Kerry Group plc

Good morning and welcome to our Q3 2025 trading update call. I'm joined on the call by our CEO Edmund Scanlon and our CFO Marguerite Larkin. As usual, Edmund and Marguerite will take you through our presentation and we will then open the lines up for your questions. Before we begin, please note the usual disclaimer on our presentation regarding forward looking statements. I will now hand over to Edmund.

Thanks William. Good morning everyone and thank you for joining our call. So moving first, to slide four and my overview comments. We delivered a good performance across the first nine months of the year with volume growth well ahead of our markets, combined with strong EBITDA margin expansion. Beginning with revenue, volume growth for Q3 and year-to-date was 3%, which represented a strong in-market outperformance. Looking at this firstly by region, we achieved good growth in the Americas, supported by new product launch activity with both Europe and AFMIA delivering sequential volume growth improvements in the third quarter. From a channel perspective, food service growth of 4.1% was driven by good innovation activity across new menu items, season and launches, and LTOs. Growth in the retail channel was supported by increased retailer brand innovation and nutritional enhancement renovations. And by technology, we had strong performances across savory taste and taste sense, salt and sugar reduction technologies, as well as enzymes, natural extracts, and proactive health technologies. Moving to margins, we delivered strong EBITDA margin expansion of 90 basis points in the period, primarily driven by accelerated operational excellence. And we continue to see good margin expansion opportunity in front of us. On guidance, we remain on track to deliver our full-year guidance. And finally, before we move to the performance review, I'd just like to update you on a few key strategic developments during the period. In recent weeks, we opened our new state-of-the-art biotechnology center in Leipzig in Germany, which will play an important role in supporting future fermentation and biotransformation innovation for the food and beverage industry. In the period, we initiated our Accelerate 2.0 program, which will focus on footprint optimization and enabling digital excellence across the organization. And we also continue to invest and develop our footprint, capacity, and capabilities across our regions through the period. I now hand you over to Marguerite for the business review.

Thanks Edmund, and good morning everyone. Moving to slide five in the business review, Firstly, volume growth in the period of 3% represented continuous strong end market outperformance, as Edmunds mentioned. Pricing of 0.2% reflected overall input cost inflation. On the EBITDA margins, we delivered strong margin progression of 90 basis points in the period and 80 basis points in the quarter, primarily driven by cost efficiency, operating leverage, and product mix. along with a contribution from acquisitions and disposals. Growth in our end-use markets was led by the bakery, snacks, and dairy end markets. Food service delivered growth of 4.1% despite soft traffic in places. Retail performed well overall, given increased customer focus on improving the nutritional profiles of their products. And volumes in emerging markets increased by 5.3% in the period, led by a strong performance in Southeast Asia. Turning to slide six now, and our performance by region. Firstly, in the Americas, where we had good performance across the region, with volume growth of 3.6% year-to-date and 3.5% in the third quarter. Within North America, growth was led by snacks through Kerry's range of savory taste profiles and taste sense salt reduction technology. Growth in the retail channels was supported by renovation activity across global, regional, and retailer brands, with growth in food service led by good innovation activity with quick service and fast casual restaurants. And in LACAM, we had strong growth in Brazil and Central America, led by snacks. In Europe, volume growth was 0.7% in the third quarter, 0.4% year-to-date. This included a good performance in food service through seasonal and new launch activity, with retail volumes reflecting soft market dynamics in Western Europe. Growth in the region was led by beverage through Kerry's integrated taste technologies and proactive health ingredients. Turning to apnea, where our volume growth was 4.1% in the third quarter. This was primarily driven by strong growth in Southeast Asia, with solid growth in the Middle East and Africa, and volumes in China remaining challenged. Food service delivered strong volume growth with coffee chains and quick service restaurants, and retail channel volume growth was driven by Kerry's authentic savory taste profile. Growth in our end markets was led by bakery through food protection and preservation systems, as well as reformulation activity in areas including cocoa. Turning to the components of our reported year-to-date revenue bridge on slide seven, Volume growth, as I mentioned, was 3%, with pricing of 0.2%. Transaction currency was favorable 0.2%. Translation currency was adverse 3.6%, given movements in the U.S. dollar and emerging market currencies versus the euro. And the acquisitions net of disposals was a net decrease of 0.8% in the period. Finally, to cover off a number of other matters on slide eight. Net debt at the end of the period was 2.2 billion, reflecting cash generation, capital investments, and the share buyback program. We initiated Accelerate 2.0 as planned during the period, and we are pleased with the progress made. Firstly, in executing the footprint optimization strategy across Europe and North America, including the commencement of some site closures and the disposal of some associated business activities. And secondly, we have started the rollout of a number of digital initiatives we have been piloting over the last 18 months within our manufacturing operations and commercial activities. On the input costs, while there is overall variation within our input cost basket, we are currently looking at limited input cost inflation for the full year. On currency, our outlook remains unchanged for a 4% to 5% translation currency headwind in the full year. To summarize, we delivered a good overall financial performance in the period, with volume growth combined with strong margin expansion. And with that, I'll pass you back to Edmund.