Kerry Group's Volume Engine Accelerates as Accelerate 2.0 Keeps Delivering

A Step-Change in Volume Momentum

Kerry Group’s first-half 2026 results delivered on the promise of acceleration. “We're pleased to report a strong performance in the first half, reflecting a step-up in volume growth in the second quarter, combined with continued strong margin expansion, driving high single-digit constant currency adjusted EPS growth.” — Edmond Scanlon, Chief Executive Officer · 2026-07-29 Volume growth picked up from 3.1% in Q1 to 3.5% in Q2, with growth broadening across all three regions and across retail and foodservice channels. This marks a clear inflection from the cautious tone set in February, when management described market volumes as similar to last year and guided to volumes in the same zone as 2025. “we're looking at our volumes being in the same zone as we had in 2025.” — Edmond Scanlon, Chief Executive Officer (CEO) · 2026-02-17 Now the company is outperforming its end markets by a healthy margin, led by snacks, meat, dairy, and beverage end-use markets. The strength is underpinned by innovation across Tastesense Salt and sugar reduction technologies, botanicals, natural extracts, and enzymes — a portfolio that continues to resonate with customers seeking cleaner labels and better-for-you formulations.

Margins: The Accelerate 2.0 Engine

The margin story remains the bedrock of Kerry’s equity narrative. “Our Accelerate 2.0 program is well on track and delivered 40 basis points of EBITDA margin expansion in the period” — Marguerite Larkin, Chief Financial Officer · 2026-07-29 — the single largest contributor to the 60 basis points of group margin expansion. Net price added 20 basis points, operating leverage and portfolio mix contributed another 10, while currency provided a 20-basis-point headwind. This is exactly the kind of execution the market has come to expect: EBITDA margin expansion is a recurring theme in Kerry’s keyword trajectory, but the consistency with which Accelerate delivers is notable. In February, Marguerite Larkin laid out a target of "60 basis points or greater" for 2026; the company is tracking ahead of that pace in H1.

Regional Divergence: Europe Stabilizes While APMEA Pushes Ahead

Europe was the laggard in prior quarters, with volume growth barely positive. H1 shows Europe at 0.5% volume growth but with a strong 80 basis points of margin expansion — evidence that the footprint optimization work is bearing fruit even when top-line momentum is modest. “On EBITDA margins, we delivered margin expansion of 60 basis points in H1 with margin progression across all 3 regions.” — Edmond Scanlon, Chief Executive Officer · 2026-07-29 In February, Edmond Scanlon forecast Europe to return to growth: “We do expect 2026 to be better than 2025. We will be in positive territory in 2026.” — Edmond Scanlon, Chief Executive Officer (CEO) · 2026-02-17 H1's 0.5% volume growth, though modest, confirms that trajectory. The Americas remain the growth engine (3.7% volume), while APMEA accelerated to 4.9% in H1, led by the Middle East and Africa, with China returning to growth. This regional mix supports the group’s confidence: management maintained full-year adjusted EPS guidance of 6–10% constant currency growth, despite a currency translation headwind of 1–2%.

A New Horizon: 2030 Financial Targets

Alongside the results, Kerry unveiled its 2030 financial targets — a strategic marker that gives investors a longer-term framework. The IR lead noted, “We have also today released our 2030 financial targets.” — William Lynch, Investor Relations or Communications · 2026-07-29 While the specifics aren't detailed in the transcript, the announcement signals management's conviction in the growth algorithm. The company continues to evolve its portfolio through targeted capital investment and bolt-on acquisitions — recent deals in coffee extraction and Egypt, and a stated focus on proactive health and fermentation — all supported by a strong balance sheet with net debt-to-EBITDA of just 2x.

In summary, we delivered a strong financial performance in the first half, driven by volume growth well ahead of end markets and continued EBITDA margin expansion.

Kerry is threading a needle: delivering led by volume growth while simultaneously expanding margins — a combination that often proves elusive in food ingredients. The driven by Accelerate program remains the key differentiator, and with a clear 2030 roadmap now in place, the investment case extends beyond the current cycle.

The market will be watching whether the Q2 volume step-up can be sustained in H2, particularly as input costs transition from deflation to limited inflation. But with guidance intact and a proven margin playbook, Kerry appears well-positioned to keep compounding.