HALF YEAR RESULTS 20 AUGUST

Transcription

1 2014 HALF YEAR RESULTS 20 AUGUST

2 CAUTIONARY STATEMENT This presentation contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Directors undertake no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise. 2

3 HALF YEAR 2014 PERFORMANCE SUMMARY Total Group Revenue Total Group EBITA Total Group EBITA margin Adjusted EPS Interim Dividend 1.8bn +10.7% 129.5m +10.3% 7.2% +0 bps 32.45c +11.5% 4.43c +10.0% Good performance with 11.5% growth in adjusted EPS Global Performance Nutrition strong driven by revenue growth and margin expansion Global Ingredients satisfactory in context of challenging market backdrop Dairy Ireland behind prior year with good performance for Joint Ventures & Associates 10.0% increase in dividends to 4.43c per share Reiterating 2014 guidance of 8% to 10% growth in adjusted EPS on a constant currency basis Note: (i) Metrics for the Total Group include both the wholly owned businesses and the Group s share of Joint Ventures & Associates. (ii) All growth figures shown are on a constant currency basis 3

4 OPERATIONAL OVERVIEW GLOBAL PERFORMANCE NUTRITION Strong revenue performance driven by growth in both branded and contract revenues Continued strong international revenue growth Focus remains on specialty and internet retail; expanded presence in US club channel Good EBITA margin progression reflecting positive mix & operational leverage Acquisition of Nutramino in January 2014 Growth trends expected to moderate in H Overall good performance expected for FY 2014 REVENUE 374.6m +21.8% EBITA 42.9m +33.6% EBITA margin 11.5% +110bps All growth figures shown are on a constant currency basis 4

5 MARKET LEADING INNOVATION GLOBAL PERFORMANCE NUTRITION OPTIMUM NUTRITION PRO SERIES April 2014 Premium muscle building product targeting elite athletes and goal-driven weight lifters BSN SYNTHA-6 BAR May 2014 Launched in select European markets. High protein bars designed for on-the-go BSN N.O.-XPLODE July 2014 Pre-workout igniter with advanced ingredient technology and best in class flavour 5

6 GPN: DEVELOPMENT UPDATE 6

7 MANUFACTURING EXPANSION GLOBAL PERFORMANCE NUTRITION Phase I of new manufacturing facility commissioned in May 2014 Offers increased efficiency and facilitates internal production of almost all products Phase II due for completion in Q Combined cost c. 50 million Supports growth targets for next 3-4 years 7

8 OPERATIONAL OVERVIEW GLOBAL INGREDIENTS Satisfactory performance overall Underlying market demand trends remain positive Challenging milk procurement environment in Idaho Innovation agenda in US Cheese and Ingredient Technologies progressing Announcing 60 million investment programme in Idaho whey facilities Outlook for FY 2014 is for performance broadly in line with prior year REVENUE 565.8m +10.7% EBITA 53.9m +0.5% EBITA margin 9.5% -100bps All growth figures shown are on a constant currency basis 8

9 60 MILLION DEVELOPMENT PROGRAM ANNOUNCEMENT GLOBAL INGREDIENTS Comprised of two key elements: Expansion of high end whey capacity Expansion of lactoferrin capacity, a specialty milk component used in infant formula and supplements sectors Project is fully aligned with our strategy of adding further value to our whey stream Also supports growth ambitions of GPN Full commissioning expected by end

10 OPERATIONAL OVERVIEW DAIRY IRELAND Performance behind the prior year Consumer Products market backdrop remains challenging Agribusiness performance versus prior year impacted by particularly strong H Cost efficiency measures ongoing across both businesses Outlook for improved performance for FY 2014 REVENUE 353.8m -7.7% EBITA 10.5m -13.2% EBITA margin 3.0% -20bps All growth figures shown are on a constant currency basis 10

11 OPERATIONAL OVERVIEW JOINT VENTURES & ASSOCIATES Good performance overall Glanbia Ingredients Ireland and Glanbia Cheese benefited from favourable dairy market environment Development of new 150 million dairy facility in Glanbia Ingredients Ireland progressing well; long term supply contracts agreed with 94% of suppliers FY 2014 performance expected to be broadly in line with 2013 reflecting more challenging dairy market conditions in H REVENUE 503.4m +19.3% EBITA 22.2m +13.3% EBITA margin 4.4% -20bps All growth figures shown are on a constant currency basis 11

12 FINANCE REVIEW 12

13 FINANCIAL HIGHLIGHTS GOOD PERFORMANCE WITH 11.5% GROWTH IN ADJUSTED EPS* HY 2014 CHANGE CONSTANT CURRENCY CHANGE TOTAL GROUP REVENUE 1.8bn +8.1% +10.7% TOTAL GROUP EBITA 129.5m +6.0% +10.3% TOTAL GROUP EBITA % 7.2% -10 bps +0 bps ADJUSTED EPS 32.45c +6.8% +11.5% * Constant currency 13

