TIDMKYGA

RNS Number : 1687U

Kerry Group PLC

29 July 2022

 
 LEI: 635400TLVVBNXLFHWC59 
 
  Date: 29 July 2022 
 KERRY GROUP 
 INTERIM MANAGEMENT REPORT 2022 
 Strong growth across a dynamic marketplace 
 OVERVIEW 
====================================================================================================================== 
 
 
     *    Group revenue of EUR4.1bn representing 15.2%* organic 
          growth 
 
 
     *    Group volumes +6.8% (Q2: +8.0%) 
 
 
     *    Taste & Nutrition +8.6% (Q2: +10.3%) 
 
 
     *    Dairy Ireland +1.2% (Q2: +1.9%) 
 
 
     *    Group pricing +8.3% (Q2: +10.4%) 
 
 
     *    Group EBITDA of EUR518m with margin % maintained 
 
 
     *    Adjusted EPS of 176.4 cent; +9.0% on a constant 
          currency basis (16.1% reported currency growth) 
 
 
     *    Basic EPS of 128.4 cent (H1 2021: 128.2 cent) 
 
 
     *    Free cash flow of EUR226m reflecting 72% cash 
          conversion 
 
 
     *    Interim dividend per share of 31.4 cent (H1 2021: 
          28.5 cent) 
 
 
     *    Divestment of Russian subsidiary completed post the 
          period end 
 
 
     *    Full year EPS guidance reaffirmed 
 
 
    (*) Comprises volume growth of 6.8%, positive pricing of 8.3% and a favourable transaction 
    currency impact of 0.1%. 
====================================================================================================================== 
 
 Edmond Scanlon, Chief Executive Officer 
 "We are pleased with our overall performance and business momentum across the first half of 
  the year despite inflationary challenges and geopolitical volatility in places, in what remains 
  a highly dynamic marketplace. 
  Volume growth was very strong in both retail and foodservice channels, driven by an increased 
  level of innovation activity. This growth was broad-based across our regions, led by excellent 
  performances in Beverage, Meat and Bakery end use markets in particular. 
  We continued to make good progress in actively managing the unprecedented inflationary environment 
  in conjunction with our customers, as we support them in developing their offerings to meet 
  the rapidly evolving marketplace. We also made good strategic progress by expanding our footprint 
  and completing a number of strategic acquisitions in the period. 
  While recognising the marketplace is facing into a period of heightened uncertainty and volatility, 
  this also presents significant opportunities. We remain confident in our outlook and are reaffirming 
  our full year earnings guidance." 
 Performance 
 Group reported revenue in the period increased by 13.3% to EUR4.1 billion, reflecting a volume 
  increase of 6.8%, increased pricing of 8.3%, a favourable transaction currency impact of 0.1%, 
  a favourable translation currency impact of 5.8% and contribution from acquisitions of 4.7%, 
  partially offset by the dilutive impact of the disposal of the Consumer Foods Meats and Meals 
  business of 12.4%. 
 
  Group EBITDA increased by 13.1% to EUR518 million with EBITDA margin maintained at 12.8%, 
  primarily driven by the benefits from operating leverage, mix, efficiencies and portfolio 
  development, offset by the impact of passing through raw material cost inflation. 
 
  Constant currency adjusted earnings per share increased by 9.0% to 176.4 cent (H1 2021: +24.1%), 
  which represented an increase of 16.1% in reported currency (H1 2021: +15.1%). Basic earnings 
  per share of 128.4 cent (H1 2021: 128.2 cent) reflects the growth in the period offset by 
  the impairment of the Group's Russia and Belarus assets and the charges related to the previously 
  announced Accelerate Operational Excellence programme. 
 
  Free cash flow was EUR226m (H1 2021: EUR222m) representing cash conversion of 72%, with an 
  increased investment in working capital in the period partially offset by lower net capital 
  expenditure due to the timing of projects. 
 
  The interim dividend of 31.4 cent per share reflects an increase of 10.2% from the prior year 
  interim dividend. 
 
   Markets 
 The overall demand environment was positive through the period. As preferences continue to 
  evolve with heightened demand for new food and beverage experiences, the importance of value 
  options has increased for consumers, while sustainability remains an important consideration. 
 
  The resilience of supply chains remains a key focus across the industry due to geopolitical 
  volatility and inflationary pressures. Despite these challenges, the level of customer innovation 
  remains strong, and the level of innovation support needs continues to expand, with customers 
  continuing to evaluate the relevance and uniqueness of their product ranges, and their readiness 
  to adapt to further changes in the consumer landscape. 
 
 Business Reviews 
 Taste & Nutrition 
 Strong business volume growth across regions, channels and end use markets 
                                                                              H1 2022                   Performance(1) 
 
 
 Revenue                                                                    EUR3,445m                         +8.6%(2) 
 EBITDA                                                                       EUR515m                           +24.9% 
 EBITDA margin                                                                  15.0%                           -30bps 
=================================  ==================================================  =============================== 
 (1) performance of re-presented segmental structure | (2) volume growth 
 
   *    Overall volume growth of 8.6% with an excellent Q2 
        performance of 10.3% 
 
 
   *    Growth was led by Beverage and Food EUMs of Meat and 
        Bakery 
 
 
   *    Retail channel achieved excellent growth with 
        continued strong double-digit growth in foodservice 
 
 
   *    Pricing of 5.9% reflective of raw material cost 
        inflation 
 
 
   *    Margin development from operating leverage, mix, 
        efficiencies and portfolio evolution more than offset 
        by the impact of passing through raw material cost 
        inflation 
               Taste & Nutrition reported revenue increased by 27.5% to EUR3,445m in the period driven by 
                volume growth, positive pricing, favourable foreign currency impacts and a positive contribution 
                from acquisitions net of disposals. 
                Strong business volume development was achieved through the period, with growth led by the 
                Beverage, Meat and Bakery markets in particular. The retail channel achieved excellent growth 
                due to customers' increased requirements for innovation support. The foodservice channel delivered 
                strong double-digit growth across all regions, supported by increased seasonal menu offerings, 
                innovations to reduce operational complexity and solutions designed to improve their overall 
                sustainability impact. 
                Overall growth across the Group's key growth platforms was strong, led by increased demand 
                for Kerry's range of food waste solutions, with good growth across authentic taste and plant-based, 
                while health and bio-pharma performed in line with expectations. The recently acquired Niacet(3) 
                business continued to deliver strong growth and business development. 
                Business volumes in emerging markets increased by 10.7% in the period, as very strong growth 
                in the Middle East, Southeast Asia and LATAM were partially offset by challenging conditions 
                in China due to localised restrictions in place, and in Russia and Eastern Europe due to the 
                ongoing war in the region. 
                Since the end of the period, the divestment of 100% of the share capital of Kerry's subsidiary 
                in Russia to local management was completed and agreement has been reached for the sale of 
                Kerry's subsidiary in Belarus to a third party. 
 
 
  Americas Region 
 
   *    Volume growth of 9.1% with Q2 performance of 11.4% 
 
 
   *    Growth was led by Beverage, Meat and Bakery EUMs 
 
 
   *    Excellent growth achieved across both retail and 
        foodservice channels 
 
 
   *    LATAM delivered strong growth led by Brazil and 
        Mexico 
               Reported revenue in the Americas region increased by 29.1% to EUR1,934m in the period driven 
                by volume growth, positive pricing, favourable foreign currency impacts and contribution from 
                acquisitions. 
                Growth in North America continued its strong momentum through the period, with high levels 
                of activity across both the retail and foodservice channels. This was led by the Beverage 
                EUM, which delivered particularly strong growth through innovations across refreshing beverages, 
                functional beverages and the tea and coffee categories incorporating Kerry's authentic natural 
                taste, Tastesense(TM) sugar reduction and proactive nutrition technologies. Performance in 
                Meat and Meat Alternatives was strong across food preservation, culinary taste and texture 
                coating systems, supported by the Group's expanded manufacturing facility in Rome, Georgia. 
                Bakery delivered strong growth with customer launches in food protection and preservation 
                and through increased LTO activity within the foodservice channel. 
                Within LATAM, Brazil and Mexico delivered strong growth. Volume growth in Brazil was driven 
                by performance in Meals and Meat, while volumes in Mexico were led by growth in Beverage and 
                Snacks with regional leaders. 
                Within the global Pharma EUM, good volume growth was achieved driven by strong performance 
                in cell nutrition. 
 
   Europe Region 
 
   *    Volume growth of 7.1% with Q2 performance of 5.9% 
 
 
   *    Growth driven by foodservice which saw increased 
        consumption and innovation activity 
 
 
   *    Beverage, Dairy and Snacks markets delivered 
        strongest growth 
 Reported revenue in the Europe region increased by 27.5% to EUR729m in the period driven by 
  volume growth, positive pricing, favourable foreign currency impacts and a positive contribution 
  from acquisitions net of disposals. 
  Europe achieved strong overall growth in the foodservice channel through the period. This 
  was driven by strong menu development activity, an increased level of seasonal products and 
  softer prior year comparatives. 
  Growth in Beverage was led by refreshing beverage, tea and coffee, and low/no alcohol with 
  launches featuring Kerry's natural extracts, Tastesense(TM) sugar reduction technologies and 
  enzymes. Dairy delivered strong growth with new innovations across dairy alternatives, ice 
  cream and desserts within the foodservice channel. Good growth was achieved in Snacks driven 
  by increased customer focus on enhancing their products' nutritional profiles in light of 
  the evolving regulatory requirements within the region. This resulted in a number of launches 
  incorporating Kerry's Tastesense(TM) salt reduction, taste modulation and bio-processing technologies. 
  Growth in the Europe region was led by Central and Southern Europe driven by a particularly 
  strong performance in the foodservice channel, while performance in Russia and Eastern Europe 
  was impacted by the ongoing war in the region. 
  In the period, the Group completed the acquisition of c-LEcta(3), which is a leading biotechnology 
  innovation company based in Leipzig, Germany. 
 APMEA Region 
 
   *    Volume growth of 9.1% with Q2 performance of 12.1% 
 
 
   *    Growth was led by Meat, Snacks and Bakery EUMs 
 
 
   *    Foodservice achieved strong overall growth and retail 
        performed very well 
 Reported revenue in the APMEA region increased by 26.1% to EUR768m in the period driven by 
  volume growth, positive pricing, favourable foreign currency impacts and contribution from 
  acquisitions. 
  Growth in the region was primarily driven by excellent performances in the Middle East and 
  across Southeast Asia, partially offset by challenges resulting from the localised restrictions 
  in China. The strong growth achieved in the second quarter reflected good business development 
  across both the foodservice and retail channels. 
  Growth in Meat and Meat Alternatives was driven by increased demand across global, regional 
  and local leaders for Kerry's range of local authentic taste and texture systems. Snacks achieved 
  excellent growth in savoury applications across the Middle East and Southeast Asia in particular, 
  while Bakery delivered a strong performance through new launch activity and increased demand 
  for functional systems across the region. 
  The Group continued to enhance its local presence in APMEA through the acquisition of Almer(3), 
  and its continued footprint expansion in the Middle East, which has become an important contributor 
  to growth in the region. 
  (3) In September 2021 Kerry acquired 100% of the issued share capital of Hare Topco, Inc. 
  (trading as Niacet Corp.) - 'Niacet'. 
  In March 2022 Kerry acquired 93% of the issued share capital of the company c-LEcta GmbH 
  - 'c-LEcta'. 
  In March 2022 Kerry acquired 100% of the issued share capital of the company Almer Malaysia 
  Sdn. Bhd. - 'Almer'. 
 Dairy Ireland 
 Solid growth as business saw significant price inflation across the period 
 
                                               H1 2022                   Pro-forma(4)                         Reported 
 
 
 Revenue                                       EUR695m                       +2.2%(5)                         +1.2%(5) 
 EBITDA                                         EUR38m                       +4.6%(6)                           -52.0% 
 EBITDA margin                                    5.5%                        -140bps                          -280bps 
 
 
   *    Overall volume growth of 2.2% with Q2 performance of 
        3.3% 
 
 
   *    Growth driven by the Dairy Ingredients business 
 
 
   *    Pricing of 27.8% reflected significant increases 
        across dairy prices and other raw material costs 
 
 
   *    Margin reduction driven by the impact of passing 
        through raw material cost inflation 
 Dairy Ireland delivered solid overall volume growth through the period, while managing the 
  heightened inflationary cost environment, which resulted in significant price increases across 
  the business. 
  Within Dairy Consumer Products, most categories saw significant price increases, which led 
  to overall volumes being more challenged. Within the spreads category, good performance was 
  achieved across our customer-branded ranges. Volumes in the period in cheese snacking were 
  impacted by reduced promotional activity and operational issues, while a new plant-based range 
  of Dairygold products was launched at the end of the period. 
  Dairy Ingredients achieved good volume growth, while prices were significantly higher as a 
  result of constrained global supply dynamics. 
  Performance of re-presented segmental structure on a pro-forma basis excluding the Consumer 
  Foods Meat and Meals business disposal. 
  Volume growth. 
  Comparable H1 2021 pro-forma EBITDA was EUR36.7m. 
 
