Glanbia half year 2022 results

Glanbia PLC have released half yearly results which show that the group has enjoyed notable growth in the first six months of the year.

Highlights of the results include:

• Group revenues of €2.8 billion (HY 2021: €2 billion) representing growth of 26.8% constant currency (up 38.5% reported);

• Strong operating performance:

      - Glanbia Performance Nutrition (“GPN”) branded like-for-like volume +1.9%, pricing +13.9%

      - Nutritional Solutions (“NS”) like-for-like volume +1.6%, pricing +17.9%;

• Group EBITA pre-exceptional €171.7m (HY 2021: €159.9m), a decrease of 3.5% constant currency (up 7.4% reported);

• Adjusted earnings per share1 (“EPS”) ahead of expectations at 52.31 cent (HY 2021: 48.84 cent), a decrease of 3.8% constant currency (up 7.1% reported);

• Basic EPS of 66.13 cent (HY 2021: 27.90 cent);

• Net debt to adjusted EBITDA ratio of 1.83 times (HY 2021: 1.51 times);

• Completed the disposal of 40% interest in Glanbia Ireland and acquired Sterling Technology, a US bioactive ingredient company;

• Continued progress against ESG targets and Board diversity increased;

• Returned €127.1m to shareholders in the period via share buybacks;

• Interim dividend increased by 10% to 12.93 cent per share; and

• Strong H2 EBITA growth expected over prior year – full year guidance upgraded to 9% to 13% adjusted EPS constant currency growth (21% to 25% reported2)

Commenting today Siobhán Talbot, Group Managing Director, said:

“I am pleased to report that half year 2022 results have exceeded our plans, demonstrating the impact of a series of actions implemented since the latter part of last year in response to unprecedented inflation.

Revenues grew strongly with significant pricing initiatives and volume growth in all business segments in the period. Adjusted EPS1 at 52.31 cent, reflected improving momentum across the Group, building on a strong 2021 comparator. We continue to make progress on our strategic agenda and with the completion of the sale of the Company’s minority interest in Glanbia Ireland, Glanbia plc continues to evolve as a focused, purpose led global nutrition company.

We will continue to monitor inflationary trends into the second half of the year but are confident that further pricing action and operational efficiencies will improving margins and strong year-on-year EBITA growth.

Current expectations for improved EBITA growth in GPN underpin the upgrade in full year guidance for the Group, with growth in adjusted EPS1 now expected to be 9% to 13%, constant currency. Based on current foreign exchange rates, the reported adjusted EPS growth is expected to be 21% to 25%.”

Analysing the 2022 half year overview Glanbia stated:

“The Group’s results for the first half of 2022 were very solid in the context of unprecedented inflationary trends across the business. Significant management actions were taken to mitigate cost inflation including price increases and other efficiency measures. Consumer response to date to higher pricing has been better than expected in key areas with volume growth in both GPN and GN for the half year. EBITA margins in the period reduced as actions to mitigate inflation did not fully insulate year-on-year margins which, particularly in GPN, were comparatively high in the first half of 2021."