Glanbia PLC · EURONEXT:GL9
Glanbia — FY2004 Earnings Presentation
22 slides from Glanbia's earnings presentation, Mar 2, 2005
Slide 1: 2004 Results
glanbia A world of dairy foods and nutritional ingredients
Slide 2: Index
2004 Results Index Page About Us 2 Operational Highlights 3 Financial Highlights 4 Summary of Results 5 Financial Analysis: Group Profit & Loss, Balance Sheet, Cash Flow 6 2004 Strategic Investments 9 International Financial Reporting Standards (IFRS) 10 Operations Review: Agribusiness, Consumer Foo
Slide 3: About Us
2004 Results About Us Vision “To be the most relevant player in international cheese, nutrition and selected consumer foods markets” • International Consumer Foods, Food Ingredients and Nutritionals Group • Headquartered in Kilkenny, Ireland • Operations in Ireland, UK, Germany, USA and Nigeria; 4,0
Slide 4: Operational Highlights
2004 Results Operational Highlights • A satisfactory performance with results in line with expectations • Restructuring completed; Group organised around key areas for development • Demanding trading conditions in liquid milk and chilled foods businesses – but strong brands, new products, streamline
Slide 5: Financial Highlights
2004 Results Financial Highlights • Turnover (1) grew 10% to €1.83 billion (2003: €1.66 billion). • Operating profit (2) reduced by 5.6% to €83.5 million (2003: €88.5 million) – Impacted by sharp downturn in the Fresh Pork business. • Operating margin grew to 4.6% (2003: 4.5%). • Adjusted EPS (3) up
Slide 6: Summary of Results
2004 Results Summary of Results 2004 2003 Change Group turnover €1,828.7 m €1,659.2 m +10% Continuing operations Operating profit €83.5 m €88.5 m - 5.6% Continuing operations, pre exceptional items Profit before tax €77.7 m €77.1 m +1% Pre exceptional items Exceptional items €1.2 m (€92.0 m) Restruc
Slide 7: Group Profit & Loss
2004 Results Group Profit & Loss € m 2004 2003 Change Group turnover - Continuing operations 1,753.6 1,590.5 +10% - Discontinued operations 92.4 450.6 1,846.0 2,041.1 Operating profit - Continuing operations 83.5 88.5 - 5.6% - Discontinued operations 0.9 3.4 Joint venture and associated 0.2 0.9 84.6
Slide 8: Group Balance Sheet
2004 Results Group Balance Sheet € m 2004 2003 Change Fixed assets 338.4 366.1 -27.7 Financial assets 89.6 35.6 +54.0 Working capital 116.9 107.6 +9.3 Non-current liabilities (56.4) (57.5) +1.1 488.5 451.8 +36.7 Net borrowings (150.6) (153.8) +3.2 Capital employed 337.9 298.0 +39.9 Page 7
Slide 9: Group Cash Flow
2004 Results Group Cash Flow € m 2004 2003 Inflows - Profit before tax 84.4 91.9 - Depreciation and amortisation 28.4 36.9 112.8 128.8 - Disposals 73.7 (1.0) 186.5 127.8 Outflows - Working capital (28.4) (33.6) - Tax (5.0) (9.8) - Capital expenditure (47.0) (39.1) - Capital expenditure – investment
Slide 10: 2004 Strategic Investments
2004 Results 2004 Strategic Investments €m €m Southwest Cheese (USA) 29.3 Nigeria 8.4 Idaho (USA) - Cheese expansion 7.8 - Whey protein isolate expansion 10.8 18.6 Kortus (Germany) 9.6 Other (Nash’s, Agri, etc.) 2.4 Total 68.3 Page 9
Slide 11: International Financial Reporting Standards (IFRS)
2004 Results International Financial Reporting Standards (IFRS) • Mandatory: will apply to 2005 Interim Results • Programme established to ensure full compliance • P&L: initial assessment indicates no material impact likely • Reclassification of non-equity minority interests; no EPS impact • Balance
Slide 12: Agribusiness
2004 Results Agribusiness 2004 Overview 2004 2003 change • Challenging year as anticipated • Turnover, profits and margins impacted by Turnover €227.4m €234.5m - 3% – Grain markets Operating profit €12.1m €14.2m - 15% – Changing demand patterns and pricing • Continuing cost and efficiency focus Oper
Slide 13: Consumer Foods
2004 Results Consumer Foods 2004 Overview • Turnover down reflecting UK restructuring 2004 2003 change • Profits reduced, mainly Turnover €543.5m €900.4m - 40% – UK restructuring/sharp decline in Fresh Pork • Liquid milk and chilled foods Operating profit €27.8m €44.8m - 38% – Competitive environmen
Slide 14: Food Ingredients
2004 Results Food Ingredients 2004 Overview • Good year with strong growth 2004 2003 change • Profits & margins improved substantially Turnover €1,075.2m €906.2m + 19% • USA: strong performance overall Operating profit €44.8m €33.8m + 33% – Solid volume growth; good demand for whey products – Improv
Slide 15: 2004/05 Development
2004 Results 2004/05 Development • Organic Growth – Three new plant extensions commissioned at Idaho facilities – Integration of management structures and processes at liquid milk and chilled foods – New product launches – flavoured milks, new soups, fresh sauces • Acquisitions – Kortus €14.5m – cus
Slide 16: 2005 Strategic Initiatives
2004 Results 2005 Strategic Initiatives • Develop/acquire/JV “world-class” nutritional solutions capabilities • Accelerate product and process innovation to meet customer/consumer demands • Drive scale position in cheese on an international basis • Build global food ingredients business • Consolidat
Slide 17: 2005 Market Commentary
2004 Results 2005 Market Commentary Nutritionals Agribusiness - Central to Group’s growth strategy - Respond to changing farm structure - Grow via capacity expansion, R&D, - Further efficiency improvements acquisition and JV routes Food Ingredients USA Consumer Foods: Liquid Milk/Chilled Foods - Mar
Slide 18: 2005 Outlook
2004 Results 2005 Outlook “For 2005 our focus will be the completion of the strategic dairy processing investments in New Mexico and Nigeria; development initiatives which build scale and diversity; and driving cost efficiencies that enhance performance. The trading outlook across the Group has some
Slide 19: Supplementary Information
2004 Results Supplementary Information Page 18
Slide 20: 2004 Results
2004 Results A WORLD OF DAIRY FOODS*AND NUTRITIONAL INGREDIENTS O65 © @ glanbia
Slide 21: Key Market Positions
2004 Results Key Market Positions No. 1 Irish dairy processor; exporting worldwide No. 1 Supplier of branded dairy foods to Irish grocery sector No. 1 Irish pigmeat processor No. 1 European pizza cheese manufacturer No. 1 Cheese manufacturer in Northwest USA No. 2 World producer of formulated milk p
Slide 22: Contact us
2004 Results Contact us Glanbia plc Glanbia House Kilkenny Ireland +353 56 777 2200 +353 56 777 2222 For further information Visit our website @ www.glanbia.com Page 21