Glanbia Plc · EURONEXT:GL9
Glanbia — H1 2016 Earnings Presentation
21 slides from Glanbia's earnings presentation, Aug 17, 2016
Slide 1: 2016 Half Year Results
2016 HALF YEAR RESULTS 17 AUGUST 2016
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 2016 Group Performance Summary
HALF YEAR 2016 GROUP PERFORMANCE SUMMARY 44.87c Adj. EPS +10.8% (cc) Double digit growth in adjusted EPS +10.5% (rc) €157m Wholly owned +13.7% (cc) Strong EBITA performance driven by GPN EBITA +13.6% (rc) Wholly owned 11.0% EBITA +130bps (cc) Strong margin growth to double digit margin +130bps (rc)
Slide 4: Segmental Summary
SEGMENTAL SUMMARY TOTAL GROUP EBITA GROWTH +11.4% (CC*), +11.2% (RC*) COMMENTARY €176.5m • Strong overall performance in first half €158.7m €81.7m €60.7m • Strong performance from GPN driven by branded volume GLANBIA +35.0% (cc) PERFORMANCE +34.6% (rc) growth across all regions NUTRITION • Glanbia N
Slide 5: Operational Review
OPERATIONAL REVIEW 2016 HALF YEAR RESULTS
Slide 6: Glanbia Performance Nutrition Operational Overview
GLANBIA PERFORMANCE NUTRITION OPERATIONAL OVERVIEW Revenue • 12.0% revenue growth, constant currency €505m Volume +8.0%; Price -6.7%; Acquisition +10.7% +12.0% (cc) +11.4% (rc) • 16.9% branded revenue growth, constant currency lfl branded 4.4% like for like branded revenue growth revenue growth
Slide 7: Glanbia Nutritionals Operational Review
GLANBIA NUTRITIONALS* OPERATIONAL REVIEW Revenue • Performance in-line with expectations in context of challenging dairy markets €573m -5.9% (cc) • New organisational design in place, delivering an -6.0% (rc) insight led commercial platform and transforming the customer experience EBITA • Good volum
Slide 8: Operational Review: Dairy Ireland and Joint Ventures & Associates
OPERATIONAL REVIEW DAIRY IRELAND JOINT VENTURES & ASSOCIATES Revenue EBITA EBITA margin Revenue EBITA EBITA margin €357m €17.7m 5.0% €402m €19.1m 4.7% -3.3% +1.1% +30bps -8.8% (cc) -4.5% (cc) +20bps (cc) -9.7% (rc) -5.4% (rc) +20bps (rc) • Consumer Products: improved • Reduced performance as a resul
Slide 9: Finance Review
FINANCE REVIEW 2016 HALF YEAR RESULTS
Slide 10: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS GOOD FINANCIAL METRICS FOR HY16 HY16 REPORTED CONSTANT CURRENCY RESULTS CHANGE CHANGE WHOLLY OWNED REVENUE €1.4bn +0.2% +0.4% WHOLLY OWNED EBITA €157.4m +13.6% +13.7% WHOLLY OWNED EBITA % 11.0% +130bps +130bps ADJUSTED EPS 44.87c +10.5% +10.8% OPERATING CASH FLOW €49.9m +202
Slide 11: Segmental Overview
SEGMENTAL OVERVIEW STRONG PERFORMANCE LED BY GLANBIA PERFORMANCE NUTRITION HY16 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Glanbia Performance Nutrition 505.3 81.7 16.2% +12.0% +35.0% +280 bps Glanbia Nutritionals 572.6 58.0 10.1% -5.9% -4.0% +20 bps Dairy Ireland 356.9 17
Slide 12: Global Growth Platforms Revenue Drivers: Glanbia Performance Nutrition
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS GLANBIA PERFORMANCE NUTRITION +11.4% (+12.0% CC*) 10.7% €505m 8.0% (6.7)% €454m (0.6)% HY15 FX Volume Price Acquisitions HY16 * Constant Currency (CC) excluding the impact of FX 2016 HALF YEAR RESULTS 12
Slide 13: Global Growth Platforms Revenue Drivers: Glanbia Nutritionals
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS GLANBIA NUTRITIONALS* -6.0% (-5.9% CC**) 2.2% (8.1)% €609m (0.1)% €573m HY15 FX Volume Price HY16 * Global Ingredients has been rebranded Glanbia Nutritionals, the operations of the segment are unchanged ** Constant Currency (CC) excluding the impact of FX 201
Slide 14: EBITA Progression
EBITA PROGRESSION WHOLLY OWNED EBITA GROWTH +13.6% (+13.7% CC*) €m 160 15.3% (1.7)% 0.1% €157m 155 150 145 140 €139m (0.1)% 135 130 HY15 FX Glanbia Performance Glanbia Nutritionals Dairy Ireland HY16 Nutrition * Constant Currency (CC) excluding the impact of FX 2016 HALF YEAR RESULTS 14
Slide 15: Summary Income Statement
SUMMARY INCOME STATEMENT HY 2016 results summary Reported currency Constant currency pre exceptional €m HY16 HY15 Change Change Revenue (Wholly-owned) 1,434.8 1,431.7 +0.2% +0.4% EBITA (Wholly-owned) 157.4 138.5 +13.6% +13.7% EBITA margin 11.0% 9.7% +130 bps +130 bps - Amortisation of intangibles (1
Slide 16: Exceptional Items Summary
EXCEPTIONAL ITEMS SUMMARY €m HY16 HY15 1. Organisational redesign costs (6.2) (3.1) 2. Acquisition integration costs (1.9) - 3. Rationalisation costs (0.8) (1.1) 4. Disposal of interest in Joint Venture - (3.6) Exceptional charge pre-tax (8.9) (7.8) Taxation credit 1.6 0.5 Total exceptional charge (
Slide 17: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW Financing KPIs HY16 HY15 Net debt €644 million €577 million Net debt / Adjusted EBITDA1 1.83 times 1.97 times Adjusted EBIT1 / Net Finance Cost 11.4 times 9.8 times 1. The definition of adjusted EBITDA and adjusted EBIT are as per our financing agreements and include dividen
Slide 18: Summary & Outlook
SUMMARY & OUTLOOK 2016 HALF YEAR RESULTS
Slide 19: Strategy Progression
STRATEGY PROGRESSION GPN delivering strong growth Integrating and growing the thinkThin business Glanbia Nutritionals rebranded with new commercial organisation in place Continued growth of value added Nutritional Ingredients business Expanded margins across the Group Well managed cash p
Slide 20: 2016 Outlook
2016 OUTLOOK • Good performance in the first half and positive outlook for 2016 • GPN expected to deliver full year like 2016 guidance: for like branded revenue growth in line with the first half 8% TO 10% Adjusted EPS growth • GN expected to deliver modest EBITA progression for full year • Reiterat
Slide 21: Investor Relations Contact
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 86 046 8375