Glanbia Reports Robust Full-Year 2023 Results, Achieves 20.5% Growth in Adjusted EPS
Source: The DairyNews
Glanbia plc announces its preliminary results for the 2023 financial year ended 30 December 2023, Dairy news.today writes.
All figures presented are in US dollar unless stated otherwise, with comparative figures also restated in US dollar, company reported.
Group Financial Performance:
Adjusted earnings per share (“EPS”)1 of 131.37 $cent (2022: 109.57 $cent) representing growth of 20.5% constant currency (up 19.9% reported);
Group revenues of $5.4 billion (2022: $5.9 billion) representing a decline of 8.7%, constant and reported currency;
Group EBITA pre-exceptional $424.0 million (2022: $365.7 million), an increase of 16.4% constant currency (up 15.9% reported);
Basic EPS of 129.21 $cent (2022: 98.40 $cent);
Operating Cash Flow (“OCF”) conversion of 90.4% (2022: 85.7%) and year end net debt to adjusted EBITDA ratio of 0.5 times (2022: 1.13 times);
Glanbia Performance Nutrition (“GPN”):
Like-for-like (“LFL”) branded revenue growth of 5.1% with pricing +5.4% and volume -0.3%;
Optimum Nutrition (“ON”) brand delivered LFL revenue growth of 17.0% with both volume and price growth; US consumption growth2 of 13.7% for the 52 week period;
Increased brand and marketing investment, prioritising the protein growth brands of Optimum Nutrition, Isopure and think!;
EBITA margin of 14.2% (2022: 11.2%), an increase of 300bps;
Glanbia Nutritionals (“GN“) - Nutritional Solutions (“GN NS”):
LFL revenue decrease of 12.3% with pricing -9.0% and volume -3.3%;
Volume trends continued to improve through the second half of FY23 with volume growth in Q3 and Q4;
EBITA margin of 12.5% (2022: 11.4%), an increase of 110bps.
A recommended final dividend per share of 21.21 €cent, resulting in a total 2023 dividend of 35.43 €cent—indicating a 10% YoY increase and a 29.2% payout ratio. The Group returned €100 million to shareholders through share buybacks in the fiscal year, with plans to initiate an additional €100 million buyback in FY 2024.
Glanbia expects to deliver adjusted EPS growth of 5% to 8% constant currency in FY 2024, company reported.
Hugh McGuire, Chief Executive Officer:
"Our strong operational and financial performance continued to generate excellent cash flow, with 90.4% cash conversion in the year. We continued to evolve our portfolio with the acquisition of a bioactive ingredients business and the sale of our share of Glanbia Cheese joint ventures. We increased the dividend by 10% and returned €100 million to shareholders via our share buyback programme.
Glanbia is a company with very strong fundamentals – a clear strategy, a portfolio of great brands and ingredients playing into strong underlying consumer health and wellness trends with a team of talented people. Looking ahead, we will focus on driving growth and shareholder value by stepping up awareness and distribution of our great brands, with a robust innovation pipeline across both our growth platforms. In 2024, we expect adjusted EPS growth of 5% to 8% constant currency, which will be driven by a strong operating performance across both GPN and GN NS.”
Group Financial Performance:
Adjusted earnings per share (“EPS”)1 of 131.37 $cent (2022: 109.57 $cent) representing growth of 20.5% constant currency (up 19.9% reported);
Group revenues of $5.4 billion (2022: $5.9 billion) representing a decline of 8.7%, constant and reported currency;
Group EBITA pre-exceptional $424.0 million (2022: $365.7 million), an increase of 16.4% constant currency (up 15.9% reported);
Basic EPS of 129.21 $cent (2022: 98.40 $cent);
Operating Cash Flow (“OCF”) conversion of 90.4% (2022: 85.7%) and year end net debt to adjusted EBITDA ratio of 0.5 times (2022: 1.13 times);
Glanbia Performance Nutrition (“GPN”):
Like-for-like (“LFL”) branded revenue growth of 5.1% with pricing +5.4% and volume -0.3%;
Optimum Nutrition (“ON”) brand delivered LFL revenue growth of 17.0% with both volume and price growth; US consumption growth2 of 13.7% for the 52 week period;
Increased brand and marketing investment, prioritising the protein growth brands of Optimum Nutrition, Isopure and think!;
EBITA margin of 14.2% (2022: 11.2%), an increase of 300bps;
Glanbia Nutritionals (“GN“) - Nutritional Solutions (“GN NS”):
LFL revenue decrease of 12.3% with pricing -9.0% and volume -3.3%;
Volume trends continued to improve through the second half of FY23 with volume growth in Q3 and Q4;
EBITA margin of 12.5% (2022: 11.4%), an increase of 110bps.
A recommended final dividend per share of 21.21 €cent, resulting in a total 2023 dividend of 35.43 €cent—indicating a 10% YoY increase and a 29.2% payout ratio. The Group returned €100 million to shareholders through share buybacks in the fiscal year, with plans to initiate an additional €100 million buyback in FY 2024.
Glanbia expects to deliver adjusted EPS growth of 5% to 8% constant currency in FY 2024, company reported.
Hugh McGuire, Chief Executive Officer:
"Our strong operational and financial performance continued to generate excellent cash flow, with 90.4% cash conversion in the year. We continued to evolve our portfolio with the acquisition of a bioactive ingredients business and the sale of our share of Glanbia Cheese joint ventures. We increased the dividend by 10% and returned €100 million to shareholders via our share buyback programme.
Glanbia is a company with very strong fundamentals – a clear strategy, a portfolio of great brands and ingredients playing into strong underlying consumer health and wellness trends with a team of talented people. Looking ahead, we will focus on driving growth and shareholder value by stepping up awareness and distribution of our great brands, with a robust innovation pipeline across both our growth platforms. In 2024, we expect adjusted EPS growth of 5% to 8% constant currency, which will be driven by a strong operating performance across both GPN and GN NS.”
