Glanbia Plc · EURONEXT:GL9
Glanbia — H1 2014 Earnings Presentation
26 slides from Glanbia's earnings presentation, Aug 20, 2014
Slide 1: 2014 Half Year Results
2014 HALF YEAR RESULTS 20 AUGUST 2014 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: Half Year 2014 Performance Summary
HALF YEAR 2014 PERFORMANCE SUMMARY Total Group Total Group Total Group Adjusted Interim Revenue EBITA EBITA margin EPS Dividend €1.8bn €129.5m 7.2% 32.45c 4.43c +10.7% +10.3% +0 bps +11.5% +10.0% • Good performance with 11.5% growth in adjusted EPS • Global Performance Nutrition strong driven by rev
Slide 4: Operational Overview: Global Performance Nutrition
OPERATIONAL OVERVIEW GLOBAL PERFORMANCE NUTRITION • Strong revenue performance driven by growth in REVENUE both branded and contract revenues €374.6m • Continued strong international revenue growth +21.8% • Focus remains on specialty and internet retail; expanded presence in US club channel EBITA €4
Slide 5: Market Leading Innovation
MARKET LEADING INNOVATION GLOBAL PERFORMANCE NUTRITION OPTIMUM NUTRITION BSN BSN PRO SERIES SYNTHA-6 BAR N.O.-XPLODE April 2014 May 2014 July 2014 Premium muscle building Launched in select European Pre-workout igniter with product targeting elite athletes markets. High protein bars advanced ingredi
Slide 6: GPN: Development Update
GPN: DEVELOPMENT UPDATE www.glanbia.com 6 2014 HALF YEAR RESULTS
Slide 7: Manufacturing Expansion
MANUFACTURING EXPANSION GLOBAL PERFORMANCE NUTRITION • Phase I of new manufacturing facility commissioned in May 2014 • Offers increased efficiency and facilitates internal production of almost all products • Phase II due for completion in Q1 2015 • Combined cost c.€50 million • Supports growth targ
Slide 8: Operational Overview: Global Ingredients
OPERATIONAL OVERVIEW GLOBAL INGREDIENTS • Satisfactory performance overall REVENUE €565.8m • Underlying market demand trends remain positive +10.7% • Challenging milk procurement environment in Idaho EBITA €53.9m • Innovation agenda in US Cheese and Ingredient Technologies progressing +0.5% • Announ
Slide 9: €60 Million Development Program Announcement
€60 MILLION DEVELOPMENT PROGRAM ANNOUNCEMENT GLOBAL INGREDIENTS • Comprised of two key elements: ― Expansion of high end whey capacity ― Expansion of lactoferrin capacity, a specialty milk component used in infant formula and supplements sectors • Project is fully aligned with our strategy of adding
Slide 10: Operational Overview: Dairy Ireland
OPERATIONAL OVERVIEW DAIRY IRELAND • Performance behind the prior year REVENUE €353.8m • Consumer Products’ market backdrop remains challenging -7.7% • Agribusiness’ performance versus prior year impacted by particularly strong H1 2013 EBITA €10.5m • Cost efficiency measures ongoing across both busi
Slide 11: Operational Overview: Joint Ventures & Associates
OPERATIONAL OVERVIEW JOINT VENTURES & ASSOCIATES • Good performance overall REVENUE €503.4m • Glanbia Ingredients Ireland and Glanbia Cheese benefited from favourable dairy market environment +19.3% • Development of new €150 million dairy facility in EBITA Glanbia Ingredients Ireland progressing wel
Slide 12: Finance Review
2014 HALF YEAR RESULTS FINANCE REVIEW www.glanbia.com 12
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS GOOD PERFORMANCE WITH 11.5% GROWTH IN ADJUSTED EPS* CONSTANT CURRENCY HY 2014 CHANGE CHANGE TOTAL GROUP REVENUE €1.8bn +8.1% +10.7% TOTAL GROUP EBITA €129.5m +6.0% +10.3% TOTAL GROUP EBITA % 7.2% -10 bps +0 bps ADJUSTED EPS 32.45c +6.8% +11.5% * Constant currency 2014 HALF YEAR
