Kerry Group plc Preliminary Statement of Results 31st December 2021

Date: 16 February 2022  

LEI: 635400TLVVBNXLFHWC59

KERRY GROUP

PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

Good finish to a year of strong growth and business development

OVERVIEW

·         Grouprevenueof€7.4billionreflecting 8.0% volume growth

           – Taste & Nutrition volumes +8.3% (Q4: +7.2%)

           – Consumer Foods volumes +6.0% (Q4: +7.1%)

·         Pricing of +1.2%

·         Group EBITDA of €1.1 billion representing an EBITDA margin of 14.7%

·         Grouptradingmargin +40bps to 11.9%

·         AdjustedEPSof380.8 cent- up 12.1% on a constant currency basis

·         BasicEPSof 430.6cent(2020:313.0 cent)

·         Freecashflowof€566m reflecting 84% cash conversion

·         Finaldividendpershareof66.7cent(total 2021 dividend up 10.1% to 95.2 cent)

·         2022 adjusted earnings per share guidance of 5% to 9% growth on a constant currency basis 

Edmond Scanlon, Chief Executive Officer

“We ended the year on a strong note with excellent growth across our business. In 2021 we achieved strong overall growth across all regions with Group revenue of €7.4 billion, driven by volume growth of 8.0%. In the Taste & Nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservice with business volumes in all regions above 2019 levels in the fourth quarter. This growth was well spread across our end use markets, with Beverage, Bakery and Meat delivering particularly strong performances.

The year was important for Kerry from a strategic perspective. We continued to enhance our position as a market-leading taste and nutrition company with a number of strategic portfolio developments, while further enhancing our local footprint to support our growth ambitions, which we outlined as part of our strategic update at the Capital Markets Day in October.

While recognising that current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle. Our earnings guidance range for 2022 reflects the Group's strong growth prospects and the net effect of recent portfolio developments.”

Performance

Group reported revenue in the year increased by 5.7% to €7.4 billion. This reflected strong volume growth of 8.0% against lower prior year comparatives and increased pricing of 1.2%, partially offset by the impact of adverse translation currency of 1.8% and business disposals net of acquisitions of 1.7%. Taste & Nutrition delivered strong volume growth across all regions and Consumer Foods achieved strong volume growth across the business.

Group trading profit increased by 9.8% to €875.5m. This represented trading profit margin expansion of 40bps which was driven by the recovery of operating leverage, portfolio mix and net contribution of acquisitions and disposals, partially offset by pricing, supply chain oncosts and KerryExcel investments.

Constant currency adjusted earnings per share increased by 12.1% to 380.8 cent (2020: 9.4% decrease). Basic earnings per share increased to 430.6 cent (2020: 313.0 cent). The Board recommends a final dividend of 66.7 cent per share, an increase of 10.1% on the final 2020 dividend. Together with the interim dividend of 28.5 cent per share, this brings the total dividend for the year to 95.2 cent, an increase of 10.1% on 2020.

Net capital expenditure amounted to €315m (2020: €311m) and research and development expenditure was €297m (2020: €282m) as the Group continued to invest in its strategic priorities of taste, nutrition and emerging markets. The Group achieved free cash flow of €566m (2020: €412m) representing cash conversion of 84% in the year.

Strategic Portfolio Developments

The Group announced a number of important strategic developments in the year with acquisitions aligned to our strategic priorities and key growth platforms.

In the area of Food Waste – specifically in Food Protection and Preservation, we completed the acquisition of Niacet¹, which is a global market leader in technologies for food protection and preservation. It brings a complementary product portfolio and enhances Kerry's leadership position in this fast-growing market. We also completed the bolt-on acquisition of National Vinegar Co.¹, adding further fermentation capacity and supporting the Group's growth strategy in natural preservation.

Under Health & Bio-Pharma – we strengthened our capabilities across our proactive health portfolio in the areas of probiotics, scientifically backed innovative botanical extracts and nutritional lipids with the acquisition of Biosearch¹, while agreement was reached for the acquisition of Natreon¹, which has leading capability in Ayurvedic and botanical extracts.

We significantly enhanced our biotechnology capabilities with the acquisition of Enmex¹, which is a well-established enzyme manufacturer based in Mexico, serving food, beverage and other consumer markets. Since year end, we reached agreement to acquire c. 92% of the issued share capital of c-LEcta², with management to retain the balance. Based in Leipzig, Germany, c-LEcta is a leading biotechnology innovation company specialising in precision fermentation, optimised bio-processing and bio-transformation for the creation of high-value targeted enzymes and ingredients. It is a leading innovator in disruptive new sciences for the pharmaceutical market, with a strong pipeline of functional bioactives across food, beverage and other consumer markets.