14 SEGMENTAL OVERVIEW GROWTH DRIVEN PRIMARILY BY GLOBAL PERFORMANCE NUTRITION HY 2014 Constant currency change m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition % +21.8% +33.6% +110 bps Global Ingredients % +10.7% +0.5% -100 bps Dairy Ireland % -7.7% -13.2% -20 bps Total wholly-owned businesses 1, % +7.7% +9.7% +20 bps Joint Ventures & Associates % +19.3% +13.3% -20 bps Total Group 1, % +10.7% +10.3% +0 bps 14

15 REVENUE ANALYSIS m 1,850 Total Group Revenue Growth +10.7%* 5.0% -2.7% 1, % -1.8% 1,798 1, % 1,700 1,650 1,663 1,600 HY 2013 GPN GI DI JV&As FX HY 2014 * Constant currency 15

16 SEGMENTAL REVENUE ANALYSIS Global Performance Nutrition +21.8%* Global Ingredients +10.7%* 19.6% -0.3% 2.5% -4.8% 13.9% 1.6% -4.5% Volume Price Acq/Disp FX -4.8% Volume Price Acq/Disp FX Dairy Ireland -7.7%* Joint Ventures & Associates +19.3%* Volume Price FX 13.0% -1.4% -4.9% 6.3% -2.8% 0% Volume Price FX * Constant currency 16

17 EBITA ANALYSIS m Total Group EBITA Growth +10.3%* % 0.2% -1.4% 2.2% -4.3% HY 2013 GPN GI DI JV&As FX HY 2014 * Constant currency 17

18 SUMMARY INCOME STATEMENT HY 2014 results summary pre exceptional Reported currency Constant currency m HY 2014 HY 2013 Change Change Revenue 1, , % +7.7% EBITA % +9.7% EBITA margin 8.3% 8.3% No change +20bps Amortisation of intangibles (10.6) (10.0) Net finance costs (10.5) (10.8) Share of results of JV&As Income tax (14.7) (13.9) Profit for the period Adjusted earnings per share 32.45c 30.39c +6.8% +11.5% 18

19 CASHFLOW & FINANCING Working capital efficiency programme ongoing YTD capex 57 million. 130 million expected for FY 2014 ( 90 million strategic) Redemption of 39.1 million of preference shares in July 2014 Group now has two sources of committed debt finance totalling million; million revolving loan facilities maturing January million ($325 million) private placement of senior loan notes maturing June 2021 NET DEBT HY 2013: 444.7m 471.8m NET DEBT / ADJ. EBITDA 1 HY 2013: 2.0x 2.0x INTEREST COVER 1 HY 2013: 8.6x 8.1x 1. The definition of adjusted EBITDA and adjusted EBIT is as per our financing agreements and includes dividends from Joint Ventures & Associates. 19

20 SUMMARY & OUTLOOK 20

21 SUMMARY Good performance for H Strong growth in Global Performance Nutrition with Global Ingredients broadly in line Ongoing focus on strategic capital investment with a new 60 million capacity expansion in Global Ingredients Overall outlook for 2014 is positive Reiterating guidance of 8% to 10% in adjusted EPS on a constant currency basis 21

22 SUPPLEMENTARY INFORMATION 22

23 SUMMARY CASH FLOW m HY 2014 HY 2013 EBITDA Dividends from Joint Ventures & Associates Working capital movement (83.9) (94.1) Net interest and tax paid (24.6) (23.9) Business sustaining capital expenditure (23.6) (18.2) Other outflows (7.2) (4.5) Free cash flow (14.0) (23.9) Strategic capital expenditure (33.6) (28.3) Acquisitions (21.1) - Disposals Restructuring costs (9.2) (1.9) Equity dividends (17.7) (16.0) Cash flow pre currency exchange/fair value adjustments/other (94.7) (68.2) Currency exchange/fair value adjustments/other (2.7) 0.1 Movement in net debt in the period (97.4) (68.1) Net debt at beginning of period (374.4) (376.6) Net debt at end of period (471.8) (444.7) 23

24 SUMMARY BALANCE SHEET m HY 2014 HY 2013 Property, plant and equipment Investments Intangible assets Non-current receivables Deferred tax/capital grants (76.6) (66.4) Working capital Retirement benefit obligations (91.4) (84.9) Provisions (36.6) (42.0) 1, ,067.2 Net debt (471.8) (444.7) Shareholders equity

25 2014 INVESTOR DAY This event will focus solely on Glanbia s Global Performance Nutrition segment. As well as learning about the long term strategy of the business, attendees will gain an in-depth understanding of our approach to marketing, operations and international expansion. There will also be a visit to our new state-of-the-art manufacturing facility. All of Glanbia s executive management team will be in attendance as well as a number of senior Global Performance Nutrition management. Please register your interest by ing investorday@glanbia.com 25

26 Glanbia plc Glanbia House Ring Road Kilkenny Ireland Tel: