Farm Ireland
Independent.ie

Sunday 28 May 2017

Glanbia reports 7th year of double digit growth

Glanbia group managing director Siobhan Talbot.
Glanbia group managing director Siobhan Talbot.
Margaret Donnelly

Margaret Donnelly

Glanbia has reported its seventh year of double digit growth, with operating profit of nearly €250m, up from €213m in 2015.

Its adjusted earnings per share are 87.66 cent, up 11.2pc on the previous year, while its EBITA is calculated at €305.1m. It operating profit is reported at €247m.

Its star performer, performance nutrition, had an EBITA of €162.6m, a 20pc increase on prior year, while its nutritional business had an EBITA of €111.8m, a 4.5pc increase on the previous year.

Glanbia has recommended a final dividend of 7.94 cent per share, an increase of 10pc on the prior year, which returns almost €40m to shareholders.

According to Group Managing Director Siobhan Talbot, it has been an exciting start to 2017 as Glanbia announced details of a planned strategic joint venture today.

“It has been an exciting start to 2017 with a number of key strategic initiatives progressing which will shape the future direction of the Group.

“Today Glanbia is announcing that it has signed a non-binding memorandum of understanding for the sale of 60pc of the Dairy Ireland segment to Glanbia Co-operative Society Limited.”

Glanbia also announced that its Performance Nutrition business had made two acquisitions to expand its reach.

Stateside, Glanbia is also in advanced discussions to form a new Joint Venture (JV) in the US to build a large-scale cheese and whey facility.

“All of these initiatives demonstrate a desire to play to our strategic strengths and are aligned to our vision to be one of the world's top performing nutrition companies,” she said.

Its results today show that wholly owned revenue was up 2.8pc, to €2,847.9 m, while total Group revenue for the period, including the Group's share of Joint Ventures & Associates, was €3,697.0m, an increase of 1.3pc constant currency (up 0.8pc reported). Total Group EBITA was €349.8 m, up 12.8pc constant currency (up 12.6pc reported).

2017 Outlook

Glanbia also said that it expects the adjusted earnings per share (EPS) of the continuing Group to grow between 7-10pc (constant currency) in 2017 and that the Dairy Ireland transaction is expected to be 5-7pc adjusted EPS dilutive in a full-year.

Growth in 2017 is expected to be more evenly balanced across Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN), with growth from organic brand development and innovation as well as a contribution from recent acquisitions.

Dairy Ireland it said delivered a satisfactory performance in 2016 growing EBITA by 6.6pc on prior year to €30.7m. This was driven by margin expansion of 50 basis points on revenue which declined by 2.7pc year-on-year.

Glanbia Ingredients Ireland (GII)

GII delivered a solid performance in 2016 in a challenging market environment. Milk volume processed grew by 5.4pc.

It says that it continues to invest in higher-value processing technology to serve a range of ingredient customers across the infant nutrition, performance, and clinical nutrition sectors.


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