We expanded our presence within Emerging Markets with the bolt-on acquisition of Afribon¹, which is a producer of flavours for a range of food and beverage applications and expands our presence in East Africa. Since year end, we reached agreement to acquire Almer², which is a dairy taste business based in Johor Bahru, Malaysia.

During the year we also completed the disposal of our Consumer Foods Meats and Meals Business³ to Pilgrim's Pride.

¹ See Note 6 Business combinations for further details

² See Note 7 Events after the balance sheet date for further details

³ See Note 3 Non-trading items for further details

Markets

Market conditions have been highly dynamic across the year, with a strong overall demand environment combined with high degrees of variability across geographies and channels. At-home consumption remained strong, with foodservice improving as consumers embraced the opportunities for more out-of-home social engagement and food consumption.

The extent of consumer demands continues to increase in areas such as plant-based, functional food for specific health requirements, taste without compromise and products with an improved sustainability impact. These heightened and complex consumer demands are presenting greater challenges for our customers, as they continue to balance these with current industry labour and supply chain dynamics. This is leading to the need for a greater level of support from value-add partners and increasing the level of collaborative innovation in our industry.

Business Reviews

Taste & Nutrition

Strong growth in retail channel, with foodservice volumes finishing the year above 2019 levels

2021

Growth

Revenue

€6,273m

+8.3%¹

EBITDA margin

17.5%

Trading margin

14.6%

+40bps

¹ volume growth

• Volume growth driven by Beverage and Food EUMs – led by Meat and Bakery
• Retail channel volume growth of 5.4% with foodservice growth of 18.0% against lower comparatives
• Pricing of 1.3% reflected increases in input costs through the year
• Trading margin improvement of 40bps primarily driven by operating leverage

Taste & Nutrition reported revenue increased by 9.0% to €6.3 billion in the year. This reflected strong volume growth of 8.3%, increased pricing of 1.3% and contribution from acquisitions net of disposals of 2.1%, partially offset by the impact of adverse translation currency of 2.7%.

Kerry's key growth platforms performed well in the year, with particularly strong growth achieved in food waste applications supported by the acquisition of Niacet and also in plant-based applications with new launches incorporating our Radicle™ plant-based range. We achieved excellent growth across a number of our end use markets, supported by innovations with our leading taste solutions for nutritionally optimised products and our proactive nutrition portfolio. Kerry's overall growth was supported by an increased number of customer launches through the year, where we played an important role in improving the sustainability impact of our customers' products. In emerging markets we achieved strong growth across all regions, with overall volume growth of 14.4%.

Americas Region

·         Volume growth of 6.7%

·         Retail channel delivered strong growth led by Beverage, Bakery and Meat

·         Foodservice channel delivered very good growth with a strong finish to the year

Revenue in the region increased by 4.9% to €3.2 billion in the year. This reflected strong volume growth of 6.7%, increased pricing of 1.2% and contribution from acquisitions of 1.8%, partially offset by the impact of adverse translation currency of 4.8%. The strong growth within the region was achieved despite the impact of supply chain and labour challenges across the industry.

Within the North American retail channel, the Beverage EUM achieved excellent growth driven by Kerry's portfolio of proactive nutrition, botanicals and taste modulation technologies. Within the Food EUM, Bakery delivered very strong growth through taste, preservation and clean label solutions. Performance in Meals and Cereal & Sweet were impacted by product repositioning within these categories, while Snacks had good growth supported by new launches in healthier snacking. Meat achieved good overall growth through food protection and preservation, with strong business development and growth in plant-based alternatives.

The foodservice channel in North America continued to deliver very good growth, with a strong finish to the year across quick service restaurants and coffee chains in particular, supported by Kerry's brands and solutions to reduce complexity in back-of-house operations.

In LATAM we had strong growth across the region. Volume growth in Brazil was driven by performance in Beverage and ice cream, while growth in Mexico was led by Snacks.

Within the global Pharma EUM, cell nutrition delivered good growth, which was offset by weaker volumes in excipients as a result of supply chain delays in the year.

During the year, we commenced production at our new state-of-the-art facility in Rome, Georgia, and within our taste facility in Irapuato, Mexico. These facilities will be important contributors to future growth within the region.

