Glanbia Plc · EURONEXT:GL9
Glanbia — Glanbia Plc Ord — FY2023 Earnings Presentation
30 slides from Glanbia's earnings presentation, Feb 28, 2024
Slide 1: Full Year 2023 Results
Full Year 2023 Results 28 February 2024 Hugh McGuire Chief Executive Officer Mark Garvey Chief Financial Officer
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: Agenda
Agenda Finance Review 02 Business Review 03 Q&A 04 3 || Glanbia plc FY 2023 Results
Slide 4: 2023 - Continued Momentum
2023 - Continued Momentum 01 Record adjusted EPS of 131.37c - growth of 20.5% constant currency driven by GPN 02 Strong cash generation – 90.4% OCF conversion Results Dividend increased by 10% and €100m returned to Delivery 03 shareholders via share buyback 04 Delivered on sustainability commitments
Slide 5: Finance Review
Finance 02 Review Mark Garvey Chief Financial Officer 5 || Glanbia plc FY 2023 Results
Slide 6: FY 2023 Financial Summary
FY 2023 Financial Summary $5.4bn Revenue -8.7% reported and constant currency growth +15.9% reported growth $424m EBITA +16.4% constant currency growth +160 bps vs. FY 2022 7.8% EBITA margin Margin increase in both GPN and GN +19.9% reported growth 131.37c Adjusted EPS +20.5% constant currency growt
Slide 7: GPN – FY 2023 Performance
GPN – FY 2023 Performance FY 2023 GPN Revenue Mix % $’m FY 2023 Growth* Revenue 1,795.6 +4.8% EBITA 255.4 +33.7% 18% EBITA Margin % 14.2% +300bps 62% • LFL** branded growth +5.1%: volume -0.3%, pricing +5.4% • Optimum Nutrition branded global revenue growth +17.0%: volume +10.6%, pricing +6.4% 9% Po
Slide 8: Leading Brands in Performance and Lifestyle Nutrition
Leading Brands in Performance and Lifestyle Nutrition Strong revenue and consumption momentum continues in ON and healthy lifestyle Performance Healthy Weight Nutrition Lifestyle Management % of GPN Revenue 62% 18% 9% LFL Growth* +17.0% +10.7% -35.3% US Consumption** +13.7% +11.2% -34.1% *Like-for-l
Slide 9: GN NS – FY 2023 Performance
GN NS – FY 2023 Performance LFL Volume by Quarter $’m FY 2023 Growth* Revenue 1,008.5 -14.9% Sequential improvement in volumes EBITA 126.2 -6.2% EBITA Margin % 12.5% +110bps +8.2% +2.4% • LFL** decline -12.3%: volume -3.3%, pricing -9.0% -3.8% • Volume trends continued to improve in the fourth quart
Slide 10: GN US Cheese – FY 2023 Performance
GN US Cheese – FY 2023 Performance $’m FY 2023 Growth* Revenue 2,621.3 -13.9% EBITA 42.4 +9.6% EBITA Margin % 1.6% +30bps • LFL** decline -13.9%: volume +0.7%, pricing -14.6% • Pricing reflects lower US cheese markets • Pass-through pricing model which broadly protects margin from changes in market
Slide 11: Significant Cash Generation and Strong Balance Sheet
Significant Cash Generation and Strong Balance Sheet Cash Flow FY 2023 FY 2022 Cash Flow Operating cash flow (“OCF”) $445.9m $374.3m Strong operating performance delivering 90.4% OCF conversion % OCF Conversion % (Target 80%+) 90.4% 85.7% Free cash flow (“FCF”) $389.8m $283.0m Balance Sheet Balance
Slide 12: 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 Automation, capacity, Dividend increase by business integrations and IT
Slide 13: Other Financial Matters
Other Financial Matters Joint Decrease driven by disposal of the Group’s share in the Glanbia Cheese UK & EU JVs Ventures Net Finance Lower finance costs driven by reduced net debt and returns on gross cash balances Costs Income FY 2023 effective tax rate 14%. Expected rate for FY 2024 of 15% to 17%
Slide 14: FY 2023 - Change in JV Commercial Arrangements and EBITDA
FY 2023 - Change in JV Commercial Arrangements and EBITDA FY 2023 Pro-forma FY 2023 $’m FY 2023 Revenue Reported Adjustment Pro-forma Nutritional Solutions 1,008.5 (123.1) 885.4 +450 bps 13.6% US Cheese 2,621.3 (1,672.5) 948.8 Glanbia Nutritionals 3,629.8 (1,795.6) 1,834.2 Glanbia Performance Nutrit
Slide 15: 2024 Guidance
2024 Guidance Revenue Earnings Capital growth growth allocation GPN revenue growth*: GPN & GN NS EBITDA margins: OCF conversion %: 4% - 7% at least at 2023 margins 80%+ GN NS volume growth: 3% - 5% Adjusted EPS growth* 5% - 8% 15 || Glanbia plc FY 2023 Results *Growth on a constant currency basis an
Slide 16: Business Review
Business 03 Review Hugh McGuire Chief Executive Officer 16 || Glanbia plc FY 2023 Results
Slide 17: 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 Accelerating mega-trends trends Performance & active lifestyles Nutrition, immunity & indulgence Holistic Health – mental & physical Protein & energy wellness, healthy weight
Slide 18: Glanbia Performance Nutrition Strategic Execution
Glanbia Performance Nutrition Strategic Execution Focused strategic priorities Focused consumer recruitment & penetration Capture the global potential of Optimum Nutrition Building local expertise & Build a lifestyle nutrition platform in capability to leverage global North America scale Accelerate
Slide 19: World’s #1 Sports Nutrition Brand
World’s #1 Sports Nutrition Brand with more growth potential New Creative & Expanded Media Reach F1 McLaren Partnership Expanded Athlete Roster Continued Innovation Focus 19 || Glanbia plc FY 2023 Results
Slide 20: Lifestyle brands continue to resonate with consumers
Lifestyle brands continue to resonate with consumers 20 || Glanbia plc FY 2023 Results
Slide 21: GN Nutritional Solutions
GN Nutritional Solutions Focused strategic priorities Our competitive edge Unique portfolio Growth categories – of ingredients customer focused Build on core strengths in custom premix solutions Deep Breadth of innovation customer capability offerings Scale extensive protein capability & deep expert
Slide 22: NS broadening capabilities via acquisitions
NS broadening capabilities via acquisitions Premix scale and Scale flavours Healthy snacking Gut health and Gut health and 2021 technology extrusion technology immunity Revenue immunity 2019 2020 2021 2020 2022 2023 22 || Glanbia plc FY 2023 Results
Slide 23: Better Nutrition, Better World
Better Nutrition, Better World Packaging Planet People Global packaging GHG footprint in Scope 1 and 2 40% female participation in recyclability increased to decreased by 15.9% vs. 2022 management 76% in 2023 3.44% decrease freshwater use in 2023* Employee engagement score of 72 in How2Recycle “Your
Slide 24: Investment Case
Investment Case Key strengths and unique competitive advantages will drive sustainable growth 2024 guidance Powerful Strong brands and consumer trends market positions Adjusted EPS growth* Focused operating Strong culture 5-8% model and values Sustainable Financial operations capacity 24 || Glanbia
Slide 25: Q&A
04 Q&A A performance driven purpose led global nutrition company 25 || Glanbia plc FY 2023 Results
Slide 26: Appendices
A Appendices 26 || Glanbia plc FY 2023 Results
Slide 27: GPN FY 2023 Revenue Overview
GPN FY 2023 Revenue Overview By Region By Channel By Format 4% 12% 10% 35% 32% 21% 11% 65% 75% 35% LFL growth: LFL growth: LFL growth: Americas +1% Online +13% Powders +13% International +13% FDMC +4% RTE -18% Distributor -2% RTD -15% Specialty -1% Other +1% 27 || Glanbia plc FY 2023 Results
Slide 28: Pro-forma financials for change in JV commercial arrangements and EBITDA (FY 2023)
FY 2023 Pro-forma* financials for change in JV commercial arrangements and EBITDA FY 2023 Pro-forma FY 2023 $’m Reported Adjustment Pro-forma Revenue Nutritional Solutions 1,008.5 (123.1) 885.4 US Cheese 2,621.3 (1,672.5) 948.8 Glanbia Nutritionals 3,629.8 (1,795.6) 1,834.2 Glanbia Performance Nutri
Slide 29: Pro-forma financials for change in JV commercial arrangements and EBITDA (FY 2022)
FY 2022 Pro-forma* financials for change in JV commercial arrangements and EBITDA FY 2022 Pro-forma FY 2022 $’m Reported Adjustment Pro-forma Revenue Nutritional Solutions 1,186.8 (183.1) 1,003.7 US Cheese 3,044.4 (1,940.2) 1,104.2 Glanbia Nutritionals 4,231.2 (2,123.3) 2,107.9 Glanbia Performance N
Slide 30: Pro-forma financials for change in JV commercial arrangements and EBITDA (HY 2023)
HY 2023 Pro-forma* financials for change in JV commercial arrangements and EBITDA HY 2023 Pro-forma HY 2023 $’m Reported Adjustment Pro-forma Revenue Nutritional Solutions 525.5 (70.4) 455.1 US Cheese 1,357.0 (864.2) 492.8 Glanbia Nutritionals 1,882.5 (934.6) 947.9 Glanbia Performance Nutrition 888.