Glanbia PLC · EURONEXT:GL9
Glanbia — FY2007 Earnings Presentation
23 slides from Glanbia's earnings presentation, Mar 5, 2008
Slide 1: 2007 Results
glanbia 2007 Results
Slide 2: Contents
Contents ● Section 1: Results 3-10 ● Section 2: Dairy Sector 11-13 ● Section 3: Strategy & Outlook 14-18 ● Section 4: Supplementary Information 19-22 2007 Results Presentation : March 5, 2008 Slide 2
Slide 3: Section 1: Results
SECTION 1: Results Business Presentation Slide 3
Slide 4: Results Summary
Results Summary ● Excellent year with strong set of results ● Growth strategy delivering ● Focus on growth markets in cheese and nutritional ingredients ● 2007 buoyant global dairy markets - Some short term volatility - Positive forward outlook ● On target to deliver further double digit earnings gr
Slide 5: 2007 Results Highlights
2007 Results Highlights € 2007 2006 Change Revenue1 2,206.6m 1,853.4m Up 19% Operating profit 115.8m 85.6m Up 35% Operating margin 5.2% 4.6% Up 60 bps Net financing costs (17.3)m (14.0)m Up €3.3m Share of joint ventures and associates1 1.0m 2.8m Down €1.8m Profit before tax 99.5m 74.4m Up 34% Profit
Slide 6: 2007 Key Performance Indicators
2007 Key Performance Indicators ● Organic revenue growth (like-for-like) up 19% to €2.2 billion ● Adjusted earnings per share up 25% to 28.2 cent ● Operating margin excluding joint ventures and associates up 60 bps to 5.2% ● EBITDA growth from €114.3 million to €149.2 million ● Free cash flow up €22
Slide 7: 2007 Segmental Analysis (including share of JV's & Associates)
2007 Segmental Analysis (including share of JV’s & Associates) BY DIVISION BY REGION Revenue Revenue 20% 34% 69% 11% 66% Operating16% Profit pre exceptional Operating Profit pre exceptional 15% 26% 10% 75% 74% Consumer Foods Ireland Agribusiness & Property International Food Ingredients & Nutritiona
Slide 8: 2007 Divisional Results - Ireland
2007 Divisional Results IRELAND 2007 2006 Revenue Operating Operating Revenue Operating Operating €m Profit* Margin % €m Profit* Margin % €m €m Consumer Foods 510.8 17.8 3.5 511.0 24.5 4.8 Agribusiness & Property 292.6 12.8 4.4 264.5 16.9 6.4 Total 803.4 30.6 3.8 775.5 41.4 5.3 * Pre exceptional ● M
Slide 9: 2007 Divisional Results - International
2007 Divisional Results INTERNATIONAL 2007 2006 Revenue Operating Operating Revenue Operating Operating €m Profit* Margin % €m Profit* Margin % €m €m Food Ingredients & Nutritionals 1,403.2 85.2 6.1 1,077.9 44.2 4.1 Joint Ventures & Associates 372.1 5.9 1.6 262.9 5.4 2.1 Total 1,775.3 91.1 5.1 1,340
Slide 10: Nutritional Brand Portfolio
Nutritional Brand Portfolio Protein Fortification Health & Wellness Avonlac™ Sports & Performance Nutrition Nutrition Bar Solutions Weight Management 2007 Results Presentation : March 5, 2008 Slide 10
Slide 11: Section 2: Dairy Sector
SECTION 2: Dairy Sector Business Presentation Slide 11
Slide 12: 2007 Dairy Sector Environment
2007 Dairy Sector Environment ● Global dairy demand is exceeding supply and is likely to continue to do so - Lower food stocks globally and related price developments - New land uses for bio fuel production continues to impact the supply side - Developing economies and emerging middle classes are po
Slide 13: Dairy Value Chain: Increasing Value Add / Margins
Dairy Value Chain Increasing Value Add / Margins Feed Grade - Commodities 2007 Results Presentation : March 5, 2008 Slide 13
Slide 14: Section 3: Strategy & Outlook
Dairy Value Chain SECTION 3: Strategy & Outlook Increasing Value Add / Margins 2007 Results Presentation : March 5, 2008 Slide 14
Slide 15: 2008 Outlook
2008 Outlook ● Confident of another good performance - Improved results from Consumer Foods Ireland - Satisfactory outlook for Agribusiness & Property - Sustained performance from Food Ingredients Ireland - Good performance from Food Ingredients USA - Strong organic growth forecast for Global Nutrit
Slide 16: Strong Global Footprint
Strong Global Footprint ● 4,000 Employees ● 5,501 Milk Suppliers ● 4.12 billion litres milk processed ● 400,000 tonnes cheese produced ● 260,000 tonnes of food ingredients manufactured 2007 Results Presentation : March 5, 2008 Slide 16
Slide 17: Glanbia Core Model – Food Ingredients & Nutritionals
Glanbia Core Model – Food Ingredients & Nutritionals Acquisition of complementary ingredients and technologies Margin Growth Innovation Rate Volumes Strong commercial and operational competencies, building capacity for future growth Significant manufacturing operations with a major focus on efficien
Slide 18: Developing Glanbia
Developing Glanbia ● Goal is to be a world leading cheese and nutritional ingredients group ● Scale cheese production leverages strong whey supply to deliver a wide range of nutritional ingredients ● Portfolio of nutritional ingredients expanding to include complementary non dairy ingredients, which
Slide 19: Section 4: Supplementary Information
SECTION 4: Supplementary Information Business Presentation Slide 19
Slide 20: Consolidated Income Statement – Pre Exceptional
Consolidated Income Statement – Pre Exceptional € million 2007 2006 Revenue 2,206.6 1,853.4 Operating profit 115.8 85.6 Finance income and costs (17.3) (14.0) Share of results of joint ventures and associates 1.0 2.8 Profit before tax 99.5 74.4 Taxation (16.4) (8.0) Profit for the year 83.1 66.4 200
Slide 21: Summary Group Balance Sheet
Summary Group Balance Sheet € million 2007 2006 Change Property, plant and equipment 298.8 335.2 (36.4) Investments 91.1 82.1 9.0 Intangible assets 137.6 138.7 (1.1) Non-current receivables 13.9 0.0 13.9 Working capital 63.6 40.1 23.5 Non-current liabilities (36.1) (46.2) 10.1 Retirement benefit obl
Slide 22: Summary Group Cash Flow
Summary Group Cash Flow € million 2007 2006 Operating profit 92.3 73.1 Depreciation and amortisation 33.3 25.5 Non cash exceptional loss on exit from pigmeat 13.7 0.0 Exceptional loss on repayment of Cheese Company loan note 0.0 9.1 Gain on disposal of assets and investments (3.0) (9.0) Interest and
Slide 23: Business Presentation Slide 23
Business Presentation Slide 23