Glanbia Plc · EURONEXT:GL9
Glanbia — Glanbia Plc Ord — FY2022 Earnings Presentation
33 slides from Glanbia's earnings presentation, Mar 5, 2023
Slide 1: Glanbia plc Full Year 2022 Results presentation
Glanbia plc Full Year 2022 Results presentation 1 March 2023 Siobhán Talbot Mark Garvey Group Managing Director Group Finance Director
Slide 2: Important notice
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 uncertainties, including both economic and busi
Slide 3: 2022 - Positive momentum
2022 - Positive momentum Strategic Focus 2022 Results Delivery Strong Investment Case • Focused Better Nutrition Group • Strong revenue growth 21.2% • Powerful consumer trends • Detailed strategic planning process • Record adjusted EPS, +17.6%* to • Strong brands and leading market completed; 3 year
Slide 4: Better Nutrition at the core of the business
Better Nutrition at the core of the business Lead and grow the core Glanbia Performance Nutrition GN Nutritional Solutions Consumer branded products Specialty nutritional ingredients 2022 Revenue: €1.6bn Better 2022 Revenue: €1.1bn Nutrition ~90% of 2022 EBITA #1 global sports nutrition business #1
Slide 5: Continuing to sharpen our focus on better nutrition
Continuing to sharpen our focus on better nutrition Optimise our business Simplifying group structure Optimising our margin Completed the disposal of 40% interest in GPN margin progression underpinned by Glanbia Ireland for €307m transformation programme and price realisation Non-binding agreement s
Slide 6: Track record of delivery: 2018 - 2022 Performance
Track record of delivery: 2018 - 2022 Performance Disciplined financial management Financial delivery OCF Avg. OCF Avg. Dividend Avg. ROCE generation conversion % Adj. EPS Payout Target: +€1.5bn 80%+ 10%-13% 5%-10% 25%-35% Result: +€1.6bn 97.3% 10.8% +5.6% 31.5% Strategic delivery GPN transformation
Slide 7: 2023 Guidance
2023 Guidance Consistent with 2023-2025 year targets Adj. EPS OCF ROCE growth* conversion % 5-10% 80%+ 10-13% Sustainable value creation GLANBIA PLC | FULL YEAR 2022 PRESENTATION * Adjusted EPS on a constant currency basis 7
Slide 8: FY 2022 Finance & Operations review
FY 2022 Finance & Operations review Mark Garvey Group Finance Director 8
Slide 9: FY 2022 Financial Summary
FY 2022 Financial Summary Revenue growth of OCF conversion 85.7% Completed acquisition of €173.5m returned in 21.2% Sterling Technology for share buybacks initial consideration of $60m Adjusted EPS growth of Net debt to adjusted Completed the disposal of Dividends increased 17.6% EBITDA 1.12 times 4
Slide 10: GPN – FY 2022 performance
GPN – FY 2022 performance €’m FY 2022 Growth** Revenue 1,625.7 +13.9% EBITA 182.1 +10.5% 85% of business delivered revenue EBITA Margin % 11.2% +10bps growth of +21.5% • LFL* branded growth +14.6%: volume -2.1%, pricing +16.7% • Strong demand and consumption trends in performance nutrition and healt
Slide 11: GPN FY 2022 revenue overview
GPN FY 2022 revenue overview LFL growth across all regions, channels, and formats LFL growth across all regions, channels, and formats 5% 12% 12% 32% 29% 23% 13% 68% 70% 36% LFL LFL LFL growth: growth: growth: Americas +12% Online +10% Powders +18% International +16% FDMC +18% RTE +5% Distributor +1
Slide 12: GN NS – FY 2022 performance
GN NS – FY 2022 performance €’m FY 2022 Growth* Revenue 1,126.6 +16.6% EBITA 128.2 +13.0% EBITA Margin % 11.4% -10bps • LFL growth +12.6%: volume -3.5%, pricing +16.1% • Growth in premix; expanding customer and geographic reach • Protein solutions volume decline; customer supply chain realignment •
Slide 13: GN US Cheese – FY 2022 performance
GN US Cheese – FY 2022 performance €’m FY 2022 Growth* Revenue 2,890.1 +27.7% EBITA 36.8 +33.3% EBITA Margin % 1.3% +10bps • LFL growth +27.7%: volume +4.3%, pricing +23.4% • Volume growth driven by Michigan JV plant commissioned in 2021 (commercial partner) • Price increase reflecting higher market
Slide 14: FY 2022 Group Income Statement
FY 2022 Group Income Statement FY 2022 results summary Constant Reported currency pre-exceptional €’m currency FY 2022 FY 2021 Change Change Revenue 5,642.4 4,196.9 +34.4% +21.2% EBITA 347.1 270.6 +28.3% +13.5% EBITA margin % 6.2% 6.4% Amortisation (75.0) (63.9) • Revenue growth across both GPN & GN
Slide 15: FY 2022 Exceptional items
FY 2022 Exceptional items Exceptional Items €’m FY 2022 Gain on disposal of Glanbia Ireland 57.2 Non-core assets held for sale (43.8) Other net exceptional gains 2.3 Exceptional gain for year before tax 15.7 Exceptional tax credit 5.7 Total exceptional gain for the year 21.4 • Gain on disposal of Gl
Slide 16: Cash flow and balance sheet
Cash flow and balance sheet Significant cash generation and strong balance sheet Cash flow FY 2022 FY 2021 Balance Sheet FY 2022 FY 2021 Operating cash flow (OCF) €355.3 €334.2m Net Debt €459.4m €602.7m OCF Conversion % 85.7% 100.2% Net Debt: adjusted EBITDA 1.12x 1.71x Target 80%+ Adjusted EBIT: Ne
Slide 17: Capital allocation framework
