RESULTS AHEAD OF EXPECTATIONS; 24% INCREASE IN ADJUSTED EARNINGS PER SHARE
11% TO 13% ADJUSTED EARNINGS PER SHARE GROWTH EXPECTED IN 2011
2 March 2011 - Glanbia plc („Glanbia‟), the global nutritional solutions and cheese Group, announces its results for the full year ended 1 January, 2011.
2010 full year results summary
- Improved global dairy markets and good demand in key nutritional markets underpinned an excellent year;
- Dairy Ingredients Ireland returned to profitability, after a first time loss in 2009;
- Strategic cost management programmes in Ireland delivered targeted annualised savings;
- Organic revenue growth in Global Nutritionals significantly outpaced market growth rates;
- Revenue increased 18.4%; up 15.6% on a constant currency basis;
- EBITA margin up 20 basis points to 7.0%, up 40 basis points to 7.2% on a constant currency basis; Operating profit grew 22.8%; up 22.8% on a constant currency basis;
- Operating margin improved 20 basis points to 6.3%; up 40 basis points to 6.5% on a constant currency basis; Adjusted earnings per share increased 24.1% to 38.07 cents and
- Dividend increased by 10% to 7.52 cents per share.
| Results as reported – pre exceptional | 2010 | 2009 | Change |
|---|---|---|---|
| Revenue | €2,166.7m | €1,830.3m | + 18.4% |
| EBITA | €151.6m | €125.0m | + 21.3% |
| EBITA margin | 7.0% | 6.8% | + 20 bps |
| Operating profit | €136.5m | €111.2m | + 22.8% |
| Operating margin | 6.3% | 6.1% | + 20bps |
| Share of results of Joint Ventures & Associates(1) | €10.1m | €10.2m | - €0.1m |
| Adjusted earnings per share(2) | 38.07c | 30.68c | + 24.1% |
| Dividend per share in respect of the full year | 7.52c | 6.84c | + 10% |
| Financing KPIs | 2010 | 2009 | Change |
|---|---|---|---|
| EBITDA | €182.8m | €152.5m | + 19.9% |
| Free cash flow | €65.5m | €66.1m | - €0.6m |
| Net debt | €408.1m | €442.6m | - €34.5m |
| Net debt/Adjusted EBITDA(3) | 2.1 times | 2.6 times | - |
| Return on capital employed(4) | 12.9% | 11.2% | + 170bps |
(1) Revenue including Glanbia‟s share of the revenue of Joint Ventures & Associates was €2.6 billion for the full year, compared with €2.1 billion for 2009. Share of results of Joint Ventures & Associates, reported in the income statement, is an after interest and tax amount.
(2) Adjusted earnings per share is calculated as the profit for the year attributable to the equity holders of the parent before exceptional items and amortisation of intangible assets (net of tax).
(3) Adjusted EBITDA for the purpose of financing ratios reflects Group EBITDA plus dividends from Joint Ventures & Associates.
(4) Return on capital employed is calculated as EBITA, including share of Joint Ventures & Associates EBITA, (post tax) over capital employed. Capital employed is defined as non current assets plus working capital.
John Moloney, Group Managing Director, said:
“Glanbia had an excellent year with results ahead of expectations. The Group benefited from strong organic revenue growth in our three nutritionals‟ businesses, a return to profitability in Dairy Ingredients Ireland and the delivery of our strategic cost reduction programmes in Ireland. We delivered strong revenue and earnings growth and our 2010 performance reflects the strength and diversity of our businesses.
The Group is well positioned for 2011. Our current expectation is that the trading environment for 2011 will be broadly positive. Global dairy markets are expected to remain firm, underpinned by robust demand, particularly from Asia, and demand-led growth in key nutritionals sectors. In January we acquired BSN , a leading US sports nutrition business which is an excellent strategic fit with our Performance Nutrition business. For 2011, given our strong market positions and growing portfolio, we are forecasting 11% to 13% growth in adjusted earnings per share, on a constant currency basis.”