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Glanbia Half Year Results 2018

GII All Co-op Dairy

Reiterating FY 2018 guidance of 5% to 8% growth in pro-forma Adjusted EPS, Constant currency

Results summary for the financial half year 2018

  • Wholly owned revenues from continuing operations of €1,112.0 million (2017: €1,185.7 million), up 3.6% constant currency on prior half year (down 6.2% reported);
  • Wholly owned volume growth of 5.7% versus prior half year;
  • Wholly owned EBITA from continuing operations of €123.7 million (2017: €148.3 million), down 7.3% constant currency on prior half year (down 16.6% reported);
  • On a pro-forma basis adjusted earnings per share1 of 38.83 cent, a decline of 7.1% constant currency (down 15.8% reported);
  • Glanbia Performance Nutrition, revenue growth of 4.9% constant currency (down 4.4% reported) and EBITA decline of 16.4% constant currency (down 24.6% reported);
  • Glanbia Nutritionals, revenue growth of 2.4% constant currency (down 7.8% reported) and EBITA growth of 4.5% constant currency (down 6.2% reported);
  • Joint Ventures pro-forma share of pre-exceptional profit after tax from continuing operations was €17.8 million, down €8.2 million on prior half year;
  • Operating cash flow from continuing operations of €59.8 million, up €93.1 million on prior half year on a pro-forma basis primarily due to working capital improvements;
  • Interim dividend of 9.71 cent per share up 64.3% on prior half year reflecting revised dividend policy; and
  • Full year 2018 guidance reiterated of 5% to 8% growth in pro-forma adjusted earnings per share1, constant currency.

Commenting today Siobhán Talbot, Group Managing Director, said:

"Glanbia delivered in line with expectations in the first half of 2018 and reiterates guidance for 2018 full year earnings growth. We continue to drive volume momentum with 5.7% growth in the first half and reiterate guidance for full year volume growth in the key portfolios of Glanbia Performance Nutrition and Glanbia Nutritional Solutions in the mid-to-high single digit range. We expect margins for the full year to be similar to 2017; we prioritised investment in our brands and operational infrastructure in the first half in advance of input cost reductions which are materialising as expected in the second half of the year."

2018 financial half year results highlights

Pro-forma adjusted earnings per share calculation excludes the impact of discontinued operations from the 2017 financial year. A reconciliation is set out on page 35 of the glossary to the financial statements.

1. To arrive at the constant currency change, the average exchange rate for the current period is applied to the relevant reported result from the same period in the prior year. The average Euro US Dollar exchange rate for the first half of 2018 was €1 = $1.211 (HY 2017: €1 = $1.083).

2. EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items.

3. Prior year number are presented on a pro-forma basis to include the share of results of Dairy Ireland, consistent with current year reported numbers.

4. Total Group profit number for HY 2017 includes the impact of discontinued operations which were sold on 2 July 2017. This release contains certain alternative performance measures. A detailed glossary of the key performance indicators and non-IFRS performance measures can be found on pages 32 to 39.

Foreign exchange

Glanbia generates a significant amount of its revenues in US Dollars and reports in Euro. To eliminate the impact of exchange rates on translation of results the Group uses constant currency reporting. To arrive at the constant currency change, the average exchange rate for the current period is applied to the relevant reported result from the same period in the prior year. The average Euro US Dollar exchange rate for the first half of 2018 was €1 = $1.211 (HY 2017: €1 = $1.083). Therefore this leads to a difference between the constant currency change and the reported result.

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First Published 9 August 2018

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