Slide 14: Segmental Overview
SEGMENTAL OVERVIEW GROWTH DRIVEN PRIMARILY BY GLOBAL PERFORMANCE NUTRITION HY 2014 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 374.6 42.9 11.5% +21.8% +33.6% +110 bps Global Ingredients 565.8 53.9 9.5% +10.7% +0.5% -100 bps Dairy Ireland 353.8 1
Slide 15: Revenue Analysis
REVENUE ANALYSIS €m Total Group Revenue Growth +10.7%* 1,850 5.0% -2.7% 1,800 1,798 3.4% -1.8% 1,750 4.1% 1,700 1,663 1,650 1,600 HY 2013 GPN GI DI JV&As FX HY 2014 * Constant currency 2014 HALF YEAR RESULTS www.glanbia.com 15
Slide 16: Segmental Revenue Analysis
SEGMENTAL REVENUE ANALYSIS Global Performance Nutrition +21.8%* Global Ingredients +10.7%* 2.5% -4.8% 1.6% -4.5% 19.6% -0.3% 13.9% Volume Price Acq/Disp FX -4.8% Volume Price Acq/Disp FX Dairy Ireland -7.7%* Joint Ventures & Associates +19.3%* 13.0% -1.4% Volume Price FX 6.3% -4.9% -2.8% 0% Volume P
Slide 17: EBITA Analysis
EBITA ANALYSIS €m Total Group EBITA Growth +10.3%* 140 135 2.2% -4.3% 9.3% 0.2% -1.4% 130 129.5 125 122.2 120 115 110 HY 2013 GPN GI DI JV&As FX HY 2014 * Constant currency 2014 HALF YEAR RESULTS www.glanbia.com 17
Slide 18: Summary Income Statement
SUMMARY INCOME STATEMENT HY 2014 results summary pre exceptional Reported currency Constant currency €m HY 2014 HY 2013 Change Change Revenue 1,294.2 1,263.3 +4.7% +7.7% EBITA 107.3 102.3 +4.9% +9.7% EBITA margin 8.3% 8.3% No change +20bps Amortisation of intangibles (10.6) (10.0) Net finance costs
Slide 19: Cashflow & Financing
CASHFLOW & FINANCING NET DEBT • Working capital efficiency programme ongoing HY 2013: €444.7m • YTD capex €57 million. €130 million expected for FY 2014 (€90 million strategic) €471.8m • Redemption of €39.1 million of preference NET DEBT / ADJ. EBITDA1 shares in July 2014 HY 2013: 2.0x • Group now h
Slide 20: Summary & Outlook
2014 HALF YEAR RESULTS SUMMARY & OUTLOOK www.glanbia.com 20
Slide 21: Summary
SUMMARY • Good performance for H1 2014 • Strong growth in Global Performance Nutrition with Global Ingredients broadly in line • Ongoing focus on strategic capital investment with a new €60 million capacity expansion in Global Ingredients • Overall outlook for 2014 is positive • Reiterating guidance
Slide 22: Supplementary Information
2014 HALF YEAR RESULTS SUPPLEMENTARY INFORMATION www.glanbia.com 22
Slide 23: Summary Cash Flow
SUMMARY CASH FLOW €m HY 2014 HY 2013 EBITDA 122.1 115.3 Dividends from Joint Ventures & Associates 3.2 1.5 Working capital movement (83.9) (94.1) Net interest and tax paid (24.6) (23.9) Business sustaining capital expenditure (23.6) (18.2) Other outflows (7.2) (4.5) Free cash flow (14.0) (23.9) Stra
Slide 24: Summary Balance Sheet
SUMMARY BALANCE SHEET €m HY 2014 HY 2013 Property, plant and equipment 409.7 335.1 Investments 164.6 146.0 Intangible assets 471.9 475.2 Non-current receivables 9.7 16.4 Deferred tax/capital grants (76.6) (66.4) Working capital 316.4 287.8 Retirement benefit obligations (91.4) (84.9) Provisions (36.
Slide 25: 2014 Investor Day
2014 INVESTOR DAY This event will focus solely on Glanbia’s Global Performance Nutrition segment. As well as learning about the long term strategy of the business, attendees will gain an in-depth understanding of our approach to marketing, operations and international expansion. There will also be a
Slide 26: Glanbia plc contact details
Glanbia plc Glanbia House Ring Road Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2200