Good performance in first half driven by Global Performance Nutrition
Reiterating 2014 guidance of 8% to 10% constant currency adjusted EPS growth
20 August 2014 ‐ Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global performance nutrition and ingredients group, announces its results for the six months ended 5 July 2014.
Results highlights
- The Group delivered a good performance for the first half of the year. On a constant currency basis, Total Group revenue grew 10.7%, Total Group EBITA increased by 10.3% and adjusted earnings per share grew 11.5%. On a reported basis, Total Group revenue increased 8.1%, Total Group EBITA increased by 6.0% and adjusted earnings per share grew by 6.8%;
- Global Performance Nutrition was the key growth driver as revenue growth of 21.8% and a 110 basis point margin expansion drove a strong increase in EBITA on a constant currency basis;
- Global Ingredients delivered a satisfactory performance in the context of a difficult operating environment with EBITA largely unchanged versus the prior year on a constant currency basis;
- Dairy Ireland performance was behind the prior year as stabilisation in Consumer Products was more than offset by a lower performance in Agribusiness;
- Joint Ventures & Associates delivered a good performance overall; and
- The Group today announces a €60 million strategic investment programme in Global Ingredients aimed at maximising the value of our whey pool and further strengthening our position as a leader in value‐added dairy ingredients.
| 2014 half year results1 | Reported | Constant currency | ||
|---|---|---|---|---|
| €m | HY 2014 | HY 2013 | Change | Change2 |
| Wholly-owned businesses | ||||
| Revenue | 1,294.2 | 1,236.3 | +4.7% | +7.7% |
| EBITA | 107.3 | 102.3 | +4.9% | +9.7% |
| EBITA margin | 8.3% | 8.3% | +0 bps | +20 bps |
| Joint Ventures and Associates3 | ||||
| Revenue | 503.4 | 426.8 | +17.9% | +19.3% |
| EBITA | 22.2 | 19.9 | +11.6% | +13.3% |
| EBITA margin | 4.4% | 4.7% | -30 bps | -20 bps |
| Total Group3 | ||||
| Revenue | 1,797.6 | 1,663.1 | +8.1% | +10.7% |
| EBITA | 129.5 | 122.2 | +6.0% | +10.3% |
| EBITA margin | 7.2% | 7.3% | -10 bps | +0 bps |
| Adjusted earnings per share | 32.45c | 30.39c | +6.8% | +11.5% |
Commenting today Siobhán Talbot, Group Managing Director, said:
"Glanbia had a good first half in 2014 resulting in a constant currency increase of 11.5% in adjusted earnings per share. Global Performance Nutrition was the key contributor delivering strong branded revenue growth, through effective execution in core channels and continued international growth. Global Ingredients delivered a satisfactory first half in the context of milk procurement issues in Idaho and unfavourable whey pricing dynamics. Dairy Ireland performed in line with expectation, albeit behind the prior year while Joint Ventures & Associates was also in line with expectation. We continue to invest in our strategy of maximising the value of our ingredients. Today we announce a new €60 million programme in Global Ingredients to further our ambition to be a leader in science‐led nutritional solutions and systems. The outlook for the remainder of the year is positive and we expect to achieve our guidance of 8% to 10% growth in adjusted earnings per share on a constant currency basis for 2014."
1All figures shown are pre exceptional items.
2A significant portion of our earnings are denominated in US dollars. Constant currency is based on translating HY 2013 results at the HY 2014 average market exchange rate (€1 = $1.371). The reported average exchange rate for HY 2013 was €1 = $1.313.
3Total Group includes Glanbia's share of Joint Ventures & Associates.