Strong performance in first half driven by Glanbia Performance Nutrition
Guidance reiterated of 8% to 10% constant currency adjusted EPS growth in 2016
17 August 2016 - Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global nutrition group, announces its results for the six months ended 02 July 2016.
Results highlights for the half year 2016
- Adjusted earnings per share 44.87 cent, up 10.8% on prior half year, constant currency (up 10.5% reported);
- EBITA from wholly owned business €157.4 million, up 13.7% on prior half year, constant currency (up 13.6% reported);
- EBITA margins from wholly owned business 11.0%, up 130 bps on prior half year, constant currency and reported;
- Strong result from Glanbia Performance Nutrition with EBITA of €81.7 million, a 35.0% increase on prior half year, constant currency (up 34.6% reported);
- Glanbia Nutritionals1 delivered a satisfactory result with EBITA of €58.0 million, a 4.0% decrease on prior half year, constant currency (down 3.8% reported);
- Dairy Ireland in line with expectations with EBITA of €17.7 million, a 1.1% increase on prior half year;
- Joint Ventures & Associates EBITA declined 4.5%, constant currency, (down 5.4% reported) in the first half ; and
- Recommended interim dividend of 5.37 cent per share, an increase of 10% on prior year.
Commenting today Siobhán Talbot, Group Managing Director, said:
“Glanbia delivered a strong performance in the first six months of 2016 driven by Glanbia Performance Nutrition. Total Group earnings before interest, tax and amortisation for the half year grew by over 11%. Sales of performance nutrition brands and value-added nutritional ingredients showed good growth in the first half of 2016 delivering on our vision to be a leading nutrition business. Global dairy markets remain weak and continue to be a challenge for parts of the business, however the diversity of the Glanbia portfolio has enabled us to navigate this and we reiterate guidance for the full year of adjusted earnings per share growth of 8% to 10% on a constant currency basis.”
| 2016 half year results | Reported | Constant currency | ||
|---|---|---|---|---|
| €m | HY 2016 | HY 2015 | Change | Change2 |
| Wholly-owned businesses | ||||
| Revenue | 1,434.8 | 1,431.7 | +0.2% | +0.4% |
| EBITA3 | 157.4 | 138.5 | +13.6% | +13.7% |
| EBITA margin | 11.0% | 9.7% | +130 bps | +130 bps |
| Joint Ventures and Associates | ||||
| Revenue | 402.3 | 445.3 | -9.7% | -8.8% |
| EBITA | 19.1 | 20.2 | -5.4% | -4.5% |
| EBITA margin | 4.7% | 4.5% | +20bps | +20bps |
| Total Group4 | ||||
| Revenue | 1,837.1 | 1,877.0 | -2.1% | -1.7% |
| EBITA | 176.5 | 158.7 | +11.2% | +11.4% |
| EBITA margin | 9.6% | 8.5% | +110bps | +110bps |
| Adjusted earnings per share5 | 44.87c | 40.60c | +10.5% | +10.8% |
1Global Ingredients has been rebranded Glanbia Nutritionals. The operations of the segment are unchanged.
2To arrive at the Constant Currency Change, the average FX rate for the current period is applied to the relevant reported result from the same period in the prior year. The average Euro US Dollar FX rate for the first half of 2016 was €1 = $1.116 (HY 2015: €1 = $1.115).
3EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items.
4Total Group includes Glanbia’s share of Joint Ventures & Associates.
5Adjusted earnings per share is reconciled in Note 10 of the financial statements.