Glanbia Plc · EURONEXT:GL9
Glanbia — Glanbia Plc Ord — FY2020 Earnings Presentation
43 slides from Glanbia's earnings presentation, Feb 28, 2021
Slide 1: Glanbia plc Full Year 2020 Results presentation
Glanbia plc Full Year 2020 Results presentation 24 February 2021 Group Managing Director Group Finance Director
Slide 2: Important notice
2 Glanbia plc | Full Year 2020 Results 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 inhe
Slide 3: FY 2020 Results summary
3 Glanbia plc | Full Year 2020 Results presentation FY 2020 Results summary Covid-19 was disruptive, but organisational response phenomenal Resilient performance with LFL revenue* up 1.8% driven by GN GPN trends improved in H2 after challenging Q2 Excellent cash performance and strong balance sheet
Slide 4: Our priorities in H2 2020
4 Glanbia plc | Full Year 2020 Results presentation Our priorities in H2 2020 Significant progress Acquired Construction Enhanced health & safety measures on key initiatives Foodarom in Q3 of two large- have kept all operations running safely scale plants Delivered double-digit EBITA margins in H2
Slide 5: Strong sequential improvement in H2
5 Glanbia plc | Full Year 2020 Results presentation Strong sequential improvement in H2 €’m Reported Wholly-owned H1 2020 H2 2020 FY 2020 Revenue 1,836.7 1,986.4 3,823.1 • Strong recovery in financial performance in H2 as EBITA 85.0 124.6 209.6 planned Adjusted EPS (cent) 31.05c 42.73c 73.78c • Tren
Slide 6: Covid-19 has evolved our markets, but opportunities have accelerated
6 Glanbia plc | Full Year 2020 Results presentation Covid-19 has evolved our markets, but opportunities have accelerated Increased focus on link from Increased engagement with E-commerce usage has nutrition to health, wellness and customers with category accelerated and FDMC immunity leading brands
Slide 7: 2021 Outlook
7 Glanbia plc | Full Year 2020 Results presentation 2021 Outlook Deliver double-digit GPN EBITA Deliver LFL revenue growth Protect our people, maintain food margins supply 2021 adjusted EPS growth 6% to 12% constant currency Maintain our strong financial position
Slide 8: Glanbia Performance Nutrition
Glanbia Performance Nutrition FY 2020 review
Slide 9: GPN FY 2020 update
9 Glanbia plc | Full Year 2020 Results presentation GPN FY 2020 update Branded Revenue trends Revenue progression improved in H2 after large €1,400m declines in Q2 €1,300m (1.9%) -10.8% Price increases implemented H2 €1,200m €1,364m 0.1% (13.4%) €1,100m (1.7%) €1,138m Covid-driven EBITA declines €1,
Slide 10: GPN FY 2020 update
10 Glanbia plc | Full Year 2020 Results presentation GPN FY 2020 update GPN FY20 Revenue by Business Area NA Performance Nutrition (FY20 LFL* Revenue -9.0%) DTC 7% • Good revenue growth in domestic Online and FDMC offset by the Specialty and Distributor channels, which were impacted by Covid- 19 Nor
Slide 11: GPN Growth strategy
11 Glanbia plc | Full Year 2020 Results presentation GPN Growth strategy Leverage our scale in North Transformation in channel America exposure has taken place These brands delivered 71% of GPN revenues in 2020 Prioritise key RoW markets Increasing investment in marketing Accelerated our investment
Slide 12: Leading brands delivering in core markets
12 Glanbia plc | Full Year 2020 Results presentation Leading brands delivering in core markets Brand health Brand health • Net promoter score +59 (US) – up 5 pts • Household penetration 5% (US) • FY consumption +4% in measured channels* • FY consumption +4% in measured channels* Consumer engagement
Slide 13: GPN has transformed its channel exposure
13 Glanbia plc | Full Year 2020 Results presentation GPN has transformed its channel exposure Growth strategy €0.9 billion FDMC €1.1 billion 10% Specialty E-commerce Specialty 14% FDMC • Multi year evolution of e-commerce strategy 36% 37% • Developed in-house DTC capability which is being leveraged
Slide 14: Glanbia Nutritionals FY 2020 review
Glanbia Nutritionals FY 2020 review
Slide 15: Glanbia Nutritionals FY 2020 update
