Kerry Group reports 3% volume growth in Q3 2025

Investing.com -- Kerry Group PLC (ISE:KYGA) on Thursday reported 3% volume growth in the third quarter of 2025, in line with consensus expectations and slightly above Jefferies’ estimate of 2.8%, while pricing increased by 0.2%.

The company maintained its full-year 2025 outlook, projecting adjusted earnings per share growth of 7-11% at constant currencies, consistent with Jefferies analyst consensus of 9% growth.

Kerry’s EBITDA margin expanded by 80 basis points in the third quarter, contributing to a 90 basis point improvement year-to-date. This margin growth was attributed to cost efficiencies, operating leverage, improved product mix, and contributions from acquisitions and disposals.

Regional performance varied across markets. The Americas delivered 3.5% volume growth in Q3, exceeding Jefferies analyst expectations of 3.1-3.2%.

North American growth was particularly strong in snacks through salt-reduction technologies, while dairy growth was led by taste technologies and bakery growth by taste/texture solutions and enzymes.

European volumes grew by 0.7% in the third quarter, in line with consensus estimates, with beverage and nutritional beverages leading performance.

The APMEA (Asia Pacific, Middle East and Africa) region posted 4.1% volume growth, slightly below Jefferies analyst expectations of 4.2%, with strong performance in Southeast Asia, the Middle East, and Africa, though China remains challenging.

By channel, foodservice volumes increased 4.1%, driven by innovation supporting market share gains, while retail growth was supported by increased retailer brand innovation and nutritional enhancement.

Emerging markets saw volume growth of 5.3% across the period, led by Southeast Asia. The company reported net debt of €2.2 billion, representing a net debt to EBITDA ratio (excluding pension) of 1.7x.

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