Glanbia Full Year 2022 results

Strong performance, with Group revenue up 21.2% and adjusted EPS (1) up 17.6%, ahead of expectations (both constant currency)

1 March 2023 - Glanbia plc (“Glanbia”, the “Group”, the “Company”, the “plc”), the better nutrition company, announces its preliminary results for the 2022 financial year ended 31 December 2022 (“Full Year 2022”, or “2022”).

Key highlights:

  • Group revenues of €5.6 billion (2021: €4.2 billion) representing growth of 21.2% constant currency (up 34.4% reported);
  • Group EBITA pre-exceptional €347.1m (2021: €270.6m), an increase of 13.5% constant currency (up 28.3% reported);
  • Adjusted earnings per share1 (“EPS”) of 104.02 cent (2021: 77.84 cent) representing growth of 17.6% constant currency (up 33.6% reported);
  • Basic EPS of 93.42 cent (2021: 57.57 cent);
  • Operating cash flow conversion of 85.7% and year end net debt to adjusted EBITDA ratio of 1.12 times (2021: 1.71 times);
  • Glanbia Performance Nutrition (“GPN”):
    • Branded like-for-like revenue +14.6% with pricing +16.7% and volume -2.1%;
    • Optimum Nutrition (“ON”) brand delivered US consumption growth2 of 30.8% for the 52 week period;
    • EBITA growth of 10.5%; EBITA margin 11.2% (+10bps versus prior year);
  • Glanbia Nutritionals - Nutritional Solutions (“GN NS”):
    • Like-for-like revenue +12.6% with pricing +16.1% and volume -3.5%;
    • EBITA growth of 13.0%, EBITA margin 11.4% (-10bps versus prior year);
  • Continued progression on ESG agenda with further reductions targeted by 2030 in Scope 1 and 2 carbon emissions;
  • Capital allocation:
    • Returned €173.5 million to shareholders in the year via share buybacks;
    • Further €50 million share buyback programme announced, reflecting the Group’s strong cash flow and financial position;
    • Recommended final dividend per share of 19.28 cent; total 2022 dividend 32.21 cent; a 10% increase on prior year, representing a payout ratio of 31.0%;
  • The Group continues to focus on its better nutrition portfolio and today announces the proposed sale of its interest in the Glanbia Cheese JVs. During 2022, the Group acquired Sterling Technology, which complements the GN NS portfolio, and completed the disposal of its interest in Glanbia Ireland; and
  • Glanbia expects to deliver adjusted EPS growth of 5% to 10% constant currency in FY 2023.

 

Commenting today Siobhán Talbot, Group Managing Director, said:

“On behalf of the Glanbia team, I am pleased to report that Glanbia delivered its highest ever annual earnings performance in 2022 with adjusted EPS1 growing by 17.6% to 104.02c. This was achieved despite unprecedented inflationary headwinds and was led by the strong performance of the Optimum Nutrition brand, growing US consumption (2) by 30.8% in 2022, and continued good delivery by our GN Nutritional Solutions business. This 2022 result underpinned the delivery of the Group targets set out in 2018 for the period 2018 to 2022. Looking forward, our strategic focus on ‘better nutrition’ growth platforms is clear and we are confident that it will drive sustained growth in the coming years, delivering the targets set out at our recent capital markets event.

We are aligning our portfolio to our strategy - completing the sale of the plc’s stake in Glanbia Ireland and adding new capability with the acquisition of Sterling Technology in 2022. In addition, today we are announcing that we have signed a non-binding memorandum of understanding for the sale of the plc’s holding in the Glanbia Cheese joint ventures to our joint venture partner, Leprino Foods. This continued evolution of our portfolio will enable Glanbia to focus on driving growth through our focused market leading positions as a better nutrition company, playing into strong underlying consumer health and wellness trends.

As a purpose led company, we continue to make progress on our ESG agenda, increasing the ambition of our carbon reduction targets and building on the strong inclusive culture of Glanbia through our Diversity, Equity and Inclusion (“DE&I”) strategy.

We reaffirm the financial targets for the period 2023 to 2025 as set out at the recent capital markets event. With a strong balance sheet, our ambition for 2023 and beyond is to focus on our better nutrition strategy, investing and growing our Glanbia Performance Nutrition and GN Nutritional Solutions businesses. In 2023, we expect adjusted EPS growth of 5% to 10% constant currency, which will be driven by a strong operating performance in the better nutrition businesses.”

References

(1) Adjusted earnings per share for continuing operations.

(2) Consumption growth is US measured in channels and includes Online, FDMC (Food, Drug, Mass, Club) and Specialty channels. Data compiled from published external sources and Glanbia estimates for the 52 week period to 1 January 2023.

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