Europe Region

·         Volume growth of 9.9%

·         Retail channel delivered strong growth led by Meat, Bakery and Dairy

·         Foodservice channel performance improved significantly with increased out-of-home consumption through the year

Revenue in the region increased by 14.6% to €1.6 billion in the year. This reflected very strong volume growth of 9.9%, increased pricing of 1.8%, contribution from acquisitions of 2.3% and the impact of favourable transaction currency of 0.1% and favourable translation currency of 0.5%. The level of growth achieved in the region reflected strong progress across the year, while recognising softer prior year comparatives.

Growth in the retail channel was driven by performance within the Food EUM. Meat achieved excellent growth through a number of plant-based meat alternative innovations, launches with natural preservation and increased demand for healthier coating systems. Bakery and Confectionery delivered a very strong performance through texture systems and indulgent innovations. Dairy achieved strong growth in premium and dairy-free ice cream ranges, while international dairy markets reflected increased demand versus supply dynamics. Within the Beverage EUM, there was good growth with low/non-alcoholic beverages incorporating Kerry's botanicals, natural extracts and sugar reduction technologies.

The foodservice channel achieved excellent growth particularly in the UK and Southern Europe. This growth was broad-based across our end use markets, as customers extended their menu ranges and reintroduced limited time offers as the year progressed. Russia and Eastern Europe continued to deliver very strong growth across both retail and foodservice channels, led by Meat and Snacks.

APMEA Region

·         Volume growth of 11.3%

·         Retail channel delivered excellent growth led by Meat, Beverage and Bakery

·         Foodservice channel delivered strong overall growth – with variations across the region

Revenue in the region increased by 14.8% to €1.4 billion in the year. This reflected very strong volume growth of 11.3%, increased pricing of 1.1% and contribution from acquisitions of 3.3%, partially offset by the impact of adverse transaction currency of 0.1% and adverse translation currency of 0.8%. The overall growth across the region was led by strong performances in China and the Middle East.

Growth in the retail channel was well spread across Kerry's markets. Within the Food EUM, Meat had strong growth through local authentic taste innovations and a number of plant-based launches. Growth in the Bakery EUM was led by savoury taste innovations with a number of local leaders across the region. Within the Beverage EUM, growth was driven by innovations across tea, coffee and refreshing beverage through solutions incorporating Kerry's natural extracts, Tastesense™ sugar reduction technology and proactive nutrition portfolio.

The foodservice channel delivered strong overall growth and a good finish to the year. This was achieved despite COVID-19 related restrictions impacting performance across the region at various stages, most notably in South East Asia.

During the year, we continued to make good progress in expanding our capacity and deploying our technology capabilities in the region. We opened our new taste facility in Durban, South Africa in the final quarter, which will be an important strategic step in our expansion within the continent. We made good progress in the development of our new taste facility at our Jeddah, Saudi Arabia operation and we also announced the development of a new taste facility in Karawang, Indonesia.

Consumer Foods

Strong volume growth | Significant change in business from sale of Meats and Meals portfolio

2021

Growth

Revenue

€1,144m

+6.0%¹

EBITDA margin

8.7%

Trading margin

7.2%

-60bps

¹ volume growth

·         Volume – strong growth across the business with an excellent finish to the year

·         Pricing of 0.5% reflecting increases in input costs and market pricing

·         Trading margin decrease of 60bps as underlying improvement was more than offset by the impact of portfolio divestment

Consumer Foods reported revenue decreased in the year by 10.5% to €1.1 billion. This reflected strong volume growth of 6.0%, increased pricing of 0.5%, a favourable transaction currency impact of 0.1% and a favourable translation currency impact of 1.7%, which were more than offset by the impact of business disposal of 18.8% due to the sale of the Meats and Meals business. Volume growth in the division reflected a strong performance while recognising the lower prior year comparatives. The sale of the Meats and Meals business completed on 27 September 2021, resulting in the separation and realignment of the remaining dairy-related activities within the Consumer Foods Business.

Meats¹ delivered good overall growth in the year, driven by the continued strong performance of Richmond's meat-free range and the performance of Fridge Raiders. Meals¹ achieved strong growth supported by chilled meals health and wellness ranges and performance of the Oakhouse Foods home delivery business.

Dairy delivered strong overall growth with an excellent final quarter. This was led by volume growth in the Strings & Things snacking range, with spreadable butter ranges also delivering a strong performance.

¹ Comments on Meats and Meals business performance represent the nine-month period prior to disposal on 27 September 2021. See Note 3 Non-trading items for further details.

