Kerry Dairy Ireland saw revenue of €592m in the first half of this year, with volumes 1.9% lower than the same period in 2023 and pricing down 6.9%. Despite this, the earnings before tax, interest and depreciation expanded by almost 20% to €35m.
Kerry Dairy Ireland saw revenue of €592m in the first half of this year, with volumes 1.9% lower than the same period in 2023 and pricing down 6.9%.
Despite this, the earnings before tax, interest and depreciation expanded by almost 20% to €35m.
The company said the increase in margin was driven by growth in dairy consumer products, with Kerry’s snacking and branded cheese ranges performing well.
The company said dairy ingredients volumes reflected “softer overall supply across the period given local market conditions”.
This appears to be a reference to the lower milk deliveries from Irish farmers during the first six months of the year.
Earnings
Earnings at the larger taste and nutrition division of Kerry Group were €551m, a 5.5% increase over 2023.
The company said it will pay an interim dividend of 38.1 cent per share and intends to start another share buyback programme after the current programme ends.
Since Kerry launched its buyback programme in November of last year, it has purchased €477m of its own shares.
Kerry Group increased earnings guidance growth to 7% to 10% per share on a constant currency basis for the full year, up from 5.5% to 8.5% previously.
CEO Edmond Scanlon said: “We are pleased to report a good performance across the first half of the year.
"Taste and 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.”
Shares in Kerry Group rose almost 5% to trade above €85 at the stock market opening at 8am.
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