Glanbia : 2017 Glanbia Full Year Results

21 Feb 2018

Glanbia delivers eighth year of double-digit earnings growth

21 February 2018 - Glanbia plc ('Glanbia', the 'Group', the 'plc'), the global nutrition group, announces its results for the financial year ended 30 December 2017.

Results highlights for the full year 2017

• On a pro-forma1 basis adjusted Earnings Per Share1 from continuing operations was 87.11 cent, up 10.2% on prior year, constant currency (up 8.3% reported);
• Reported profit after tax of €329.4 million up €117.3 million on prior year driven by underlying performance and the profit arising on the disposal of 60% of the Dairy Ireland segment;
• Wholly owned revenue from continuing operations of €2,387.1 million (2016: €2,231.7 million) up 9.2% on prior year, constant currency (up 7.0% reported)
• Wholly owned EBITA from continuing operations of €283.2 million (2016: €273.3 million) up 5.8% on prior year, constant currency (up 3.6% reported)
• Glanbia Performance Nutrition 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 delivered revenue growth of 5.4% constant currency (3.4% reported) and EBITA of €113.5 million, a 4.1% increase on prior year, constant currency (up 2.0% reported) driven by a good performance from Nutritional Solutions;
• Strong result for the year from Joint Ventures with share of profits pre-exceptionals of €42.8 million up €16.8 million (up 64.6% reported) primarily driven by higher dairy markets and volume growth;
• Completion of the disposal of 60% of the Dairy Ireland segment and creation of a new joint venture, Glanbia Ireland;
• Net debt reduced by €69.8 million to €367.7 million at year end 2017, net debt to EBITDA ratio of 1.07 times; and
• Recommended final dividend of 16.09 cent per share. 2017 full year dividend of 22.00 cent per share an increase of 65% on prior year with revised dividend policy in place targeting an on-going dividend pay-out ratio of 25% to 35% of adjusted earnings per share.

Commenting today Siobhán Talbot, Group Managing Director, said:

'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 Glanbia Performance Nutrition ('GPN'), Glanbia Nutritionals ('GN') and Joint Ventures ('JVs') with good volume growth across all segments.

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. 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. 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 Earnings Per Share 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.

Finally, recognising the strength of the Group's balance sheet and growth prospects, Glanbia has materially increased its 2017 dividend and revised its ongoing target dividend pay-out ratio to between 25% and 35% of annual adjusted Earnings Per Share.'