Financial Review

%

2021

2020

change

€'m

€'m

Revenue

5.7%

7,350.6

6,953.4

Tradingprofit

9.8%

875.5

797.2

Tradingmargin

11.9%

11.5%

Computersoftwareamortisation

(34.6)

(28.4)

Finance costs (net)

(69.9)

(72.4)

Adjustedearningsbeforetaxation

771.0

696.4

Incometaxes(excludingnon-tradingitems)

(96.2)

(85.1)

Adjustedearningsaftertaxation

10.4%

674.8

611.3

Brandrelatedintangibleassetamortisation

(46.2)

(41.7)

Non-tradingitems(netofrelatedtax)

134.4

(15.5)

Profitaftertaxation

763.0

554.1

EPS

EPS

cent

cent

Basic EPS

37.6%

430.6

313.0

Brandrelatedintangibleassetamortisation

26.0

23.6

Non-tradingitems(netofrelatedtax)

(75.8)

8.8

Adjusted* EPS

10.2%

380.8

345.4

Impact of exchange rate translation

1.9%

Adjusted* EPS growth in constant currency

12.1%

(9.4%)

* Before brand related intangible asset amortisation and non-trading items (net of related tax).

Revenue

Group revenue was €7.4 billion (2020: €7.0 billion) reflecting a reported increase of 5.7%. This comprised a volume increase of 8.0%, increased pricing of 1.2%, an adverse translation currency impact of 1.8% and an adverse impact from business disposals net of acquisitions of 1.7%.

2020: Group reported revenue (4.0%), volume decrease (2.9%), pricing increase +0.3%, transaction currency (0.1%), translation currency (2.3%), contribution from business acquisitions of +1.0%.

Taste & Nutrition revenue was €6.3 billion (2020: €5.8 billion) reflecting a reported revenue increase of 9.0%. This comprised a volume increase of 8.3%, increased pricing of 1.3%, an adverse translation currency impact of 2.7% and contribution from business acquisitions net of disposals of 2.1%.

2020: Taste & Nutrition reported revenue (4.4%), volume decrease (3.0%), pricing increase +0.1%, transaction currency (0.1%), translation currency (2.6%), acquisitions +1.2%.

Consumer Foods revenue was €1.1 billion (2020: €1.28 billion) reflecting a reported revenue decrease of 10.5%. This comprised a volume increase of 6.0%, increased pricing of 0.5%, a favourable transaction currency impact of 0.1% and a favourable translation currency impact of 1.7%, which were more than offset by the adverse impact from the disposal of the Meats and Meals business of 18.8%.

2020: Consumer Foods reported revenue (2.1%), volume reduction (2.6%), pricing +1.2%, translation currency (0.7%). Excluding the impact of the ready meals contract exit, volume would have increased by 2.2%.

Trading Profit & Margin

Group reported trading profit was €875.5m (2020: €797.2m) and trading margin was 11.9%, representing an increase of 40bps, driven by the recovery of operating leverage and the net contribution of acquisitions and disposals, partially offset by pricing, supply chain oncosts and KerryExcel investments.

Taste & Nutrition reported trading profit of €913.4m (2020: €814.2m) and trading margin of 14.6%, an increase of 40bps, driven principally by operating leverage.

Consumer Foods reported trading profit of €82.1m (2020: €99.2m) and trading margin of 7.2%, a decrease of 60bps, principally reflecting the sale of the Meats and Meals business.

The trading profit reflects Group EBITDA of €1.1 billion (2020: €1.0 billion) and an EBITDA margin of 14.7% (2020: 14.4%).

Computer Software Amortisation

Computer software amortisation increased by €6.2m to €34.6m (2020: €28.4m) reflecting the ongoing progression of the KerryConnect Programme including costs associated with the rollout across our sites in North America. The capitalised element of the cost of this project is being amortised over a seven-year period.

Brand Related Intangible Asset Amortisation

Brand related intangible asset amortisation increased to €46.2m (2020: €41.7m) which is reflective of recent acquisition activity.

Finance Costs (net)

Finance costs (net) for the year decreased by €2.5m to €69.9m (2020: €72.4m) primarily due to lower interest rates. The Group's average interest rate for the year was 2.7% (2020: 3.0%).

Taxation

The tax charge for the year before non-trading items was €96.2m (2020: €85.1m) representing an effective tax rate of 13.3% (2020: 13.0%) and reflective of the geographical mix of earnings.

Acquisitions

During the year, the Group completed five acquisitions for a total consideration of €1,106.5m (note 6). These acquisitions were aligned to the Group's strategic priorities, enhancing the Group's taste and nutrition capabilities, while also expanding its presence in emerging markets.

