Kerry Group PLC Kerry Strategic Update -- Capital Markets Day (8674O)
13 October 2021 - 5:00PM
UK Regulatory
TIDMKYGA
RNS Number : 8674O
Kerry Group PLC
13 October 2021
Date: 13 October 2021
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Kerry Presents its Strategic Update at Virtual Capital Markets
Day
Kerry Group plc ("Kerry"), the global taste & nutrition
company, today presents its updated strategy, mid-term financial
targets for the period 2022-2026, and sustainability commitments
for 2030.
CEO Edmond Scanlon commented "We have made significant strategic
progress in recent years, as we continue to evolve our business as
the world's leading taste & nutrition partner for the food,
beverage and pharmaceutical markets . We have a truly unique
business with strong leadership positions, aligned to today's
consumer demands and customer needs. Today's update is the next
evolution of Kerry, as we strive to create value for our customers
every day, by solving their complex challenges with differentiated
solutions. This supports our vision to be our customers' most
valued partner, creating a world of sustainable nutrition". The
updated strategic framework continues to reflect Kerry's
overarching strategic priorities of Taste, Nutrition and Emerging
Markets. The Group's annual revenue volume growth target has been
updated to 4-6% on average across the plan, supported by the key
growth platforms of Authentic Taste, Plant-Based, Food Waste, and
Health & Bio-Pharma.
The Group has set an EBITDA (1) margin target of 18%+ by 2026 .
This will be underpinned by expanding the EBITDA (1) margin in
Taste & Nutrition to 20%+. The key pillars of Kerry's margin
expansion target are enhanced portfolio mix, operating leverage,
and operational efficiencies, partially offset by reinvestment for
growth initiatives. As part of the operational efficiencies pillar,
the Group is today announcing its Accelerate Operational Excellence
Transformation programme, beginning in 2022 and running until 2024.
The programme will focus on manufacturing and supply chain
excellence, with an investment of approximately EUR120m over the
period, delivering a full annual recurring benefit of c. EUR70m per
annum from 2025, following the completion of the programme.
Included within the Group's average mid-term targets are cash
conversion of 80%+ and Return on Average Capital Employed of
10-12%.
As part of Kerry's Beyond the Horizon sustainability strategy,
the company also announces an enhancement of its targets. Kerry is
increasing its target for scope 1 and 2 emissions reduction from
33% to 55% by 2030, aligning with the most ambitious goal of the
Paris Agreement. As part of its broader Diversity, Inclusion and
Belonging strategy, Kerry is extending its commitment to equal
gender representation across all senior management roles by
2030.
The virtual Capital Markets Day will begin at 1pm Irish time and
will run until approximately 4:30pm. Access to the webcast will be
available on the Investor Relations section of the Kerry Group
website on www.kerrygroup.com/investors . A replay of the webcast
and slides will be available on the Group's website later in the
day.
About Kerry Group
Kerry is the world's leading taste and nutrition partner for the
food, beverage and pharmaceutical markets. We innovate with our
customers to create great tasting products, with improved nutrition
and functionality, while ensuring better impact for the planet. Our
leading consumer insights, global RD&A team of 1,100+ food
scientists and extensive global footprint enable us to solve our
customers' complex challenges with differentiated solutions. At
Kerry, we are driven to be our customers' most valued partner,
creating a world of sustainable nutrition, and to reach over 2
billion consumers with sustainable nutrition solutions by 2030. For
more information, vi sit www.kerrygroup.com .
Disclaimer: Forward Looking Statements
This Announcement contains forward looking statements which
reflect management expectations based on currently available data.
However actual results may differ materially from those expressed
or implied by these forward looking statements. These forward
looking statements speak only as of the date they were made, and
the Company undertakes no obligation to publicly update any forward
looking statement, whether as a result of new information, future
events or otherwise. No statement in the Announcement is intended
as a profit forecast or a profit estimate.
(1) EBITDA represents profit before finance income and costs,
income taxes, depreciation (net of capital grant amortisation),
intangible asset amortisation and non-trading items (net of related
tax).
CONTACT INFORMATION
=============================================
Investor Relations
Marguerite Larkin , Chief Financial
Officer
+353 66 7182292 | investorrelations@kerry.ie
William Lynch , Head of Investor
Relations
+353 66 7182292 | investorrelations@kerry.ie
Media
Catherine Keogh , Chief Corporate
Affairs & Brand Officer
+353 45 930188 | corpaffairs@kerry.com
Website
www.kerrygroup.com
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END
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