Kerry reports Q1 growth driven by foodservice and emerging markets while snacks and beverages perform well
The Beverage, Bakery, and Snack categories performed well for Kerry, supported by strong growth in savory taste and the company’s Tastesense salt and sugar reduction technologies, as well as integrated solutions incorporating Kerry’s botanicals, natural extracts, and enzymes.
In a Q1 Interim Management Statement 2025, Kerry said the business delivered good volume growth in the period given overall consumer market demand.
Foodservice continued its outperformance with volume growth of 4.7%. According to Kerry, this was driven by new menu innovations, seasonal products, and solutions to reduce operational cost and complexity.
Growth in the retail channel was supported by an increase in nutritional enhancement renovation activity with a range of customers.
Business volumes in emerging markets increased by 6.4% in the period, led by a strong performance in Southeast Asia.
CEO Edmond Scanlon says, “We delivered a good overall performance in the first quarter, particularly given market conditions. We achieved good volume growth in the Americas and APMEA, with Europe similar to the prior year.”
“Against a backdrop of highly dynamic macroeconomic conditions, our extensive local footprint, our unique offering, and the strength of our business model positions us well to navigate through this period, supporting our customers as their innovation and renovation partner.”
Scanlon notes that despite the heightened level of market uncertainty, Kerry remains well-positioned for good volume growth and strong margin expansion, maintaining its full-year constant currency earnings guidance.
Regional highlights
Growth in the period reflected good performances in North America and LATAM.
Within North America, bakery achieved strong growth driven by integrated solutions that incorporate Kerry’s taste and texture systems as well as enzymes.
Snacks was boosted through innovations leveraging Kerry’s range of savory taste profiles and salt reduction technologies, to meet the increasing consumer demand for nutritional and healthy products.
The strong performance of taste technologies drove growth in the Dairy category, while performance within the Meat end market reflected softer overall category volumes.
Growth within the retail channel was supported by renovation activity across customer and retailer brands, while growth in the foodservice channel was led by quick service and fast-casual restaurants.
Brazil and Central America also experienced growth across Snacks and Meals.
Performance in APMEA was primarily driven by strong growth in Southeast Asia, the Middle East, and Africa, with volumes in China remaining challenged.
Kerry also said that at the end of March, net debt was €1.9 billion (US$2.1 billion), reflecting cash generation, capital investment, and the share buyback program. It notes that Kerry’s consolidated balance sheet remains strong, which will facilitate the continued strategic development and growth of the business.
