Kerry Group, the Irish food ingredients multinational, said that the weakening of the US dollar drove a 7.3 per cent fall in its revenues in the first three months of the year despite growth in sales and in its key US market.
In an interim management statement published in advance of its annual general meeting today, the Dublin-listed group said the food and beverage market remained subdued in the first quarter with a “high level of market uncertainty, given the macroeconomic backdrop”.
Kerry reported a 3.1 per cent increase in sales volumes compared with the same period last year.
However, it said pricing fell by 1.3 per cent over the same period, “reflective of input cost deflation”.
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Overall, currency fluctuations, specifically the weakening of the US dollar, led to a 7.3 per cent dip in Kerry’s revenues, it said.
Looking ahead, the group said: “While recognising the uncertainty around the ongoing geopolitical volatility, Kerry remains strongly positioned for volume growth and margin expansion, supported by a good innovation pipeline.”
Chief executive Edmond Scanlon said it was a “good start” to the year, despite “the uncertainty around the ongoing geopolitical volatility”.
In its key Americas region, Kerry said sales volumes increased by 3.4 per cent, led by meat, snacks and dairy sales.
Asia-Pacific, Middle East, and Africa volumes were also “strong”, rising 4.6 per cent.
European sales were more “subdued”, the group said, against a backdrop of “cautious consumer behaviour”, with volumes rising by a modest 0.4 per cent.
Still, Kerry said it delivered margin expansion of 0.6 percentage points in the first quarter, aided by the cost-cutting programme it unveiled earlier this year.
The group is targeting €100 million in annual savings through the initiative, which will run until 2028, and is aimed at reducing its manufacturing footprint by around 10 per cent.
Marguerite Larkin, Kerry Group chief financial officer, told investors on a call this morning that the disposal of assets net of acquisitions in the first quarter also negatively impacted group revenues by 1.2 per cent.
However, she said the disposals are “enabling” Kerry’s “footprint optimisation” strategy and supporting margin expansion.
Larkin told investors the group expects to see continued price deflation in its end markets in the first half of the year and “very limited deflation” for the full year.
“We’re probably seeing some level of inflation coming through on spices and natural oils, but we will update as the year progresses,” she said.
“Clearly, we’re seeing some increases in distribution costs, energy costs also, but that varies very much by geography, the level of cover we have in place, and we manage that very closely.”
Analysts from Davy Stockbrokers, which also acts as one of Kerry’s main brokers, said the group’s performance was ahead of consensus expectations and placed it on a “good footing” for 2026.
Kerry Group, which floated on the stock market in 1986, saw revenue drop 2.5 per cent to €6.8 billion in 2025, while profit after tax fell 10 per cent to €659 million.
