Record results with 22% growth in adjusted earnings per share Historic year for corporate development Positive outlook for 2013
13 March 2013 - Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global nutritional solutions and cheese group, announces its results for full year ended 29 December 2012.
2012 results highlights
- 22.1% growth in adjusted earnings per share in reported currency, 14.2% in constant currency, ahead of expectations. Strong performance driven by Global Nutritionals where like for like revenue grew 20% reflecting positive markets and strong operational performances in each business unit;
- Clarity on the strategy to expand Irish dairy processing restructures the Dairy Ireland segment, reduces majority shareholder ownership to 41.3% and facilitates further international growth;
- €115 million capital investment included the purchase of a US nutritionals company which expands Ingredient Technologies capabilities and customer base in high growth markets; and
- 10% dividend increase for the third consecutive year.
| 2013 half year results pre exceptional | Constant Currency1 HY 2013 |
Constant Currency1 Change2 |
Reported Currency1 HY 2013 |
Reported Currency1 Change2 |
|---|---|---|---|---|
| Wholly owned businesses | ||||
| Revenue | €2,092.4m | + 8.3% | €2,211.8m | +14.4% |
| EBITA | €162.6m | +15.1% | €175.9m | +24.5% |
| EBITA margin | 7.8% | + 50 bps | 8.0% | + 70 bps |
| Pro Joint Ventures and Associates3 | ||||
| Revenue | €792.5m | - 3.3% | €826.3m | +0.8% |
| EBITA | €36.2m | - 10.6% | €37.7m | -6.9% |
| EBITA margin | 4.6% | - 30 bps | 4.6% | - 30 bps |
| Pro Total Group | ||||
| Revenue | €2,884.9m | +4.8% | €3,038.1m | +10.4% |
| EBITA | €198.8m | +9.4% | €213.6m | +17.5% |
| EBITA margin | 6.9% | + 30 bps | 7.0% | + 40 bps |
| Adjusted earnings per share | 52.90c | 14.2% | 56.56c | +22.1% |
| Continuing operations | 47.36c | +17.4% | 51.02c | +26.5% |
| Discontinued operations | 5.54c | -7.4% | 5.54c | -7.4% |
Commenting today John Moloney, Group Managing Director, said:
“The Group delivered strong organic revenue growth and a 22.1% increase in adjusted earnings per share; the third consecutive year of double digit progression. We also achieved a landmark agreement with our majority shareholder, Glanbia Co-operative Society, which restructured our Irish dairy processing business from a wholly owned operation to an associate. In addition, the Society’s ownership of the plc will reduce to 41.3% and the composition of the Board will evolve on a phased basis from 2016.
“The prospects for 2013 are good, although we remain cautious given the global environment. We expect adjusted earnings per share growth, on a constant currency basis, of between 8% and 10% for the full year from a base of 51.02 cents. The Irish dairy processing transaction facilitates a concentrated focus on our international growth and the longer-term prospects for Glanbia are very positive. We are in a stronger position than ever to drive the business forward and capitalise on our competitive advantage in both business-to-business and business-to-consumer nutritional products and solutions.”
1Figures are pre exceptional items which in 2012 amounted to a charge of €4.7 million (2011: €7.6 million).
2Commentary is based on constant currency. Constant currency is based on translating 2012 results at the 2011 average market exchange rate (€1 = $1.392). The reported average exchange rate for 2012 was €1 = $1.285.
3In accordance with IFRS 5 the disposal of a 60% interest in GIIL results in its total performance from January 2011 to November 2012 being treated as a discontinued operation in the financial statements of the Group. To better reflect the structure of the Group going forward this analysis presents GIIL as a 40% associate of the Group for both 2012 and 2011. Full details on the accounting treatment of the GIIL transaction are outlined on page 16 of this document.