11% growth in adjusted earnings per share in the first half Continued good growth in Global Performance Nutrition and Global Ingredients Reiterating positive 2013 full year outlook
21 August 2013 - Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global performance nutrition and ingredients group, announces its results for the six months ended 29 June 2013.
2013 half year results highlights
- Good first half operating and financial performance delivered 13% revenue growth, split 8% volume growth and 5% price growth. Adjusted EPS grew 11% on a constant currency basis;
- Global Performance Nutrition continued to outpace market growth rates delivering a 14% increase in revenue, 20% growth in EBITA and a 50 basis points improvement in EBITA margin to 10.5%;
- Global Ingredients also delivered a good performance. Revenue increased 17% and EBITA grew 8%. EBITA margin declined 90 basis points to 10.7% mainly due to lower margins, as expected, in the Ingredient Technologies business unit;
- Dairy Ireland’s performance was impacted by a very difficult first half in Consumer Products and EBITA and EBITA margin were lower than prior year;
- The Group’s two major strategic Joint Ventures & Associates, Glanbia Ingredients Ireland and Southwest Cheese in the USA had a steady first half overall;
- The full year outlook for the Group remains positive with forecast growth in adjusted EPS of between 8% and 10%, on a constant currency basis.
| 2013 half year results pre exceptional | Constant Currency1 HY 2013 |
Constant Currency1 Change2 |
Reported Currency1 HY 2013 |
Reported Currency1 Change2 |
|---|---|---|---|---|
| Wholly owned businesses | ||||
| Revenue | 1,246.8 | +13.6% | 1,236.3 | +12.6% |
| EBITA | 103.6 | +5.9% | 102.3 | +4.6% |
| EBITA margin | 8.3% | - 60 bps | 8.3% | - 60 bps |
| Joint Ventures and Associates3 | ||||
| Revenue | 431.1 | +11.5% | 426.8 | +10.3% |
| EBITA | 20.3 | +9.1% | 19.9 | +7.0% |
| EBITA margin | 4.7% | - 10 bps | 4.7% | - 10 bps |
| Total Group | ||||
| Revenue | 1,677.9 | +13.0% | 1,663.1 | +12.0% |
| EBITA | 123.9 | +6.4% | 122.2 | +5.0% |
| EBITA margin | 7.4% | - 40 bps | 7.3% | - 50 bps |
| Adjusted earnings per share | 30.69c | +11.3% | 30.39c | +10.2% |
Commenting today John Moloney, Group Managing Director, said:
“The Group’s first half performance was driven by Global Performance Nutrition and Global Ingredients. These two business segments now represent over 70% of Group EBITA and are our core platforms for future growth. We expect little change in the external operating environment in the second half and with clear challenges remaining in Dairy Ireland we are maintaining our 2013 full year guidance of adjusted earnings per share growth of between 8% and 10%, on a constant currency basis. Our recently announced management changes put in place an excellent team to continue to drive the business forward and to evolve the long term strategy that will deliver the next phase of growth. Overall, Glanbia is in a strong position to capitalise on its unique portfolio of global businesses, development opportunities and strong balance sheet.”
1 Constant currency is based on translating HY 2013 results at the HY 2012 average market exchange rate (€1 = $1.297). The reported average exchange rate for HY 2013 was €1 = $1.313.
2 2012 results have been restated to reflect the adoption of the revised IAS 19 pension accounting standard (see Note 3 for detail).
3 Glanbia disposed of a 60% interest in Glanbia Ingredients Ireland Limited (“GIIL”) in November 2012. GIIL, previously part of the Dairy Ireland segment, is now a 40% associate. 2012 half year results have been restated to show GIIL on the same basis.