 
 Financial Review 
 
                                                                       H1 2022               H1 2021 
                                         Growth %                        EUR'm                 EUR'm 
 
 Revenue                                   +13.3%                      4,057.8               3,582.1 
 
 
 EBITDA                                    +13.1%                        517.7                 457.9 
 
 EBITDA margin                                                           12.8%                 12.8% 
 
 
 Trading profit                                                          409.6                 357.1 
 Computer software amortisation                                         (18.9)                (16.8) 
 Finance costs (net)                                                    (34.1)                (34.2) 
 Share of joint ventures profit after                                      1.1                     - 
  taxation 
 
 Adjusted earnings before taxation         +16.9%                        357.7                 306.1 
 Income taxes (excluding non-trading items)                             (44.9)                (36.9) 
-------------------------------------------------  ---------------------------  -------------------- 
 
 Adjusted earnings after taxation                                        312.8                 269.2 
 Brand related intangible asset 
  amortisation                                                          (23.1)                (22.4) 
 Non-trading items (net of related 
  tax)                                                                  (62.1)                (19.8) 
-----------------------------------  ------------  ---------------------------  -------------------- 
 
 Profit after taxation                                                   227.6                 227.0 
===================================  ============  ===========================  ==================== 
 
                                                                           EPS                   EPS 
                                                                          cent                  cent 
 
 
 Basic EPS                                  +0.2%                        128.4                 128.2 
 Brand related intangible asset amortisation                              13.0                  12.6 
 Non-trading items (net of related 
  tax)                                                                    35.0                  11.2 
-----------------------------------  ------------  ---------------------------  -------------------- 
 
 Adjusted* EPS                             +16.1%                        176.4                 152.0 
 Impact of exchange rate 
  translation                              (7.1%) 
-----------------------------------  ------------  ---------------------------  -------------------- 
 
 Adjusted* EPS growth in constant 
  currency                                  +9.0%                                             +24.1% 
-----------------------------------  ------------  ---------------------------  -------------------- 
 
                           *Before brand related intangible asset amortisation and non-trading items 
                                                                               (net of related tax). 
                 See Financial Definitions section for definitions, calculations and reconciliations 
                                                                of Alternative Performance Measures. 
 Revenue 
  The table below provides the revenue growth components for the updated 
  business segments effective 1 January 2022, reflecting the new Dairy 
  Ireland business post the disposal of the Consumer Foods Meats and Meals 
  business. The H1 2021 table is also provided for comparable purposes. 
                                                                  Acquisitions 
 Revenue Growth                       Transaction   Translation              /   Reported 
  Components       Volume     Price      currency      currency      Disposals     Growth    H1 2022 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Taste & 
  Nutrition          8.6%      5.9%          0.2%          7.0%           5.8%      27.5%   EUR3.4bn 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Dairy 
  Ireland(1)         2.2%     27.8%          0.2%          1.0%              -      31.2%   EUR0.7bn 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Group(1)            7.8%      9.3%          0.2%          6.1%           5.3%      28.7% 
===============  ========  ========  ============  ============  =============  =========  ========= 
 Meats and 
  Meals 
  business(2)           -         -             -             -        (46.1%)    (46.1%) 
===============  ========  ========  ============  ============  =============  =========  ========= 
 Group 
  (Reported)         6.8%      8.3%          0.1%          5.8%         (7.7%)      13.3%   EUR4.1bn 
===============  ========  ========  ============  ============  =============  =========  ========= 
                       (1) Pro-forma growth excludes the sale of the Consumer Foods Meats 
                                                                      and Meals business. 
                      (2) The disposal of Kerry's Consumer Foods Meats and Meals business 
                                                         was completed in September 2021. 
                                                                  Acquisitions 
 Revenue Growth                       Transaction   Translation              /   Reported 
  Components       Volume     Price      currency      currency      Disposals     Growth    H1 2021 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Taste & 
  Nutrition         10.7%      0.3%        (0.1%)        (6.9%)           1.2%       5.2%   EUR2.7bn 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Dairy 
  Ireland(1)         1.0%      1.6%             -        (0.4%)              -       2.2%   EUR0.5bn 
---------------  --------  --------  ------------  ------------  -------------  ---------  --------- 
 Group(1)            8.9%      0.6%             -        (6.0%)           1.0%       4.5% 
===============  ========  ========  ============  ============  =============  =========  ========= 
 Meats and 
  Meals 
  business(2)        9.4%    (0.3%)        (0.2%)        (0.8%)              -       8.1%   EUR0.4bn 
 Group 
  (Reported)         9.0%      0.5%        (0.1%)        (5.4%)           0.9%       4.9%   EUR3.6bn 
===============  ========  ========  ============  ============  =============  =========  ========= 
 
 EBITDA & Margin 
  Group EBITDA increased by 13.1% to EUR517.7m (H1 2021: EUR457.9m). EBITDA 
  margin percentage was maintained at 12.8%, primarily driven by the benefits 
  from operating leverage, mix, efficiencies and portfolio development, 
  offset by the impact of passing through raw material cost inflation. 
  The EBITDA margin by business segment was 15.0% in Taste & Nutrition 
  and 5.5% in Dairy Ireland in the period. 
 
  Finance Costs (net) 
  Finance costs (net) were EUR34.1m similar to the prior period (H1 2021: 
  EUR34.2m). 
 
  Taxation 
  The tax charge for the period before non-trading items was EUR44.9m (H1 
  2021: EUR36.9m) which represents an effective tax rate of 13.4% (H1 2021: 
  13.0%). 
 
  Acquisitions 
  During the period, the Group completed the acquisition of Almer Malaysia 
  Sdn. Bhd., c-LEcta GmbH and Natreon, Inc. for a total consideration of 
  EUR267.4m . 
  Non-Trading Items 
  The Group incurred a non-trading item charge of EUR62.1m (H1 2021: EUR19.8m) 
  net of tax in the period. This primarily related to the impairment of 
  the Group's Russia and Belarus assets and the previously announced Accelerate 
  Operational Excellence programme. 
  Adjusted EPS in Constant Currency 
  Adjusted EPS in constant currency increased by 9.0% to 176.4 cent in 
  the period (H1 2021: 24.1%), which represented an increase of 16.1% in 
  reported currency (H1 2021: +15.1%). 
  Basic EPS 
  Basic EPS increased by 0.2% to 128.4 cent in the period (H1 2021: 128.2 
  cent) and reflects the growth in the period offset by the impairment 
  of the Group's Russia and Belarus assets and the charges related to the 
  operational excellence programme. 
 Free Cash Flow 
 Group free cash flow was EUR226.0m in the period (H1 2021: EUR222.3m) 
  reflecting 72% cash conversion, with an increased investment in working 
  capital in the period partially offset by lower net capital expenditure 
  due to the timing of projects. 
 
                                                                       H1 2022               H1 2021 
   Free Cash Flow                                                        EUR'm                 EUR'm 
 
 EBITDA                                                                  517.7                 457.9 
 Movement in average working 
  capital                                                              (164.2)                (27.5) 
 Pension contributions paid less pension expense                         (7.0)                 (6.0) 
 Finance costs paid (net)                                               (14.6)                (21.5) 
 Income taxes paid                                                      (31.9)                (32.1) 
 Purchase of non-current assets                                         (74.0)               (148.5) 
 
 Free cash flow                                                          226.0                 222.3 
===================================  =========================================  ==================== 
 Cash conversion(1)                                                        72%                   83% 
 
 (1) Cash conversion represents free cash flow expressed as a percentage 
  of adjusted earnings after taxation. 
 
 
 Balance Sheet 
 A summary balance sheet as at 30 June 2022 is provided below: 
 
                                                       H1 2022                    H1 2021          FY 2021 
                                                         EUR'm                      EUR'm            EUR'm 
---------------------------------------------------  ---------  -------------------------  --------------- 
 
 Property, plant and equipment                         2,161.1                    1,918.8          2,091.3 
 Intangible assets                                     5,968.9                    4,443.8          5,580.7 
 Other non-current assets                                372.4                      213.7            264.5 
 Current assets                                        3,855.7                    3,227.0          3,458.9 
 
 
 Total assets                                         12,358.1                    9,803.3         11,395.4 
 
 
 Current liabilities                                   3,049.1                    1,918.7          1,995.4 
 Non-current liabilities                               3,218.6                    2,921.5          3,798.8 
 
 
 Total liabilities                                     6,267.7                    4,840.2          5,794.2 
 
 
 Net assets                                            6,090.4                    4,963.1          5,601.2 
 
 
 Total equity                                          6,090.4                    4,963.1          5,601.2 
 
 
   Property, Plant and Equipment 
   Property, plant and equipment increased since year end by EUR69.8m to 
   EUR2,161.1m (Dec 2021: EUR2,091.3m, H1 2021: EUR1,918.8m) predominantly 
   due to depreciation charge partially offset by foreign exchange translation 
   and additions. 
 
   Intangible Assets 
   Intangible assets increased by EUR388.2m since year end to EUR5,968.9m 
   (Dec 2021: EUR5,580.7m, H1 2021: EUR4,443.8m) predominantly due to acquisitions 
   and the impact of foreign exchange translation, partially offset by the 
   amortisation and impairment charges. 
 
   Current Assets 
   Current assets increased by EUR396.8m since year end to EUR3,855.7m (Dec 
   2021: EUR3,458.9m, H1 2021: EUR3,227.0m) primarily due to the impact 
   of foreign exchange translation on the assets, acquisitions and working 
   capital investment. 
 
   Retirement Benefits 
   At the balance sheet date, the net surplus for all defined benefit schemes 
   (after deferred tax) was EUR164.1m (Dec 2021: EUR56.3m net surplus, H1 
   2021: EUR43.2m net surplus), see note 8 for details. The improvement 
   in the funding position before deferred tax of EUR135.6m was driven predominantly 
   by favourable movements in actuarial assumptions, primarily higher discount 
   rates, which were partially offset by reduced asset values. 
 
   Net Debt 
   At 30 June 2022, net debt was EUR2,456.3m. This increase of EUR332.2m 
   relative to the December 2021 net debt of EUR2,124.1m reflected acquisition 
   investment and dividends, partially offset by net cash generated in the 
   period. 
 
   Return on Average Capital Employed (ROACE) 
   Group ROACE at period end was 10.2% (Dec 2021: 10.5%, H1 2021: 10.7%) 
   reflective of recent portfolio developments. 
 Liquidity Analysis 
  The Group's balance sheet is in a healthy position. With a Net debt 
  to EBITDA* ratio of 2.1 times, the organisation has sufficient headroom 
  to support future growth plans. The Group has no financial arrangements 
  that carry financial covenants. 
                                                       H1 2022                    H1 2021        FY 2021 
                                                         Times                      Times          Times 
===================================  ==============  =========  =========================  ============= 
 
 Net debt: EBITDA*                                         2.1                        1.9            2.0 
 EBITDA: Net interest*                                    16.0                       14.6           14.9 
 
 *Calculated on a pro-forma basis as outlined in the Financial Definitions 
  section. 
 Related Party Transactions 
  There were no changes in related party transactions from the 2021 Annual 
  Report that could have a material effect on the financial position or 
  performance of the Group in the first half of the year. 
 
  Exchange Rates 
  Group results are impacted by fluctuations in exchange rates year -- 
  on -- year versus the euro. The average rates below are the principal 
  rates used for the translation of results. The closing rates below are 
  used to translate assets and liabilities at the period end. 
 
                                           Average Rates                       Closing Rates 
                                         H1 2022      H1 2021    H1 2022      H1 2021          FY 2021 
 Australian Dollar                        1.52          1.56      1.52          1.58             1.56 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 Brazilian Real                           5.55          6.51      5.41          5.91             6.32 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 British Pound Sterling                   0.84          0.87      0.86          0.86             0.84 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 Chinese Yu an Renminbi                   7.11          7.85      7.06          7.72             7.22 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 Malaysian Ringgit                        4.69          4.94      4.64          4.97             4.73 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 Mexican Peso                             22.30        24.31      21.09        24.17            23.30 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 South African Rand                       16.89        17.60      16.85        16.98            18.06 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 US Dollar                                1.10          1.21      1.05          1.19             1.13 
-----------------------------------  --------------  ---------  --------  ---------------  --------------- 
 Principal Risks and Uncertainties 
  Details of the principal risks and uncertainties facing the Group can 
  be found in the 2021 Annual Report on pages 78 to 84 and continue to 
  be the principal risks and uncertainties facing the Group for the remaining 
  six months of the financial year. These risks include but are not limited 
  to; portfolio management, geopolitical/emerging markets, business acquisition 
  and divestiture, climate change and environmental, people, business ethics 
  and social responsibility, food safety, quality and regulatory, health 
  & safety, margin management, information systems and cybersecurity, operational 
  and supply chain continuity, intellectual property, taxation and treasury. 
  The Group continues to manage the interdependency of these risks, some 
  of which has been heightened by the war in Ukraine, global supply chain 
  challenges and the continued inflationary environment. The Group actively 
  manages all risks through its control and risk management process. 
  Dividend 
  In line with our dividend strategy, the Board has declared an interim 
  dividend of 31.4 cent per share, compared to the prior year interim dividend 
  of 28.5 cent, payable on 11 November 2022 to shareholders registered 
  on the record date 14 October 2022. 
 Future Prospects 
 Kerry remains strongly positioned for growth in a highly dynamic marketplace 
  with a good innovation pipeline. The Group is confident in its ability 
  to continue to manage through the current inflationary cycle with its 
  well-established pricing model and cost initiatives. Kerry will continue 
  to strategically evolve its portfolio and invest capital aligned to its 
  strategic priorities and key growth platforms. While overall market conditions 
  remain uncertain, the Group expects to achieve adjusted earnings per 
  share growth* in 2022 of 5% to 9% on a constant currency basis. 
  *Earnings guidance includes estimated net dilution from portfolio changes 
  of c. 2.5% in the full year comprising the previously announced portfolio 
  changes of c. 1.5% and the impact of the divestiture of the Russia and 
  Belarus businesses of c. 1%. 
  Note: Based on prevailing exchange rates, foreign currency is expected 
  to be a tailwind of 8% to adjusted earnings per share. 
 
 
 Responsibility Statement 
 The Directors are responsible for preparing the Half Yearly Financial Report in accordance 
  with the Transparency (Directive 2004/109/EC) Regulations 2007 as amended ('the Regulations'), 
  the Central Bank (Investment Market Conduct) Rules 2019, the Disclosure Guidance and Transparency 
  Rules of the UK's Financial Conduct Authority and with IAS 34 'Interim Financial Reporting' 
  as adopted by the European Union. 
  The Directors confirm that to the best of their knowledge: 
   *    the Group Condensed Consolidated Interim Financial 
        Statements for the half year ended 30 June 2022 have 
        been prepared in accordance with the international 
        accounting standard applicable to interim financial 
        reporting adopted pursuant to the procedure provided 
        for under Article 6 of the Regulation (EC) No. 
        1606/2002 of the European Parliament and of the 
        Council of 19 July 2002; 
 
 
   *    the Interim Management Report includes a fair review 
        of the important events that have occurred during the 
        first six months of the financial year, and their 
        impact on the Group Condensed Consolidated Interim 
        Financial Statements for the half year ended 30 June 
        2022, and a description of the principal risks and 
        uncertainties for the remaining six months; and 
 
 
   *    the Interim Management Report includes a fair review 
        of the related party transactions that have occurred 
        during the first six months of the current financial 
        year and that have materially affected the financial 
        position or the performance of the Group during that 
        period, and any changes in the related parties' 
        transactions described in the last Annual Report that 
        could have a material effect on the financial 
        position or performance of the Group in the first six 
        months of the current financial year. 
 On behalf of the Board 
 Edmond Scanlon                                      Marguerite Larkin 
 Chief Executive Officer                             Chief Financial Officer 
 28 July 2022 
 
 
 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. 
 
