FIRST QUARTER 2023 INTERIM MANAGEMENT STATEMENT
Full year guidance upgraded to 7% - 11% growth in adjusted EPS (1).
4 May 2023 – Glanbia plc (“Glanbia”, the ‘Group’, the ‘Company’ or the ‘plc’), the better nutrition company, is issuing this Interim Management Statement for the three month period ended 1 April 2023 (“first quarter” or “Q1 2023”). This statement is issued in conjunction with the plc’s Annual General Meeting (“AGM”) which is being held today.
Highlights
- Upgrading full year guidance to 7% to 11% growth in adjusted EPS1 reflecting improved outlook for GPN margins in the second half of the year;
- Q1 2023 Group performance was broadly in line with expectations;
- Group revenue for the first quarter declined 2.4% constant currency with pricing up 3.5%, a volume decline of 6.2% and the net impact of acquisitions and disposals delivering 0.3% growth;
- Glanbia Performance Nutrition (“GPN”):
- Like-for-like branded revenue +5.0% with pricing +14.2% and volume -9.2%;
- Strong Optimum Nutrition (“ON”) brand trends continue with strong revenue growth in the quarter and 12 week US consumption growth +36.1% (2);
- Pricing reflecting strong 2022 pricing action on all brands; positive sports nutrition volume offset by volume decline in weight management;
- GPN full year margins expected to grow to between 12.5% and 13.5%;
- Glanbia Nutritionals Nutritional Solutions (“GN NS”):
- Like-for-like revenue -16.4% with pricing +1.0% and volume -17.4%;
- Volume decline driven by customer supply chain rebalancing which is expected to normalise during the second half of the year;
- GN NS full year EBITA margins expected to grow to between 12% and 13%;
- Continued to progress strategic agenda, completing the sale of the Group’s interest in the Glanbia Cheese joint ventures on 28 April 2023. On completion, Glanbia received €178.9 million, which included the repayment of shareholder loans; and
- Share buyback programme announced on 1 March 2023 increased from €50 million to €100 million.
Commenting today, Siobhán Talbot, Group Managing Director said:
“Overall, the first quarter has progressed largely as expected for the Group and we are pleased to be upgrading our full year guidance for growth in Group adjusted EPS to 7% to 11%, constant currency.
We continued the portfolio evolution and recently completed the sale of the plc’s holding in the Glanbia Cheese joint ventures to our joint venture partner, Leprino Foods. As a result, we have increased and extended the share buyback programme announced on 1 March, from €50 million to €100 million.
While elements of the global environment remain challenging, the strength of our platforms in better nutrition, supported by the combination of pricing actions taken, operational efficiencies, and reduced input costs in the second half of the year gives us continued confidence that we will deliver strong full year Group EBITA growth, which will be largely driven by GPN.”
The full statement is available here.
References
(1) Adjusted Earnings Per Share (“EPS”) on a constant currency basis.
(2) Consumption growth is US measured channels and includes Online, FDMC (Food, Drug, Mass, Club) and Specialty channels. Data compiled from published external sources and Glanbia estimates to 26 February 2023.