Kerry plans additional share buyback of up to 300 million euros
Key Facts
Kerry Group announced in its third-quarter 2026 trading statement that it intends to launch an additional share buyback programme of up to 300 million euros after completing its existing programme. The group said the additional purchases would total "up to 300 million euros" under its capital allocation framework. Implementation is contingent on completion of the current buybacks, with the company to issue a formal announcement before launching the additional programme. The announcement coincided with a 3.6% increase in group sales volumes in the first nine months of the year. Volume growth in the third quarter alone reached 4.1%, outpacing growth in its end markets, according to the company. However, reported revenue fell 0.6% in the first nine months despite the increase in volumes sold. Kerry attributed the revenue decline to pricing, currency effects and net disposals, which offset sales volume growth during the period.
The latest performance follows Kerry's 3.3% sales volume growth in the first half of 2026, according to its interim results. Volumes rose 3.5% in the second quarter alone before growth accelerated in the third quarter. On profitability, the group said its earnings before interest, taxes, depreciation and amortisation margin expanded by 50 basis points in the first nine months. The company identified its "Accelerate" programme as the main driver of the margin improvement. Operating leverage also supported profitability, alongside the contribution from product mix, according to the trading statement. The group's operating performance during the period thus combined accelerating sales volumes and margin expansion while reported revenue declined.
By geography, sales volumes in Asia Pacific, the Middle East and Africa rose 5.2% in the first nine months of 2026. Growth in the region accelerated to 5.7% in the third quarter, according to Kerry's statement. The group said strong growth in the Middle East and Africa led the region's business performance during the period. This was accompanied by good performance in South Asia Pacific, alongside growth in China. By sales channel, foodservice volumes increased 5.0% in the first nine months of the year. The company linked this performance to menu innovations and seasonal launches that supported activity in the channel. It added that solutions aimed at simplifying kitchen operations also contributed to foodservice volume growth.
The additional buyback plans build on an existing programme Kerry began on 17 February 2026, according to its first-half results report. The company set 31 December 2026 as the latest end date for that programme. During the first half, the group spent 172.9 million euros buying back its shares. Free cash flow over the same period was 262 million euros, according to the company's interim results. That compares with free cash flow of 309 million euros in the first half of 2025, representing a year-on-year decline. Net debt stood at 2.4 billion euros at the end of September 2026, according to the third-quarter trading update.
For the remainder of the year, Kerry maintained its forecast for constant-currency adjusted earnings per share growth of between 6% and 10% in 2026. That range remains the group's annual target following the release of its nine-month trading results. The company expects currency translation to reduce annual earnings per share by about 1%. This effect applies to earnings per share after currency translation, while the projected growth range is stated on a constant-currency basis. On shareholder payments, Kerry set an interim dividend of 46.2 euro cents per share in its first-half results. The dividend for the current year compares with 42.0 euro cents per share in the previous year. The interim dividend is scheduled to be paid on 6 November 2026, according to the date announced by the group.