15 Glanbia plc | Full Year 2020 Results presentation Glanbia Nutritionals FY 2020 update +10.0% €118.4m 4.4% Revenue progression €2,800m Robust 2020 performance 5.8% €2,700m 0.9% Revenue (1.9%) • Volume growth across Dairy, Non-dairy and US Cheese €2,600m 4.2% • Pricing growth was market driven €2,5
Slide 16: Nutritional Solutions FY 2020 update
16 Glanbia plc | Full Year 2020 Results presentation Nutritional Solutions FY 2020 update +2.4% €90.5m 12.1% Revenue progression €800m Strong portfolio and customer relationships 2.4% 3.1% • Robust end-markets driving volume growth (1.8%) (1.6%) • Strong demand for essential nutrition and (1.9%) imm
Slide 17: Nutritional Solutions growth strategy
17 Glanbia plc | Full Year 2020 Results presentation Nutritional Solutions growth strategy Leading market positions Geographical reach Talent development Essential micro-nutrients Protein solutions Additional technologies Global innovation investment Deep customer relationships Adjacent platforms –
Slide 18: US Cheese FY 2020 update
18 Glanbia plc | Full Year 2020 Results presentation US Cheese FY 2020 update 13.8% €27.9m 1.4% Revenue progression €2,000m 8.8% • Strong business model in volatile dairy (1.9%) environment €1,900m • Volume growth reflected good demand 5.0% from customers with retail end-market €1,800m exposure €1,9
Slide 19: Joint Ventures FY 2020 review
Joint Ventures FY 2020 review
Slide 20: Joint Ventures FY 2020 update
20 Glanbia plc | Full Year 2020 Results presentation Joint Ventures FY 2020 update JV €61.6m €48.6m • Commissioning to be completed by Q2 2021 +28.1% • Consolidating #1 position in US Cheese category; increasing capacity by c.30% • Commissioning to be completed by Q2 2021 Robust Southwest business •
Slide 21: Finance
Finance Mark Garvey Group Finance Director
Slide 22: FY 2020: Resilient performance in a challenging environment
22 Glanbia plc | Full Year 2020 Results presentation FY 2020: Resilient performance in a challenging environment Wholly-owned LFL Adjusted EPS down Strong operating Foodarom €50m Buyback Revenue growth of 14.9% constant cash flow acquired for Programme 1.8% constant currency currency due to Covid- c
Slide 23: Full Year Group Income Statement
23 Glanbia plc | Full Year 2020 Results presentation Full Year Group Income Statement FY 2020 results summary Constant Reported currency €'m currency FY 2020 FY 2019 Change Change • Revenue growth driven by GN Revenue (wholly-owned) 3,823.1 3,875.7 (1.4%) 0.6% EBITA (wholly-owned) 209.6 276.8 (24.3%
Slide 24: Exceptional Items
24 Glanbia plc | Full Year 2020 Results presentation Exceptional Items Maintaining execution against strategic projects Exceptional Items FY 2020 €‘m • Organisation redesign costs primarily relates to GPN Organisation redesign costs 31.2 transformation. Project on track to Covid-19 costs 3.7 deliver
Slide 25: Strong Cash Flow: OCF conversion +122%
25 Glanbia plc | Full Year 2020 Results presentation Strong Cash Flow: OCF conversion +122% €400m (€17m) (€22m) €78m (€43m) €37m €300m €200m €335m €307m €274m €232m €100m €0m FY 2020 Working Capital Business Sustaining Operating Cash Flow Net Interest Dividends Other FY20 Free Cash Flow FY19 Free Ca
Slide 26: Investment & Returns
26 Glanbia plc | Full Year 2020 Results presentation Investment & Returns Investment in the business has continued and shareholder returns increased €417m Investment €42m 10.9% 9.0% 2019 2020 ROCE €185m €313m Consistent investment in Strategic Capex €48m €113m €10m Continued strategic M&A with SlimF
Slide 27: Significant borrowing capacity to fund growth
27 Glanbia plc | Full Year 2020 Results presentation Significant borrowing capacity to fund growth The Group replaced its facilities in 2020, extending maturities and reducing interest rates Group debt FY 2020 FY 2019 Debt maturity profile €900m Total Committed €1.2bn €1.2bn Borrowing Facilities Ave
Slide 28: Strong capital position facilitating both growth and shareholder returns
28 Glanbia plc | Full Year 2020 Results presentation Strong capital position facilitating both growth and shareholder returns Capex M&A FY20: Maintained Continue to execute investment projects – Foodarom In-line with 3 year acquisition closed in Capital position August 2020 average Operating cash fl