Non-Trading Items

During the year, the Group incurred a net non-trading item credit of €134.4m (2020: €15.5m charge) net of tax. The credit in the year primarily related to the gain on the disposal of the Consumer Foods Meats and Meals business, which was partially offset by costs relating to acquisition integrations.

Adjusted EPS in Constant Currency

Adjusted EPS in constant currency increased by 12.1% to 380.8 cent (2020: 9.4% decrease) reflecting the strong overall business performance in the year.

Basic EPS

Basic EPS increased by 37.6% to 430.6 cent (2020: 313.0 cent). Basic EPS is calculated after accounting for brand related intangible asset amortisation of 26.0 cent (2020: 23.6 cent) and a non-trading item credit of 75.8 cent net of related tax (2020: 8.8 cent charge).

Return on Average Capital Employed

ROACE increased to 9.9% (2020: 9.8%) reflecting business performance and the impact of portfolio developments in the year.

Exchange Rates

Group results are impacted by year-on-year fluctuations in exchange rates 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 year end.

Average Rates

Closing Rates

2021

2020

2021

2020

AustralianDollar

1.57

1.66

1.56

1.59

BrazilianReal

6.34

5.75

6.32

6.38

British Pound Sterling

0.86

0.89

0.84

0.90

ChineseYuanRenminbi

7.63

7.86

7.22

8.03

Malaysian Ringgit

4.92

4.77

4.73

4.92

MexicanPeso

24.06

24.34

23.30

24.46

Russian Ruble

87.24

81.16

84.07

90.68

South African Rand

17.40

18.62

18.06

18.02

US Dollar

1.19

1.13

1.13

1.23

Balance Sheet

A summary balance sheet as at 31 December is provided below:

2021

2020

€'m

€'m

Property,plant&equipment

2,091.3

1,990.6

Intangible assets

5,580.7

4,687.1

Othernon-currentassets

264.5

170.6

Currentassets

3,458.9

2,594.8

Totalassets

11,395.4

9,443.1

Currentliabilities

1,995.4

1,696.3

Non-currentliabilities

3,798.8

3,091.3

Totalliabilities

5,794.2

4,787.6

Net assets

5,601.2

4,655.5

Shareholders'equity

5,601.2

4,655.5

Property, Plant & Equipment

Property, plant and equipment increased by €100.7m to €2,091.3m (2020: €1,990.6m) primarily due to additions and the impact of foreign exchange translation, partially offset by the impact of business disposals and the depreciation charge. Net capital expenditure in the year (including computer software) amounted to €315.2m (2020: €310.7m). The level of capital investment supports the Group's growth initiatives and included the strategic development of its Rome, Georgia, US facility, creating a world – leading manufacturing facility to meet increasing demand for integrated solutions across a variety of protein applications.

Intangible Assets & Acquisitions

Intangible assets increased by €893.6m to €5,580.7m (2020: €4,687.1m) due to a number of acquisitions made in the year including the acquisition of Niacet and the impact of foreign exchange translation, partially offset by the impact of business disposals and the amortisation charge.

Current Assets

Current assets increased by €864.1m to €3,458.9m (2020: €2,594.8m) due to increased cash at bank and in hand, increased inventory, and increased trade and other receivables.

Retirement Benefits

At the balance sheet date, the net surplus for all defined benefit schemes (after deferred tax) was €56.3m (2020: deficit of €43.6m). The improvement in the net position was driven primarily by strong returns on schemes' assets which was partially offset by an increase in schemes' liabilities. The net surplus expressed as a percentage of market capitalisation at 31 December 2021 was 0.3% (2020: 0.2%).

Free Cash Flow

In 2021, the Group achieved free cash flow of €566.1m (2020: €412.0m) reflecting 84% cash conversion in the year.

2021

2020

FreeCashFlow

€'m

 'm

Tradingprofit

875.5

797.2

Depreciation(net)

201.5

200.7

Movementinaverageworkingcapital

(37.7)

(102.5)

Pensioncontributionspaid lesspensionexpense

(14.7)

(23.4)

Finance costs paid (net)

(71.3)

(74.6)

Incometaxespaid

(72.0)

(74.7)

Purchaseofnon-currentassets (net)

(315.2)

(310.7)

Freecashflow

566.1

412.0

Cash conversion¹

84%

67%

¹ Cash conversion is free cash flow expressed as a percentage of adjusted earnings after taxation.

