Kerry Group

Website: Kerry Group
Index: Main Market
EPIC: KYGA
Supersector: Food, Beverage and Tobacco
Sector: Food Producers
Subsector: Food Products
Market Cap: £9.66B
Payout Frequency: Semi-Annual

Kerry Group Dividend Analysis and Summary

Declared Dividend and Key Dates

Final dividend: €0.98 per share (A ordinary shares)
Total FY2025 dividend: €1.40 per share (+10.1% year-on-year)
Ex-dividend date: 09/04/2026 (derived from the stated record date)
Record date: 10/04/2026
Payment date: 08/05/2026
Currency: Euro (EUR). Sterling receipts (if applicable) will vary with FX at payment.

Yield and Coverage

Implied trailing yield: c. 1.8% based on €1.40 DPS and year-end share price of €78.00 (31 Dec 2025).
Earnings cover: DPS €1.40 vs Adjusted EPS €4.815 (coverage ~3.4x; payout ~29%). On Basic EPS €4.002, coverage ~2.9x; payout ~35%.
Cash cover: FY2025 free cash flow €643m vs FY2025 dividend cash cost ~€226m (interim paid €68m; proposed final €158m) ˜ 2.8x coverage.

Dividend Policy and Track Record

Sustainability and Outlook

Strong coverage from profits and cash flows: low payout (<~30% of adjusted EPS) and robust FCF provide ample headroom.
Balance sheet metrics supportive: Net debt/EBITDA 1.9x, undrawn committed facilities of €1.5bn.
Earnings trajectory: guidance for +6–10% adjusted EPS growth (constant currency) in 2026; however, a ~4% FX translation headwind is expected, which could temper reported growth.
Margin expansion and operational programmes (Accelerate 2.0) should underpin cash generation, supporting ongoing dividend growth.

Capital Allocation and Structural Changes

Share buybacks: €500m repurchased in 2025; new €300m programme announced (commencing Feb 2026 timeframe per disclosures). Buybacks reduce share count and support per-share metrics without pressuring dividend cover.
Share premium reduction: €1.48bn reduction in 2025 increased distributable reserves, enhancing future dividend flexibility.
Portfolio actions: Continued footprint optimisation and small disposals; prior disposal of Kerry Dairy Ireland (31 Dec 2024) already completed and reflected in comparatives.
Capex and selective M&A continue, but within a disciplined framework alongside dividends and buybacks.

Risks and Flags for Dividend Stability

FX risk: Company reports in EUR; guidance cites a ~4% FX headwind to 2026 EPS. GBP investors also face EUR/GBP translation on cash dividends.
Macro/volume softness: Europe volumes slightly negative in 2025; continued soft consumer demand could weigh on growth, though mix/margins are improving.
Restructuring/non-trading charges: Ongoing Accelerate 2.0 through 2028 may incur further non-trading costs (non-cash or cash), though intended to enhance long-term efficiency.
Leverage drift: Net debt rose to €2.24bn (from €1.93bn) given buybacks and note repayment; still moderate at 1.9x EBITDA, but worth monitoring if capital returns stay elevated.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
10/04/2025	09/05/2025	Final	89.00¢	EUX
09/10/2025	07/11/2025	Interim	42.00¢	EUX

Total (Annual Dividends Per Share): 113.53p (Using exchange rate on 29/04/2026 EUR = £0.86663)

Dividend Yield = Annual Dividends Per Share (113.53p) ÷ Share Price (72.4p) = 156.81%

Ex Dividend Date	Payment Date	Type	Amount	Currency
09/04/2026	08/05/2026	Final	98.00¢	EUX
09/10/2025	07/11/2025	Interim	42.00¢	EUX
10/04/2025	09/05/2025	Final	89.00¢	EUX
10/10/2024	08/11/2024	Interim	38.10¢	EUX
11/04/2024	10/05/2024	Final	80.80¢	EUX
12/10/2023	10/11/2023	Interim	34.60¢	EUX
13/04/2023	12/05/2023	Final	73.40¢	EUX
13/10/2022	11/11/2022	Interim	31.40¢	EUX
07/04/2022	06/05/2022	Final	66.70¢	EUX
14/10/2021	12/11/2021	Interim	28.50¢	EUX
15/04/2021	14/05/2021	Final	60.60¢	EUX
15/10/2020	13/11/2020	Interim	25.90¢	EUX

Year	Interim	Final	Currency	Total	Change
2024	38.100	80.800	EUX	118.900	10.090
2023	34.600	73.400	EUX	108.000	10.090
2022	31.400	66.700	EUX	98.100	10.100
2021	28.500	60.600	EUX	89.100	244.010
2020	25.900		EUX	25.900

Number of Shares:

Payment	Paid	Amount
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