Glanbia Plc · EURONEXT:GL9
Glanbia — Q3 2020 Earnings Presentation
20 slides from Glanbia's earnings presentation, Oct 29, 2020
Slide 1: Glanbia plc Q3 2020
Glanbia plc Q3 2020 29 October 2020 Group Managing Director Group Finance Director
Slide 2: Important notice
2 Glanbia plc | Quarter 3 2020 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 inherent unc
Slide 3: Q3 2020 Results summary
3 Glanbia plc | Quarter 3 2020 presentation Q3 2020 Results summary Solid performance in GN Improving trends in GPN Strong performance from JVs Strong cash performance and balance sheet
Slide 4: Going forward
4 Glanbia plc | Quarter 3 2020 presentation Going forward Q4 Outlook Group earnings and margin momentum to continue into Q4 Key focus areas in Q4 to deliver outlook Continue to GPN Maintain delivery manage through Transformation in GN and JVs Covid-19
Slide 5: Glanbia Performance Nutrition Q3 2020 review
Glanbia Performance Nutrition Q3 2020 review
Slide 6: Glanbia Performance Nutrition Q3 2020 update
6 Glanbia plc | Quarter 3 2020 presentation Glanbia Performance Nutrition Q3 2020 update -2.3% Quarterly LFL Branded revenue progression 10.0% 0.0% North America Performance Nutrition -10.0% (37% revenue) -20.0% • Good performance driven by online and FDMC channels with headwinds in specialty and di
Slide 7: Leading brands delivering results
7 Glanbia plc | Quarter 3 2020 presentation Leading brands delivering results Performance brand Lifestyle brand Brand health Brand health • Brand awareness 31% (US) • Brand awareness 95% (US) • Net promoter score +54 (US) • Household penetration 5% (US) • Consumption trends have been improving – Q3
Slide 8: GPN transformation delivering benefits
8 Glanbia plc | Quarter 3 2020 presentation GPN transformation delivering benefits Transformation Project Demand Efficiency Growth Margin improvement Q3 2020 Both price and volume growth momentum delivered in Q3 update Efficiency benefits contributing to GPN margin Overall Targeting EBITA margins of
Slide 9: Glanbia Nutritionals Q3 2020 review
Glanbia Nutritionals Q3 2020 review
Slide 10: Glanbia Nutritionals Q3 2020 update
10 Glanbia plc | Quarter 3 2020 presentation Glanbia Nutritionals Q3 2020 update +11.0% YTD Revenue progression 12.0% Robust 0.9% • Solid GN performance despite Covid-19 (2.6%) challenges Volume 8.0% • Q3 LFL volume increased by 1.6% 7.5% Price • Q3 LFL price increased by 9.4% driven by cheese prici
Slide 11: Nutritional Solutions Q3 2020 update
11 Glanbia plc | Quarter 3 2020 presentation Nutritional Solutions Q3 2020 update +4.5% YTD Revenue progression Strong portfolio and customer relationships 5.0% Non-dairy Ingredients • Strong volume performance in vitamin & mineral premix 4.0% • Some volume headwinds from customers with ‘food-to-go’
Slide 12: US Cheese Q3 2020 update
12 Glanbia plc | Quarter 3 2020 presentation US Cheese Q3 2020 update +13.5% YTD Revenue progression 16.0% Volumes (2.6%) • Q3 volume growth of 0.5% driven by retail demand 12.0% Price 11.3% 8.0% • Q3 price increased 13.0% as a result of higher cheese pricing versus prior year 4.0% • Pricing continu
Slide 13: Joint Ventures
Joint Ventures
Slide 14: Joint Ventures Q3 2020 update
14 Glanbia plc | Quarter 3 2020 presentation Joint Ventures Q3 2020 update Revenue Michigan • Revenue decline of 1.9%* YTD driven by negative pricing • New cheese and whey plant in Michigan, USA, partnered with with volume broadly flat Glanbia Nutritionals • Commissioning phase commenced Q4 2020 and
Slide 15: Finance
Finance Mark Garvey Group Finance Director
Slide 16: Improving Balance Sheet
16 Glanbia plc | Quarter 3 2020 presentation Improving Balance Sheet Q3 2020 Q3 2019 Cash Net Debt €628m €816m generative Net debt: Adjusted 1.95x 2.25x EBITDA • Strong Balance Sheet ensures investment capability Facilitating Balance investment Sheet • Rolling 12 months operating cash flow generatio
Slide 17: Allocating capital towards growth and returns
17 Glanbia plc | Quarter 3 2020 presentation Allocating capital towards growth and returns Capex M&A FY20: will invest Continue to execute €60m - €65m projects – Foodarom In line with 3 year acquisition closed in average Expectations Aug 20 Operating cash flow greater than 80% Dividend Additional Ne
Slide 18: Conclusion
Conclusion Siobhán Talbot Group Managing Director
Slide 19: Conclusions
19 Glanbia plc | Quarter 3 2020 presentation Conclusions GN and JVs continue to be resilient with trends improving in GPN Strategic initiatives on track Strong cash flow and balance sheet - allocating capital to growth and returns Q4: Continuing to navigate Covid-19 uncertainty with continued Group
Slide 20: Questions
Questions