Strong strategic execution delivers fifth consecutive year of double digit earnings growth
25 February 2015 - Glanbia plc ("Glanbia", the "Group", the "plc"), the global performance nutrition and ingredients group, announces its results for the year ended 3 January 2015.
Results highlights
- Delivery of 10.1% growth in adjusted earnings per share, constant currency, and a 10.0% increase in dividends;
- Total Group revenues of €3,522 million, up 6.9% on prior year, constant currency;
- Strong results from Global Performance Nutrition where revenue growth of 13.5% and a 120 basis point margin expansion drove a 26.0% increase in EBITA, constant currency;
- Satisfactory performance by Global Ingredients in the context of challenging dairy market dynamics with EBITA of €100.4 million, broadly in line with prior year;
- Strategic investments in capital expenditure and acquisitions totaled €222 million, further building our two growth platforms;
- Strong balance sheet with free cash flow up 74% to €153 million; and
- Positive 2015 outlook, with guidance of 9% to 11% growth in adjusted earnings per share, constant currency.
Commenting today Siobhán Talbot, Group Managing Director, said:
“I am pleased to announce the fifth consecutive year of double digit growth for Glanbia in 2014 with a 10.1% increase in adjusted earnings per share, constant currency. Our focus on two scale growth platforms, Global Performance Nutrition and Global Ingredients, continues to drive earnings as we leverage our market leadership and sector expertise. In Performance Nutrition our investment in brand growth, innovation and acquisitions drove a strong performance. Our Global Ingredients business delivered a satisfactory overall performance in the context of challenging dairy market dynamics in 2014. The outlook for 2015 is positive and we are guiding 9% to 11% growth in adjusted earnings per share, constant currency. We continue to successfully execute our growth strategy and this positions Glanbia well for the delivery of our objectives from 2015 to 2018.”
| 2014 results | Reported | Constant currency | ||
|---|---|---|---|---|
| €m | 2014 | 2013 | Change | Change1 |
| Wholly-owned businesses | ||||
| Revenue | 2,583.3 | 2,382.1 | +6.6% | +6.4% |
| EBITA2 | 208.6 | 187.7 | +11.1% | +11.1% |
| EBITA margin | 8.2% | 7.9% | +30 bps | +30 bps |
| Joint Ventures and Associates | ||||
| Revenue | 984.0 | 900.5 | +9.3% | +8.3% |
| EBITA | 36.4 | 39.0 | -6.7% | -7.6% |
| EBITA margin | 3.7% | 4.3% | -60bps | -60bps |
| Total Group3 | ||||
| Revenue | 3,522.3 | 3,282.6 | +7.3% | +6.9% |
| EBITA | 245.0 | 226.7 | +8.1% | +7.9% |
| EBITA margin | 7.0% | 6.9% | +10bps | +10bps |
| Adjusted earnings per share | 61.16c | 55.46c | +10.3% | +10.1% |
1A significant portion of our earnings are denominated in US Dollar. We use constant currency reporting to eliminate the translation effect of foreign exchange on our results. The average exchange rate for 2014 was €1 = $1.327 (2013: €1 = $1.328).
2EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items.
3Total Group includes Glanbia’s share of Joint Ventures & Associates.