Glanbia PLC · EURONEXT:GL9
Glanbia — H1 2011 Earnings Presentation
22 slides from Glanbia's earnings presentation, Oct 11, 2011
Slide 1: 2011 half year results presentation
2011 half year results presentation
Slide 2: Cautionary statement
Cautionary statement This presentation contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. Due to the inherent uncertainties, including both economic and
Slide 3: Results highlights
Results highlights • Excellent results; adjusted EPS up 55%* • Strong organic growth in Global Nutritionals • First time contribution by BSN (Performance Nutrition), acquired in January • Positive global dairy market environment; up further on 2010 • Good performance by Dairy Ingredients Ireland • S
Slide 4: Results
Results Half year results summary pre exceptional Constant Currency(1) Reported HY 2011 HY 2010 Change HY 2011 Change Revenue €1,380.5m €1,036.4m Up 33.2% €1,342.9m Up 29.6% Earnings before interest, tax and amortisation (EBITA) €105.0m €73.6m Up 42.7% €100.7m Up 36.8% EBITA margin 7.6% 7.1% Up 50 b
Slide 5: Divisional results: Total Group revenue analysis
Divisional results: Total Group revenue analysis 2,000 • Including Joint Ventures & Associates €m 1,800 * 5% 1,636 HY 2011 revenue ↑ 33.4% 17% 1,600 Dairy Ireland 11% 1,400 €706m ↑ 30% 1,227 1,200 41% 43% €1.6 1,000 billion 800 600 16% 400 US Cheese & Global JVs & Associates Nutritionals €256m ↑ 34.
Slide 6: Divisional results: Total Group EBITA analysis
Divisional results: Total Group EBITA analysis • Including Joint Ventures & Associates * HY 2011 EBITA ↑ 43.6% 140 €m 121.6 Dairy Ireland 120 €35.0m ↑ 63.6% EBITA margin 5.0% 100 84.7 29% 80 €121.6 58% million 60 13% 40 JVs & Associates €16.6m ↑ 49.5% 20 EBITA margin 6.5% 0 US Cheese & Global Nutrit
Slide 7: Financing KPIs
Financing KPIs HY 2011 HY 2010 Change FY 2010 12 month rolling adjusted EBITDA1 €226.4m €180.3m Up €46.1m €194.0m Net debt €569.1m €539.3m Up €29.8m €408.1m Net debt/Adjusted EBITDA1 2.5 times 3.0 times Down 0.5 times 2.1 times 1 Adjusted EBITDA for the purpose of financing ratios reflects Group rol
Slide 8: Strategy
Strategy 2011 half year results Slide 8
Slide 9: Leveraging key longer-term macro trends
Leveraging key longer-term macro trends • Macro trends support growth opportunities across sports, fitness and healthy ageing • Product innovation targeting health and wellness, convenience and healthy snacking Integrated • Strong emotional bond by users (“Lifestyle Global products”) underpins deman
Slide 10: Clear vision and growth strategy
Clear vision and growth strategy TO BE THE LEADING GLOBAL NUTRITIONAL SOLUTIONS and CHEESE GROUP Drive Global Nutritionals forward • Align to key growth customers and STRATEGIC PRIORITIES Focus on both organic and markets acquisition growth • Science-based innovation • Risk and capital Two business
Slide 11: Strategic priorities; Key developments in first half
Strategic priorities; Key developments in first half US Cheese & Global Nutritionals Align to key Science-based innovation Risk and capital management Operational excellence customers/markets Performance Volume growth across all New product launches; pre-training Investment in QA systems Bar manufac
Slide 12: Strategic priorities; Key developments in first half
Strategic priorities; Key developments in first half Dairy Ireland Align to key Science-based innovation Risk and capital management Operational excellence customers/markets Dairy Ingredients Accelerated business Application development for New 3-year index linked milk price Implementation of LEAN I
Slide 13: Market commentary and outlook
Market commentary and outlook 2011 half year results Slide 13
Slide 14: Summary
Summary • Clear and consistent strategy in execution mode • Global footprint and leading market positions • Strong sectors with good demand characteristics • Set-up for growth with well invested business and financial strength 2011 Outlook • Positive trading environment in second half but weaker tha
Slide 15: Supplementary information
Supplementary information 2011 half year results Slide 15
Slide 16: Segmental analysis
Segmental analysis HY 2011(1) HY 2010 Revenue Operating Operating EBITA(2) EBITA Revenue Operating Operating EBITA EBITA (€m) profit (€m) Margin (€m) Margin (€m) profit (€m) Margin (€m) Margin US Cheese & Global 674.0 63.1 9.4% 70.4 10.4% 490.6 47.5 9.7% 52.5 10.7% Nutritionals Dairy Ireland 705.6 3
Slide 17: Summary cash flow
Summary cash flow HY 2011 HY 2010 Change €m €m €m EBITDA pre exceptional 117.0 89.2 27.8 Working capital movement (134.3) (113.0) (21.3) Net interest and tax paid (13.0) (12.8) (0.2) Business sustaining capital investment (10.0) (12.2) 2.2 Other (including additional pension contributions) (7.8) 6.9
Slide 18: Summary balance sheet
Summary balance sheet HY 2011 HY 2010 Change €m €m €m Property, plant and equipment 363.1 383.8 (20.7) Investments 83.5 95.8 (12.3) Intangible assets 423.5 380.1 43.4 Non-current receivables 16.9 54.5 (37.6) Deferred tax/capital grants (88.6) (81.0) (7.6) Working capital 302.6 211.8 90.8 Retirement
Slide 19: US Cheese & Global Nutritionals business model
US Cheese & Global Nutritionals business model • 2010 revenue > €1 billion • 2010 EBITA margin pre exceptional 10.8% in constant currency Stronger market growth rates Performance Nutrition Sustainable higher margins Increasing innovation rate Global Customised Premix Solutions Nutritionals Ingredien
Slide 20: Dairy Ireland business model
Dairy Ireland business model • 2010 revenue >€1.1 billion • 2010 EBITA margin pre exceptional 4.2% Dairy Europe Ingredients Americas 1.5 billion litres of milk Asia processed; 214,000 tonnes of dairy-based ingredients Africa Agribusiness Exports to more than 50 countries 83% Production and sale of 1
Slide 21: International joint ventures
International joint ventures • 2010 revenue >€400 million in constant currency (Glanbia share) • EBITA margin 5.1% in constant currency (Glanbia share) Glanbia Cheese 51% interest with Leprino Foods Company USA • Producing mozzarella cheese for European pizza UK market New Mexico Nutricima Southwest
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