 
   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.kerry.com 
 
 
 
 RESULTS FOR THE HALF YEARED 30 JUNE 2022 
 Kerry Group plc 
 Condensed Consolidated Income Statement 
 for the half year ended 30 June 2022 
 
                                                      Before                                                        Year 
                                                 Non-Trading     Non-Trading       Half year        Half year      ended 
                                                       Items           Items           ended            ended    31 Dec. 
                                                     30 June         30 June         30 June          30 June       2021 
                                                        2022            2022            2022             2021 
                                                   Unaudited       Unaudited       Unaudited        Unaudited    Audited 
                                       Notes           EUR'm           EUR'm           EUR'm            EUR'm      EUR'm 
 
 
 Continuing operations 
 Revenue                                 2           4,057.8               -         4,057.8          3,582.1    7,350.6 
 
 
 Earnings before interest, tax, 
  depreciation and amortisation          2             517.7               -           517.7            457.9    1,077.0 
 
 Depreciation and intangible asset 
  amortisation                           2           (150.1)               -         (150.1)          (140.0)    (282.3) 
 Non-trading items                       3                 -          (69.5)          (69.5)           (20.8)       91.5 
 
 
 Operating profit                                      367.6          (69.5)           298.1            297.1      886.2 
 
 Finance income                          4               0.8               -             0.8              0.1        0.3 
 Finance costs                           4            (34.9)               -          (34.9)           (34.3)     (70.2) 
 Share of joint ventures profit 
  after taxation                                         1.1               -             1.1                -          - 
 
 
 Profit before taxation                                334.6          (69.5)           265.1            262.9      816.3 
 
 Income taxes                                         (44.9)             7.4          (37.5)           (35.9)     (53.3) 
 
 
 Profit after taxation                                 289.7          (62.1)           227.6            227.0      763.0 
 
 
 
 Attributable to: 
 Equity holders of the parent                                                          227.6            227.0      763.0 
 Non-controlling interests                                                                 -                -          - 
 
 
                                                                                       227.6            227.0      763.0 
 
---------------------------  -------  ------  ------  ------  ------  ------  ------  ------  -------  ------  --------- 
 
 
 
 Earnings per A ordinary share                                                          Cent             Cent       Cent 
 - basic                                 5                                             128.4            128.2      430.6 
 - diluted                               5                                             128.2            128.0      429.9 
 
 
 
 
 
 Condensed Consolidated Statement of Comprehensive Income 
 for the half year ended 30 June 2022 
 
                                                         Half year   Half year      Year 
                                                             ended       ended     ended 
                                                           30 June     30 June   31 Dec. 
                                                              2022        2021      2021 
                                                         Unaudited   Unaudited   Audited 
                                                             EUR'm       EUR'm     EUR'm 
 
 
 Profit after taxation                                       227.6       227.0     763.0 
 
 
 Other comprehensive income: 
 
 
 Items that are or may be reclassified subsequently 
  to profit or loss: 
 Fair value movements on cash flow hedges                    (0.3)       (0.7)     (0.3) 
 Cash flow hedges - reclassified to profit or 
  loss from equity                                           (1.4)       (1.1)     (0.9) 
 Net change in cost of hedging                                 0.2         0.3         - 
 Deferred tax effect of fair value movements 
  on cash flow hedges                                            -           -       0.1 
 Exchange difference on translation of foreign 
  operations                                                 265.3        98.7     217.7 
 Cumulative exchange difference on translation 
  recycled on disposal                                           -           -      16.2 
 
 Items that will not be reclassified subsequently 
  to profit or loss: 
 Re-measurement on retirement benefits obligation            130.3       101.6     110.2 
 Deferred tax effect of re-measurement on retirement 
  benefits obligation                                       (27.7)      (19.1)    (20.0) 
 
 
 Net income recognised directly in total other 
  comprehensive income                                       366.4       179.7     323.0 
 
 
 Total comprehensive income                                  594.0       406.7   1,086.0 
 
 
 Attributable to: 
 Equity holders of the parent                                594.0       406.7   1,086.0 
 Non-controlling interests                                       -           -         - 
 
 
                                                             594.0       406.7   1,086.0 
 
 
 
 
 
  Condensed Consolidated Balance Sheet 
 as at 30 June 2022 
 
                                                         30 June 2022     30 June    31 Dec. 
                                                                             2021       2021 
                                                            Unaudited   Unaudited    Audited 
                                                 Notes          EUR'm       EUR'm      EUR'm 
 
 
 Non-current assets 
 Property, plant and equipment                                2,161.1     1,918.8    2,091.3 
 Intangible assets                                            5,968.9     4,443.8    5,580.7 
 Financial asset investments                                     53.1        45.9       49.9 
 Investment in joint ventures                                    22.9        18.6       21.7 
 Other non-current financial instruments                          2.7        37.6       34.8 
 Retirement benefits asset                         8            221.6        75.8       90.3 
 Deferred tax assets                                             72.1        35.8       67.8 
 
 
                                                              8,502.4     6,576.3    7,936.5 
 
 
 Current assets 
 Inventories                                                  1,496.1     1,117.6    1,204.2 
 Trade and other receivables                                  1,471.7     1,182.8    1,181.7 
 Cash at bank and in hand                          9            757.2       395.0    1,039.1 
 Other current financial instruments                            108.3         8.2       15.2 
 Assets classified as held for sale                7             22.4       523.4       18.7 
 
 
                                                              3,855.7     3,227.0    3,458.9 
 
 
 Total assets                                                12,358.1     9,803.3   11,395.4 
 
 
 Current liabilities 
 Trade and other payables                                     2,047.9     1,731.9    1,791.5 
 Borrowings and overdrafts                         9            724.2         3.3        5.6 
 Other current financial instruments                            108.6        17.8       40.1 
 Tax liabilities                                                148.5       133.6      141.6 
 Provisions                                                      16.6         7.7       13.6 
 Deferred income                                                  3.3         2.2        3.0 
 Liabilities directly associated with assets 
  classified as held for sale                      7                -        22.2          - 
 
 
                                                              3,049.1     1,918.7    1,995.4 
 
 
 Non-current liabilities 
 Borrowings                                        9          2,441.7     2,342.3    3,118.0 
 Other non-current financial instruments                         16.8           -        0.5 
 Retirement benefits obligation                    8             19.8        24.5       24.1 
 Other non-current liabilities                                  148.3       128.4      153.9 
 Deferred tax liabilities                                       533.1       360.6      447.3 
 Provisions                                                      42.2        47.0       37.1 
 Deferred income                                                 16.7        18.7       17.9 
 
 
                                                              3,218.6     2,921.5    3,798.8 
 
 
 Total liabilities                                            6,267.7     4,840.2    5,794.2 
 
 
 Net assets                                                   6,090.4     4,963.1    5,601.2 
 
 
 Equity 
 Share capital                                    11             22.1        22.1       22.1 
 Share premium                                                  398.7       398.7      398.7 
 Other reserves                                                 145.7     (274.3)    (129.6) 
 Retained earnings                                            5,522.2     4,816.6    5,310.0 
----------------------------------------------  ------  -------------  ----------  --------- 
 Equity attributable to equity holders of the 
  parent                                                      6,088.7     4,963.1    5,601.2 
 Non-controlling interests                                        1.7           -          - 
 
 
 Total equity                                                 6,090.4     4,963.1    5,601.2 
 
 
 
 
 
 Condensed Consolidated Statement of Changes in Equity 
 for the half year ended 30 June 2022 
 
                                                             Attributable to equity holders 
                                                                      of the parent 
                                          =================================================================== 
                                                                                                                         Non- 
                                                Share      Share      Other       Retained                        controlling     Total 
                                              Capital    Premium   Reserves       Earnings              Total       interests    equity 
                                    Note        EUR'm      EUR'm      EUR'm          EUR'm              EUR'm           EUR'm     EUR'm 
 
 
 At 1 January 2021                               22.1      398.7    (379.5)        4,614.2            4,655.5               -   4,655.5 
 
 Profit after taxation                              -          -          -          227.0              227.0               -     227.0 
 Other comprehensive income                         -          -       97.2           82.5              179.7               -     179.7 
 
 
 Total comprehensive income                         -          -       97.2          309.5              406.7               -     406.7 
 
 Dividends paid                      6              -          -          -        (107.1)            (107.1)               -   (107.1) 
 Share-based payment expense                        -          -        8.0              -                8.0               -       8.0 
 
 
 At 30 June 2021 - unaudited                     22.1      398.7    (274.3)        4,816.6            4,963.1               -   4,963.1 
 
 Profit after taxation                              -          -          -          536.0              536.0               -     536.0 
 Other comprehensive income                         -          -      135.5            7.8              143.3               -     143.3 
 
 
 Total comprehensive income                         -          -      135.5          543.8              679.3               -     679.3 
 
 Dividends paid                      6              -          -          -         (50.4)             (50.4)               -    (50.4) 
 Share-based payment expense                        -          -        9.2              -                9.2               -       9.2 
 
 
 At 31 December 2021 - audited                   22.1      398.7    (129.6)        5,310.0            5,601.2               -   5,601.2 
 
 Profit after taxation                              -          -          -          227.6              227.6               -     227.6 
 Other comprehensive income                         -          -      263.8          102.6              366.4               -     366.4 
 
 
 Total comprehensive income                         -          -      263.8          330.2              594.0               -     594.0 
 
 Dividends paid                      6              -          -          -        (118.0)            (118.0)               -   (118.0) 
 Share-based payment expense                        -          -       11.5              -               11.5               -      11.5 
 Non-controlling interests 
  arising on acquisition                            -          -          -              -                  -             1.7       1.7 
 
 
 At 30 June 2022 - unaudited                     22.1      398.7      145.7        5,522.2            6,088.7             1.7   6,090.4 
 
 
 
 
 Other Reserves comprise the following: 
 
                                                                                                                         Cost 
                                       Capital             Other      Share-Based                                          of 
                                    Redemption     Undenominated          Payment     Translation     Hedging         Hedging 
                                       Reserve           Capital          Reserve         Reserve     Reserve         Reserve     Total 
                                         EUR'm             EUR'm            EUR'm           EUR'm       EUR'm           EUR'm     EUR'm 
 
 
 At 1 January 2021                         1.7               0.3             90.2         (472.0)         2.6           (2.3)   (379.5) 
 
 Other comprehensive 
  income/(expense)                           -                 -                -            98.7       (1.8)             0.3      97.2 
 Share-based payment 
  expense                                    -                 -              8.0               -           -               -       8.0 
 
 
 At 30 June 2021 - unaudited               1.7               0.3             98.2         (373.3)         0.8           (2.0)   (274.3) 
 
 Other comprehensive 
  income/(expense)                           -                 -                -           135.2         0.6           (0.3)     135.5 
 Share-based payment 
  expense                                    -                 -              9.2               -           -               -       9.2 
 
 
 At 31 December 2021 
  - audited                                1.7               0.3            107.4         (238.1)         1.4           (2.3)   (129.6) 
 
 Other comprehensive 
  income/(expense)                           -                 -                -           265.3       (1.7)             0.2     263.8 
 Share-based payment 
  expense                                    -                 -             11.5               -           -               -      11.5 
 
 
 At 30 June 2022 - 
  unaudited                                1.7               0.3            118.9            27.2       (0.3)           (2.1)     145.7 
 
 
 
 
 
 
  Condensed Consolidated Statement of Cash Flows 
 for the half year ended 30 June 2022 
 
                                                                       Half year   Half year        Year 
                                                                           ended       ended       ended 
                                                                         30 June     30 June     31 Dec. 
                                                                            2022        2021        2021 
                                                                       Unaudited   Unaudited     Audited 
                                                               Notes       EUR'm       EUR'm       EUR'm 
 
 
 Cash flows from operating activities 
 Profit before taxation                                                    265.1       262.9       816.3 
 Adjustments for: 
 Depreciation (net)                                                        108.1       100.8       201.5 
 Intangible asset amortisation                                              42.0        39.2        80.8 
 Share of profit from joint ventures                                       (1.1)       (0.7)       (3.9) 
 Non-trading items income statement charge/(income)              3          69.5        20.8      (91.5) 
 Finance costs (net)                                             4          34.1        34.2        69.9 
 Change in working capital                                               (278.0)     (142.9)     (184.3) 
 Pension contributions paid less pension expense                           (7.0)       (6.0)      (14.7) 
 Payments on non-trading items                                            (36.1)       (7.2)      (76.1) 
 Exchange translation adjustment                                          (17.9)         0.4       (0.7) 
 
 
 Cash generated from operations                                            178.7       301.5       797.3 
 Income taxes paid                                                        (31.9)      (32.1)      (72.0) 
 Finance income received                                                     0.8         0.1         0.4 
 Finance costs paid                                                       (15.4)      (21.6)      (71.7) 
 
 
 Net cash from operating activities                                        132.2       247.9       654.0 
 
 
 Investing activities 
 Purchase of assets (net)                                                 (61.3)     (136.3)     (300.4) 
 Proceeds from the sale of assets (net of disposal 
  expenses)                                                                  3.2         3.6         4.0 
 Capital grants received                                                       -           -         0.7 
 Purchase of businesses (net of cash acquired)                  10       (244.6)      (24.6)   (1,084.9) 
 Receipts/(payments) relating to previous acquisitions                       1.7      (10.8)      (18.9) 
 Purchase of investments                                                   (4.8)       (4.2)       (4.4) 
 Disposal of businesses (net of disposal expenses)                             -           -       775.2 
 
