Q3 Interim Management Statement 2024

Continued Volume Progression and Strong Margin Expansion

HIGHLIGHTS

  • Taste & Nutrition Q3 volume growth of 3.4% and Group Q3 volumes +3.2%
  • Taste & Nutrition Q3 price -1.2% | Group Q3 price -1.2%
  • Taste & Nutrition YTD EBITDA margin +120bps | Group +140bps
  • Dairy Ireland YTD volume growth of 0.4% | YTD EBITDA margin +120bps
  • Full year earnings per share guidance range reiterated

Edmond Scanlon, Chief Executive Officer, says: “We were pleased with our performance across the first nine months of the year, with continued volume progression through the period, combined with strong margin expansion.

Taste & Nutrition achieved volume growth of 3.4% in Q3, which as previously referenced was broadly in line with market expectations. This represented continued strong volume growth in the Americas, a good performance in APMEA, with volumes in Europe turning positive in the third quarter. Volumes in the retail channel steadily improved through the period, while foodservice continued to deliver strong growth, given our unique positioning as we outlined at our recent investor day.

We remain on track to achieve our full year guidance, and today we reiterate our range of 7% to 10% constant currency adjusted earnings per share growth.”

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Q1 Interim Management Statement 2024

Good Start To The Year

First Quarter Highlights

  • Taste & Nutrition delivered good volume growth of 3.1% with Group volumes +1.9%
  • Group pricing of -5.3% | Taste & Nutrition -3.9%
  • Group EBITDA margin +140bps | Taste & Nutrition +140bps
  • Dairy Ireland delivered a solid performance with EBITDA margin +70bps
  • New €300m share buyback programme – reflected in updated full year guidance

Edmond Scanlon, Chief Executive Officer, says: “We are pleased to report a good start to the year given market dynamics. Taste & Nutrition achieved good volume growth driven by a strong performance within our foodservice channel and we delivered strong margin expansion in the period reflecting the continued development and evolution of our business.

“Consumer market dynamics remain similar to those outlined at our full year results. As part of our capital allocation framework as previously indicated, we are announcing a new share buyback programme, and the expected net earnings per share accretion has been reflected in our updated guidance range.”

O my friend — but it is too much for my strength — I sink under the weight of the splendor of these visions! A wonderful serenity has taken possession of my entire soul, like these sweet mornings of spring which I enjoy with my whole heart. I am alone, and feel the charm of existence in this spot, which was created for the bliss of souls like mine.

I am so happy, my dear friend, so absorbed in the exquisite sense of mere tranquil existence, that I neglect my talents. I should be incapable of drawing a single stroke at the present moment; and yet I feel that I never was a greater artist than now.

When, while the lovely valley teems with vapor around me, and the meridian sun strikes the upper surface of the impenetrable foliage of my trees, and but a few stray gleams steal into the inner sanctuary, I throw myself down among the tall grass by the trickling stream; and, as I lie close to the earth, a thousand unknown plants are noticed by me: when I hear the buzz of the little world among the stalks, and grow familiar with the countless indescribable forms of the insects and flies, then I feel the presence of the Almighty, who formed us in his own image, and the breath of that universal love which bears and sustains us, as it floats around us in an eternity of bliss; and then, my friend, when darkness overspreads my eyes, and heaven and earth seem to dwell in my soul and absorb its power, like the form of a beloved mistress, then I often think with longing, Oh, would I could describe these conceptions, could impress upon paper all that is living so full and warm within me.

woman-healthy-drink-supplements

Supplements with Substance

The supplements landscape is changing 

We can all recall a time when we’ve pinched our nose, closed our eyes, and gulped down something green in the name of “good health”, even if it meant sacrificing our taste buds in the process. 

Especially true for supplements, chalky, chunky, difficult-to-swallow tablets were the norm – the chunkier the better with bonus points for lingering after-taste. Afterall, if it tastes bad, it must be healthy, right? No pain, no gain.   

Thankfully, along with a rising interest in digital detoxing and increasing awareness on the impact of stress on health, 2025 health and lifestyle trends see us set to enter a new era of wellness, with desire for taste finally reigning supreme in consumer demand for their health products.    

And, as consumers increasingly focus on overall health – ranging from diet and supplements to reducing alcohol intake- developers are beginning to respond by innovating with more exciting and unique flavour profiles, allowing consumers to experiment and enjoy supplements as part of a healthier lifestyle, with no taste compromise. 

As Kerry’s Research, Development and Applications Director for Beverage and Supplement Markets Emmet Malone puts it, “Historically, the supplements industry has accepted average or even poor-tasting products, often under the assumption that ‘if it doesn’t taste great, it must be good for me.’ However, the landscape is shifting. Taste is now king. The flavour profile and taste experience are now critical in securing repeat consumer purchases and gaining market share.” 

So, with that in mind, what future flavours are expected to dominate the world of supplements in 2025?

 

Just ask the Kerry 2025 Supplements Taste Charts!  

From twists on the old reliables like strawberry and orange to the more Gen Z inspired yuzu and lavender, the supplement landscape is getting a taste makeover. But if flavours like yuzu and matcha have you scratching your head, don’t worry, you’re not alone. This is where the Supplements Taste Charts come in! 

Crafted from deep analysis of global consumer research, social media data, and product launches, Kerry’s Supplements Taste Charts explore everything from mainstream favourites to emerging sensations that are predicted to make a splash in the category in the coming year. 

As Malone states, “The Supplements Taste Charts are an essential resource for any brand aiming to create market-leading products that resonate with consumers. They provide a straightforward way to review and understand the flavour profiles currently shaping the market, as well as to identify emerging trends that should be considered for future product launches.”

 

Consumers are going cleaner and greener

So, where are the bolder flavours coming from then? Malone explains that as consumers increasingly commit to cleaner, healthier lifestyles, they are also greatly influenced by the content they consume online, particularly through the diverse global content served to them via social media platforms. 

Malone states, “Social media is a major driver of consumer adventurousness. People can easily draw inspiration from other cultures and regions of the world more easily than ever before. Taking an example from the Beverage Taste Charts, we see flavours like Lychee, which is in the ‘Mainstream’ category in Asia, appearing in the ‘Up & Coming’ category in the US, and the ‘Emerging’ category in Europe.” 

Commenting on the global scope of Taste Charts, Kerry’s Business Development Director for Beverage & Supplements Taste Angela Getzel adds, “One innovative way to use the Taste Charts is to compare other regions to your own. We find that often the next emerging trend is already mainstream or key in another region; this gives customers the chance to be a leader in innovation in their own region.”

Of course, with more enjoyable flavours comes more enjoyable formats. As Malone explains, “In the past, the supplement industry was dominated by capsules, tablets, and soft gels. In recent years, however, there has been an explosion of new formats such as Ready-To-Mix Beverages, Gummies, and more recently, Chews. The Taste Charts serve as an invaluable resource for brands, offering insights into the formats and flavours currently shaping the market and helping forecast the trends that will drive future growth.”