Total Net Debt

Total net debt at the end of the year was €2,124.1m (2020: €1,945.1m).

Financing

Undrawn committed facilities at the end of the year were €1,100m (2020: €1,100m) while undrawn standby facilities were €337.0m (2020: €320.0m).

During the year, Kerry issued a €750m, 10-year Sustainability-Linked Bond (SLB) aligned with the Sustainability-Linked Bond Principles (SLBPs) administered by the International Capital Markets Association. The bond has a sustainability-linked feature that could result in an interest coupon step-up if certain KPI targets are not met by December 2030. The KPIs that have been selected reflect material environmental sustainability challenges for our industry and key focus areas under our Beyond the Horizon strategy. These KPIs and targets are as follows:

·         KPI 1: 55% Absolute reduction in Scope 1 & 2 greenhouse gas emissions; and

·         KPI 2: 50% Food waste reduction across our operations.

Of the cash at bank and in hand at year end, €100.0m (2020: €75m) was on short-term deposit under a Sustainable Deposits programme.

Key Financial Ratios

The Group's balance sheet is in a strong position. With a Net debt to EBITDA* ratio of 2.0 times, the Group has sufficient headroom to support future growth plans. During the year, the Group repaid US$200m of outstanding private placement notes. Following this repayment, the Group now has no financial arrangements that carry financial covenants.

2021

2020

Times

Times

Net debt: EBITDA*

2.0

1.9

EBITDA: Net interest*

14.9

13.8

* Calculated on a pro-forma basis as outlined in Financial Definitions section

Share Price and Market Capitalisation

The Company's shares traded in the range €99.95 to €130.00 during the year. The share price at 31 December 2021 was €113.25 (2020: €118.50) giving a market capitalisation of €20.0 billion (2020: €20.9 billion). Total shareholder return for 2021 was -3.7% (2020: +7.4%).

Dividend and Annual General Meeting

During the year, the Group paid an interim dividend of 28.5 cent per A ordinary share, which was an increase of 10.0% on the prior year interim dividend. The Board has proposed a final dividend of 66.7 cent per A ordinary share, payable on 6 May 2022 to shareholders registered on the record date of 8 April 2022. When combined with the interim dividend, the total dividend for the year amounts to 95.2 cent per share (2020: 86.5 cent per share), which is an increase of 10.1% over last year's dividend. The Group's aim is to have double digit dividend growth each year. Over 35 years as a listed company, the Group has grown its dividend at a compound rate of 16.3%.

Kerry's Annual Report will be published in March and the General Meeting will be held on 28 April 2022.

Board Changes

The Board has appointed Mr Tom Moran as Chairman Designate to succeed Mr Philip Toomey who will retire as Chairman and as a Director of the Company at the conclusion of the Company's Annual General Meeting in April 2022. Philip Toomey was appointed Chairman of the Board in 2018 and has served as a Director since 2012.

Tom Moran was appointed to the Board in September 2015. He is currently Chair of the Remuneration Committee and a member of the Governance, Nomination and Sustainability Committee. He also served as a member of the Audit Committee from December 2015 to November 2020. He was appointed Designated Workforce Engagement Director in June 2019.

Tom Moran had a long and distinguished career with the Irish Public Sector where he served for ten years as Secretary General of the Irish Department of Agriculture, Food and the Marine. He has extensive leadership experience in international policy and trade negotiation.

The appointment of Tom Moran as Chairman Designate follows a selection process by a sub-committee of the Board led by Dr Hugh Brady, the Senior Independent Director.

On his appointment as Chairman at the conclusion of the AGM, Tom Moran will resign from the Remuneration Committee and as the Designated Workforce Engagement Director. The Board has agreed to appoint Ms Emer Gilvarry as Chairperson of the Remuneration Committee and Ms Karin Dorrepaal as Designated Workforce Engagement Director in succession to Mr Moran.

Future Prospects

Our markets remain highly dynamic with a continued good demand environment, despite the backdrop of COVID-19 and supply chain challenges right across our industry. While market conditions remain uncertain, the Group is strongly positioned for growth. Kerry's key growth platforms of Authentic Taste, Food Waste, Plant-Based and Health & Bio-Pharma underpin a strong innovation pipeline.

As the industry is currently experiencing a period of heightened inflation, the Group remains confident in its ability to manage through this current 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.

The Group's earnings guidance includes the net dilution from the recent portfolio changes. Kerry expects to achieve adjusted earnings per share growth in 2022 of 5% to 9% on a constant currency basis.

Disclaimer

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.kerrygroup.com