Glanbia PLC · EURONEXT:GL9
Glanbia — H1 2010 Earnings Presentation
21 slides from Glanbia's earnings presentation, Aug 25, 2010
Slide 1: 2010 Half yearly results
2010 Half yearly results 25 August 2010 1
Slide 2: Cautionary statement
2010 Half yearly results Cautionary statement This presentation and accompanying announcement contains forward‐looking 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 presen
Slide 3: Highlights
2010 Half yearly results Highlights • Excellent first half; strong revenue, profit and margin growth • Operating profit up 38.7%; constant currency up 49.4% • Operating i margin i up 130 b bps to 6.4%; % constant currency margin i 6.9% % • Adjusted earnings per share up 50.8% to 18.62 cents per shar
Slide 4: Results summary
2010 Half yearly results Results summary • Improvement driven by recovery in Dairy Ingredients Ireland and good performance by Global Nutritionals Change g on half yyear 2009 HY 2010 Reported Constant currency1 Revenue2 €1,036.4m Up 9.7% Up 9.3% EBITDA €89 2m €89.2m Up 27.6% 27 6% Up 34.8% 34 8% Ope
Slide 5: Segmental analysis
2010 Half yearly results Segmental analysis • Including Joint Ventures & Associates Revenue €1.2Bn Operating profit €77.4m Operating margin 5.8% 16% 14% Operating margin 9.7% 40% (constant Operating 25% 61% currency 10.8%) 44% margin 3.5% US Cheese & Global Nutritionals Dairy Ireland Other Business
Slide 6: Group revenue analysis
2010 Half yearly results Group revenue analysis Group Revenue HY 2009 €944 9m €944.9m Volume 4.1% Price 5.3% C Currency 0 3% 0.3% HY 2010 €1,036.4m US Cheese & Global Nutritionals Dairy Ireland Other Business HY 2009 €401.5m HY 2009 €540.5m HY 2009 €2.9m Volume 10.6% Volume ((0.6%)) Volume ((12.7%))
Slide 7: Group operating profit analysis
2010 Half yearly results Group operating profit analysis €66 3m €66.3m Up 39% - Investment in people and brands in US Cheese & Global Nutritionals €47.8m - Higher milk cost - Currency translation effect + Volume growth in Global Nutritionals + Price increases in US Cheese and Irish Dairy Ingredients
Slide 8: 2010 operating costs
2010 Half yearly results 2010 operating costs US Cheese & Global Nutritionals Dairy Ireland • Investment in Sales & Marketing • Focus on controllable costs headcount • Planned strategic cost reduction • Investment in Performance Nutrition programme on target b d development brand d l • Headcount red
Slide 9: Pension update and strategy
2010 Half yearly results Pension update and strategy • Defined contribution schemes in the USA and other international locations • Defined benefit schemes in Ireland and the UK • Strategic review of defined benefit arrangements undertaken in 2009 • Revised benefits agreed under Irish defined benefit
Slide 10: Operations review and outlook
2010 Half yearly results Operations review and outlook Slide 10
Slide 11: US Cheese & Global Nutritionals
2010 Half yearly results US Cheese & Global Nutritionals Revenue €m Operating profit EBITDA €m €m (2) 600 60 60 (1) 500 50 50 400 40 40 300 30 30 Margin Margin Margin Margin 200 20 20 13.6% 12.0% 11.2% 9.7% 10 100 10 0 0 0 HY 2009 HY 2010 HY 2009 HY 2010 HY 2009 HY 2010 1 Constant currency 10.8% 2 C
Slide 12: US Cheese & Global Nutritionals operating profit
2010 Half yearly results US Cheese & Global Nutritionals - Increase in headcount €47.5m €52.6m Up 17% - Investment in Performance (constant currency) €44.9m Nutrition brand - Investment in growing international footprint - Cheese plant refurbishment + Significant volume increases in - Currency trans
Slide 13: Dairy Ireland
2010 Half yearly results Dairy Ireland Revenue Operating profit EBITDA €m €m €m 600 40 40 500 Margin g 400 30 30 3.5% 300 20 20 Margin Margin 200 Margin 100 10 1.1% 10 5.6% 3.2% 0 0 0 HY 2009 HY 2010 HY 2009 HY 2010 HY 2009 HY 2010 Market environment Half year performance Disposal of Irish businesse
Slide 14: Dairy Ireland operating profit
2010 Half yearly results Dairy Ireland Operating profit €19.1m Up 224% 20 - Higher milk cost - Wholesale price reductions and strong promotional 15 activity in Consumer Products - Competitive pricing in feed and fertilizer in Agribusiness 10 + Improvement in prices for Irish Dairy Ingredients €5.9m
Slide 15: Joint Ventures & Associates
2010 Half yearly results Joint Ventures & Associates €m Revenue €m Operating profit EBITDA €m 200 15 15 10 10 100 Margin Margin 5 Margin 7.4% 5 Margin 5.8% 6.4% 0 4.3% 0 0 HY 2009 HY 2010 HY 2009 HY 2010 HY 2009 HY 2010 Market environment Half year performance • Robust demand • 40% expansion of Sout
Slide 16: Outlook
2010 Half yearly results 2010 Outlook US Cheese & Global Nutritionals Dairy Ireland Joint Ventures & Associates • Expected to deliver reasonable • Irish Dairy Ingredients expected to • Good performance forecast for the year‐on‐year growth deliver a strong recovery relative to full year loss in 2009
Slide 17: Supplementary financial information
2010 Half yearly results Supplementary financial information Slide 17
Slide 18: Segmental analysis including Joint Ventures & Associates
2010 Half yearly results Segmental analysis including Joint Ventures & Associates HY2010 HY2009 Operating Operating EBITDA Operating Operating EBITDA Revenue profit Margin EBITDA Margin Revenue profit Margin EBITDA Margin €m €m €m €m €m €m US Cheese & Global Nutritionals 490.6 47.5 9.7% 58.8 12.0% 4
Slide 19: Summary statement of financial position
2010 Half yearly results Summary statement of financial position € million HY 2010 HY 2009 Change g FY 2009 Property, plant and equipment 383.8 371.2 12.6 363.2 Investments 95.8 94.7 1.1 88.7 Intangible assets 380 1 380.1 353 2 353.2 26 9 26.9 342 1 342.1 Non‐current receivables 54.5 33.5 21.0 50.5
Slide 20: Summary cash flow
2010 Half yearly results Summary cash flow € million HY 2010 HY 2009 EBITDA 89.2 69.9 Working capital movement (113.0) (96.5) Net interest and tax paid (12 8) (12.8) (18 0) (18.0) Dividends received from Joint Ventures & Associates 0 9.4 Capital expenditure/loans to Joint Ventures & Associates (23.0
Slide 21: glanbia
glanbia Glanbia plc, Glanbia House, Kilkenny, Ireland Tel: +353 56 777 2200 Fax: +353 56 777 2303 www.glanbia.com a world of nutritional ingredients and cheese