Glanbia delivers strong first half 2021, ahead of expectations
During H1, Glanbia generated over €160 million of operating cash flow and reduced its net debt by over €100 million
Print17 August 2021
Global nutrition group Glanbia has delivered a performance ahead of expectations in the first half of 2021 as strong revenue growth and margin improvements delivered adjusted earnings per share (EPS) growth of 85% on a constant currency basis (up 70.2% reported).
The group also delivered strong cash conversion in the period which has funded capital allocation towards an acquisition, increased dividend and a further share buyback programme. Full year guidance is for adjusted EPS growth of 17% to 22% (constant currency) versus the prior year.
Financial half-year results for the six month period ended 3 July 2021 also reported wholly-owned revenues of €2,042.2 million, up 20.3% constant currency on the prior half year (up 11.2% reported).
Meanwhile, Glanbia Performance Nutrition (GPN) delivered revenue growth of 28.1% constant currency on prior half year (up 19.9% reported).
“I am delighted to announce that Glanbia has delivered a very strong performance in the first half of 2021 when compared to the prior year,” said Siobhán Talbot, group managing director. “The dedication of our people, supply chain partners and customers as we navigated the pandemic together, has positioned Glanbia well on its growth agenda.
She said the growth in wholly-owned revenues was driven by “very strong demand across our GPN branded business relative to the pandemic related challenges in 2020, and our NS ingredients business, which built on a very resilient 2020 performance”.
“The Glanbia team has navigated the pandemic well to date keeping a clear focus on both tactical activity and key strategic initiatives,” Talbot added. “While the group remains vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic, this focused approach gives us the confidence to guide to delivery of full year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year.
Glanbia’s strategic activity included the acquisition of a 60% stake in LevlUp, a European gaming nutrition brand, the commissioning of a $470 million JV plant in Michigan, the progression of its environmental, social and governance (ESG) strategy, and the restructure of legacy pension liabilities to de-risk its balance sheet.
“In the first half, we generated over €160 million of operating cash flow and reduced our net debt by over €100 million,” Talbot added. “As a result of this strong performance we plan to increase returns to shareholders by raising our interim dividend by 10% as well as launching a share buyback programme today of up to €50 million.”
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