 
 Net cash used in investing activities                                   (305.8)     (172.3)     (628.7) 
 
 
 Financing activities 
 Dividends paid                                                  6       (118.0)     (107.1)     (157.5) 
 Payment of lease liabilities                                             (15.9)      (15.8)      (34.9) 
 Issue of share capital                                         11             -           -           - 
 Repayment of borrowings (net of swaps)                                        -     (134.4)   (1,093.3) 
 Increase in borrowings                                                      0.1           -     1,705.0 
 
 
 Net cash movement due to financing activities                           (133.8)     (257.3)       419.3 
 
 
 Net (decrease)/increase in cash and cash equivalents                    (307.4)     (181.7)       444.6 
 Cash and cash equivalents at beginning of the 
  period                                                                 1,033.8       560.3       560.3 
 Exchange translation adjustment on cash and 
  cash equivalents                                                          17.8        13.1        28.9 
 
 
 Cash and cash equivalents at end of the period                  9         744.2       391.7     1,033.8 
 
 
 Reconciliation of Net Cash Flow to Movement in Net 
  Debt 
 Net (decrease)/increase in cash and cash equivalents                    (307.4)     (181.7)       444.6 
 Cash flow from debt financing                                             (0.1)       134.4     (611.7) 
 
 
 Changes in net debt resulting from cash flows                           (307.5)      (47.3)     (167.1) 
 Fair value movement on interest rate swaps (net of 
  adjustment to borrowings)                                                (2.3)         0.9       (0.1) 
 Exchange translation adjustment on net debt                              (28.4)       (3.0)      (19.1) 
 
 
 Movement in the period                                                  (338.2)      (49.4)     (186.3) 
 At beginning of the period                                            (2,049.9)   (1,863.6)   (1,863.6) 
 
 
 Net debt at end of the period - pre lease 
  liabilities                                                          (2,388.1)   (1,913.0)   (2,049.9) 
 Lease liabilities                                                        (68.2)      (67.6)      (74.2) 
 
 
 Net debt at end of the period                                   9     (2,456.3)   (1,980.6)   (2,124.1) 
 
 Prior period, 30 June 2021, has been re-presented to align with current presentation. 
 
 
 Notes to the Condensed Consolidated Interim Financial Statements 
 for the half year ended 30 June 2022 
 
 1. Accounting policies 
 These Condensed Consolidated Interim Financial Statements for the half year ended 
  30 June 2022 have been prepared in accordance with International Financial Reporting 
  Standards ('IFRS'), the International Financial Reporting Interpretations Committee 
  ('IFRIC') and in accordance with IAS 34 'Interim Financial Reporting'. The Group 
  financial statements have also been prepared in accordance with IFRS adopted by 
  the European Union ('EU') which comprise standards and interpretations approved 
  by the International Accounting Standards Board ('IASB'). The Group financial 
  statements comply with Article 4 of the EU IAS Regulation. IFRS adopted by the 
  EU differs in certain respects from IFRS issued by the IASB. References to IFRS 
  refer to IFRS adopted by the EU. The accounting policies applied by the Group 
  in these Condensed Consolidated Interim Financial Statements are the same as those 
  detailed in the 2021 Annual Report except for changes in accounting policies in 
  respect of a new non-controlling interests policy and an updated segmental analysis 
  policy as outlined below for the half year ended 30 June 2022. 
 
  From 1 January 2022, the Group has moved from trading profit to earnings before 
  interest, tax, depreciation and amortisation (EBITDA) as the key measure utilised 
  in assessing the performance of the Group. This has been reflected in the presentation 
  of the Group's Condensed Consolidated Income Statement and note 2 'Analysis of 
  results', as permitted under IAS 1 'Presentation of Financial Statements'. In 
  these Condensed Consolidated Interim Financial Statements for the half year ended 
  30 June 2022, the Group has re-presented corresponding 2021 balances to align 
  with current year presentation in the Condensed Consolidated Income Statement, 
  Condensed Consolidated Statement of Cash Flows, note 2 'Analysis of results' and 
  note 4 'Finance income and costs'. 
 
  Non-controlling interests 
  Non-controlling interests represent the portion of the equity of a subsidiary 
  not attributable either directly or indirectly to the Parent Company and are presented 
  separately in the Condensed Consolidated Income Statement and within equity in 
  the Condensed Consolidated Balance Sheet, distinguished from Parent Company shareholders' 
  equity. Where not all of the equity of a subsidiary is acquired the non-controlling 
  interests are recognised at the non-controlling interest's share of the acquiree's 
  net identifiable assets. 
 
  Segmental analysis 
  Operating segments are reported in a manner consistent with the internal management 
  structure of the Group and the internal financial information provided to the 
  Group's Chief Operating Decision Maker (the Executive Directors) who is responsible 
  for making strategic decisions, allocating resources, monitoring and assessing 
  the performance of each segment. EBITDA as reported internally by segment is the 
  key measure utilised in assessing the performance of operating segments within 
  the Group. Other Corporate activities, such as the cost of corporate stewardship, 
  are reported along with the elimination of inter-group activities under the heading 
  'Group Eliminations and Unallocated'. Depreciation, intangible asset amortisation, 
  non-trading items, net finance costs, share of joint ventures profit after taxation 
  and income taxes are managed on a centralised basis and therefore, these items 
  are not allocated between operating segments and are not reported per segment 
  in note 2. 
 
  The Group has determined it has two reportable segments: Taste & Nutrition and 
  Dairy Ireland. The Taste & Nutrition segment is a world leading taste and nutrition 
  partner for the food, beverage and pharmaceutical markets. Kerry innovates with 
  its customers to create great tasting products, with improved nutrition and functionality, 
  whilst ensuring better impact for the planet. The Taste & Nutrition segment supplies 
  industries across Ireland, Europe, Americas and APMEA (Asia Pacific, Middle East 
  and Africa). The Dairy Ireland segment is a leading Irish provider of value-add 
  dairy ingredients and consumer products. 
 
  Critical accounting estimates and judgements 
  The preparation of the Group Condensed Consolidated Interim Financial Statements 
  requires management to make certain estimations, assumptions and judgements that 
  affect the reported profits, assets and liabilities. Estimates and underlying 
  assumptions are reviewed on an ongoing basis. Changes in accounting estimates 
  may be necessary if there are changes in the circumstances on which the estimate 
  was based or as a result of new information or more experience. Such changes are 
  recognised in the period in which the estimate is revised. 
 
  In preparing the Group Condensed Consolidated Interim Financial Statements, the 
  significant judgements made by management in applying the Group's accounting policies 
  and the key sources of estimation uncertainty were the same as those applied to 
  the Consolidated Financial Statements for the year ended 31 December 2021 except 
  for the new judgement in respect of 'Russian and associated markets costs' for 
  the half year ended 30 June 2022 outlined below. 
 
  Russian and associated markets costs 
  As previously announced on 4 April 2022, the Group is sspending its operations 
  in Russia and Belarus. This suspension is being managed in an orderly manner, 
  during which the Group is continuing to pay employees and fulfil our legal obligations 
  and a decision has been made to classify these businesses as held for sale. The 
  assets of these businesses have been impaired to their fair value less costs to 
  sell resulting in a charge of EUR37.9m to the Condensed Consolidated Income Statement 
  (see notes 3 and 7 to the Condensed Consolidated Interim Financial Statements). 
  On 7 July 2022, the Group reached agreement to sell 100% of the share capital 
  of Unitary Manufacturing Enterprise "Vitella", a Taste & Nutrition entity based 
  in Belarus. On 22 July 2022, the Group reached agreement to divest 100% of the 
  share capital of Kerry Limited Liability Company, its subsidiary in Russia, to 
  local management. 
 
  Going concern 
  The Group Condensed Consolidated Interim Financial Statements have been prepared 
  on the going concern basis of accounting. The Directors have considered the Group's 
  business activities and how it generates value, together with the main trends 
  and factors likely to affect future development, business performance and position 
  of the Group regarding Russian and associated markets divestment. The Group performed 
  an impairment assessment of the impacted businesses regarding the Russian and 
  associated markets which has led to the assets of the businesses in Russia, Belarus 
  and Ukraine being impaired to their fair value less costs to sell resulting in 
  a charge of EUR41.2m being recognised in the Condensed Consolidated Income Statement 
  during the period. The viability of the Group was also assessed by considering 
  the potential impact of climate related risks on profitability and liquidity, 
  accelerating inflationary cost pressures, disruption of global supply chains and 
  the challenges presented in China with localised restrictions during the period. 
  Following these assessments the Directors have concluded there are no material 
  uncertainties that cast a significant doubt on the Group's ability to continue 
  as a going concern over a period of at least 12 months from the date of these 
  financial statements. 
 
  The Directors report that they have satisfied themselves that the Group is a going 
  concern, having adequate resources to continue in operational existence for the 
  foreseeable future. In forming this view, the Directors have reviewed the Group's 
  forecast for a period not less than 12 months, the medium term plan and its cashflow 
  implications have been taken into account including proposed capital expenditure, 
  and compared these with the Group's committed borrowing facilities and projected 
  gearing ratios. 
 
 The following Standards and Interpretations are effective for the Group                       Effective 
  from 1 January 2022 but do not have a material effect on the results                              Date 
  or financial position of the Group: 
 
 - IAS 16 (Amendments)        Property, Plant and Equipment                                    1 January 
                                                                                                    2022 
 
 - IAS 37 (Amendments)        Provisions, Contingent Liabilities and Contingent                1 January 
                               Assets                                                               2022 
 
 - IFRS 9 (Amendments)        Financial Instruments                                            1 January 
                                                                                                    2022 
 
 - IFRS 3 (Amendments)        Business Combinations                                            1 January 
                                                                                                    2022 
 
 - IAS 41 (Amendments)        Agriculture                                                      1 January 
                                                                                                    2022 
 
 The following Standards and Interpretations are not yet effective for                         Effective 
  the Group and are not expected to have a material effect on the results                           Date 
  or financial position of the Group: 
 
 - IAS 1 (Amendments)         Presentation of Financial Statements                             1 January 
                                                                                                    2023 
 
 - IFRS 17                    Insurance Contracts                                              1 January 
                                                                                                    2023 
 
 - IAS 8 (Amendments)         Accounting Policies, Changes in Accounting Estimates             1 January 
                               and Errors                                                           2023 
 
 - IAS 12 (Amendments)        Income Taxes                                                     1 January 
                                                                                                    2023 
 
 
 
 
 2. Analysis of results 
 The Group has determined it has two reportable segments: Taste & Nutrition 
  and Dairy Ireland. The Taste & Nutrition segment is a world leading taste 
  and nutrition partner for the food, beverage and pharmaceutical markets. 
  Kerry innovates with its customers to create great tasting products, 
  with improved nutrition and functionality, whilst ensuring better impact 
  for the planet. The Taste & Nutrition segment supplies industries across 
  Ireland, Europe, Americas and APMEA (Asia Pacific, Middle East and Africa). 
  The Dairy Ireland segment is a leading Irish provider of value-add dairy 
  ingredients and consumer products. 
 
 
                                                Half year ended 30                             Half year ended 30                           Year ended 31 December 
                                             June 2022 - Unaudited                          June 2021 - Unaudited                                   2021 - Audited 
                                                   Group                                          Group                                          Group 
                                            Eliminations                                   Eliminations                                   Eliminations 
                        Taste     Dairy              and                 Taste     Dairy            and                 Taste     Dairy            and 
                            &                                                &                                              & 
                    Nutrition   Ireland      Unallocated     Total   Nutrition   Ireland    Unallocated     Total   Nutrition   Ireland    Unallocated       Total 
                        EUR'm     EUR'm            EUR'm     EUR'm       EUR'm     EUR'm          EUR'm     EUR'm       EUR'm     EUR'm          EUR'm       EUR'm 
 
 
 External 
  revenue             3,431.2     626.6                -   4,057.8     2,679.0     903.1              -   3,582.1     5,689.3   1,661.3              -     7,350.6 
 Inter-segment 
  revenue                13.7      68.8           (82.5)         -        23.4      56.7         (80.1)         -        40.1     116.3        (156.4)           - 
 
 
 Revenue              3,444.9     695.4           (82.5)   4,057.8     2,702.4     959.8         (80.1)   3,582.1     5,729.4   1,777.6        (156.4)     7,350.6 
 
 
 EBITDA*                515.4      38.4           (36.1)     517.7       412.7      80.1         (34.9)     457.9     1,013.5     136.0         (72.5)     1,077.0 
 
 
 Depreciation                                              (108.1)                                        (100.8)                                          (201.5) 
 Intangible asset amortisation                              (42.0)                                         (39.2)                                           (80.8) 
 Non-trading items                                          (69.5)                                         (20.8)                                             91.5 
 
 
 Operating profit                                            298.1                                          297.1                                            886.2 
 
 Finance income                                                0.8                                            0.1                                              0.3 
 Finance costs                                              (34.9)                                         (34.3)                                           (70.2) 
 Share of joint ventures profit                                1.1                                              -                                                - 
  after taxation 
 
 
 Profit before taxation                                      265.1                                          262.9                                            816.3 
 Income taxes                                               (37.5)                                         (35.9)                                           (53.3) 
 
 
 Profit after taxation                                       227.6                                          227.0                                            763.0 
 
 
 Attributable to: 
 Equity holders of the parent                                227.6                                          227.0                                            763.0 
 Non-controlling interests                                       -                                              -                                                - 
 
 
                                                             227.6                                          227.0                                            763.0 
 
 
 *EBITDA represents profit before finance income and costs, income taxes, 
  depreciation (net of capital grant amortisation), intangible asset amortisation, 
  non-trading items and share of joint ventures profit after taxation. 
 
