Glanbia Plc · EURONEXT:GL9
Glanbia — FY2014 Earnings Presentation
25 slides from Glanbia's earnings presentation, Feb 25, 2015
Slide 1: 2014 Full Year Results
2014 FULL YEAR RESULTS 25 FEBRUARY 2015 ir@glanbia.com www.glanbia.com
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: Full Year 2014 Performance Summary
FULL YEAR 2014 PERFORMANCE SUMMARY Total Group Total Group Total Group Adjusted Dividend Revenue EBITA EBITA margin EPS €3.5bn €245m 7.0% 61.16c 11.00c +6.9% +7.9% +10bps +10.1% +10.0% • 10.1% growth in adjusted EPS; fifth consecutive year of double digit growth • Global Performance Nutrition strong
Slide 4: Segmental Summary
SEGMENTAL SUMMARY TOTAL GROUP REVENUE EBITA €89.2m Global Growth Platform Leader in Consumer EBITA €19.0m Sports Nutrition Leading Consumer & €3.5bn Agri business in Ireland +6.9% 55%* TOTAL GROUP EBITA EBITA €36.4m Glanbia Share of EBITA Strategic Joint Ventures €100.4m €245m Global Growth Platform
Slide 5: Operational Review
OPERATIONAL REVIEW 2014 FULL YEAR RESULTS
Slide 6: Global Performance Nutrition Operational Overview
GLOBAL PERFORMANCE NUTRITION OPERATIONAL OVERVIEW REVENUE • Strong performance in 2014 €746.2m • Double digit branded revenue growth • Margin expansion of 120bps +13.5% EBITA • International development on track €89.2m +26.0% EBITA margin 12.0% +120bps Results include actual impact of acquisitions c
Slide 7: Global Performance Nutrition Execution of Strategy
GLOBAL PERFORMANCE NUTRITION EXECUTION OF STRATEGY ACQUISITIONS • €149 million in acquisitions executed in 2014 • Isopure is a provider of premium sports nutrition products • Nutramino is the market leader in Scandinavia • Integration on track • 23 countries with direct market presence EXPANSION • P
Slide 8: Global Ingredients Operational Review
GLOBAL INGREDIENTS OPERATIONAL REVIEW REVENUE • Satisfactory performance overall €1,175.4 • Strong operational performance across all plants • Improved milk volume performance in H2 vs H1 +9.3% EBITA • Challenging whey market dynamics impacted performance in Ingredient Technologies €100.4m • Customi
Slide 9: Global Ingredients Execution of Strategy
GLOBAL INGREDIENTS EXECUTION OF STRATEGY • $85m investment underway increasing our value added whey and EXPANSION lactoferrin processing capacity • Fully commissioned by the end of 2015 • Maximising the value derived from our whey pool INNOVATION • Strong pipeline of functional systems and blends in
Slide 10: Operational Review: Dairy Ireland and Joint Ventures & Associates
OPERATIONAL REVIEW DAIRY IRELAND JOINT VENTURES & ASSOCIATES REVENUE EBITA EBITA margin REVENUE EBITA EBITA margin €616.7m €19.0m 3.1% €984.0m €36.4m 3.7% -5.4% +25.8% +80bps +8.3% -7.6% -60bps • Improved performance in 2014 • Decline in dairy markets in second driven by operational efficiency half
Slide 11: Finance Review
FINANCE REVIEW 2014 FULL YEAR RESULTS
Slide 12: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS STRONG FINANCIAL METRICS FOR 2014 REPORTED CONSTANT CURRENCY CHANGE CHANGE TOTAL GROUP REVENUE €3.5bn +7.3% +6.9% TOTAL GROUP EBITA €245.0m +8.1% +7.9% TOTAL GROUP EBITA % 7.0% +10bps +10bps ADJUSTED EPS 61.16c +10.3% +10.1% FREE CASH FLOW €153m +74% ROCE 13.4% -80bps 2014 F
Slide 13: Segmental Overview
SEGMENTAL OVERVIEW STRONG PERFORMANCE LED BY GLOBAL PERFORMANCE NUTRITION 2014 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 746.2 89.2 12.0% +13.5% +26.0% +120 bps Global Ingredients 1,175.4 100.4 8.5% +9.3% -1.4% -100 bps Dairy Ireland 616.7 19.
