Glanbia Plc · EURONEXT:GL9
Glanbia — Kepler Cheuvreux & Barclays Conferences September 2020
22 slides from Glanbia's conference presentation, September 2020
Slide 1: Kepler Cheuvreux & Barclays Conferences
Kepler Cheuvreux & Barclays Conferences September 2020 Group Finance Director
Slide 2: Important notice
2 Glanbia plc | Half Year 2020 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 inherent unc
Slide 3: Delivering better nutrition for every step of life's journey
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY Group Consumer Brands Value-added €1.4bn ingredients €0.7bn Performance Nutrition Lifestyle Dairy & non- dairy solutions Primary dairy €2.7bn
Slide 4: Evolving market dynamics
4 Glanbia plc | Half Year 2020 presentation Evolving market dynamics Consumers Customers Our Communities • Increased focus on health and • Acceleration in growth in • Our values came to life with wellness brands and ingredients ecommerce and decline of multiple examples of community specialty channe
Slide 5: Our strategy is aligned to the new environment
5 Glanbia plc | Half Year 2020 presentation Our strategy is aligned to the new environment Glanbia Glanbia Performance Group Nutrition Nutritionals • Streamline products, prioritise • Grow solutions capability across • Existing ON and SlimFast brands key platforms Maintain prudent capital strategy d
Slide 6: GPN Half Year review
6 Glanbia plc | Half Year 2020 presentation GPN Half Year review EBITA MARGIN €19.6m 3.7% -59.1% cc -390 bps North America Performance Nutrition Revenue progression • Strong underlying branded performance in online and FDMC 1.7% channels offset by weak specialty and distributor channels in Q2 North
Slide 7: GPN transformation focused on revenue and margin growth
7 Glanbia plc | Half Year 2020 presentation GPN transformation focused on revenue and margin growth International Channel focus route-to-market Portfolio streamlined – Supply chain consolidation 35% of SKUs removed underway Demand and ON & SlimFast now 69% of sales NA Contract exit on track Revenue
Slide 8: Significant position in growth channels – online and FDMC
8 Glanbia plc | Half Year 2020 presentation Significant position in growth channels – online and FDMC Revenue by channel Specialty 20% Specialty FDMC 14% 34% FDMC 40% Channel HY 20 Growth* Distributors 12% FDMC +1% Online +11% Distributors (46%) Specialty (41%) Distributors 20% *Reported currency On
Slide 9: GPN has a scale business in North America
9 Glanbia plc | Half Year 2020 presentation GPN has a scale business in North America Revenue by market DTC DTC 6% 7% North America North America Performance Performance Market HY 20 Growth Nutrition Nutrition 38% 37% NA PN* (11%) NA Lifestyle +2% International 21% International (33%) International
Slide 10: Nutritional Solutions Half Year review
10 Glanbia plc | Half Year 2020 presentation Nutritional Solutions Half Year review EBITA MARGIN Non-dairy Ingredients €48.1m 12.4% -130 bps • Strong underlying demand for essential micro nutrients • Some volume headwinds in ‘food-to-go’ category due to - 6.8% cc Covid-19 Revenue progression Dairy I
Slide 11: Nutritional Solutions Strategy
11 Glanbia plc | Half Year 2020 presentation Nutritional Solutions Strategy Providing the building blocks Core for our customers’ brands • Powerful trends driving end market growth in the following categories Solutions • Core solutions are essential micro nutrients and value-added protein ingredient
Slide 12: US Cheese Half Year review
12 Glanbia plc | Half Year 2020 presentation US Cheese Half Year review EBITA MARGIN €17.3m 1.9% +10 bps +20.1% cc Volumes Revenue progression • Strong volume performance driven by customers with retail end markets Pricing • Pricing volatile in Q2; pass through model 10.3% operated with suppliers 6.
Slide 13: Joint Ventures Half Year review
13 Glanbia plc | Half Year 2020 presentation Joint Ventures Half Year review JV business model • JV business models performed robustly in period of Revenue* Share of PAT** unprecedented volatility €453.6m €31.8m Revenue • Decline driven by negative market pricing in Europe -1.4% cc +17.3% cc Profita
Slide 14: Strong Cash Flow enabling investment & returns
14 Glanbia plc | Half Year 2020 presentation Strong Cash Flow enabling investment & returns Total capex €47m €18m €29m 10.68c Operating Cash Flow Dividends from JVs Capital Expenditure Interim Dividend OCF improved by €28 Operated to plan FY20 capex expected Dividend payout million across the Group
Slide 15: Improving Balance Sheet
15 Glanbia plc | Half Year 2020 presentation Improving Balance Sheet Balance Sheet KPIs HY 2020 HY 2019 • Strong Balance Sheet to navigate the Covid-19 pandemic • Net debt decreased by €127m Net Debt €651m €778m on prior half year mainly due to strong cash generation Net Debt / Adj. EBITDA 1.95x 2.1
Slide 16: Glanbia structured well to capture opportunities
16 Glanbia plc | Half Year 2020 presentation Glanbia structured well to capture opportunities Trends driving our business have grown more powerful Health and wellness Digital Our Categories of GPN sales now Protein category resilient Brand in Producer of protein online performance nutrition solution
Slide 17: Questions
Questions
Slide 18: Appendix
APPENDIX
Slide 19: Segmental Analysis
19 Glanbia plc | Half Year 2020 presentation Segmental Analysis €’m Reported currency Constant currency Glanbia Performance Nutrition HY 2020 HY 2019 HY 2019 Growth % Revenue 532.4 620.1 630.6 -15.6% EBITA 19.6 46.9 47.9 -59.1% EBITA margin 3.7% 7.6% 7.6% -390 bps €’m Reported currency Constant curr
Slide 20: Segmental Analysis
20 Glanbia plc | Half Year 2020 presentation Segmental Analysis €'m Reported currency Constant currency Nutritional Solutions HY 2020 HY 2019 HY 2019 Growth % Revenue* 387.9 369.6 376.9 2.9% EBITA 48.1 50.5 51.6 -6.8% EBITA margin 12.4% 13.7% 13.7% -130 bps €'m Reported currency Constant currency US
Slide 21: Segmental Analysis
21 Glanbia plc | Half Year 2020 presentation Segmental Analysis €'m Reported currency Constant currency Revenue HY 2020 HY 2019 HY 2019 Growth % Glanbia Performance Nutrition 532.4 620.1 630.6 -15.6% Nutritional Solutions 387.9 369.6 376.9 2.9% US Cheese 916.4 768.7 788.1 16.3% Glanbia Nutritionals*
Slide 22: Segmental Analysis
22 Glanbia plc | Half Year 2020 presentation Segmental Analysis €'m Reported currency Constant currency EBITA HY 2020 HY 2019 HY 2019 Growth % Glanbia Performance Nutrition 19.6 46.9 47.9 -59.1% Nutritional Solutions 48.1 50.5 51.6 -6.8% US Cheese 17.3 14.0 14.4 20.1% Glanbia Nutritionals 65.4 64.5
Glanbia — Kepler Cheuvreux & Barclays Conferences September 2020 on 6ix