Glanbia Plc · EURONEXT:GL9
Glanbia — Glanbia Plc Ord — H1 2021 Earnings Presentation
32 slides from Glanbia's earnings presentation, Aug 13, 2021
Slide 1: Glanbia plc Half Year 2021 Results presentation
Glanbia plc Half Year 2021 Results presentation 12 August 2021 Group Managing Director Group Finance Director
Slide 2: Important notice
2 Glanbia plc | Half Year 2021 Results presentation Important notice 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 inhe
Slide 3: HY 2021 Results summary
3 Glanbia plc | Half Year 2021 Results presentation HY 2021 Results summary GPN Branded LFL GPN EBITA Adjusted EPS Interim Dividend NS volume LFL GN EBITA OCF conversion New Share Buyback *cc – Constant Currency **Rolling 12 months
Slide 4: HY 2021 Strategic update
4 Glanbia plc | Half Year 2021 Results presentation HY 2021 Strategic update GPN transformation programme on track GPN acquisition of 60% stake in LevlUp, e-sports / gaming nutrition brand Completed commissioning of $470m JV plant in Michigan Continued Balance Sheet improvement Progressed ESG agenda
Slide 5: 2021 Outlook
5 Glanbia plc | Half Year 2021 Results presentation 2021 Outlook Strong top line LFL growth in Strong margin progression Focused approach on driving GPN & NS in HY sustainable growth and returns Consumer trends positive Some margin headwinds GPN transformation across our markets in H2 on track 2021
Slide 6: Glanbia Performance Nutrition HY 2021 review
Glanbia Performance Nutrition HY 2021 review
Slide 7: GPN HY 2021 update
7 Glanbia plc | Half Year 2021 Results presentation GPN HY 2021 update Revenue progression Branded revenue trends accelerated €700m during Q2 2021 • Strong consumption trends 5.6% 0.3% • Increased brand investment +30.5%cc • Active pricing management 22.2% €600m • LevlUp acquisition EBITA improvemen
Slide 8: Market update
8 Glanbia plc | Half Year 2021 Results presentation Market update Americas International • +23.8% growth in like-for-like revenue • +37.2% growth in like-for-like revenue • Markets reopening and consumers • Volume growth broad based across all focused on health & wellness markets • ON very strong pe
Slide 9: Revenue by channel
9 Glanbia plc | Half Year 2021 Results presentation Revenue by channel Revenue by channel Specialty 14% Specialty 14% Channel HY21 Growth* FDMC FDMC FDMC +7% 40% 33% Online +21% Distributors Rev Rev Distributors +123% 12% €532m €638m Specialty +38% Distributors 22% Online 34% Online 31% *Based on re
Slide 10: Leading brands update
10 Glanbia plc | Half Year 2021 Results presentation Leading brands update Brand Health Category Update Brand Health Category Update • +30.5% 12 week • Strong start in Americas as Covid- • +6.6% 12 week • Headwinds persisted during H1 consumption to 13 19 restrictions eased consumption to 13 June 20
Slide 11: Key milestones
11 Glanbia plc | Half Year 2021 Results presentation GPN transformation Increased brand Margin investment management Supply chain consolidation Route-to- Reorganisation market and SKU portfolio GPN optimised transformation Outlook commenced • The strong delivery of margin in H1 provides In H1 2021 r
Slide 12: GPN acquisition
12 Glanbia plc | Half Year 2021 Results presentation GPN acquisition • European gaming nutrition market estimated c.€2bn – new growing category • Acquisition of 60% of German DTC e-sports / gaming nutrition brand expanding in EU for initial consideration of €31m • Complementary to GPN’s DTC business
Slide 13: Glanbia Nutritionals HY 2021 review
Glanbia Nutritionals HY 2021 review
Slide 14: Glanbia Nutritionals HY 2021 update
14 Glanbia plc | Half Year 2021 Results presentation Glanbia Nutritionals HY 2021 update Revenue progression Revenue • Volume growth across Dairy, Non-dairy 17.0% 1.2% and US Cheese €1,400m +15.9%cc • Pricing related to lower year-on-year (1.1%) cheese markets €1,300m EBITA improvement driven by • S
Slide 15: Nutritional Solutions HY 2021 update
15 Glanbia plc | Half Year 2021 Results presentation Nutritional Solutions HY 2021 update Revenue progression Revenue €500m • Continued strong demand for vitamin and mineral premixes • Dairy ingredient demand accelerated in +16.7%cc Q2 • Positive pass-through pricing 4.0% 1.8% 14.9% EBITA improvemen
Slide 16: Key milestones
