Kerry Group Interim Management Report 2026

29 July 2026

LEI: 635400TLVVBNXLFHWC59

KERRY GROUP PLC

Half Year Results 2026

Strong H1 Performance | 2030 Financial Targets Announced

HIGHLIGHTS

Markets and Performance

H1 2026 Business Review

Strong Q2 volume progression and continued margin expansion

Volume growth across each of the regions in the period reflected continued progression across all geographies in the second quarter.

Growth was led by Snacks, Meat, Dairy and Beverage end markets. This was driven by Kerry's leading capabilities across savoury taste and Tastesense™ salt and sugar reduction technologies, and integrated solutions incorporating Kerry's botanicals and natural extracts, fermentation derived and enzymatic bio-fermentation portfolio and natural clean-label food protection and preservation systems.

Foodservice continued its strong market outperformance with volume growth of 4.8%, driven by a range of new menu innovations, seasonal product launches, and continued product renovation. Growth in the retail channel was supported by continued product renovation activity and innovation in high-growth areas across a range of customers.

Business volumes in emerging markets increased by 5.0% in the period, reflecting good growth in the Middle East, Africa and LATAM. Within the Pharma & Other EUM, performance was led by volume growth in cell nutrition.

Strong EBITDA margin expansion was achieved across all regions in the period. This was primarily driven by efficiencies, net price, operating leverage and mix, partially offset by an adverse translation currency impact.

The Accelerate 2.0 programme continued with good progress in footprint optimisation in both North America and Europe. The expansion of Kerry's digital initiatives also continued in line with plans across manufacturing operations, commercial enablement activities and global business service centres.

Regional Review

Americas Region

¹ volume growth

Strong volume growth was achieved in the period, reflecting good performances in both North America and LATAM.

Within North America, strong growth was achieved in Snacks through innovations and renovations utilising Kerry's range of savoury taste profiles and Tastesense™ salt reduction technologies, as well as new innovations with emerging brands focused on delivering science-backed health and wellness claims. Meat delivered good growth in poultry applications across both retail and foodservice. This growth was driven by launches with new signature taste profiles, nutritional enhancements and natural preservation systems. Growth in Beverage reflected the strong performance of botanicals, natural extracts and Tastesense™ sugar reduction technologies in refreshing beverages, combined with good growth in nutritional beverages and coffee-based beverage launches.

In the retail channel, growth was supported by renovation activity across global customers and retailer brands, with growth in the foodservice channel reflecting strong innovation activity across established operators and emerging chains.

Within LATAM, strong growth was achieved in Mexico across Snacks and Beverage end markets.

Strategic investments in the region included beverage taste capacity and capability enhancements in North America and progression of footprint expansion for savoury taste capabilities in Mexico.

Europe Region

¹ volume growth

Volume performance reflected growth across both foodservice and retail channels, with no significant change in market conditions in the period.

Good growth was achieved in Beverage supported by new refreshing beverage innovations and the performance of low / no alcohol solutions through Kerry's integrated taste technologies, botanicals and Tastesense™ sugar reduction technologies. Dairy performance was supported by good growth in taste and protein masking solutions, with growth in Snacks driven by integrated savoury taste solutions. Performance in Meals and Bakery reflected challenged category volumes in the period.

Retail growth was led by performance in Snacks with growth in foodservice led by the strong performance of refreshing beverage innovations.

Strategic investments in the region included expansion of Kerry's proactive health capacity and capabilities in Spain.

APMEA Region

¹ volume growth

Growth in the region was led by good volume growth in the Middle East and Africa, with China returning to growth and a solid performance in Southeast Asia.

Strong growth was achieved in Dairy with enzymes and dairy taste solutions. Meat delivered a strong performance through taste and texture systems across a broad range of customers in both the retail and foodservice channels. Bakery delivered good growth through solutions incorporating Kerry's taste, texture and enzyme technologies, supported by strong customer reformulation activity. Volume growth in Snacks was driven by continued strong performance in savoury taste with leading global and regional customers.

Growth in the retail channel was driven by Kerry's range of local authentic taste profiles, with growth in foodservice driven by performance with leading global and regional quick service restaurants.

Strategic investments in the region included the commencement of a new local taste footprint expansion in Türkiye and further expansion of footprint in the Middle East region.

Financial Review

See Financial Definitions section for definitions, calculations, and reconciliations of Alternative Performance Measures.

Revenue

Group revenue for the period was €3,336.4m (H1 2025: €3,463.1m), comprising volume growth of 3.3%, an overall pricing reduction of 1.0%, unfavourable transaction currency of 0.1%, unfavourable translation currency of 4.8%, and the effect of disposals net of contribution from acquisitions of 1.1% , resulting in an overall reported decrease of 3.7%.

Revenue Reconciliation

EBITDA & Margin %

Group EBITDA increased to €558.1m (H1 2025: €555.9m). EBITDA margin increased by 60bps to 16.7% (H1 2025: 16.1%), driven primarily by benefits delivered through the Accelerate 2.0 programme, operating leverage, favourable product mix and the contribution from portfolio developments.

Finance Costs (net)

Net finance costs for the period are comparable to prior year at €29.7m (H1 2025: €30.3m). Higher finance costs paid during the period reflect the timing of interest payments compared with prior year. Finance income was lower in the period as cash deposits decreased following the repayment of debt in September 2025.

Taxation

The tax charge for the period before non-trading items was €53.5m (H1 2025: €53.6m) representing an effective tax rate of 14.6% (H1 2025: 14.4%). The effective tax rate reflects the geographical mix of earnings across the Group.

