THIRD QUARTER 2023 INTERIM MANAGEMENT STATEMENT

Continued momentum in third quarter with full year earnings guidance upgraded to 17% to 20% growth in adjusted EPS1 

01 November 2023 – Glanbia plc, the better nutrition company (“Glanbia”, the ‘Group’, the ‘Company’ or the ‘plc’), is issuing this Interim Management Statement for the nine month period ended 30 September 2023 (“the period” or “YTD Q3 2023”). 

Highlights 

  • Upgrading full year guidance to 17% to 20% growth in adjusted EPS1, reflecting year-to-date performance and a strong outlook for Q4; 
  • Group revenue for the period declined 9.1% constant currency with growth in Glanbia Performance Nutrition (“GPN”) offset by decline in Glanbia Nutritionals (“GN”); 
  • Glanbia Performance Nutrition:
    • Like-for-like branded revenue increased by 3.0% reflecting a price increase of 8.9% and a volume decline of 5.9%; 
    • Pricing reflects 2022 pricing action across all brands; positive sports nutrition volume was offset by volume decline in weight management; 
    • Strong Optimum Nutrition (“ON”) brand trends continue with good volume growth in the quarter and 12 week US consumption growth of 9.5%2; 
    • FY 2023 EBITA margins expected to be between 14.0% and 14.5%, an increase of 280bps to 330bps on FY 2022; 
  • Glanbia Nutritionals – Nutritional Solutions (“GN NS“):
    • Like-for-like revenue declined 14.0% reflecting a volume decline of 6.4% and a price decline of 7.6%; 
    • Volume decline driven by supply chain rebalancing earlier in the year with volume growth delivered in the third quarter; 
    • Pricing decline driven by dairy market pricing, with positive pricing in the custom premix solutions business; 
    • FY 2023 EBITA margins expected to be between 12.0% and 13.0%, an increase of 60bps to 160bps on FY 2022; 
  • Completed €100 million share buyback programme and the acquisition of the B2B bioactive ingredients business of PanTheryx for $46 million; and 
  • Strong balance sheet with net debt of $334.9 million as at 30 September 2023. 

 

Commenting today, Siobhán Talbot, Group Managing Director said: 

“I am pleased to announce that Glanbia has continued to deliver good momentum during the third quarter which, together with a strong outlook for the remainder of the year, today results in an upgrade in expected growth in full year adjusted earnings per share to between 17% and 20% on a constant currency basis. The Group’s portfolio of better nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein. The Optimum Nutrition brand within GPN, delivered strong revenue growth in the period while in GN Nutritional Solutions, overall volume trends have stabilised with volume growth in the third quarter driven by protein solutions. 

Glanbia continues to generate strong cash flow, which has been allocated in the period to complete the return of €100 million to shareholders via a share buyback programme and build strategic capabilities, with the acquisition of the B2B bioactive ingredients business of PanTheryx, highly complementary to the capabilities in GN Nutritional Solutions.” 

2023 Outlook 

The Group is today upgrading its full year guidance to 17% to 20% growth in adjusted EPS constant currency, based on year-to-date delivery and the continued momentum in GPN. The Group outlines the following guidance for FY 2023: 

  • GPN expects revenue growth of approximately 5.0% on a constant currency basis, as year-to-date revenue growth of 2.7% will be significantly augmented further by strong year-on-year growth in the fourth quarter. GPN EBITA margins are now expected to be between 14.0% and 14.5%. 
  • GN NS expects a low double-digit decline in like-for-like revenue driven by lower dairy market pricing and a mid-single digit volume decline. GN NS EBITA margins are expected to be between 12.0% and 13.0%. 
  • The performance in joint ventures is expected to be marginally reduced due to the sale of the Glanbia Cheese mozzarella joint ventures at the end of last April. 
  • The Group expects to deliver an operating cash flow conversion rate of 80% to 90%. 

Full statement available here 

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