 
 
 Revenue analysis 
 Disaggregation of revenue from external customers is analysed by End Use Market 
  (EUM), which is the primary market in which Kerry's products are consumed and 
  primary geographic market. An EUM is defined as the market in which the end consumer 
  or customer of Kerry's product operates. The economic factors within the EUMs 
  of Food, Beverage and Pharma and within the primary geographic markets which affect 
  the nature, amount, timing and uncertainty of revenue and cash flows are similar. 
 Analysis by EUM 
 
                         Half year ended 30 June         Half year ended 30 June          Year ended 31 December 
                                            2022                            2021                            2021 
                                     - Unaudited                     - Unaudited                       - Audited 
                       Taste     Dairy                 Taste     Dairy                 Taste     Dairy 
                           &                               &                               & 
                   Nutrition   Ireland     Total   Nutrition   Ireland     Total   Nutrition   Ireland     Total 
                       EUR'm     EUR'm     EUR'm       EUR'm     EUR'm     EUR'm       EUR'm     EUR'm     EUR'm 
 
 
 Food                2,271.0     578.0   2,849.0     1,814.7     866.1   2,680.8     3,837.5   1,587.4   5,424.9 
 Beverage              920.5      48.6     969.1       720.1      37.0     757.1     1,515.2      73.9   1,589.1 
 Pharma                239.7         -     239.7       144.2         -     144.2       336.6         -     336.6 
 
 
 External 
  revenue            3,431.2     626.6   4,057.8     2,679.0     903.1   3,582.1     5,689.3   1,661.3   7,350.6 
 
 
 
 Analysis by primary geographic market 
 Disaggregation of revenue from external customers is analysed by geographical 
  split: 
 
                         Half year ended 30 June         Half year ended 30 June          Year ended 31 December 
                                            2022                            2021                            2021 
                                     - Unaudited                     - Unaudited                       - Audited 
                       Taste     Dairy                 Taste     Dairy                 Taste     Dairy 
                           &                               &                               & 
                   Nutrition   Ireland     Total   Nutrition   Ireland     Total   Nutrition   Ireland     Total 
                       EUR'm     EUR'm     EUR'm       EUR'm     EUR'm     EUR'm       EUR'm     EUR'm     EUR'm 
 
 
 Republic of 
  Ireland               40.6     241.6     282.2        31.2     212.6     243.8        64.1     394.6     458.7 
 Rest of Europe        688.6     303.3     991.9       540.9     609.5   1,150.4     1,168.7   1,089.6   2,258.3 
 Americas            1,933.8      46.8   1,980.6     1,497.5      44.5   1,542.0     3,137.5      97.7   3,235.2 
 APMEA                 768.2      34.9     803.1       609.4      36.5     645.9     1,319.0      79.4   1,398.4 
 
 
 External 
  revenue            3,431.2     626.6   4,057.8     2,679.0     903.1   3,582.1     5,689.3   1,661.3   7,350.6 
 
 
 The accounting policies of the reportable segments are the same as those detailed 
  in the Statement of accounting policies in the 2021 Annual Report. Under IFRS 
  15 'Revenue from Contracts with Customers' revenue is primarily recognised at 
  a point in time. Revenue recorded over time during the period was not material 
  to the Group. 
 
  Prior periods 30 June 2021 and 31 December 2021 have been re-presented to reflect 
  the changes in our reporting segments as at 1 January 2022. Within Taste & Nutrition, 
  the dairy processing activities in Ireland have been realigned with the dairy 
  activities in the Consumer Foods business, comprising the new Group reporting 
  segment of Dairy Ireland. Included within the Dairy Ireland 30 June 2021 and 31 
  December 2021 comparatives are the results of the Consumer Foods Meats and Meals 
  business which was disposed by the Group on 27 September 2021. 
 
 
 3. Non-trading items 
                                                                 Half year        Half year                Year 
                                                                     ended            ended               ended 
                                                                   30 June     30 June 2021        31 Dec. 2021 
                                                                      2022 
                                                                 Unaudited        Unaudited             Audited 
                                                       Notes         EUR'm            EUR'm               EUR'm 
 
 
 Acquisition integration costs                           (i)         (1.7)            (5.5)              (54.9) 
 Global Business Services expansion                     (ii)         (7.3)           (13.0)              (33.3) 
 (Loss)/profit on disposal of 
  businesses and assets                                (iii)         (1.7)            (2.3)               179.7 
 Accelerate Operational Excellence                      (iv)        (17.6)                -                   - 
 Russian and associated markets                          (v)        (41.2)                -                   - 
  costs 
 
 
                                                                    (69.5)           (20.8)                91.5 
 Tax on above                                                          7.4              1.0                26.3 
 Tax on inter-group transfer                            (vi)             -                -                16.6 
 
 
 Non-trading items (net of tax)                                     (62.1)           (19.8)               134.4 
 
 (i) Acquisition integration costs 
These costs reflect the relocation of resources, the restructuring of 
 operations in order to integrate the acquired businesses into the existing 
 Kerry operating model and external costs associated with deal preparation, 
 integration planning and due diligence. A tax credit of EURnil (30 June 
 2021: EUR0.1m; 31 December 2021: EUR12.4m) arose due to tax deductions 
 available on acquisition related costs. 
 
(ii) Global Business Services expansion 
In 2020, the Group commenced a programme to evolve, migrate and expand 
 its Global Business Services model to better enable the business and 
 support further growth. For the period ended 30 June 2022, these costs 
 reflect relocation of resources, advisory fees, redundancies and the 
 streamlining of operations. The associated tax credit was EUR1.4m (30 
 June 2021: EUR0.4m; 31 December 2021: EUR1.2m). 
 
(iii) (Loss)/profit on disposal of businesses and assets 
During the period, the Group disposed of property, plant and equipment 
 primarily in North America and Europe for a consideration of EUR3.2m 
 resulting in a loss of EUR1.7m for the period ended 30 June 2022. During 
 2021, the Group disposed of its Meats and Meals business operating in 
 Ireland and the UK from the Consumer Foods (now Dairy Ireland) division 
 and during the year also disposed of a small operation in Taste & Nutrition 
 Europe for a consideration of EUR813.6m resulting in a gain of EUR230.9m. 
 In addition, the Group disposed of property, plant and equipment and 
 computer software in North America, Europe and APMEA for a combined consideration 
 of EUR19.4m resulting in a loss of EUR2.6m for the year ended 31 December 
 2021. A tax credit of EUR0.1m (30 June 2021: EUR0.5m; 31 December 2021: 
 EUR0.5m) arose on the disposal of businesses and assets. In 2021, assets 
 classified as held for sale of property, plant and equipment based in 
 the USA and Europe were impaired to their value less costs to sell by 
 EUR48.6m, the related tax credit was EUR12.2m. 
 
(iv) Accelerate Operational Excellence 
These one-off costs predominantly reflect consultancy fees and project 
 management costs incurred in the period relating to our Accelerate Operational 
 Excellence programme. A tax credit of EUR4.9m (30 June 2021: EURnil; 
 31 December 2021: EURnil) arose due to tax deductions available on accelerated 
 operational excellence costs. 
(v) Russian and associated markets costs 
As previously announced on 4 April 2022, the Group is suspending its 
 operations in Russia and Belarus. This suspension is being managed in 
 an orderly manner, during which the Group is continuing to pay employees 
 and fulfil our legal obligations and a decision has been made to classify 
 these businesses as held for sale (see note 7). The assets of these businesses 
 have been impaired to their fair value less costs to sell resulting in 
 a charge of EUR37.9m (30 June 2021: EURnil; 31 December 2021: EURnil) 
 to the Condensed Consolidated Income Statement for the impairment of 
 goodwill, brand-related intangibles, fixed assets, right-of-use assets 
 and working capital. The fair value of these assets less costs to sell 
 were based on management estimates of the fair value of these businesses, 
 the residual fair value of these assets is EURnil. The associated non-cash 
 cumulative foreign exchange losses on expected disposal of these businesses 
 is currently estimated at EUR13.5m. On 7 July 2022, the Group reached 
 agreement to sell 100% of the share capital of Unitary Manufacturing 
 Enterprise "Vitella", a Taste & Nutrition entity based in Belarus. On 
 22 July 2022, the Group reached agreement to divest 100% of the share 
 capital of Kerry Limited Liability Company, its subsidiary in Russia, 
 to local management. 
 
 During the period, the Group also impaired business assets held in Ukraine 
 amounting to EUR3.3m, which included property, plant and equipment, right-of-use 
 assets and working capital. These impairments have been recorded in the 
 Condensed Consolidated Income Statement as part of non-trading items. 
 
 A tax credit EUR1.0m (30 June 2021: EURnil; 31 December 2021: EURnil) 
 arose due to tax deductions available on the impairment of assets held 
 for sale. 
(vi) Tax on inter-group transfer 
During 2021, a net tax credit of EUR16.6m arose as a result of the transfer 
 of intangible assets between two wholly owned subsidiaries based in two 
 different tax jurisdictions. 
 
 
 
4. Finance income and costs 
 
                                                                  Half year     Half year          Year 
                                                                      ended         ended         ended 
                                                               30 June 2022  30 June 2021  31 Dec. 2021 
                                                                  Unaudited     Unaudited       Audited 
                                                                      EUR'm         EUR'm         EUR'm 
 
 
Finance income: 
Interest income on deposits                                             0.8           0.1           0.3 
 
 
Finance costs: 
Interest payable                                                     (33.7)        (32.8)        (66.7) 
Interest on lease liabilities                                         (1.9)         (2.4)         (4.4) 
Interest rate derivative                                                0.1           1.3           1.6 
 
 
                                                                     (35.5)        (33.9)        (69.5) 
 
Net interest income/(cost) on retirement benefits obligation            0.6         (0.4)         (0.7) 
 
 
Finance costs                                                        (34.9)        (34.3)        (70.2) 
 
 
 
5. Earnings per A ordinary share 
 
                                                                           Half year       Half year            Year 
                                                                               ended           ended           ended 
                                                                        30 June 2022    30 June 2021    31 Dec. 2021 
                                                                           Unaudited       Unaudited         Audited 
                                                                        EPS             EPS             EPS 
                                                                       cent    EUR'm   cent    EUR'm   cent    EUR'm 
 
 
Basic earnings per share 
Profit after taxation attributable to equity holders of the parent    128.4    227.6  128.2    227.0  430.6    763.0 
 
 
Diluted earnings per share 
Profit after taxation attributable to equity holders of the parent    128.2    227.6  128.0    227.0  429.9    763.0 
 
 
 
                                                                        30 June 2022    30 June 2021    31 Dec. 2021 
                                                                           Unaudited       Unaudited         Audited 
Number of Shares                                                                 m's             m's             m's 
 
 
Basic weighted average number of shares                                        177.3           177.1           177.2 
Impact of share options outstanding                                              0.2             0.3             0.3 
 
 
Diluted weighted average number of shares                                      177.5           177.4           177.5 
 
 
 
 
6. Dividends 
 
                                                                               Half year     Half year          Year 
                                                                                   ended         ended         ended 
                                                                            30 June 2022  30 June 2021  31 Dec. 2021 
                                                                               Unaudited     Unaudited       Audited 
                                                                                   EUR'm         EUR'm         EUR'm 
 
 
Amounts recognised as distributions to equity shareholders in the period 
Final 2021 dividend of 66.70 cent per A ordinary share paid 6 May 2022             118.0         107.1         107.1 
(Final 2020 dividend of 60.60 cent per A ordinary share paid 14 May 2021) 
 
Interim 2021 dividend of 28.50 cent per A ordinary share paid 12 November 
 2021                                                                                  -             -          50.4 
 
 
                                                                                   118.0             -         157.5 
 
 
 
 Since the end of the period, the Board has declared an 
  interim dividend 
  of 31.40 cent per A ordinary share which amounts to 
  EUR55.6m. The payment 
  date for the interim dividend will be 11 November 2022 
  to shareholders 
  registered on the record date as at 14 October 2022. 
  These Condensed 
  Consolidated Interim Financial Statements do not 
  reflect this dividend. 
 
 
  7. Assets classified as held 
  for sale 
  At 30 June 2022 and 31 December 2021, the Group held 
  certain property, 
  plant and equipment classified as held for sale in the 
  Taste & Nutrition 
  segment in Europe and North America. In addition, the 
  Group classified 
  the Taste & Nutrition businesses located in Russia and 
  Belarus as assets 
  held for sale during the period, the residual fair 
  value of these assets 
  on the Condensed Consolidated Balance Sheet is EURnil. 
 
  At 30 June 2021, the Group had net assets classified as 
  held for sale 
  of EUR501.2m. On 27 September 2021, the Group disposed 
  of its Meats 
  and Meals business operating in Ireland and the UK from 
  the Consumer 
  Foods (now Dairy Ireland) division and during 2021 also 
  disposed of 
  a small operation in Taste & Nutrition Europe for a 
  consideration of 
  EUR813.6m resulting in a gain of EUR230.9m. The 
  consideration of EUR813.6m 
  comprises of the EUR819.0m as previously announced for 
  the sale of the 
  Meats and Meals business net of working capital and 
  debt adjustments 
  and EUR2.9m for a small operation disposed of in Taste 
  & Nutrition Europe. 
  These businesses were not deemed to be discontinued 
  operations and goodwill 
  was allocated to these disposed businesses using an 
  appropriate allocation 
  methodology aligned with IAS 36 'Impairment of Assets'. 
 
  The major classes of assets and liabilities comprising 
  the operations 
  classified as held for sale are outlined in the table 
  below: 
 
                                  Half year     Half year           Year 
                                      ended         ended          ended 
                                    30 June  30 June 2021   31 Dec. 2021 
                                       2022 
                                  Unaudited     Unaudited        Audited 
                                      EUR'm         EUR'm          EUR'm 
 
 
  Property, plant and equipment        22.4         127.2           18.7 
              Intangible assets           -         312.6              - 
                    Inventories           -          46.4              - 
    Trade and other receivables           -          37.2              - 
 
 
  Total assets classified as 
   held for 
   sale                                22.4         523.4           18.7 
 
 
  Trade and other payables                -        (22.2)              - 
 
 
  Total liabilities directly              -        (22.2)              - 
  associated 
  with assets classified as 
  held for sale 
 
 
  Net assets classified as held 
   for sale*                           22.4         501.2           18.7 
 
  *The analysis in the table above excludes any transaction and other 
  attributable costs. 
 
