Kerry: Setting the Agenda

Research evidence excerpt

Kerry: Setting the Agenda

2.8% is broadly in line + 91 (0)22 6175 1934

with the company's c.3% guidance and reflects greater confidence in APMEA as a driver of 2H setu.sharda@barclays.com

Barclays, UK

growth.

European Chemicals & Ingredients

Look for +50bps margin improvement: At Q1, management reiterated expectations for input

Katie Richards

cost deflation in H1 and inflation in H2, particularly across spices and selected natural oils, +44 (0)20 3555 0315

while still anticipating a modestly deflationary cost environment for FY26. Looking ahead, we kathryn.richards@barclays.com

expect pricing to move from deflation to inflation through H2, albeit at a more moderate pace Barclays, UK

than previously anticipated, with Kerry's pricing model and solutions mix helping to offset cost

Anil Shenoy

pressures dynamically. Following the +60bps margin expansion delivered in Q1, we forecast +91 (0)22 6175 2487

c.50bps EBITDA margin expansion in H1 and for FY26, supported by a favourable mix, ongoing anil.shenoy@barclays.com

productivity initiatives and self-help actions. Barclays, UK

Kerry Biotech capabilities under appreciated: Kerry has developed its biotechnology

capabilities in recent years through both M&A and organic investment, with biotech-related

sales now reaching c.€1.3bn. Beyond this direct exposure, the technology is increasingly being

used to enhance Kerry's taste solutions, with around 40% of solutions incorporating an

ingredient derived from biofermentation or biotransformation. This is supporting key customer

priorities such as clean-label reformulation, salt reduction and natural colour conversion. Net-

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covered in its research reports.