Slide 14: Revenue Growth by Segment
REVENUE GROWTH BY SEGMENT TOTAL GROUP REVENUE GROWTH 7.3% (+6.9% CC*) €m 3,550 0.4% 3,522 2.3% 3,500 3.0% (1.1)% 3,450 3,400 2.7% 3,350 3,300 3,283 3,250 3,200 FY13 Global Global Ingredients Dairy Ireland Joint Ventures & FX FY14 Performance Associates Nutrition * Constant Currency (CC) excluding th
Slide 15: Global Growth Platforms Revenue Drivers
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS Global Performance Nutrition +13.9% (+13.5 cc*) Global Ingredients +9.4% (+9.3% cc*) 0.4% €746m 5.0% 10.9% (1.6)% 0.0% 0.1% €1,175m 7.4% 1.1% €655m €1,075m FY13 Price Volume M&A FX FY14 FY13 Price Volume M&A FX FY14 * Constant Currency (CC) excluding the impac
Slide 16: EBITA Progression
EBITA PROGRESSION TOTAL GROUP EBITA GROWTH +8.1% (7.9% CC*) €m 250 1.7% (1.3)% 8.1% (0.6)% 0.2% 245 245 240 235 230 227 225 220 215 210 FY13 Global Global Ingredients Dairy Ireland Joint Ventures & FX FY14 Performance Associates Nutrition * Constant Currency (CC) excluding the impact of FX 2014 FULL
Slide 17: Summary Income Statement
SUMMARY INCOME STATEMENT 2014 results summary pre exceptional Reported currency Constant currency €m 2014 2013 Change Change Revenue (Wholly owned) 2,538.3 2,382.1 +6.6% +6.4% EBITA (Wholly owned) 208.6 187.7 +11.1% +11.1% EBITA margin 8.2% 7.9% +30 bps +30 bps - Amortisation of intangibles (22.5) (
Slide 18: Exceptional Items Summary
EXCEPTIONAL ITEMS SUMMARY €m 2014 2013 Rationalisation costs (6.4) (8.0) Transaction related costs (9.6) - Revision to Group pension schemes - 13.8 Pre-tax exceptional (charge) / credit (16.0) 5.8 Taxation credit / (charge) 1.9 (0.3) Total exceptional (charge) / credit (14.1) 5.5 • Anticipated ratio
Slide 19: Cash Flow Progression
CASH FLOW PROGRESSION €m IMPROVED FREE CASH FLOW +74% 300 8 (57) 13 250 32 209 (43) 200 (9) 153 150 100 88 65 50 0 2014 EBITA Depreciation Dividends Working Net Interest Business Other 2014 FCF 2013 FCF 2012 FCF from JV&As Capital & Tax Sustaining CapEx Note: (i) 2014 EBITA reflects the wholly owned
Slide 20: Investment and Returns
INVESTMENT AND RETURNS • Total CapEx and acquisitions €m Significant strategic investment programme... 300 investment €265m in 2014; Bus. Sustaining 250 strengthening our global growth Strategic Acquisitions 200 platforms 150 • €149m in acquisitions; €73m 100 50 strategic CapEx in 2014 - 2011 2012 2
Slide 21: Financing at Year End
FINANCING AT YEAR END • €510 million net debt position at 3 January 2015 (4 January 2014: €374 million) Financing KPIs 2014 2013 Net debt / Adjusted EBITDA1 1.97 times 1.66 times Adjusted EBIT1 / Net Finance Cost 8.9 times 7.8 times 1. The definition of adjusted EBITDA and adjusted EBIT are as per o
Slide 22: Outlook
OUTLOOK 2014 FULL YEAR RESULTS
Slide 23: Our Strategy
OUR STRATEGY OUR GROWTH PLATFORMS OVERALL GROUP 1. Drive further market B2C GLOBAL PERFORMANCE NUTRITION leadership positions within both global growth • Grow branded revenue globally ahead of market growth rates platforms • Drive growth in existing markets across current and new channels and consum
Slide 24: Outlook
OUTLOOK 2015 OUTLOOK STRATEGIC FINANCIAL TARGETS TO 2018 • Positive Group outlook for 2015 ORGANIC EARNINGS1 • Targeting branded revenue growth ahead of the market for Global Performance Nutrition 8% TO 10% • Global Ingredients to benefit from RETURN ON CAPITAL EMPLOYED continued development of valu
Slide 25: Investor Relations Contact
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2308