A strong set of financials with broad-based revenue growth in all divisions was announced today by Glanbia PLC.
Adjusted pro-forma year-on- year Earnings Per Share (EPS) increased by 10.2% (constant currency basis, 8.3% reported) to 87.11 Euro cents. After-tax profit increased by €117.3 million on prior year to €329.4 million driven by disposal of 60% of the Dairy Ireland segment plus strong underlying growth, particularly in the Glanbia Performance Nutrition (GPN) division.
GPN delivered revenue growth of 13.7% constant currency (up 11.3% reported) with like-for-like branded sales growth of 6.3% and EBITA of €169.7 million, a 7.0% increase on prior year, constant currency (up 4.8% reported).
Glanbia Nutritionals reported corresponding revenue growth of 5.4% constant currency (up 3.4% reported) while Joint Ventures increased their share of (pre-exceptional) profits by €16.8 million to €42.8 million.
Group debt reduced by €69.8 million to €367.7 million at year-end 2017, and recommended a final dividend of 16.09 cents per share.
Full year dividend increased by 65% to 22 cents per share, reflecting Glanbia’s ongoing target dividend pay-out ratio of 25%-35% of adjusted EPS.
“I am delighted to announce Glanbia’s eighth year of double-digit earnings growth in 2017. On a pro-forma basis from continuing operations adjusted Earnings Per Share1 was up 10.2%, constant currency, and wholly owned revenue was up 9.2%, constant currency. Growth was broad based across GPN), GN and JVs with good volume growth across all segments,” commented Siobhán Talbot, Group Managing Director.
“The strategic evolution of the Group portfolio continued in 2017 with the acquisition of two highly complementary businesses to the GPN portfolio, Amazing Grass and Body & Fit as well as the disposal of 60% of Dairy Ireland and the subsequent creation of the Glanbia Ireland JV.”
2018 Outlook
Talbot envisaged continuing growth in 2018, but emphasised that it would be achieved primarily during the second half of the year as comparative dairy dynamics and planned investments will adversely affect performance in the first half of 2018.
“These initiatives demonstrate the ambition of the Group to build on its existing strengths, drive future sustainable growth and deliver on our vision to be one of the world’s top performing nutrition companies,“ said Talbot .
“Our focus in 2018 will be on volume driven revenue growth across our wholly owned growth platforms of GPN and GN. The outlook for 2018 is positive and I expect Glanbia will deliver between 5% to 8% growth in pro-forma1 adjusted EPS on a constant currency basis. We expect growth to be delivered in the second half of 2018 as comparative dairy dynamics and planned investments will adversely affect performance in the first half of 2018.”
Glanbia’s share price was 5.0% lower at €13.85 in mid-morning trading.