16 Glanbia plc | Half Year 2021 Results presentation NS Strategy evolution Integrate Multi-technology and roll out and service acquired and platform Expand developed technology technologies Expand offerings capability Nutritional Solutions Specialty ingredients Foodarom acquired in 2020 to expand fl
Slide 17: US Cheese HY 2021 update
17 Glanbia plc | Half Year 2021 Results presentation US Cheese HY 2021 update Revenue progression €1,000m Revenue 18.0% • Volume growth was related to the new joint venture plant in (2.4%) +15.6%cc Michigan which completed commissioning in the period • Pricing decreased due to lower year-on-year che
Slide 18: Finance HY 2021 review
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Slide 19: Half Year Group Income Statement
19 Glanbia plc | Half Year 2021 Results presentation Half Year Group Income Statement HY 2021 results summary Constant Reported currency pre-exceptional €m currency HY 2021 HY 2020 Change Change • Revenue growth driven by both GPN & GN Revenue (wholly-owned) 2,042.2 1,836.7 +11.2% +20.3% EBITA (whol
Slide 20: Exceptional Items
20 Glanbia plc | Half Year 2021 Results presentation Exceptional Items Exceptional Items HY 2021 €m Organisation redesign costs 14.8 • Organisation design costs relate to the GPN transformation project Pension related costs 38.9 • Pension costs relate to the restructure Exceptional charge before tax
Slide 21: Strong Cash Flow enabling investment and returns
21 Glanbia plc | Half Year 2021 Results presentation Strong Cash Flow enabling investment and returns Total capex Shareholder M&A €161m OCF €31m €40m returns Interim Dividend Share buyback Operating Cash Flow Completed LevlUp Capital expenditure Dividend Buyback acquisition in H1 FY21 capex OCF conv
Slide 22: Strong Balance Sheet
22 Glanbia plc | Half Year 2021 Results presentation Strong Balance Sheet Cash Net debt reduced Strong Balance At HY 2021 - Total generative by €101m due to Sheet facilitates committed facilities strong cash flow investment and of €1.1 billion with returns to weighted average shareholders maturity o
Slide 23: Conclusion
Conclusion glanbia
Slide 24: Conclusion
24 Glanbia plc | Half Year 2021 Results presentation Conclusion Guidance for Full Year 2021 adjusted EPS of 17% to 22% growth on a constant currency basis* Strong performance in H1 2021 and top line momentum to continue in H2 Cost inflation will be a margin headwind in H2 but price increases mitigat
Slide 25: Questions
Questions
Slide 26: Appendix
Appendix
Slide 27: Non-IFRS performance measure definitions
27 Glanbia plc | Half Year 2021 Results presentation Non-IFRS performance measure definitions The Group reports certain performance measures that are not defined under IFRS 7. Adjusted EPS is defined as the net profit attributable to the equity holders of Glanbia but which represent additional measu
Slide 28: Non-IFRS performance measure definitions
28 Glanbia plc | Half Year 2021 Results presentation Non-IFRS performance measure definitions 11. GPN like-for-like total revenue represents the sales increase/(decrease) period-on- 18. The Group defines strategic capital expenditure as the expenditure required to period, excluding acquisitions, on
Slide 29: Adjusted EPS
29 Glanbia plc | Half Year 2021 Results presentation Adjusted EPS Constant €m Reported currency currency Adjusted Earnings Per Share HY 2021 HY 2020 HY 2020 Profit attributable to the equity holders of the Company 133.5 69.9 64.3 Amortisation and impairment of intangible assets (excluding software a
Slide 30: Wholly-owned Summary
30 Glanbia plc | Half Year 2021 Results presentation Wholly-owned Summary €m By Business Revenue EBITA Margin (%) Glanbia Performance Nutrition 638.4 90.2 14.1% Nutritional Solutions 434.8 56.6 13.0% US Cheese 969.0 13.1 1.4% Glanbia Nutritionals 1,403.8 69.7 5.0% Wholly-owned 2,042.2 159.9 7.8%
Slide 31: Segmental Analysis
31 Glanbia plc | Half Year 2021 Results presentation Segmental Analysis €m Reported currency Constant currency Glanbia Performance Nutrition HY 2021 HY 2020 HY 2020 % Change Revenue 638.4 532.4 498.5 +28.1% EBITA 90.2 19.6 17.4 +418.4% EBITA margin (%) 14.1% 3.7% 3.5% +1,060bps €m Reported currency
Slide 32: Segmental Analysis
32 Glanbia plc | Half Year 2021 Results presentation Segmental Analysis €m Reported currency Constant currency Nutritional Solutions HY 2021 HY 2020 HY 2020 % Change Revenue 434.8 387.9 360.3 +20.7% EBITA 56.6 48.1 43.8 +29.2% EBITA margin (%) 13.0% 12.4% 12.2% +80bps €m Reported currency Constant c