Kerry Group PLC (KRYAF) Full Year 2025 Earnings Call Highlights: Strong Organic Growth and …

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Wed, February 18, 2026 at 12:00 AM GMT+9 4 min read

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**Revenue:** EUR6.8 billion for the full year 2025.

**EBITDA:** EUR1.2 billion, reflecting 5.7% organic growth.

**Volume Growth:** 3% for the full year, 2.8% in Q4.

**EBITDA Margin Expansion:** 80 basis points, reaching just under 18%.

**EPS Growth:** 7.5% in constant currency, 3% in reported currency.

**Free Cash Flow:** EUR643 million, representing an 81% cash conversion.

**Return on Capital Employed:** 10.6%.

**Net Debt-to-EBITDA Ratio:** 1.9x.

**Food Service Volume Growth:** 4.6%.

**Emerging Markets Growth:** 5.3%, led by Southeast Asia and LatAm.

**Americas Revenue:** EUR3.7 billion, with 3.8% volume growth.

**Europe Revenue:** EUR1.4 billion, with EBITDA margin increase of 90 basis points.

**APMEA Revenue:** EUR1.6 billion, with 4.2% volume growth.

**Share Buybacks:** EUR500 million, with a new EUR300 million program announced.

**Effective Tax Rate:** 14.1%.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Kerry Group PLC (KRYAF) reported a strong in-market volume performance with a 3% growth, outperforming end markets.

The company achieved an 80 basis points expansion in EBITDA margins, reaching just under 18%.

Constant currency EPS growth was 7.5% in 2025, despite the dilution from the Dairy Ireland disposal.

Strategic investments included opening a biotechnology center in Leipzig and expanding manufacturing presence in Egypt and East Africa.

Innovations such as fermentation-derived taste technologies and new health-focused products were successfully launched.

Negative Points

Overall market volumes remained relatively subdued, impacting growth potential.

Europe experienced a soft finish to the year with slightly negative volume growth.

Foreign currency translation was a 3.9% headwind due to significant movements in the US dollar and emerging market currencies.

Net debt was higher than expected, with free cash flow slightly lower due to working capital timing impacts.

China's volumes remained challenged, with slower-than-expected progression in the second half of the year.

Q & A Highlights

Q: How should we think about volume growth for the year ahead, and what is the regional outlook? A: Edmond Scanlon, CEO, stated that they expect similar volume growth in 2026 as in 2025, with strong performance anticipated in the Americas and growth in Europe. The APMEA region is expected to progress towards mid to high single-digit volume growth.

La historia continúa  

Q: What is the outlook for input cost inflation and disposals in 2026? A: Marguerite Larkin, CFO, mentioned limited overall deflation in input costs and pricing for 2026. Disposals are expected to contribute less than 1% of revenues, with limited further disposals planned.

Q: How is the European region expected to perform, and what strategies are in place to stimulate growth? A: Edmond Scanlon explained that Europe experienced soft volumes in Q4 2025, particularly in foodservice. They expect improvement in 2026, with a focus on customer engagement and proactive strategies to drive growth.

Q: Can you provide insights into the foodservice channel’s performance and expectations for 2026? A: Edmond Scanlon noted strong growth in foodservice, driven by launch activities and promotional efforts. They expect continued strong performance in 2026, with foodservice outpacing retail growth.

Q: What is the outlook for the Chinese market in 2026? A: Edmond Scanlon highlighted that while volumes were slightly back in 2025, they expect progression in 2026. Key focus areas include supporting retail customers targeting export markets and addressing consumer demand for clean label and healthier products.

Q: How is the M&A pipeline looking, and are there plans to expand in strategic markets? A: Edmond Scanlon mentioned ongoing evaluations in emerging markets, proactive health, and fermentation. Recent acquisitions include a coffee extraction business and a manufacturing footprint in Egypt to enhance market access.

Q: What impact does the Accelerate program have on European performance and margin expansion? A: Edmond Scanlon stated that despite challenging dynamics, the Accelerate program contributed to strong margin expansion in Europe. Marguerite Larkin added that Accelerate 2.0 will be a primary driver of margin expansion in 2026.

Q: Will all regions see margin increases in 2026, and what is the outlook for China? A: Marguerite Larkin confirmed that all regions are expected to experience margin expansion. Edmond Scanlon noted that China is expected to progress, with a focus on supporting export markets and addressing consumer trends towards healthier products.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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