Glanbia Plc · EURONEXT:GL9
Glanbia — H1 2023 Earnings Presentation
21 slides from Glanbia's earnings presentation, Aug 16, 2023
Slide 1: Glanbia plc Half Year 2023 Results Presentation
Glanbia plc Half Year 2023 Results Presentation 16 August 2023 Siobhán Talbot Mark Garvey Group Managing Director Group Finance Director
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: HY 2023 Highlights
HY 2023 Highlights Results delivery Strategic delivery Adjusted EPS* 60.78c – ahead of expectations Optimum Nutrition (“ON”) R12M revenue >$1bn • Growth of +6.6% constant currency • L12W US consumption +14.3%** Strong balance sheet Continued investment in brands, innovation, • Strong cash conversion
Slide 4: HY 2023 Revenue overview
HY 2023 Revenue overview GPN LFL* branded revenue growth +3.7% led by Optimum Nutrition brand GN revenue decline primarily supply chain rebalancing and dairy market pricing in the period HY 2023 Revenue Growth (Constant Currency) Acquisitions Volume Price LFL* Total / Disposals BRANDED -7.2% +10.9%
Slide 5: Glanbia Performance Nutrition
Glanbia Performance Nutrition Operations review 5
Slide 6: GPN – HY 2023 performance
GPN – HY 2023 performance HY 2023 $’m HY 2023 Growth* GPN Revenue Mix % Revenue 888.9 3.4% 18% EBITA 107.8 20.4% EBITA Margin % 12.1% +170bps 60% • LFL branded growth +3.7%: volume -7.2%, pricing +10.9% 11% • ON global revenue growth +16.2%: volume +2.6% pricing +13.6% Portfolio • Good demand and co
Slide 7: GPN - HY 2023 revenue overview
GPN - HY 2023 revenue overview LFL growth across all regions, channels, and formats 4% 10% 13% 34% 35% 11% 20% 66% 75% 32% LFL LFL LFL growth: growth: growth: Americas 0% FDMC +7% Powders +13% International +12% Online +3% RTE -23% Distributor -7% RTD -9% Specialty +14% GLANBIA PLC | HALF YEAR 2023
Slide 8: Optimum Nutrition ("ON")
Optimum Nutrition (“ON”) Strong revenue, consumption momentum continues HY 2023 % of HY 2023 US Consumption* GPN Revenue LFL growth 60% +16.2% +14.3% Brand Activation • Priority for investment to deliver growth Volume growth Price growth • “More of You in You” campaign activation continues in all ma
Slide 9: Healthy Lifestyle and Weight Management
Healthy Lifestyle and Weight Management Isopure enjoys strong consumption growth, SlimFast remains soft Healthy Lifestyle Weight Management HY 2023 % of HY 2023 HY 2023 % of HY 2023 US Consumption* US Consumption* GPN Revenue LFL growth GPN Revenue LFL growth 18% +5.7% +11.7% 11% -31.1% -33.0% Brand
Slide 10: Glanbia Nutritionals
Glanbia Nutritionals Operations review 10
Slide 11: GN – HY 2023 performance
GN – HY 2023 performance HY 2023 Growth* HY 2023 results summary Revenue EBITA Margin % Revenue EBITA Margin % $’m Nutritional Solutions 525.5 67.8 12.9% -17.8% -13.3% +70bps US Cheese 1,357.0 23.0 1.7% -14.1% +18.6% +50bps Total Glanbia Nutritionals 1,882.5 90.8 4.8% -15.2% -7.0% +40bps Sequential
Slide 12: GN NS – HY 2023 performance
GN NS – HY FY 2022 2023 performance performance $’m HY 2023 Growth* Revenue 525.5 -17.8% EBITA 67.8 -13.3% EBITA Margin % 12.9% +70bps • LFL revenue -15.2%: volume -10.4%, pricing -4.8% • Positive pricing in premix business offset by lower dairy market pricing in proteins • Protein volumes stable, p
Slide 13: GN NS – trends sequentially improving
GN NS – trends sequentially improving LFL Volume by Quarter Sequential improvement in volumes through HY 2023 Improving volume trends expected to continue into second half -17.4% HY 2023 custom premix solutions revenue -10.4% impacted by customer supply chain -3.8% rebalancing Q1 Q2 HY HY 2023 prote
Slide 14: GN US Cheese – HY 2023 performance
GN US Cheese – HY 2023 performance $’m HY 2023 Growth* Revenue 1,357.0 -14.1% EBITA 23.0 +18.6% EBITA Margin % 1.7% +50bps • LFL decline -14.1%: volume +0.4%, pricing -14.5% • Pricing reflects lower US cheese markets • Robust pass through pricing model which protects margin from changes in market pr
Slide 15: HY 2023 Finance review
HY 2023 Finance review Mark Garvey Group Finance Director 15
Slide 16: HY 2023 Group Income Statement
HY 2023 Group Income Statement HY 2023 results summary Constant Reported currency pre-exceptional $’m currency HY 2023 HY 2022 Change Change Revenue 2,771.4 3,091.3 -10.3% -10.0% EBITA 198.6 187.6 +5.9% +6.1% EBITA margin % 7.2% 6.1% Amortisation (40.0) (39.5) • Revenue broadly in line with expectat
Slide 17: HY 2023 Strong Balance Sheet
HY 2023 Strong Balance Sheet Sale of Glanbia Cheese JVs Strong cash conversion HY 2023 Interim dividend increased for €178.9m* strategic capex by 10% Net debt $450.8m $27m Sale of Aseptic Solutions €64.5m returned in share for $11.2m Net debt to adjusted FY 2023 total capex buybacks EBITDA c.1 times
Slide 18: US joint venture commercial agreements
US joint venture commercial agreements US joint ventures - very strong business model for participation in US dairy Amending commercial agreements with US joint ventures to simplify Group reporting from 2024 Glanbia will act as agent for the joint ventures; recognising commissions earned on the sale
Slide 19: FY 2023 Guidance
FY 2023 Guidance Lead & grow Optimise our Disciplined our core business financial management Organic revenue growth Margin & earnings growth Capital allocation GPN LFL revenue growth: GPN EBITA margin: OCF conversion %: low-end 5-7% range 13.5-14.5% 80%+ GN NS volume: GN NS EBITA margin: ROCE: mid-s
Slide 20: Glanbia: At the Heart of Better Nutrition
Glanbia: At the Heart of Better Nutrition Category trends remain positive with continued consumer and customer demand for better nutrition brands and ingredients Strong FY 2023 Group earnings and margin progression expected, driven by GPN Upgrading FY 2023 guidance to 12% to 15% growth in adjusted E
Slide 21: Questions?
Questions?