EXCELLENT RESULTS IN 2011, AHEAD OF MARKET EXPECTATIONS
26.7% GROWTH IN ADJUSTED EARNINGS PER SHARE
29 February 2012 - Glanbia plc („Glanbia‟), the global nutritional solutions and cheese Group, announces its results for the full year ended 31 December, 2011. Results commentary in this announcement is based primarily on constant currency.
| Half year results summary pre exceptional(1) | Constant Currency(2) 2011 |
Constant Currency(2) 2010 |
Constant Currency(2) Change |
Reported 2011 |
Reported Change |
|---|---|---|---|---|---|
| Revenue(3) | €2,734.6m | €2,166.7m | + 26.2% | €2,671.2m | + 23.3% |
| EBITA | €186.1m | €151.6m | + 22.8% | €179.5m | + 18.4% |
| EBITA margin | 6.8% | 7.0% | - 20 bps | 6.7% | - 30 bps |
| Operating profit | €166.8m | €136.5m | + 22.2% | €161.0m | + 17.9% |
| Operating margin | 6.1% | 6.3% | - 20 bps | 6.0% | - 30 bps |
| EBITA | €219.4m | €182.8m | + 20.0% | €212.2m | + 16.1% |
| Share of results of Joint Ventures & Associates(3) | €14.7m | €10.1m | + 45.5% | €14.3m | + 41.6% |
| Adjusted earnings per share(4) | 48.22c | 38.07c | + 26.7% | 46.32c | + 21.7% |
| Financing KPIs | 2011 | 2010 | Change |
|---|---|---|---|
| Net debt/Adjusted EBITDA(5) | 2.1 times | 2.1 times | - |
| Return on capital employed(6) | 12.7% | 12.5% | + 20bps |
(1) An exceptional item of €8.7 million relates to rationalisation costs including the costs of the integration of the liquid milk business acquired from Kerry Group plc in the first half.
(2) Constant currency is based on translating 2011 results at the 2010 average market exchange rate. The 2010 average exchange rate was €1 = US$1.3260 which compares with the reported average exchange rate for 2011 of €1 = US$1.3923.
(3) Total Group revenue, including Glanbia‟s share of the revenue of Joint Ventures & Associates, was €3.2 billion, €3.3 billion on a constant currency basis for the year (2010: €2.6 billion). Share of results of Joint Ventures & Associates is an after interest and tax amount.
(4) Adjusted earnings per share is calculated as the profit for the year attributable to the owners of the Group before exceptional items and amortisation of intangible assets (net of tax).
(5) Adjusted EBITDA for the purpose of financing ratios reflects Group EBITDA plus dividends from Joint Ventures & Associates.
(6) 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.
2011 full year results summary
Strong performance by Global Nutritionals, with organic revenue growth well ahead of market growth rates BSN®, acquired in January 2011 for $144 million, performed in line with expectations
Good performance by Dairy Ireland underpinned by positive global dairy markets Revenue increased 26.2% to €2.7 billion; EBITA grew 22.8% to €186.1 million
EBITA margin down 20 basis points to 6.8%, due largely to input cost pressures in Performance Nutrition Strategic Joint Ventures & Associates profit after tax increased by 45.5% to €14.7 million
Adjusted earnings per share grew 26.7% to 48.22 cents
Dividend per share in respect of the full year increased 10% to 8.27 cents $325 million Private Debt Placement of 10 year senior loan notes completed
John Moloney, Group Managing Director, said:
“Glanbia achieved excellent results in 2011 delivering 26.7% growth in adjusted earnings per share, on a constant currency basis. The acquisition and successful integration of BSN® into Performance Nutrition complemented strong organic revenue growth in our three nutritional businesses. These businesses continue to outpace market growth rates, driven by strong market positions and science based, customer focused innovation. Positive global dairy markets underpinned a solid performance by Dairy Ireland despite the challenges of the Consumer Products business.
We expect the operating environment in 2012 to be more challenging than in recent years. Current global economic uncertainty has the potential to impact global dairy markets and fragile consumer confidence. The Group‟s focus on driving growth in nutritionals, combined with deep dairy market expertise and strong execution capability, position us well for the future. Our guidance for 2012 is for 5-7% growth in adjusted earnings per share, on a constant currency basis.”