 
8. Retirement benefits obligation 
The net surplus/(deficit) recognised in the Condensed Consolidated Balance Sheet for the Group's 
 defined benefit post-retirement schemes was as follows: 
                                                                     Schemes       Schemes 
                                                                  in Surplus    in Deficit         Total 
                                                                   Half year     Half year     Half year 
                                                                       ended         ended         ended 
                                                                30 June 2022  30 June 2022  30 June 2022 
                                                                   Unaudited     Unaudited     Unaudited 
                                                                       EUR'm         EUR'm         EUR'm 
 
 
Net recognised surplus/(deficit) in plans before deferred tax          221.6        (19.8)         201.8 
Net related deferred tax (liability)/asset                            (42.8)           5.1        (37.7) 
 
 
Net recognised surplus/(deficit) in plans after deferred tax           178.8        (14.7)         164.1 
 
 
At 30 June 2022, the net surplus before deferred tax for defined benefit post-retirement schemes 
 was EUR201.8m (30 June 2021: EUR51.3m; 31 December 2021: EUR66.2m). This was calculated by 
 rolling forward the defined benefit post-retirement schemes' liabilities at 31 December 2021 
 to reflect material movements in underlying assumptions over the period while the defined 
 benefit post-retirement schemes' assets at 30 June 2022 are measured at market value. The 
 improvement in the funding position before deferred tax of EUR135.6m was driven by favourable 
 movements in actuarial assumptions, primarily higher discount rates, which were partially 
 offset by reduced asset values. 
 
 The surplus at 30 June 2022 relates to the Irish and UK schemes and has been recognised in 
 accordance with IFRIC 14 'The Limit on a Defined Benefit Asset, Minimum Funding Requirements 
 and their Interaction' as it has been determined that the Group has an unconditional right 
 to a refund of the surplus. 
 
                                                                     Schemes       Schemes 
                                                                  in Surplus    in Deficit         Total 
                                                                   Half year     Half year     Half year 
                                                                       ended         ended         ended 
                                                                30 June 2021  30 June 2021  30 June 2021 
                                                                   Unaudited     Unaudited     Unaudited 
                                                                       EUR'm         EUR'm         EUR'm 
 
 
Net recognised surplus/(deficit) in plans before deferred tax           75.8        (24.5)          51.3 
Net related deferred tax (liability)/asset                            (13.0)           4.9         (8.1) 
 
 
Net recognised surplus/(deficit) in plans after deferred tax            62.8        (19.6)          43.2 
 
 
 
 
                                                                     Schemes       Schemes 
                                                                  in Surplus    in Deficit         Total 
                                                                        Year          Year          Year 
                                                                       ended         ended         ended 
                                                                31 Dec. 2021  31 Dec. 2021  31 Dec. 2021 
                                                                     Audited       Audited       Audited 
                                                                       EUR'm         EUR'm         EUR'm 
 
 
Net recognised surplus/(deficit) in plans before deferred tax           90.3        (24.1)          66.2 
Net related deferred tax (liability)/asset                            (14.8)           4.9         (9.9) 
 
 
Net recognised surplus/(deficit) in plans after deferred tax            75.5        (19.2)          56.3 
 
 
 
 
9. Financial instruments 
i) The following table outlines the financial assets and liabilities in relation to net debt 
 held by the Group at the balance sheet date: 
 
                                                               Liabilities    Derivatives 
                                                 Financial   at Fair Value  Designated as           Assets/ 
                                      Assets/(Liabilities)  through Profit        Hedging  (Liabilities) at 
                                         at Amortised Cost         or Loss    Instruments             FVOCI      Total 
                                                     EUR'm           EUR'm          EUR'm             EUR'm      EUR'm 
 
 
Assets: 
Interest rate swaps                                      -               -           38.0                 -       38.0 
Cash at bank and in hand                             757.2               -              -                 -      757.2 
 
 
                                                     757.2               -           38.0                 -      795.2 
 
 
Liabilities: 
Interest rate swaps                                      -               -         (17.4)                 -     (17.4) 
 
 
Bank overdrafts                                     (13.0)               -              -                 -     (13.0) 
Bank loans                                           (2.7)               -              -                 -      (2.7) 
Senior notes                                     (3,154.6)             4.4              -                 -  (3,150.2) 
 
 
Borrowings and overdrafts                        (3,170.3)             4.4              -                 -  (3,165.9) 
 
 
Net debt - pre lease liabilities                 (2,413.1)             4.4           20.6                 -  (2,388.1) 
Lease liabilities                                   (68.2)               -              -                 -     (68.2) 
 
 
Net debt at 30 June 2022 - unaudited             (2,481.3)             4.4           20.6                 -  (2,456.3) 
 
 
Assets: 
Interest rate swaps                                      -               -           37.6                 -       37.6 
Cash at bank and in hand                             395.0               -              -                 -      395.0 
 
 
                                                     395.0               -           37.6                 -      432.6 
 
 
Liabilities: 
Interest rate swaps                                      -               -              -                 -          - 
 
 
Bank overdrafts                                      (3.3)               -              -                 -      (3.3) 
Bank loans                                               -               -              -                 -          - 
Senior notes                                     (2,326.5)          (15.8)              -                 -  (2,342.3) 
 
 
Borrowings and overdrafts                        (2,329.8)          (15.8)              -                 -  (2,345.6) 
 
 
Net debt - pre lease liabilities                 (1,934.8)          (15.8)           37.6                 -  (1,913.0) 
Lease liabilities                                   (67.6)               -              -                 -     (67.6) 
 
 
Net debt at 30 June 2021 - unaudited             (2,002.4)          (15.8)           37.6                 -  (1,980.6) 
 
 
Assets: 
Interest rate swaps                                      -               -           34.6                 -       34.6 
Cash at bank and in hand                           1,039.1               -              -                 -    1,039.1 
 
 
                                                   1,039.1               -           34.6                 -    1,073.7 
 
 
Liabilities: 
Interest rate swaps                                      -               -              -                 -          - 
 
 
Bank overdrafts                                      (5.3)               -              -                 -      (5.3) 
Bank loans                                           (2.9)               -              -                 -      (2.9) 
Senior notes                                     (3,104.5)          (10.9)              -                 -  (3,115.4) 
 
 
Borrowings and overdrafts                        (3,112.7)          (10.9)              -                 -  (3,123.6) 
 
 
Net debt - pre lease liabilities                 (2,073.6)          (10.9)           34.6                 -  (2,049.9) 
Lease liabilities                                   (74.2)               -              -                 -     (74.2) 
 
 
Net debt at 31 December 2021 - 
 audited                                         (2,147.8)          (10.9)           34.6                 -  (2,124.1) 
 
 
All Group borrowings and overdrafts and interest rate swaps are guaranteed by Kerry Group 
 plc. No assets of the Group have been pledged to secure these items. 
 
 As at 30 June 2022, the Group's debt portfolio included: 
 - US$750m of senior notes issued in 2013, maturing in 2023 (the 2023 senior notes). At the 
 time of issuance, US$250m were swapped, using cross currency swaps, to euro; 
 - EUR750m of senior notes issued in 2015 and EUR200m issued in April 2020 as a tap onto the 
 original issuance (the 2025 senior notes). EUR175m of the issuance in 2015 were swapped, using 
 cross currency swaps, to US dollar; 
 - EUR750m of senior notes issued in 2019 (the 2029 senior notes); and 
 - EUR750m of euro sustainability-linked bond notes issued in 2021 (the 2031 SLB senior notes). 
 No interest rate derivatives were entered into for the 2029 senior notes and 2031 SLB senior 
 notes issuances. 
 
 The adjustment to senior notes classified under liabilities at fair value through profit or 
 loss of EUR4.4m debit (30 June 2021: EUR15.8m credit; 31 December 2021: EUR10.9m credit) represents 
 the part adjustment to the carrying value of debt from applying fair value hedge accounting 
 for interest rate risk. This amount is primarily offset by the fair value adjustment on the 
 corresponding hedge items being the underlying cross currency interest rate swaps. 
 
 
ii) The Group's exposure to interest rates on financial assets and liabilities are detailed 
 in the table below including the impact of cross currency swaps (CCS) on the currency profile 
 of net debt: 
                    Total pre CCS       Impact of CCS     Total after CCS       Half year            Year 
                  Half year ended     Half year ended     Half year ended           ended           ended 
                     30 June 2022        30 June 2022        30 June 2022    30 June 2021    31 Dec. 2021 
                        Unaudited           Unaudited           Unaudited       Unaudited         Audited 
                            EUR'm               EUR'm               EUR'm           EUR'm           EUR'm 
 
 
Euro                    (2,308.9)              (62.6)           (2,371.5)       (1,683.0)       (1,860.4) 
Sterling                     65.8                   -                65.8           109.3            74.5 
US Dollar                 (316.7)                62.6             (254.1)         (466.2)         (460.5) 
Other                       103.5                   -               103.5            59.3           122.3 
 
 
                        (2,456.3)                   -           (2,456.3)       (1,980.6)       (2,124.1) 
 
 
 
iii) The following table details the maturity profile of the Group's net debt: 
 
                                                  On demand &       Up to     2 - 5 
                                                 up to 1 year     2 years     years      > 5 years        Total 
                                                        EUR'm       EUR'm     EUR'm          EUR'm        EUR'm 
 
 
Cash at bank and in hand                                757.2           -         -              -        757.2 
Interest rate swaps                                      36.3           -    (15.7)              -         20.6 
Bank overdrafts                                        (13.0)           -         -              -       (13.0) 
Bank loans                                              (0.1)       (2.6)         -              -        (2.7) 
Senior notes                                          (711.1)           -   (952.8)      (1,486.3)    (3,150.2) 
 
 
Net debt - pre lease liabilities                         69.3       (2.6)   (968.5)      (1,486.3)    (2,388.1) 
Lease liabilities (discounted)                         (25.7)      (18.3)    (19.7)          (4.5)       (68.2) 
 
 
At 30 June 2022 - unaudited                              43.6      (20.9)   (988.2)      (1,490.8)    (2,456.3) 
 
 
Cash at bank and in hand                                395.0           -         -              -        395.0 
Interest rate swaps                                         -        19.8      17.8              -         37.6 
Bank overdrafts                                         (3.3)           -         -              -        (3.3) 
Bank loans                                                  -           -         -              -            - 
Senior notes                                                -     (634.7)   (967.1)        (740.5)    (2,342.3) 
 
 
Net debt - pre lease liabilities                        391.7     (614.9)   (949.3)        (740.5)    (1,913.0) 
Lease liabilities (discounted)                         (28.9)      (14.8)    (18.5)          (5.4)       (67.6) 
 
 
At 30 June 2021 - unaudited                             362.8     (629.7)   (967.8)        (745.9)    (1,980.6) 
 
 
Cash at bank and in hand                              1,039.1           -         -              -      1,039.1 
Interest rate swaps                                         -        27.6       7.0              -         34.6 
Bank overdrafts                                         (5.6)           -         -              -        (5.6) 
Bank loans                                                  -           -         -              -            - 
Senior notes                                                -     (669.0)   (963.5)      (1,485.5)    (3,118.0) 
 
 
Net debt - pre lease liabilities                      1,033.5     (641.4)   (956.5)      (1,485.5)    (2,049.9) 
Lease liabilities (discounted)                         (28.0)      (19.7)    (20.9)          (5.6)       (74.2) 
 
 
At 31 December 2021 - audited                         1,005.5     (661.1)   (977.4)      (1,491.1)    (2,124.1) 
 
At 30 June 2022, the Group had cash on hand of EUR757.2m. At the period end, the Group had 
 undrawn committed Syndicate revolving credit facility of EUR1,100m. Cash at bank and in hand 
 includes an amount of EUR199.8m held on short-term deposit of which EUR104.7m was held under 
 a Sustainable Deposits programme. The amount of cash and cash equivalent balances that are 
 not available for use by the Group is EUR0.3m due to the Russian and associated markets divestment. 
 
 
iv) Fair value of financial instruments 
 a) Fair value of financial instruments carried at fair value 
 Financial instruments recognised at fair value are analysed between those 
 based on: 
-                   quoted prices in active markets for identical assets or liabilities (Level 1); 
 -                  those involving inputs other than quoted prices included in Level 1 that are observable for 
 -                  the assets or liabilities, either directly (as prices) or indirectly (derived from prices) 
 -                  (Level 2); and 
                    those involving inputs for the assets or liabilities that are not based on observable market 
                    data (unobservable inputs) (Level 3). 
The following table sets out the fair value of financial instruments 
 carried at fair value: 
 
                                                       Fair            30 June            30 June        31 Dec. 
                                                      Value               2022               2021           2021 
                                                  Hierarchy          Unaudited          Unaudited        Audited 
                                                                         EUR'm              EUR'm          EUR'm 
 
 
Financial assets 
                                                      Level 
Interest rate swaps:  Non-current                         2                  -               37.6           34.6 
                                                      Level 
                      Current                             2               38.0                  -              - 
Forward foreign 
 exchange                                             Level 
 contracts:           Non-current                         2                2.7                  -            0.2 
                                                      Level 
                      Current                             2               70.3                8.2           15.2 
                      Fair value 
Financial asset        through profit                 Level 
 investments:          or loss                            1               43.1               41.7           45.5 
                      Fair value 
                       through other 
                       comprehensive                  Level 
                       income                             3                9.3                4.2            4.4 
 
Financial 
liabilities 
                                                      Level 
Interest rate swaps:  Non-current                         2             (15.7)                  -              - 
                                                      Level 
                      Current                             2        (1.7)                        -              - 
Forward foreign 
 exchange                                             Level 
 contracts:           Non-current                         2              (1.1)                  -          (0.5) 
                                                      Level 
                      Current                             2            (106.9)             (17.8)         (40.1) 
 
 
There have been no transfers between levels during the current or prior 
 financial period. 
 
 
 
b) Fair value of financial instruments carried at amortised cost 
Except as defined in the following table, it is considered that the carrying 
 amounts of financial assets and financial liabilities recognised at amortised 
 cost in the Condensed Consolidated Interim Financial Statements approximate 
 their fair values. 
 
