Q3 2024 Kerry Group PLC Interim Management Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patrick Higgins - Goodbody Stockbrokers - Analyst : Thank you. Good morning, everyone. And my first question is just around the innovation pipeline, I guess in the statement she knows that it's, it's predominantly focused on renovation, just interested to hear a bit more color in terms of, you know, innovation focus from customers, you know, across, you know, channels and perhaps, you know, the kind of globals versus the local players. Is there any material shift that you're seeing in terms of, you know, towards innovation, to try and drive football? And the second question I had is just around, you know, promotional intensity and you're seeing now versus say the start of the year and versus kind of prior to the cost of living crisis, you know, have you seen customers really start ramping up promotions yet or is there still a bit of a reluctance given the kind of fragile consumer backdrop? Thank you.

Question: Patrick Higgins - Goodbody Stockbrokers - Analyst : Okay. Thank you very much.

Question: Edward Hockin - JPMorgan - Analyst : Morning, both and many thanks for taking my questions. And my first one is as you're looking to Q4, which I presume should be sequentially better volumes than Q3 given your easier comps. I'm wondering is it premature for you to give some comment on how your early thoughts are for 2025 evolving. Whether this sequential improvement in volumes growth that you've been seeing year-to-date could set your own course for the 4 to 6% range in volumes growth for next year. With margin improvement and how your raw materials development could be into next year as well. And then my second question, if I may is on Q3 by the regions, reassuring to see a return to volume growth in Europe. But in Apmea, some softening versus Q2, I'm wondering, could you break out a little bit this APMEA 5.1% growth in Q3, a bit by, by countries and a bit by segment what you're seeing? Thank you.

Question: Edward Hockin - JPMorgan - Analyst : Thanks a lot.

Question: Alex Jones - BofA Global Research - Analyst : Good morning. Thanks for taking my questions. The first one in the results release, you talk about a small acquisition of direct sense While appreciating it is small, could you give us a little more color on the rationale and what that adds to the group, please? And then the second question, one of your peers this week was talking more about the ban on primary smoke flavors that comes into force between 2026 and 2029 in Europe. You know, I think you're a leader in smoke. Can you talk about whether that's an opportunity for you to sort of formulate and renovate your customers products as you've highlighted in other areas or whether the threat there in, in other people being able to take some of your market share. Thank you.

Question: Charles Eden - UBS Limited - Analyst : Hi, good morning, everyone. Just a couple of questions for me, please and sorry if I missed this earlier. Could you give us the Q3 volume growth by channel? So between retail and foodservice, I think I might have missed it. And then my second one is just a sort of clarification because obviously we've seen some headlines from mcdonald's and sort of a E coli outbreak and they're sort of saying it's attributable to ingredients. Can you just comment if you see any impact on your business whatsoever from, from that headline. Thank you.

Question: Alex Sloane - Barclays - Analyst : Yeah, hi morning all. Thanks for taking the questions. First one actually just building on that in terms of the retail performance there. Obviously, I appreciate it modest but a slight uptick from from, from Q2 and I think you said that improved through the quarter. But at the same time, you know, end market volumes haven't really changed much. So, yeah, I guess it appears to relate to to carry penetration. How do you feel about that trend into, in, in, into, in, into Q into Q4. And the second one just for Marguerite, just in terms of the, the cash flow II, I don't know if it's noted in the in the statement, but just to just to confirm that you're on track for the over 80% cash conversion for this year would be great. Thanks.

Question: Alex Sloane - Barclays - Analyst : Thanks very much.

Question: Nicola Tang - Exane BNP Paribas - Analyst : Hi, everyone. Thanks for taking the questions. First was I guess a bit of a follow up on Alex's question. There around retail and outperforming the market. You've touched today and also the invested a lot around, you know, sort of penetration opportunity and reformulation and so on. I was just wondering whether there's any areas where you think the outperformance might be driven by customer sort of customers restocking at all. And whether that's anything to be mindful of in any categories. And then the second also on the cash flow or use of cash you've extended so you have another EUR300 million tranche of buyback that will start when the next, when the current one finishes. I was wondering whether you could talk about the rationale to maintain at the 300 million level. And just perhaps remind us a bit on capital location, priorities and M&A pipeline, which I know we also discussed a few weeks ago at the investor event. Thanks.

Question: Nicola Tang - Exane BNP Paribas - Analyst : It's clear. Thank you. And if I could just squeeze in a very quick one on the biotechnology side of your business, which obviously you're also pro profiling at the investor day. I think you called out strength and proactive health this quarter. I was wondering, could you give us more color in terms of, I don't know, is it something specific in terms of customers or geographies or is it more broad based? Thanks.

Question: Nicola Tang - Exane BNP Paribas - Analyst : Thank you.