Good performance in first half driven by Global Performance Nutrition
Guidance of 9% to 11% constant currency (c25% reported) adjusted EPS growth in 2015
19 August 2015 - Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global nutrition group, announces its results for the six months ended 4 July 2015.
Results highlights for the half year
- Adjusted earnings per share 40.60 cent, up 4.2% constant currency (up 25.1% reported);
- EBITA from wholly owned business €138.5 million, up 7.5% on prior half year, constant currency (up 29.1% reported);
- EBITA margins from wholly owned business 9.7%, up 110 bps on prior half year, constant currency (up 140 bps reported);
- Strong result from Global Performance Nutrition with EBITA of €60.7 million a 17.4% increase on prior half year, constant currency (up 41.5% reported);
- Satisfactory performance by Global Ingredients in the context of challenging dairy markets with EBITA of €60.3 million a 9.5% decrease on prior half year, constant currency (up 11.9% reported);
- Good result from Dairy Ireland with EBITA of €17.5 million, as margins recovered to 4.7%;
- Joint Ventures & Associates performed in line with expectations in the first half; and
- Recommended interim dividend of 4.88 cent per share, an increase of 10% on prior year.
Note on foreign exchange: Glanbia generates a significant proportion of its earnings in US dollar and reports in Euro. Constant currency reporting is used to eliminate the translational effect of foreign exchange on the Group’s results. The average Euro US dollar exchange rate for the first half of 2015 was $1.115 compared to an average rate of $1.371 for the first half of 2014 leading to an improved reported result when compared to constant currency. Note, constant currency guidance incorporates certain trading headwinds in the period as a result of a strong US dollar.
Commenting today Siobhán Talbot, Group Managing Director, said:
“Glanbia delivered a good performance in the first six months of 2015 driven by a strong result from Global Performance Nutrition. Total Group revenue for the half year was €1.9 billion with adjusted earnings per share of 40.60 cent. Today we are reiterating full year guidance of adjusted earnings per share growth of between 9% and 11%, on a constant currency basis. Given the strength of the US dollar this is likely to translate to reported adjusted earnings per share growth of circa 25% for the full year if foreign exchange rates remain at current levels.
Today’s results demonstrate that our strategy is on track. As a global nutrition company, whose purpose is ‘delivering better nutrition for every step of life's journey’, we are focused on the development of a branded and ingredient product portfolio to serve the growing consumer demand for nutritional products in formats suitable for healthy and active lifestyles. This has provided some insulation from the challenges of volatile global dairy markets.”
| 2015 half year results | Reported | Constant currency | ||
|---|---|---|---|---|
| €m | HY 2015 | HY 2014 | Change | Change1 |
| Wholly-owned businesses | ||||
| Revenue | 1,431.7 | 1,294.2 | +10.6% | -3.9% |
| EBITA2 | 138.5 | 107.3 | +29.1% | +7.5% |
| EBITA margin | 9.7% | 8.3% | +140 bps | +110 bps |
| Joint Ventures and Associates | ||||
| Revenue | 445.3 | 503.4 | -11.5% | +20.4% |
| EBITA | 20.2 | 22.2 | -9.0% | -17.6% |
| EBITA margin | 4.5% | 4.4% | +10bps | +10bps |
| Total Group3 | ||||
| Revenue | 1,877.0 | 1,797.6 | +4.4% | +8.4% |
| EBITA | 158.7 | 129.5 | +22.5% | +3.5% |
| EBITA margin | 8.5% | 7.2% | +130bps | +100bps |
| Adjusted earnings per share | 40.60c | 32.45c | +25.1% | +4.2% |
1To 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 FX rate for the first half of 2015 was €1 = $1.115 (HY 2014: €1 = $1.371).
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.
4Adjusted earnings per share is reconciled in Note 11 of the financial statements.