FNB News – Glanbia half year 2024 results: Strong performance with adjusted EPS growth of 12.4%

Highlights
• Group Financial Performance:

• Adjusted EPS of 68.20 $cent (HY 2023: 60.78 $cent) representing growth of 12.4% on a constant currency basis (up 12.2% reported);
• Group revenues 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 margin 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 EPS.

 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,” concluded McGuire.