Non-Trading Items

The Group recorded a net non-trading charge of €32.2m during the period (H1 2025: €15.0m charge), primarily relating to costs associated with the Accelerate 2.0 programme.

Foreign Exchange Rates

Fluctuations in exchange rates against the euro resulted in an adverse translation impact of 4.8% on reported revenue compared with the prior year. The principal currencies contributing to the movement in the Group's translated net assets were the USD, CNY and GBP which had closing rates of 1.13 (FY 2025: 1.18), 7.71 (FY 2025: 8.24) and 0.86 (FY 2025: 0.87) respectively.

Free Cash Flow

The Group achieved free cash flow of €262.3m (H1 2025: €308.6m) representing 76% cash conversion.This performance reflects adverse exchange rate movements, higher capital expenditure and working capital investment to support continued business growth.

Cash conversion is free cash flow expressed as a percentage of adjusted earnings after taxation

Return on Average Capital Employed (ROACE)

Group ROACE at the period end was 10.5% (H1 2025: 10.7%). Underlying improvements in operating returns were more than offset by the impact of foreign exchange translation movements on average capital employed.

Net Debt

Net debt at the end of the period was €2,369.8m (31 December 2025: €2,244.2m). The increase from year-end reflects strong operating cash generation more than offset by capital expenditure and shareholder distributions, including dividend payments and expenditure under the Share Buyback Programme.

Liquidity Analysis

The Group's balance sheet remains strong, with net debt to EBITDA ratio of 2.0 times, providing substantial liquidity and financial flexibility to support the Group's strategic objectives.

Principal Risks and Uncertainties

Details of the principal risks and uncertainties facing the Group can be found in the 2025 Annual Report on pages 33 to 38 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, geopolitical, emerging markets and macroeconomic environment, climate change and nature, people, food safety and quality, health & safety, margin management, digital, cyber security and ICT resilience, operational and supply chain resilience, intellectual property, legal, regulatory and ethical risk, 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.

Dividend

The Board has declared an interim dividend of 46.2 cent per share, compared to the prior year interim dividend of 42.0 cent, payable on 6 November 2026 to shareholders on the record date 9 October 2026.

Share Buyback Programme

During the period, the Company repurchased 2,402,438 ordinary shares at a total cost of €172.9 million under its Share Buyback Programmes. The programmes are aligned with the Group's Capital Allocation Framework and supported by its strong balance sheet and cash flow generation.

Future Prospects

Kerry's continued strong end market outperformance highlights the strength and relevance of its strategic positioning across its markets, channels and customer base.

The Group will continue to further advance its strategic business development, as it supports its customers as their key business development partner for innovation and renovation.

While recognising current market uncertainty, Kerry's remains strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline.

Kerry maintains its constant currency adjusted earnings per share guidance of 6% to 10% growth in 2026.

Note: Foreign currency translation expected to be a headwind of 1-2% on earnings per share in 2026 | Guidance based on average number of shares in issue of ~160m.

Responsibility Statement

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:

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.

Condensed Consolidated Income Statement

for the half year ended 30 June 2026

Condensed Consolidated Statement of Comprehensive Income

for the half year ended 30 June 2026

Condensed Consolidated Balance Sheet

as at 30 June 2026

Condensed Consolidated Statement of Changes in Equity

for the half year ended 30 June 2026

Other Reserves comprise the following:

Condensed Consolidated Statement of Cash Flows

for the half year ended 30 June 2026

Notes to the Condensed Consolidated Interim Financial Statements

for the half year ended 30 June 2026

1. Accounting policies

These Condensed Consolidated Interim Financial Statements for the half year ended 30 June 2026 have been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Group year end financial statements have 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 and Company law. The accounting policies applied by the Group in these Condensed Consolidated Interim Financial Statements are the same as those detailed in the 2025 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 2025.

During the year Kerry Dairy Holdings (Ireland) Limited (Kerry Dairy Ireland) was renamed Kinisla Group Limited.

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 including liquidity and access to financing as outlined in note 9 and the potential impacts of climate, geopolitical, technological and macroeconomic environment related risks on profitability, including tariffs. The going concern of the Group was also assessed by considering the potential impact of climate-related risks on profitability and liquidity, macroeconomic and geopolitical developments, customer inventory management and changing interest rates during the period. There are no material uncertainties that cast 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 approval 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.

IFRS 18 is the new standard on presentation and disclosure in financial statements (replacing IAS 1), with a focus on updates to the income statement. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the classification of income and expenses into operating, investing and financing categories on the face of the income statement and providing management-defined performance measures within the financial statements.

2. Analysis of results

For the period ended 30 June 2026 and comparative periods, the Group has determined it has three operating segments: Europe, Americas and APMEA which are leading providers of taste and nutrition solutions for the food, beverage and pharmaceutical markets. The Group utilises a broad range of ingredient solutions to innovate with its customers to create great tasting products, with improved nutrition and functionality, while ensuring a better impact for the planet. Kerry is driven to be its customers' most valued partner, creating a world of sustainable nutrition.

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

Segment assets and liabilities

Segment assets and liabilities are not provided to the CODM to assess segment performance or to allocate resources. However, the Group discloses segment assets and liabilities by segment on a voluntary basis.

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 by 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 and within the primary geographic markets which affect the nature, amount, timing and uncertainty of revenue and cash flows are similar.

Analysis by EUM