                                      Carrying       Fair   Carrying       Fair   Carrying       Fair 
                                        Amount      Value     Amount      Value     Amount      Value 
                                       30 June    30 June    30 June    30 June    31 Dec.    31 Dec. 
                               Fair 
                              Value       2022       2022       2021       2021       2021       2021 
                          Hierarchy  Unaudited  Unaudited  Unaudited  Unaudited    Audited    Audited 
                                         EUR'm      EUR'm      EUR'm      EUR'm      EUR'm      EUR'm 
 
 
Financial liabilities 
                              Level 
Senior notes - Public             2  (3,154.6)  (2,829.5)  (2,326.5)  (2,431.9)  (3,104.5)  (3,174.7) 
 
 
c) Valuation principles 
 The fair value of financial assets and liabilities are determined as 
 follows: 
 
  *    assets and liabilities with standard terms and 
       conditions which are traded on active liquid markets 
       are determined with reference to quoted market 
       prices. This includes equity investments; 
 
 
  *    other financial assets and liabilities (excluding 
       derivatives) are determined in accordance with 
       generally accepted pricing models based on discounted 
       cash flow analysis using prices from observable 
       current market transactions and dealer quotes for 
       similar instruments. This includes interest rate 
       swaps and forward foreign exchange contracts which 
       are determined by discounting the estimated future 
       cash flows; 
 
 
  *    the fair values of financial instruments that are not 
       based on observable market data (unobservable inputs) 
       requires entity specific valuation techniques; and 
 
 
  *    derivative financial instruments are calculated using 
       quoted prices. Where such prices are not available, a 
       discounted cash flow 
 
 
 analysis is performed using the applicable yield curve for the duration 
 of the instruments. Forward foreign exchange contracts are measured using 
 quoted forward exchange rates and yield curves derived from quoted interest 
 rates adjusted for counterparty credit risk, which is calculated based 
 on credit default swaps of the respective counterparties. Interest rate 
 swaps are measured at the present value of future cash flows estimated 
 and discounted based on the applicable yield curves derived from quoted 
 interest rates adjusted for counterparty credit risk, which is calculated 
 based on credit default swaps of the respective counterparties. 
 
 
Net debt reconciliation 
 
 
                         Cash 
                           at                                                      Net Debt 
                         bank  Interest   Overdrafts   Borrowings  Borrowings         - pre 
                          and      Rate   due within   due within   due after         lease           Lease        Net 
                      in hand     Swaps      1 year*      1 year*     1 year*   liabilities    liabilities*       Debt 
                        EUR'm     EUR'm        EUR'm        EUR'm       EUR'm         EUR'm           EUR'm      EUR'm 
 
 
At 31 December 2020 
 - audited              563.1      81.9        (2.8)            -   (2,505.8)     (1,863.6)          (81.5)  (1,945.1) 
 
Cash flows            (181.2)    (39.3)        (0.5)            -       173.7        (47.3)            15.8     (31.5) 
Foreign exchange 
 adjustments             13.1       3.4            -            -      (19.5)         (3.0)           (2.4)      (5.4) 
Other non-cash 
 movements                  -     (8.4)            -            -         9.3           0.9             0.5        1.4 
 
 
At 30 June 2021 - 
 unaudited              395.0      37.6        (3.3)            -   (2,342.3)     (1,913.0)          (67.6)  (1,980.6) 
 
 
Cash flows              628.2         -        (1.9)        (0.3)     (745.8)       (119.8)            19.1    (100.7) 
Foreign exchange 
 adjustments             15.9       4.4        (0.1)            -      (36.3)        (16.1)           (2.7)     (18.8) 
Other non-cash 
 movements                  -     (7.4)            -            -         6.4         (1.0)          (23.0)     (24.0) 
 
 
At 31 December 2021 
 - audited            1,039.1      34.6        (5.3)        (0.3)   (3,118.0)     (2,049.9)          (74.2)  (2,124.1) 
 
 
Cash flows            (300.0)         -        (7.4)        (0.1)           -       (307.5)            15.9    (291.6) 
Foreign exchange 
 adjustments             18.1       4.4        (0.3)       (50.2)       (0.4)        (28.4)           (4.1)     (32.5) 
Other non-cash 
 movements                  -    (18.4)            -      (660.6)       676.7         (2.3)           (5.8)      (8.1) 
 
 
At 30 June 2022 - 
 unaudited              757.2      20.6       (13.0)      (711.2)   (2,441.7)     (2,388.1)          (68.2)  (2,456.3) 
 
*Liabilities from financing activities. 
 
 
 
 
 10. Business combinations 
 
  The following acquisitions were completed by the Group during the period 
  to 30 June 2022: 
 
                                    Completion   Percentage                Principal 
Acquisition             Type         date         acquired     Segment      activity                  Strategic rationale 
 
 
Almer Malaysia          Equity      March        100% share    Taste       A producer                 Further supports 
 Sdn. Bhd.                           2022         acquisition   &           of quality                 the Group's growth 
                                                                Nutrition   spray dried                initiatives in authentic 
                                                                            ingredients                taste and emerging 
                                                                            servicing                  markets. 
                                                                            the Snacks 
                                                                            and Dairy 
                                                                            EUMs based 
                                                                            in Malaysia. 
c-LEcta GmbH*           Equity      March        93% share     Taste       A leading                  Brought leading innovation 
                                     2022         acquisition   &           biotechnology              capabilities in enzyme 
                                                                Nutrition   innovation                 engineering, fermentation 
                                                                            company                    and bio-processing 
                                                                            based in                   to further enhance 
                                                                            Germany                    Kerry's key growth 
                                                                            specialising               platform development. 
                                                                            in precision 
                                                                            fermentation, 
                                                                            optimised 
                                                                            bio-processing 
                                                                            and bio-transformation 
                                                                            for the 
                                                                            creation 
                                                                            of high-value 
                                                                            targeted 
                                                                            enzymes 
                                                                            and ingredients. 
Natreon,                Equity      March        100% share    Taste       A leader                   Brings a portfolio 
 Inc.                                2022         acquisition   &           in Ayurvedic               of clinically backed 
                                                                Nutrition   and botanical              branded ingredients 
                                                                            ingredients,               across the need states 
                                                                            with strong                of cognition and 
                                                                            research                   healthy ageing. 
                                                                            capabilities 
                                                                            and facilities 
                                                                            in the USA 
                                                                            and India. 
 
*The Group has a 93% equity shareholding in c-LEcta GmbH. It is consolidated 
 in the Group financial statements as a 93% owned subsidiary on the basis 
 of contractual arrangements with the remaining portion recognised as non-controlling 
 interests. 
The table below provides details of the identifiable net assets, including 
 adjustments to provisional fair values, in respect of the acquisitions 
 completed during the period to 30 June 2022: 
 
                                                                                                                               Half 
                                                                                                                               year 
                                                                                                                              ended 
                                                                                                                            30 June 
                                                                                                                               2022 
                                                                                                                          Unaudited 
                                                                                                                              EUR'm 
 
 
Recognised amounts of identifiable assets acquired and liabilities assumed: 
Non-current assets 
 Property, plant and equipment                                                                                                 17.5 
 Brand related intangibles                                                                                                    101.5 
Current assets 
 Cash at bank and in hand                                                                                                      24.8 
 Inventories                                                                                                                   13.3 
 Trade and other receivables                                                                                                   10.7 
Current liabilities 
 Trade and other payables                                                                                                    (15.2) 
Non-current liabilities 
 Deferred tax liabilities                                                                                                    (28.3) 
 Other non-current liabilities                                                                                                (2.0) 
 
 
Total identifiable assets                                                                                                     122.3 
 
Non-controlling interests                                                                                                     (1.7) 
Goodwill                                                                                                                      146.8 
 
 
Total consideration                                                                                                           267.4 
 
 
Satisfied by: 
Cash                                                                                                                          267.4 
Deferred payment                                                                                                                  - 
 
 
                                                                                                                              267.4 
 
 
Net cash outflow on acquisition: 
                                                                                                                               Half 
                                                                                                                               year 
                                                                                                                              ended 
                                                                                                                            30 June 
                                                                                                                               2022 
                                                                                                                          Unaudited 
                                                                                                                              EUR'm 
 
 
Cash                                                                                                                          267.4 
Less: cash and cash equivalents acquired                                                                                     (24.8) 
Plus: debt acquired (included in other non-current liabilities above)                                                           2.0 
 
 
                                                                                                                              244.6 
 
 
  The acquisition method of accounting has been used to consolidate the 
  businesses acquired in the Group's Condensed Consolidated Interim Financial 
  Statements. Given that the valuation of the fair value of assets and liabilities 
  recently acquired is still in progress, some of the values in the previous 
  table are determined provisionally. For the acquisitions completed in 
  2021, to date, there have been no material revisions of the provisional 
  fair value adjustments since the initial values were established. The 
  Group performs quantitative and qualitative assessments of each acquisition 
  in order to determine whether it is material for the purposes of separate 
  disclosure under IFRS 3 'Business Combinations'. As a result, the acquisitions 
  completed during the period were not considered material to warrant detailed 
  separate disclosure in line with IFRS 3 requirements. 
 
  The goodwill is attributable to the expected profitability, revenue growth, 
  future market development and assembled workforce of the acquired businesses 
  and the synergies expected to arise within the Group after the acquisition. 
  None of the goodwill recognised is expected to be deductible for income 
  tax purposes. 
 
  Transaction expenses related to these acquisitions of EUR1.7m were charged 
  in the Group's Condensed Consolidated Income Statement during the financial 
  period. The fair value of the financial assets includes trade and other 
  receivables with a fair value of EUR10.7m and a gross contractual value 
  of EUR10.8m. 
 
  Non-controlling interests represent the portion of the equity of a subsidiary 
  not attributable either directly or indirectly to the Parent Company and 
  are presented separately in the Condensed Consolidated Income Statement 
  and within equity in the Condensed Consolidated Balance Sheet, distinguished 
  from Parent Company shareholders' equity. Where not all of the equity 
  of a subsidiary is acquired the non-controlling interests are recognised 
  at the non-controlling interest's share of the acquiree's net identifiable 
  assets. 
 
  The revenue and profit after taxation attributable to owners of the parent 
  to the Group contributed from date of acquisition for all business combinations 
  effected during the period is as follows: 
 
                                                                                                                               Half 
                                                                                                                               year 
                                                                                                                              ended 
                                                                                                                            30 June 
                                                                                                                               2022 
                                                                                                                          Unaudited 
                                                                                                                              EUR'm 
 
 
Revenue                                                                                                                        26.5 
Profit after taxation attributable to equity holders of the parent                                                              2.5 
 
 
 
                                                            The revenue and profit after taxation attributable to equity holders of 
                                                           the parent to the Group determined in accordance with IFRS as though the 
                                                          acquisition date for all business combinations effected during the period 
                                                                         had been the beginning of that period would be as follows: 
 
                                                                                                          Kerry Group  Consolidated 
                                                                                                            excluding         Group 
                                                                                                2022             2022     including 
                                                                                        acquisitions     acquisitions  acquisitions 
                                                                                           Unaudited        Unaudited     Unaudited 
                                                                                               EUR'm            EUR'm         EUR'm 
 
 
 
Revenue                                                                                         41.0          4,031.3       4,072.3 
Profit after taxation attributable to equity holders of the parent                               3.7            225.1         228.8 
 
 
 11. Share capital 
 
                                                                                                Half       Half                Year 
                                                                                                year       year 
                                                                                               ended      ended               ended 
                                                                                             30 June    30 June        31 Dec. 2021 
                                                                                                2022       2021 
                                                                                           Unaudited  Unaudited             Audited 
                                                                                               EUR'm      EUR'm               EUR'm 
 
 
Authorised 
280,000,000 A ordinary shares of 12.50 cent each                                                35.0       35.0                35.0 
 
 
Allotted, called-up and fully paid (A ordinary shares 
 of 12.50 cent each) 
At beginning of the financial period                                                            22.1       22.1                22.1 
Shares issued during the financial period                                                          -          -                   - 
 
 
At end of the financial period                                                                  22.1       22.1                22.1 
 
 
Kerry Group plc has one class of ordinary share which carries no right 
 to fixed income. 
 Shares issued during the period 
 During the period a total of 93,313 A ordinary shares, each with a nominal 
 value of 12.50 cent, were issued at nominal value per share under the 
 Long-Term and Short-Term Incentive Plans. 
 The total number of shares in issue at 30 June 2022 was 176,941,764 (30 
 June 2021: 176,817,328; 31 December 2021: 176,848,451). 
 
 
 
12. Events after the balance sheet date 
Since the period end, the Group has: 
-   declared an interim dividend of 31.40 cent per A ordinary share (see note 6); 
 -   reached agreement to sell 100% of the share capital of Unitary Manufacturing Enterprise "Vitella", 
     a Taste & Nutrition subsidiary based in Belarus; and 
 -   reached agreement to divest 100% of the share capital of its Russian subsidiary, Kerry Limited 
     Liability Company, to local management. 
 
There have been no other significant events, outside of the ordinary course of business, affecting 
 the Group since 30 June 2022. 
 
 
13. General information 
These unaudited Condensed Consolidated Interim Financial Statements for the half year ended 
 30 June 2022 are not full financial statements and were not reviewed or audited by the Group's 
 auditors, PricewaterhouseCoopers (PwC). These Condensed Consolidated Interim Financial Statements 
 were approved by the Board of Directors and authorised for issue on 28 July 2022. The figures 
 disclosed relating to 31 December 2021 have been derived from the consolidated financial statements 
 which were audited, received an unqualified audit report and have been filed with the Registrar 
 of Companies. This report should be read in conjunction with the 2021 Annual Report which 
 was prepared in accordance with IFRS adopted by the European Union ('EU') which comprise standards 
 and interpretations approved by the International Accounting Standards Board ('IASB'). The 
 Group financial statements comply with Article 4 of the EU IAS Regulation. IFRS adopted by 
 the EU differs in certain respects from IFRS issued by the IASB. References to IFRS refer 
 to IFRS adopted by the EU. The accounting policies applied by the Group in these Condensed 
 Consolidated Interim Financial Statements are the same as those detailed in the 2021 Annual 
 Report except for changes in accounting policies in respect of a new non-controlling interests 
 policy and an updated segmental analysis policy as outlined in note 1 'Accounting policies'. 
 