Slide 29: Delivering sustainable growth
Delivering sustainable growth
Slide 30: Environmental strategy update
30 Glanbia plc | Full Year 2020 Results presentation Environmental strategy update Carbon • Reduce carbon emissions in our operational sites by 30% by 2030* • Reduce carbon emissions intensity in our dairy supply chain by 25% by 2030 Waste • Commit to zero waste to landfill at all our operational si
Slide 31: Social & Governance update
31 Glanbia plc | Full Year 2020 Results presentation Social & Governance update • Launched Group-wide D&I* strategy • Supported frontline workers and local communities during the pandemic • Significant changes to facilitate Board diversity: Co-op representation to reduce to 3 by 2023 Overall red
Slide 32: Conclusions
32 Glanbia plc | Full Year 2020 Results presentation Conclusions Resilient 2020 performance Strategic initiatives on track Strong balance sheet to fund growth Positive outlook; in FY 2021 Group expects to deliver adjusted EPS growth 6% to 12% constant currency* *Based on the assumption of an allevia
Slide 33: Questions
Questions
Slide 34: Appendix
Appendix
Slide 35: Non-IFRS performance measure definitions
35 Glanbia plc | Full Year 2020 Results presentation Non-IFRS performance measure definitions The Group reports certain performance measures that are not defined under IFRS but which represent additional measures used by the Board of Directors and the Glanbia Operating Executive in assessing perform
Slide 36: Non-IFRS performance measure definitions
36 Glanbia plc | Full Year 2020 Results presentation Non-IFRS performance measure definitions 11. GPN like-for-like total revenue represents the sales increase/(decrease) year-on-year, excluding acquisitions and the impact of a 53rd week (when applicable), on a constant currency basis 12. GPN like-f
Slide 37: Adjusted EPS
37 Glanbia plc | Full Year 2020 Results presentation Adjusted EPS Constant €'m Reported currency currency Adjusted Earnings Per Share FY 2020 FY 2019 FY 2019 Profit attributable to the equity holders of the Company 143.8 180.2 177.3 Exceptional Items 31.5 34.6 34.1 Profit attributable to the equity
Slide 38: Wholly-owned Summary
38 Glanbia plc | Full Year 2020 Results presentation Wholly-owned Summary €'m By Business Revenue EBITA Margin Glanbia Performance Nutrition 1,138.0 91.2 8.0% Nutritional Solutions 746.8 90.5 12.1% US Cheese 1,938.3 27.9 1.4% Glanbia Nutritionals 2,685.1 118.4 4.4% Wholly-owned 3,823.1 209.6 5.5%
Slide 39: Impact of FY19 53rd week
39 Glanbia plc | Full Year 2020 Results presentation Impact of FY19 53rd week Reported Revenue (€'m) Summary of constant currency movement FY19 53rd FY20 cc FY19 FY20 Volume Price LFL growth week impact Acquisitions movement GPN 1,363.8 1,138.0 (13.4%) 0.1% (13.3%) (1.7%) 0.0% (15.0%) Nutritional So
Slide 40: Segmental Analysis
40 Glanbia plc | Full Year 2020 Results presentation Segmental Analysis €'m Reported Constant currency Glanbia Performance Nutrition FY 2020 FY 2019 FY 2019 % Change Revenue 1,138.0 1,363.8 1,338.4 -15.0% EBITA 91.2 146.4 143.0 -36.2% EBITA margin 8.0% 10.7% 10.7% -270 bps €'m Reported Constant curr
Slide 41: Segmental Analysis
41 Glanbia plc | Full Year 2020 Results presentation Segmental Analysis €'m Reported Constant currency Nutritional Solutions FY 2020 FY 2019 FY 2019 % Change Revenue 746.8 744.9 731.8 2.0% EBITA 90.5 100.0 98.1 -7.7% EBITA margin 12.1% 13.4% 13.4% -130 bps €'m Reported Constant currency US Cheese FY
Slide 42: Joint Venture Summary
42 Glanbia plc | Full Year 2020 Results presentation Joint Venture Summary FY 2020 FY 2019 JVs - 100% - (€'m) Revenue PAT JVs - 100% - (€'m) Revenue PAT Glanbia Ireland 1,906.2 60.0 Glanbia Ireland 1,961.8 62.8 MWC-Southwest Holdings 1,147.2 53.8 MWC-Southwest Holdings 1,034.2 21.7 Glanbia Cheese UK
Slide 43: Weighted average shares summary
43 Glanbia plc | Full Year 2020 Results presentation Weighted average shares summary Shares in issue ('000's) FY 2020 FY 2019 Weighted average shares in issue 295,173 295,215