Glanbia Plc · EURONEXT:GL9
Glanbia — H1 2019 Earnings Presentation
24 slides from Glanbia's earnings presentation, Jul 31, 2019
Slide 1: Glanbia plc 2019 Half Year Results Presentation
Glanbia plc 2019 Half Year Results Presentation 31st July 2019
Slide 2: Forward-looking statements
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 business risk factors
Slide 3: Glanbia 2019 Half Year Results Presentation
glanbia 2019 Half Y Present
Slide 4: HY19 EPS 36.69c, down 10.8% cc versus prior year
HY19 EPS 36.69c, down 10.8% cc versus prior Updated FY19 guidance of year Reported Adj EPS of 88c to 92c Challenging HY for Group driven by GPN Improving momentum in H2 Wholly-owned +12.0% cc Revenue growth driven by GN & acquisitions Total Group +11.1% cc Strong volume progression in NS +12% growth
Slide 5: Operational Review
glanbia Operational Review
Slide 6: Glanbia Performance Nutrition: Summary Growth Performance
Summary Challenging Half Year on organic Growth Performance revenue and EBITA margin SlimFast revenue growth of 21% on a LFL basis Revenue EBITA €620.1m €46.9m Body & Fit platform upgrade +13.4% cc -30.2% cc delivering good growth Innovation ahead of target Volume -8.2% EBITA margin Price -2.7% 7.6%
Slide 7: Full Year NA Branded Revenue expected to be broadly in-line with prior year
Full Year NA Branded Revenue expected to be broadly in-line with prior year H1 2019 Sports Nutrition brands International GPN Revenue 33% - Q1 seasonality rebalancing through the year North - Challenges in Specialty channel, but good America 67% consumption growth in Online & FDMC - Price increases
Slide 8: Full Year International Revenue expected to decline low double digit
Full Year Revenue expected to decline low double digit Geopolitical and global trade disruption - Impacting markets in Middle East, India and LATAM - Loss of revenue in high margin markets - Further margin compression from tariffs and negative operating leverage Important long term growth opportunit
Slide 9: Revenue and Margin Priorities
Revenue Margin Priorities Priorities • Re-establish growth in challenged international • Drive volume growth to enable operating leverage in markets H2 • Align EU omni-channel strategy behind growing • Sustain focus on pricing channels • Optimise global supply chain • Build out D2C capability • Opti
Slide 10: Long-term strategic growth ambitions intact
Revenue Margin GPN branded LFL revenue expected to Full year margin c.400 to 450 bps decline low-to-mid single-digits improvement on HY 2019 GPN revenue growth driven by acquisition Drivers Drivers • Good consumption growth in key North American • Price increases in place channels • Improved operati
Slide 11: Nutritional Solutions and US Cheese
All numbers and prior year comparatives prepared on an IFRS 15 basis Nutritional Solutions (NS) delivered volume Growth Performance growth across its Dairy & Non-dairy platforms Nutritional Revenue Solutions EBITA €369.6m NS margin decline related to product mix and +27.0% cc €50.5m tariff costs -1.
Slide 12: Additional supply chain capacity and added capability
Ready-to-eat snacks Beverages Additional supply chain Ready-to-mix products capacity Capsules & tablets Gummies Added capability With global customers Oral Hygiene Oral hygiene & Film Technology local & regional players Encapsulation 12
Slide 13: Financial Review
© glanbia Financial Reviev
Slide 14: HY 2019 results summary
HY 2019 results summary Pre-exceptional Constant €’m Reported currency currency HY 2019 HY 2018 Change Change Revenue (Wholly-owned) 1,758.4 1,477.8 +19.0% +12.0% EBITA (Wholly-owned) 111.4 123.7 -9.9% -15.3% EBITA margin 6.3% 8.4% -210 bps -210 bps Amortisation (28.9) (21.5) Net Finance Costs (13.3
Slide 15: HY 2019 Wholly Owned Revenue
HY 2019 Wholly Owned Revenue Constant €’m Reported currency currency HY 2019 HY 2018 % Change % Change Glanbia Performance Nutrition 620.1 519.6 +19.3% +13.4% Nutritional Solutions 369.6 274.6 +34.6% +27.0% US Cheese 768.7 683.6 +12.4% +4.9% Glanbia Nutritionals 1,138.3 958.2 +18.8% +11.2% Wholly Ow
Slide 16: Cash flow, capital expenditure and interim dividend
€18.9m €16.1m €37.0m 10.68c Strategic +10% €30.0m Operating Cash Flow Dividends from JVs Capital Expenditure Interim Dividend FY19 OCF on track for >80% conversion of adjusted EBITDA OCF – Operating Cash Flow Definitions and reconciliations of non-IFRS metrics can be found in the Appendix of this pr
Slide 17: Balance Sheet
Balance Sheet HY 2019 HY 2018 FY 2018 Net Debt €778m €402m €577m Net Debt / Adj. EBITDA 2.1x 1.2x 1.5x Adj. EBIT / Net Financing Costs 10.5x 7.3x 14.8x Net debt increased by €376m on prior year, raising the Net Debt to Adjusted EBITDA ratio to 2.1 times, Net pension obligations of €36.8m at HY 2019,
Slide 18: Glanbia
glanbia
Slide 19: 2019 – Full year adjusted EPS expected to be 88c to 92c
2019 – Full year adjusted EPS expected to be 88c to 92c Positive momentum in H2 Clear initiatives in place to address challenges in certain markets in GPN Long term ambitions to 2022 remain in place - Average growth in adjusted EPS of 5% to 10% - Operating cash conversion > 80% of EBITDA - ROCE 10%
Slide 20: Questions
glanbia Questions
Slide 21: Non-IFRS measures definitions
The Group reports certain performance measures that are not defined under IFRS but which represent additional measures used by the Board of Directors and the Glanbia Operating Executive in assessing performance and for reporting both internally and to shareholders and other external users. The Group
Slide 22: Non-IFRS measures definitions (continued)
9. Adjusted EBIT: net finance cost is calculated as pre-exceptional earnings before interest and tax plus dividends received from Equity accounted investees divided by net finance cost. Net finance cost comprises finance costs less finance income per the Group income statement plus capitalised borro
Slide 23: Adjusted Earnings Per Share
Constant €’m Reported Currency Adjusted Earnings Per Share HY 2019 HY 2018 HY 2018 Profit attributable to the equity holders of the Company – pre- 86.8 98.2 104.0 exceptional Amortisation (net of tax)* 21.5 16.4 17.4 Adjusted net income 108.3 114.6 121.4 Weighted average number of ordinary shares in
Slide 24: Reported revenue reconciliation HY 2019
Constant €’m Reported Currency HY 2019 HY 2018 HY 2018 Glanbia Performance Nutrition 620.1 519.6 546.6 Nutritional Solutions 369.6 274.6 291.0 US Cheese 768.7 683.6 732.6 Glanbia Nutritionals 1,138.3 958.2 1,023.6 Wholly-owned Revenue 1,758.4 1,477.8 1,570.2 Constant Currency growth 12.0% Joint Vent