like health-conscious consumption and premiumization.

Investors should note that Kerry’s 17.1% EBITDA margin in 2024 and €766 million free cash flow provide a solid foundation for reinvestment and shareholder returns. While near-term volatility in commodity markets poses risks, Kerry’s diversified portfolio and leadership in high-margin segments suggest it will remain a resilient performer. For those seeking exposure to the global food industry’s innovation leaders, Kerry Group offers a compelling blend of stability and growth potential.

Stay tuned for Q2 results, which will further illuminate whether this Irish multinational can sustain its trajectory—and its guidance—in the quarters ahead.