Kerry Group plc (KRZ) Q2 2026 Earnings Report

The call presented a predominantly positive performance: broad-based volume growth with acceleration in Q2, meaningful EBITDA margin expansion (60 bps), adjusted EPS growth of 7.9% (constant currency), strong free cash flow and a healthy balance sheet with ongoing capital returns. Headwinds include notable FX translation impacts (-4.8% on revenue), a 1% drop in pricing in H1 with expected modest inflation in H2, an inventory-driven working capital build (EUR 81m), and modest European volume growth. Management maintained full-year adjusted EPS guidance of 6%–10% constant currency and emphasized continued delivery of Accelerate 2.0 efficiencies, supporting an overall constructive outlook despite currency and near-term cost dynamics.

Management maintained full‑year adjusted EPS guidance of 6–10% growth in constant currency, while warning of a 1–2% foreign‑currency translation headwind to EPS; they noted H1 adj. EPS of EUR 2.141 (up 7.9% cc), H1 revenue of EUR 3.3bn with 3.3% volume growth, EBITDA of EUR 558m (5.8% organic) and 60bp EBITDA margin expansion (including 40bp from Accelerate 2.0), free cash flow of EUR 262m with average cash conversion of 76% (85% on working‑capital movement) and a full‑year cash‑conversion target of 80%+, net debt of EUR 2.4bn (net debt/EBITDA 2.0x) with 5.8‑year weighted maturity, plan for continued margin expansion, expected input‑costs to move from H1 deflation to limited H2 inflation, and ongoing capital returns (interim dividend $0.462/sh, +10%, and EUR 173m buybacks in H1).