 These unaudited Condensed Consolidated Interim Financial Statements have been prepared on 
 the going concern basis of accounting as set out in note 1. The Directors report that they 
 have satisfied themselves that the Group is a going concern, having adequate resources to 
 continue in operational existence for the foreseeable future. In forming this view, the Directors 
 have reviewed the Group's budget for a period not less than 12 months, the five year medium 
 term plan and have taken into account the cash flow implications of the plans, including proposed 
 capital expenditure, and compared these with the Group's committed borrowing facilities and 
 projected gearing ratios. 
 
 Intangible assets increased by EUR388.2m to EUR5,968.9m (31 December 2021: EUR5,580.7m; 30 
 June 2021: EUR4,443.8m) predominantly due to acquisitions during the period and the impact 
 of foreign exchange translation, partially offset by the amortisation charge. 
 
 In relation to seasonality, EBITDA is lower in the first half of the year due to the nature 
 of the food business and stronger trading in the fourth quarter. While revenue is relatively 
 evenly spread, margin has traditionally been higher in the second half of the year due to 
 product mix and the timing of promotional activity. There is also a material change to the 
 levels of working capital between December and June mainly due to the seasonal nature of the 
 dairy and crop-based businesses. 
 
 As permitted by the Transparency (Directive 2004/109/EC) Regulations 2007 this Interim Report 
 is available on www.kerry.com. However, if a physical copy is required, please contact the 
 Corporate Affairs department. 
FINANCIAL DEFINITIONS 
1. Revenue 
Volume performance 
 This represents the sales performance period-on-period, excluding pass-through pricing on 
 raw material costs, currency impacts, acquisitions (net of disposals) and rationalisation 
 volumes. 
 
 Volume performance is an important metric as it is seen as the key driver of top-line business 
 improvement. This is used as the key revenue metric, as Kerry operates a pass-through pricing 
 model with its customers to cater for raw material price fluctuations. Pricing therefore impacts 
 like-for-like revenue performance positively or negatively depending on whether raw material 
 prices move up or down. A full reconciliation to reported revenue performance is detailed 
 in the revenue reconciliation below. 
Revenue Reconciliation 
                                                                                                          Reported 
                          Volume                  Transaction    Acquisitions/       Translation           revenue 
  H1 2022            performance      Price          currency        Disposals          currency       performance 
 
Taste & Nutrition           8.6%       5.9%              0.2%             5.8%              7.0%             27.5% 
Dairy Ireland               1.2%      15.4%              0.1%          (46.1%)              1.9%           (27.5%) 
 
 
Group                       6.8%       8.3%              0.1%           (7.7%)              5.8%             13.3% 
 
H1 2021 
 
Taste & Nutrition          10.7%       0.3%            (0.1%)             1.2%            (6.9%)              5.2% 
Dairy Ireland*              4.6%       0.8%            (0.1%)                -            (0.5%)              4.8% 
 
 
Group                       9.0%       0.5%            (0.1%)             0.9%            (5.4%)              4.9% 
 
*Prior period, 30 June 2021 has been re-presented to reflect the changes in our reporting 
 segments from 1 January 2022. Within Taste & Nutrition, the dairy processing activities in 
 Ireland have been realigned with the dairy activities in the Consumer Foods business, comprising 
 the new Group reporting segment of Dairy Ireland. 
 
 
Like-for-like(1) Revenue Reconciliation 
                                                                                                         Like-for-like 
                              Volume                     Transaction   Acquisitions/    Translation            revenue 
  H1 2022                performance        Price           currency       Disposals       currency        performance 
 
Taste & Nutrition               8.6%         5.9%               0.2%            5.8%           7.0%              27.5% 
Dairy Ireland                   2.2%        27.8%               0.2%               -           1.0%              31.2% 
 
 
Group                           7.8%         9.3%               0.2%            5.3%           6.1%              28.7% 
 
H1 2021 
 
Taste & Nutrition              10.7%         0.3%             (0.1%)            1.2%         (6.9%)               5.2% 
Dairy Ireland                   1.0%         1.6%                  -               -         (0.4%)               2.2% 
 
 
Group                           8.9%         0.6%                  -            1.0%         (6.0%)               4.5% 
 
(1) Like-for-like (LFL) growth rates reflect the exclusion of the Consumer Foods Meats and 
 Meals contribution from 2021 comparative calculations, being EUR0.4bn of revenue in the H1 
 2021 comparatives. 
 
2. EBITDA 
EBITDA represents profit before finance income and costs, income taxes, depreciation (net 
 of capital grant amortisation), intangible asset amortisation, non-trading items and share 
 of joint ventures profit after taxation. EBITDA represents operating profit before specific 
 items that are not reflective of underlying trading performance and therefore hinder comparison 
 of the trading performance of the Group's businesses, either period-on-period or with other 
 businesses. 
                                                                                                   H1 2022     H1 2021 
                                                                                                     EUR'm       EUR'm 
 
 
Profit after taxation attributable to equity holders of the parent                                   227.6       227.0 
 
Share of joint ventures profit after taxation                                                        (1.1)           - 
Finance income                                                                                       (0.8)       (0.1) 
Finance costs                                                                                         34.9        34.3 
Income taxes                                                                                          37.5        35.9 
Non-trading items                                                                                     69.5        20.8 
Intangible asset amortisation                                                                         42.0        39.2 
Depreciation (net of capital grant amortisation)                                                     108.1       100.8 
 
 
EBITDA                                                                                               517.7       457.9 
 
 
 
 
 
 
 3. EBITDA Margin 
EBITDA margin represents EBITDA expressed as a percentage of revenue. 
                                                                                    H1 2022       H1 2021 
                                                                                      EUR'm         EUR'm 
 
 
EBITDA                                                                                517.7         457.9 
Revenue                                                                             4,057.8       3,582.1 
 
 
EBITDA margin                                                                         12.8%         12.8% 
 
 
  4. Trading Profit 
Trading profit refers to EBITDA less depreciation (net of capital grant amortisation). Trading 
 profit represents operating profit before specific items that are not reflective of underlying 
 trading performance and therefore hinder comparison of the trading performance of the Group's 
 businesses, either period-on-period or with other businesses. 
                                                                                    H1 2022       H1 2021 
                                                                                      EUR'm         EUR'm 
 
 
EBITDA                                                                                517.7         457.9 
Depreciation (net of capital grant amortisation)                                    (108.1)       (100.8) 
 
 
Trading profit                                                                        409.6         357.1 
 
 
 
5. Operating Profit 
Operating profit is profit before income taxes, finance income, finance costs and share of 
 joint ventures profit after taxation. 
                                                                                 H1 2022     H1 2021 
                                                                                   EUR'm       EUR'm 
 
 
Profit before taxation                                                             265.1       262.9 
 
Finance income                                                                     (0.8)       (0.1) 
Finance costs                                                                       34.9        34.3 
Share of joint ventures profit after taxation                                      (1.1)           - 
 
 
Operating profit                                                                   298.1       297.1 
 
 
 
6. Adjusted Earnings Per Share and Growth in Adjusted Earnings Per Share on a Constant Currency 
 Basis 
The growth in adjusted earnings per share on a constant currency basis is provided as it is 
 considered more reflective of the Group's underlying trading performance. Adjusted earnings 
 is profit after taxation attributable to equity holders of the parent before brand related 
 intangible asset amortisation and non-trading items (net of related tax). These items are 
 excluded in order to assist in the understanding of underlying earnings. A full reconciliation 
 of adjusted earnings per share to basic earnings is provided below. Constant currency eliminates 
 the translational effect that arises from changes in foreign currency period-on-period. The 
 growth in adjusted earnings per share on a constant currency basis is calculated by comparing 
 current period adjusted earnings per share to the prior period adjusted earnings per share 
 retranslated at current period average exchange rates. 
                                                                            H1 2022            H1 2021 
                                                                                EPS    Growth      EPS    Growth 
                                                                               cent         %     cent         % 
 
 
Basic earnings per share                                                      128.4      0.2%    128.2      6.5% 
Brand related intangible asset amortisation                                    13.0         -     12.6         - 
Non-trading items (net of related tax)                                         35.0         -     11.2         - 
 
 
Adjusted earnings per share                                                   176.4     16.1%    152.0     15.1% 
Impact of retranslating prior period adjusted earnings per share at 
 current period average 
 exchange rates*                                                                       (7.1%)               9.0% 
 
Growth in adjusted earnings per share on a constant currency basis                       9.0%              24.1% 
 
*Impact of H1 2022 translation was (10.8)/152.0 cent = (7.1%) (H1 2021: 9.0%). 
 
 
7. Free Cash Flow 
Free cash flow is EBITDA plus movement in average working capital, capital expenditure, payment 
 of lease liabilities, pensions costs less pension expense, finance costs paid (net) and income 
 taxes paid. 
 
 Free cash flow is seen as an important indicator of the strength and quality of the business 
 and of the availability to the Group of funds for reinvestment or for return to shareholders. 
 Movement in average working capital is used when calculating free cash flow as management 
 believes this provides a more accurate measure of the increase or decrease in working capital 
 needed to support the business over the course of the period rather than at two distinct points 
 in time and more accurately reflects fluctuations caused by seasonality and other timing factors. 
 Average working capital is the sum of each month's working capital adjusted for the impact 
 of acquisitions and disposals over 12 months. Below is a reconciliation of free cash flow 
 to the nearest IFRS measure, which is 'Net cash from operating activities'. 
                                                                                            H1 2022  H1 2021 
                                                                                              EUR'm    EUR'm 
 
 
Net cash from operating activities                                                            132.2    247.9 
 
Difference between movement in monthly average working capital and movement in the period 
 end working capital                                                                          113.8    115.4 
Share of joint ventures profit after taxation                                                     -      0.7 
Payments on non-trading items                                                                  36.1      7.2 
Purchase of assets (net)                                                                     (61.3)  (136.3) 
Payment of lease liabilities                                                                 (15.9)   (15.8) 
Proceeds from the sale of property, plant and equipment                                         3.2      3.6 
Capital grants received                                                                           -        - 
Exchange translation adjustment                                                                17.9    (0.4) 
 
 
Free cash flow                                                                                226.0    222.3 
 
 
 
8. Cash Conversion 
Cash conversion is defined as free cash flow, expressed as a percentage of adjusted earnings 
 after taxation. 
                                                                                                H1 2022  H1 2021 
                                                                                                  EUR'm    EUR'm 
 
 
Free cash flow                                                                                    226.0    222.3 
 
Profit after taxation attributable to equity holders of the parent                                227.6    227.0 
Brand related intangible asset amortisation                                                        23.1     22.4 
Non-trading items (net of related tax)                                                             62.1     19.8 
 
 
Adjusted earnings after taxation                                                                  312.8    269.2 
 
 
Cash conversion                                                                                     72%      83% 
 
 
 
 
9. Liquidity Analysis 
The Net debt: EBITDA and EBITDA: Net interest ratios disclosed are calculated using an adjusted 
 EBITDA, adjusted finance costs (net of finance income) and an adjusted net debt value to adjust 
 for the impact of non-trading items, acquisitions net of disposals and deferred payments in 
 relation to acquisitions. 
                                                                              H1 2022              H1 2021 
                                                                                Times                Times 
 
 
Net debt: EBITDA                                                                  2.1                  1.9 
EBITDA: Net interest                                                             16.0                 14.6 
 
 
 
10. Average Capital Employed 
Average capital employed is calculated by taking an average of the equity attributable to 
 equity holders of the parent and net debt over the last three reported balance sheets. 
                                                                  H1 2022     2021      H1 2021     2020   H1 2020 
                                                                    EUR'm    EUR'm        EUR'm    EUR'm     EUR'm 
 
 
Equity attributable to equity holders of the parent               6,088.7  5,601.2      4,963.1  4,655.5   4,508.5 
Net debt                                                          2,456.3  2,124.1      1,980.6  1,945.1   2,085.0 
 
 
Total capital employed                                            8,545.0  7,725.3      6,943.7  6,600.6   6,593.5 
 
 
Average capital employed                                          7,738.0  7,089.9      6,712.6 
 
Total capital employed definition has been updated to reflect lease liabilities in 'Net debt' 
 and 'Equity attributable to equity holders of the parent' as reported on the Condensed Consolidated 
 Balance Sheet. The calculation no longer adds back 'Goodwill amortised (pre conversion to 
 IFRS)' to 'Equity attributable to equity holders of the parent'. 
 
  11. Return on Average Capital Employed (ROACE) 
This measure is defined as profit after taxation attributable to equity holders of the parent 
 before non-trading items (net of related tax), brand related intangible asset amortisation 
 and finance income and costs expressed as a percentage of average capital employed. 
                                                                            12 months to    12 months to 
                                                                                 H1 2022         H1 2021   FY 2021 
                                                                                   EUR'm           EUR'm     EUR'm 
 
 
Profit after taxation attributable to equity holders of the parent                 763.6           568.0     763.0 
Non-trading items (net of related tax)                                            (92.1)            35.3   (134.4) 
Brand related intangible asset amortisation                                         46.9            43.5      46.2 
Net finance costs                                                                   69.8            69.3      69.9 
 
 
Adjusted profit                                                                    788.2           716.1     744.7 
 
 
Average capital employed                                                         7,738.0         6,712.6   7,089.9 
 
 
Return on average capital employed                                                 10.2%           10.7%     10.5% 
 
 
Prior periods have been re-presented to align with the updated definition of 'Total capital 
 employed'. 
 
 
 
12. Net Debt 
Net debt comprises borrowings and overdrafts, interest rate derivative financial instruments, 
 lease liabilities and cash at bank and in hand. See full reconciliation of net debt in note 
 9 of these Condensed Consolidated Interim Financial Statements. 
 

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END

IR FZGZNRRRGZZM

(END) Dow Jones Newswires

July 29, 2022 02:00 ET (06:00 GMT)

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