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Investing.com -- Kerry Group (IR:KYGa) (LON:KYGa) maintained its full-year earnings outlook after reporting in-line volume growth and a 6.3% jump in first quarter revenue.
The company’s EBITDA margin improved by 90 basis points in the quarter, driven by cost efficiencies, portfolio mix, acquisitions, and operating leverage.
Volume grew 3.1% in the quarter, in line with consensus estimates, with pricing up 0.2%. Foreign exchange translation added 1.7%, while acquisitions net of disposals contributed another 0.8%.
The company saw strong regional performance in APMEA, where volumes rose 5.1%, while the Americas posted 3.5% growth. Europe was broadly flat, with a 0.1% increase.
End-market conditions reflected generally cautious consumer behavior amid ongoing macroeconomic uncertainty.
“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. Our strong EBITDA margin expansion was led by efficiencies delivered through Accelerate operational excellence," said Edmond Scanlon, CEO of Kerry Group.
Kerry reiterated its full-year earnings per share (EPS) guidance and expressed confidence in its ability to deliver good volume growth and continued margin expansion, citing its broad geographic footprint and sourcing capabilities. Management noted that this positions the group well to navigate a continually evolving tariff landscape.
In addition to strong operating performance, Kerry announced a further €300 million share buyback to follow the completion of its existing program.
Morgan Stanley (NYSE:MS) analysts said they expect Kerry’s shares "to slightly outperform the market today," driven by in-line volume growth.
While the company maintained its earnings guidance excluding currency effects, it now faces a 3% to 4% currency headwind, analysts said. This implies roughly a 4% downside to current consensus at the midpoint.
As a result, the analysts expect consensus to trend lower, settling around an FY25 adjusted EPS ex-amortization of 493 cents.
Separately, Barclays (LON:BARC) analysts described the print as "solid," adding that another stock buyback "should reassure" investors that Kerry’s "improving returns profile is on track."