Glanbia reports strong performance with adjusted EPS growth of 20.5% - Kilkenny Live

Glanbia plc the ‘Better Nutrition company’, announces its preliminary results for the 2023 financial year ended 30 December, 2023.

The growth was driven by strong global consumer demand, according to Hugh McGuire, Chief Executive Officer of Glanbia.

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. 

Summary: 

Group Financial Performance: 

• Adjusted earnings per share (“EPS”) of 131.37 $cent (2022: 109.57 $cent) representing growth of 20.5% constant currency (up 19.9% reported); 
• Group revenues of $5.4 billion (2022: $5.9 billion) representing a decline of 8.7%, constant and reported currency; 
• Group EBITA pre-exceptional $424.0 million (2022: $365.7 million), an increase of 16.4% constant currency (up 15.9% reported); 
• Basic EPS of 129.21 $cent (2022: 98.40 $cent); 
• Operating Cash Flow (“OCF”) conversion of 90.4% (2022: 85.7%) and year end net debt to adjusted EBITDA ratio of 0.5 times (2022: 1.13 times); 

Glanbia Performance Nutrition (“GPN”): 

• Like-for-like (“LFL”) branded revenue growth of 5.1% with pricing +5.4% and volume -0.3%; 
• Optimum Nutrition (“ON”) brand delivered LFL revenue growth of 17.0% with both volume and price growth; US consumption growth2 of 13.7% for the 52 week period; 
• Increased brand and marketing investment, prioritising the protein growth brands of Optimum Nutrition, Isopure and think!; 
• EBITA margin of 14.2% (2022: 11.2%), an increase of 300bps; 

Glanbia Nutritionals (“GN“) - Nutritional Solutions (“GN NS”): 

• LFL revenue decrease of 12.3% with pricing -9.0% and volume -3.3%; 
• Volume trends continued to improve through the second half of FY23 with volume growth in Q3 and Q4; 
• EBITA margin of 12.5% (2022: 11.4%), an increase of 110bps; 

Capital allocation: 

• Recommended final dividend per share of 21.21 €cent; representing a total 2023 dividend of 35.43 €cent; a 10% increase on prior year, representing a payout ratio of 29.2%; 
• Returned €100 million to shareholders in the year via share buybacks. Reflecting the Group’s strong cash flow and financial position, the Group is today announcing its intention to return a further €100 million via share buybacks in FY 2024, starting initially with a €50m buyback programme; 

2024 Outlook: 

 “On behalf of the Glanbia team, I am pleased to report that the Group delivered an excellent performance in 2023 with adjusted EPS growing by 20.5% to 131.37c," said Mr McGuire.

This was driven by strong global consumer demand, with Optimum Nutrition continuing its growth momentum, delivering volume and price growth in the period. In our Nutritional Solutions business, overall volume trends continued to improve through the year, with a sequential improvement in volume growth in the fourth quarter. 

Our strong operational and financial performance continued to generate excellent cash flow, with 90.4% cash conversion in the year. We continued to evolve our portfolio with the acquisition of a bioactive ingredients business and the sale of our share of Glanbia Cheese joint ventures. We increased the dividend by 10% and returned €100 million to shareholders via our share buyback programme.

Glanbia is a company with very strong fundamentals – a clear strategy, a portfolio of great brands and ingredients playing into strong underlying consumer health and wellness trends with a team of talented people. Looking ahead, we will focus on driving growth and shareholder value by stepping up awareness and distribution of our great brands, with a robust innovation pipeline across both our growth platforms. In 2024, we expect adjusted EPS growth of 5% to 8% constant currency, which will be driven by a strong operating performance across both GPN and GN NS.”