Capital allocation framework Focused on Free Cash Flow (“FCF”) generation. Disciplined approach to capital allocation, with prudent financial policies designed to balance growth and shareholder returns Strategic capex Dividends Invested €49.5m in strategic €84m Dividend increased by capex, largely I
Slide 18: Glanbia Cheese JVs disposal
Glanbia Cheese JVs disposal Non-binding agreement signed for the disposal of Glanbia Cheese JVs Strong strategic logic Facilitates redeployment of capital to Better Nutrition business platforms Initial cash consideration of €160m (including shareholder loan repayment) with further contingent conside
Slide 19: Changing presentation currency to US Dollar
Changing presentation currency to US Dollar ~80% of 2022 revenue in US Dollar Benefits of change to US Dollar reporting • Reduced volatility of reported earnings • Closer alignment with earnings and asset base Effective from 1 January 2023 GLANBIA PLC | FULL YEAR 2022 PRESENTATION 19
Slide 20: Strategic update
© Glanbia Strategic update
Slide 21: Focused business - at the heart of Better Nutrition
Focused business - at the heart of Better Nutrition Glanbia is serving growing trends and societal needs Structural consumer Trends amplified and mega-trends accelerated by Covid Healthy lifestyles Health, immunity and indulgence Convenience and snacking Focus on physical and mental health Sustainab
Slide 22: Better Nutrition driving growth
Better Nutrition driving growth Glanbia Performance Nutrition GN Nutritional Solutions Consumer branded products Specialty nutritional ingredients 2022 Revenue: €1.6bn Better 2022 Revenue: €1.1bn Nutrition #1 global sports nutrition business #1 US producer of whey protein isolate Growing position in
Slide 23: Glanbia Performance Nutrition
Glanbia Performance Nutrition Inspiring people everywhere to achieve their performance and healthy lifestyle goals Strategic priorities 2022 performance Broadened consumer target / distribution reach ON global LFL revenue growth +24.3% Capture the global potential of Optimum Nutrition US consumption
Slide 24: Glanbia Performance Nutrition
Glanbia Performance Nutrition #1 sports nutrition 85% of business grew revenue 21.5% company in the world 2022 17% GPN Revenue €1.6bn of GPN YoY growth: #1 +25% In the world Top #1 3 15% of GPN In 18 countries In 30 out of 56% YoY growth: of GPN -16% 48 countries* YoY growth: +24% DTC & Other 12% of
Slide 25: World's #1 sports nutrition brand
World's #1 sports nutrition brand CONSUMER TARGET The Motivated 2022 LFL growth: +24% Optimum Nutrition consumer vs. sports nutrition category user: Has 19% higher income 2022 US consumption*: +31% Spends 28% more on sports nutrition category 3-year revenue growth to 2022: +45% Works out 80% more of
Slide 26: Glanbia Performance Nutrition
Glanbia Performance Nutrition Inspiring people everywhere to achieve their performance and healthy lifestyle goals Strategic priorities 2023 Guidance 2023-2025 ambition Capture the global potential of Optimum Nutrition LFL revenue Avg. revenue growth* growth* 5-7% 5-7% Build a lifestyle nutrition pl
Slide 27: GN - Nutritional Solutions
GN - Nutritional Solutions Innovation and solution partner to global nutrition industry Strategic priorities 2022 performance Revenue growth driven by EMEA and AsPac Leveraged global innovation and technology capability Build on core strength in custom premix solutions Custom premix solutions LFL re
Slide 28: GN - Nutritional Solutions
GN - Nutritional Solutions Scaling a global business 2022 2022 growth: Our competitive edge NS Revenue €1.1bn +16.6% Unique access Growth categories – vol: -3.5%, price: +16.1%, acq: +4.0% to ingredients customer focused $1.2bn 4-year CAGR %: Deep innovation Breadth of $682m capability customer offe
Slide 29: GN - Nutritional Solutions
Use slide for either 2023 priorities or to re- GN - Nutritional Solutions emphasis CMD ambition Innovation and solution partner to global nutrition industry Strategic priorities 2023 Guidance 2023-2025 ambition Build on core strength in custom premix solutions Avg. volume Volume growth* In line with
Slide 30: Delivering better nutrition responsibly
Delivering better nutrition responsibly E S G Upgraded Scope 1 and 2 emission Diversity, Equity & Inclusion ("DE&I") Female Board representation 36% reduction targets to meet a 1.5 degree agenda progressed, including: Celsius pathway Female management participation 38% • Employee engagement, trainin
Slide 31: 2023 Guidance
2023 Guidance Lead & grow Optimise our Disciplined our core business financial management Organic revenue growth Earnings growth Capital allocation OCF conversion %: GPN LFL revenue growth: GPN EBITA margin: +5-7% 12.5%+ 80%+ GN NS volume: NS EBITA margins: ROCE: in line with PY 12-13% 10-13% Adjust
Slide 32: Conclusion
Conclusion We have a highly attractive portfolio in growing nutrition categories We have simplified and continue to evolve our strategy We have invested in key capabilities across talent, digitalisation, innovation and supply chain We have reshaped our operating model to drive customer and consumer
Slide 33: Questions?
Questions?