Kerry Group, the global taste & nutrition company, today presents its updated strategy, mid-term financial targets for the period 2022-2026, and sustainability commitments for 2030.
According to the group, the updated strategic framework continues to reflect Kerry’s overarching strategic priorities of Taste, Nutrition and Emerging Markets.
The group’s annual revenue volume growth target has been updated to 4-6% on average across the plan, supported by the key growth platforms of Authentic Taste, Plant-Based, Food Waste, and Health & Bio-Pharma.
In a statement, Edmond Scanlon, CEO commented, “We have made significant strategic progress in recent years, as we continue to evolve our business as the world’s leading taste & nutrition partner for the food, beverage and pharmaceutical markets."
"We have a truly unique business with strong leadership positions, aligned to today’s consumer demands and customer needs," he said.
"Today’s update is the next evolution of Kerry, as we strive to create value for our customers every day, by solving their complex challenges with differentiated solutions. This supports our vision to be our customers’ most valued partner, creating a world of sustainable nutrition," Scanlon added.
Kerry said it has set an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin target of 18%+ by 2026, the company said.
This will be underpinned by expanding the EBITDA margin in Taste & Nutrition to 20%+, it added.
The key pillars of Kerry’s margin expansion target are enhanced portfolio mix, operating leverage, and operational efficiencies, partially offset by reinvestment for growth initiatives.
As part of the operational efficiencies pillar, the group said that is today announcing its Accelerate Operational Excellence Transformation programme, beginning in 2022 and running until 2024.
Kerry said that the programme will focus on 'manufacturing and supply chain excellence', with an investment of approximately €120 million over the period, delivering a full annual recurring benefit of in the region of €70 million per annum from 2025, following the completion of the programme.
Included within the group’s average mid-term targets are cash conversion of 80%+ and Return on Average Capital Employed of 10-12%, it said.
As part of Kerry’s Beyond the Horizon sustainability strategy, the company said it plans to announce an enhancement of its targets.
Kerry said that it is increasing its target for scope 1 and 2 emissions reduction from 33% to 55% by 2030, aligning with the most ambitious goal of the Paris Agreement.
As part of its broader Diversity, Inclusion and Belonging strategy, Kerry said that it is extending its commitment to equal gender representation across all senior management roles by 2030.
The virtual Capital Markets Day will begin at 1pm Irish time and will run until approximately 4.30pm.
Access to the webcast will be available on the Investor Relations section of the Kerry Group website.
A replay of the webcast and slides will be available on the group’s website later in the day.