IRELAND - Kerry Group plc, a global taste and nutrition company, has initiated the latest phase of its €300 million (US$32.6 million) share buyback program, acquiring 25,000 A ordinary shares on Euronext Dublin. 

The newly purchased shares will be canceled as part of the company's broader strategy to return value to shareholders. The ongoing buyback program is set to run until December 19, 2024, highlighting the company’s commitment to maintaining shareholder engagement and boosting investor confidence. 

Following this recent acquisition, the total number of Kerry Group's ordinary shares in issue stands at 170,146,099, excluding treasury shares.

Third-quarter outlook and strategic positioning

The buyback comes as Kerry Group prepares to release its third-quarter results on October 24, 2024. 

During a recent investor event in Beloit, Wisconsin, Kerry's management indicated that they expect these results to be "in line with market expectations," maintaining optimism about the company's future performance. 

The event served as a platform for Kerry to showcase developments in its science and technology portfolio, while also providing insights into the firm's growth strategy in key markets.

Kerry's leadership highlighted the company’s strong positioning in the Americas, emerging markets, and the foodservice sector, which are expected to drive market growth and greater penetration in the coming years. 

The firm emphasized that these areas will be central to its future outperformance and operational growth, particularly as demand for innovative food solutions and sustainable practices rises globally.

Financial performance and buyback program

Earlier in 2024, Kerry reported strong half-year financial results, with revenue reaching €3.9 billion (US$4.2 billion) for the first half of the year, reflecting a 1.7% volume growth. 

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 6.6% to €552.2 million (US$601.2 million), while the EBITDA margin rose by 160 basis points to 14.2%. 

These results were largely attributed to the success of Kerry’s Accelerate Operational Excellence Programme, which focuses on optimizing efficiency across its operations, and favorable pricing adjustments.

Kerry’s ongoing share buyback efforts began in conjunction with its half-year report, with the company outlining plans to repurchase up to €300 million worth of ordinary shares. The program is expected to continue after the completion of the current buyback phase, reinforcing the company’s long-term financial strategy.

Global presence and innovation

Kerry Group’s global footprint and strong research, development, and application (RD&A) capabilities contribute to its ability to collaborate with customers across more than 150 countries. 

The company employs over 1,200 food scientists and operates 31 manufacturing facilities, positioning itself as a leading innovator in the food industry. 

Its RD&A teams work closely with customers to develop tailored solutions that address market trends, consumer preferences, and regulatory requirements, helping Kerry maintain its competitive edge in the rapidly evolving food and beverage sector.

This global presence, combined with its extensive manufacturing capabilities, allows Kerry to respond efficiently to shifting market demands while maintaining operational resilience.