DAVY VIEW

Kerry will report FY22 results on February 16th. We expect the results to confirm a year of strong execution against unprecedented inflation and supply chain pressures. Raw material inflation recovery via pricing and sector-leading volume growth are FY22 model features. For FY23, we update our model for FX and the planned disposal of the Sweet Ingredients business; combined, these serve to lower our EPS forecast by c.5% to 445c. Fundamentals remain strong, allied with a compelling valuation (FY23 EV/EBITDA 13.6x). We reiterate our ‘Outperform’ call.