Delivering on our growth ambition
Glanbia has evolved and grown over the past decade. Today, we are a better nutrition company, the home of consumer brands and ingredients that nourish millions around the world. The choices we do – and don’t – make, are guided by our purpose. Everything we do reflects our respect for each other and the earth. Each day, we set our sights on better and that has fed into our strategic priorities until 2025.
Our strategy
We have defined a clear set of strategic priorities: grow the core; optimise our business; and disciplined capital allocation will help us to achieve our 2025 ambitions. To support these priorities and harness Glanbia’s global growth potential, we will continue to develop our key enablers, our world-class strategic capabilities and our strong assets.
Our key enablers
Powerful consumer trends
Our markets have evolved and we are evolving with them, understanding and staying close to our consumers and customers.
Culture and talent
Our culture and talent are key sources of competitive advantage for us.
Disciplined financial management
We invest in the future success of our business. This investment supports the delivery of a strong performance and enables sustainable growth.
Sustainable operations
We seek to maintain a strong position on key sustainability issues in our sector including food safety and quality, diversity, equity, and inclusion and in particular our environmental commitments.
Strategy in action
How we're delivering on our ambition of better nutrition for every step of life’s journey.
Our strategic priorities
Our core brands and ingredients hold market-leading positions in categories that are driven by strong underlying health and wellness trends.
Our strategy
- Capture global potential of billion dollar ON brand
- Build North America’s branded lifestyle nutrition platform
- Continue to scale our international business
- Build on core strength in GN Nutritional Solutions’ (NS) custom premix solutions
- Scale GN NS’ extensive capability in protein
2023 Progress
- Like-for-like (LFL) GPN branded growth of 5.1% constant currency with strong growth in sports nutrition across all regions
- Delivered double-digit global volume in ON
- Scaled international business delivering 12.8% LFL revenue growth
- Sequentially improved LFL NS volume growth managed through significant supply chain rebalancing
- Ensured NS resiliently played into market trending categories driven by strong demand for functional and nutritional ingredients
- Continued to build compelling capabilities and innovative solutions that are attractive to NS’ customers
Looking ahead to 2024
- Following price-led growth in 2022 and 2023, drive volume growth in 2024 through distribution and awareness
- Capture further growth of GPN lifestyle brands in key growing markets
- Maintain GN NS’ momentum in healthy snacking and ingredients solutions
Our strategy
- Science-led innovation.
- Refine business and operating model.
- Optimise opportunities for margin expansion.
- Digital transformation.
2023 Progress
- Continued to refine operating models and pursued efficiencies resulting in increased EBITA margins in GPN and NS over prior year
- Through our HR transformation programme, focused on digitally enabling ongoing talent development, performance management and employee engagement strategies
- Embedded ESG strategy across the business.
- Continued to optimise company-wide support functions to align with our growth agenda
- Implemented a business-wide digital core platform which will enable further digitisation
Looking ahead to 2024
- Continue to drive innovation in GPN and build out dairy bioactives business in NS
- Following the implementation of a business-wide digital core platform, focus on further digital transformation
- Further embed our ESG strategy across the business
- Support full integration of acquisitions across the organisation
- Continue to optimise business-wide support functions to align with our growth agenda
- Implement new commercial arrangements related to our US joint venture
Our strategy
- Portfolio optimisation
- Accretive M&A
- Focus on cash generation
- Balance between investment and return of capital to shareholders
2023 Progress
- Transitioned to a US dollar presentation currency for reporting purposes better representing core markets
- Delivered strong cash generation with 90.4% operating cash conversion
- Net debt: adjusted EBITDA 0.5 (2022:1.13) and adjusted EBIT: adjusted net finance cost 38.1 (2022: 17.0)
- Completed sale of Glanbia Cheese UK and EU joint ventures
- Acquired a colostrum enriched nutraceutical business
- Continued growth in dividend (+10%) and €100m returned via share buyback programme
Looking ahead to 2024
- Continue progressive capital allocation strategy through mechanisms such as dividends and share buyback programmes
- Transition to new commercial arrangements associated with our joint venture operations
- Pursue other margin accretive strategic M&A opportunities to complement the current portfolio
Our 2023 Annual Report
Read more about our sustainability report, ESG targets, commitments and performance highlights in our full annual report.
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