Glanbia half-year results ahead of expectations - Kilkenny Live

Kilkenny-based Glanbia plc  has announced half-year results that are ahead of expecattions.

Glanbia plc, the better nutrition company, has announced its financial results for the six month period ended 1 July 2023.

As announced on 1 March 2023, the Group has changed its presentation currency from Euro to US Dollar. All figures presented are in US Dollar unless stated otherwise, with comparative figures also restated in US Dollar.

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Key highlights from HY 2023

• Earnings growth in the first half, positive outlook for the remainder of 2023; full year guidance upgraded to between 12% and 15% growth in adjusted EPS reflecting improved outlook for GPN;
• Group revenues of $2.8 billion (HY 2022: $3.1 billion) representing a decrease of 10.0% constant currency (down 10.3% reported);
• Group EBITA pre-exceptional of $198.6 million (HY 2022: $187.6 million), an increase of 6.1% constant currency (up 5.9% reported);
• Group EBITA pre-exceptional margins of 7.2% (HY 2022: 6.1%) with margin growth across all business segments;
• Adjusted earnings per share of 60.78 $cent (HY 2022: 57.17 $cent) representing growth of 6.6% constant currency (up 6.3% reported);
• Basic EPS from continuing operations of 71.90 $cent (HY 2022: 50.40 $cent);
• Glanbia Performance Nutrition (“GPN”):Like-for-like (“LFL”) branded revenue +3.7% with pricing +10.9% and volume -7.2%;
• Optimum Nutrition (“ON”) brand delivered LFL revenue growth of +16.2% with volume and price momentum; ON sustained US consumption growth2 of 14.3%;
• EBITA margin 12.1% (HY 2022: 10.4%), an increase of 170bps;
• Glanbia Nutritionals - Nutritional Solutions (“GN NS”):LFL revenue -15.2% with pricing -4.8% and volume -10.4%;
• EBITA margin 12.9% (HY 2022: 12.2%), an increase of 70bps;
• Sequential improvement in volumes through the period;
• Capital allocation:Interim dividend increased by 10% to 14.22 €cent per share;
• Returned €64.5 million to shareholders in the period via share buyback activity;
• Completed the sale of Glanbia Cheese joint ventures for initial proceeds of €178.9 million (including the repayment of shareholder loans); 
• Strong balance sheet with net debt to adjusted EBITDA ratio of 0.99 times (HY 2022: 1.75 times); and
• Siobhán Talbot to retire as Group Managing Director on 31 December 2023, Hugh McGuire to be appointed CEO on 1 January 2024.
   

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Commenting today Siobhán Talbot, Group Managing Director, said: “I am pleased to report that Glanbia’s performance in the first half of the year was ahead of our expectations as the Group successfully navigated some continuing volatility in global market conditions. This was driven by a strong operating performance, continued demand for our better nutrition brands and ingredients and the exceptional commitment of our people. We are upgrading our guidance for FY 2023, with adjusted Earnings Per Share now expected to grow by between 12% and 15% on a constant currency basis.

"Our earnings momentum in the first half of 2023 was driven by a good performance in GPN as growth in revenue, earnings and margin reflected a strong global performance for our flagship Optimum Nutrition brand. GN’s first half performance was in line with expectations, as customer supply chain rebalancing trends reduced volumes, with progressive improvements in demand trends as the period progressed which we expect to continue into the second half of the year.

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"Our strategy is on track as we continue to reshape and simplify our portfolio, invest to sustain consumer and customer relevance, drive margin improvement and deliver strong operating returns and cash conversion. In terms of returns to shareholders, the interim dividend is raised by 10% and €64.5 million was returned in the period via share buybacks. As we look to the second half of the year, we believe that the combination of market opportunity and our strong operating capabilities set us up for sustained delivery of future growth.

"I have announced my plans to retire as Group Managing Director of Glanbia at the end of this year. My colleague, Hugh McGuire will be appointed CEO of Glanbia on 1 January 2024. I want to thank my colleagues right across the Group for their hard work, commitment and friendship during my career with the Company. I would like to wish Hugh well as he takes the helm in 2024 and I look forward to working with him on the leadership transition over the coming months.”