Glanbia Half Year 2024 results
Strong performance with adjusted EPS1 growth of 12.4%; full year guidance reiterated
14 August 2024 – Glanbia plc (“Glanbia”, the “Group”, the “Company”, the “plc”), the ‘Better Nutrition company’, announces its half year results for the six month period ended 29 June 2024 (“Half Year 2024” or “HY 2024”).
Highlights2:
- Group Financial Performance:
- Adjusted EPS1 of 68.20 $cent (HY 2023: 60.78 $cent) representing growth of 12.4% on a constant currency basis (up 12.2% reported);
- Group revenues2 of $1.82 billion (HY 2023: $1.84 billion) representing a decrease of 1.1% on a constant currency basis with volume +1.8%, pricing -4.0% and +1.1% increase from acquisitions;
- Group EBITDA pre-exceptional of $261.6 million (HY 2023: $232.2 million), an increase of 12.8% constant currency (up 12.7% reported);
- Group EBITDA pre-exceptional margin2 of 14.4% (HY 2023: 12.6%), an increase of 180bps;
- Basic EPS of 54.71 $cent (HY 2023: 71.90 $cent);
- Glanbia Performance Nutrition (“GPN”):
- Volume growth of +3.1% with pricing -3.9% resulting in a 0.8% revenue decrease on a like-for-like (“LFL”) basis;
- Optimum Nutrition delivered LFL revenue growth of +7.7% driven by volume growth of 11.8%;
- EBITDA margin of 17.7% (HY 2023: 13.5%), an increase of 420bps;
- Glanbia Nutritionals - Nutritional Solutions (“GN NS”):
- Volume growth of +3.1%, driven by good volume growth in the premix solutions business, with pricing -3.9% resulting in a 0.8% revenue decrease on a LFL basis;
- EBITDA margin2 of 17.7% (HY 2023: 18.3%), a decrease of 60bps;
- Capital allocation:
- Interim dividend increased by 10% to 15.64 €cent per share;
- Returned €50 million to shareholders in the period as part of a €100 million share buyback authority. Today, the Group is launching a buyback programme for the remaining €50 million under this authority;
- Strong balance sheet with net debt to adjusted EBITDA ratio of 1.22 times (HY 2023: 0.99 times);
- 2024 Outlook:
- Reiterating full year guidance of 5% to 8% growth in adjusted EPS1.
Commenting today Hugh McGuire, Chief Executive Officer, said:
“I am pleased to report that Glanbia delivered a strong performance in the first half of the year with adjusted EPS growth of 12.4%. This was driven by volume growth of 3.1% across both our Better Nutrition growth platforms. Optimum Nutrition, our flagship global brand, continues to strengthen its leadership position and delivered double-digit volume growth in the period, supported by increased marketing investment.
Our earnings growth was driven by a strong performance in GPN, with volume growth, earnings and margin reflecting strong consumer demand. NS’s first half performance was on track, led by good customer demand for premix and protein solutions. Our strong operational and financial performance continues to support our capital allocation framework, with the interim dividend increased by 10% and €50 million returned to shareholders via share buybacks. Today we are launching a further €50 million share buyback programme.
Looking ahead, we continue to focus on driving growth across our portfolio of great brands and ingredients. The category trends remain positive, and with the continued consumer and customer demand for our Better Nutrition brands and ingredients we will see a sequential improvement in volumes across GPN and NS in the second half of the year. Today we are reiterating our full year guidance of 5% to 8% growth in adjusted EPS”.
1 Adjusted Earnings Per Share (“EPS”) on a constant currency basis.
2 Current period reported revenues and EBITDA margin are not comparable with those of the prior period reported numbers as a result of the amendment of commercial arrangements between Glanbia Nutritionals and its US joint venture effective 1 January 2024, hence for the prior period, pro-forma numbers are used for comparative purposes which includes constant currency throughout. Refer to page 7 for details and refer to Appendix 1 for the reconciliation between reported and pro-forma numbers.