EXCELLENT FIRST HALF DELIVERS 55% INCREASE IN ADJUSTED EARNINGS PER SHARE
FULL YEAR OUTLOOK UPGRADED TO 18% TO 20% EXPECTED GROWTH IN ADJUSTED EARNINGS PER SHARE
24 August 2011 - Glanbia plc („Glanbia‟), the international nutritional solutions and cheese group, announces its half year results for the six months ended 2 July 2011. Commentary in this results announcement is primarily based on constant currency.
| Half year results summary pre exceptional(1) | Constant Currency(2) HY2011 |
Constant Currency(2) HY2010 |
Constant Currency(2) Change |
Reported HY2011 |
Reported Change |
|---|---|---|---|---|---|
| Revenue(3) | €1,380.5 | €1,036.4m | + 33.2% | €1,342.9m | + 29.6% |
| EBITDA pre exceptional | €121.7m | €89.2m | + 36.4% | €117.0m | + 31.2% |
| EBITA pre exceptional | €105.0m | €73.6m | + 42.7% | €100.7m | + 36.8% |
| EBITA margin pre exceptional | 7.6% | 7.1% | + 50 bps | 7.5% | + 40 bps |
| Operating profit pre exceptional | €95.6m | €66.3m | + 44.2% | €91.8m | + 38.5% |
| Operating margin pre exceptional | 6.9% | 6.4% | + 50bps | 6.8% | + 40 bps |
| Share of results of Joint Ventures & Associates(3) | €9.9m | €5.0m | + €4.9m | €9.6m | + €4.6m |
| Adjusted earnings per share(4) | 28.91c | 18.62c | + 55.3% | 27.63c | + 48.4% |
(1) In the first half there was a net exceptional charge of €7.6 million, post tax (€8.7 million pre tax). This relates to further rationalisation in Consumer Products, which is part of the Group‟s Dairy Ireland segment. There was no exceptional charge in the first half of 2010.
(2) Constant currency is based on translating half year 2011 results at the 2010 half year average market exchange rate. The 2010 half year average exchange rate was €1 = US$1.326 which compares with the reported average exchange rate for the six months ended 2 July 2011 of €1 = US$1.4044.
(3) Total Group revenue, including Glanbia‟s share of the revenue of Joint Ventures & Associates, was €1.6 billion for the half year (HY2010: €1.2 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).
Half year results highlights
- Strong global dairy markets and good demand in key nutritional sectors;
- Continued strong organic growth in Global Nutritionals supported by product innovation;
- First time contribution of Bio-Engineered Supplements and Nutrition (BSN ), acquired in January 2011 in line with expectations;
- Positive markets and volume growth underpins a good performance by Dairy Ingredients Ireland;
- Revenue increased 33.2% and operating profit pre exceptional grew 44.2%;
- EBITA margin pre exceptional grew 50 basis points to 7.6%;
- Adjusted earnings per share increased 55.3% to 28.91 cents;
- In process of finalisation and drawdown of US$325 million Private Debt Placement, 10-year senior loan notes with fixed coupon of 5.4%;
- Dividend per share in respect of the half year increased 10% to 3.33 cents; and
- Full year outlook upgraded to 18% to 20% expected growth in adjusted earnings per share, on a constant currency basis.
John Moloney, Group Managing Director, said:
“We have had an excellent first half delivering adjusted earnings per share growth of 55%, on a constant currency basis. Global dairy markets were strong as growth in dairy consumption in developing regions underpinned sustained demand and higher prices. US dairy markets were also significantly higher relative to the first half of last year. These positive market conditions underpinned a good performance in Dairy Ingredients Ireland, US Cheese and International Joint Ventures. Our Global Nutritionals‟ businesses had a very good first half with further growth in demand across all key nutritional markets and product categories.
Glanbia continues to perform well. The overall trading environment remains positive and while global dairy market prices appear to have peaked in the current cycle, indications are for a relatively modest softening in prices for the remainder of the year. Demand-led growth across all product categories in Global Nutritionals is also strong. The calibre of our first half performance, leading market positions and strength of our global portfolio, positions Glanbia strongly for the full year. We are upgrading our 2011 guidance today to 18% to 20% growth in adjusted earnings per share, on a constant currency basis.”