Glanbia plc has today (Wednesday, February 28) reported group revenues of $5.4 billion for the 2023 financial year (FY23).
This represents a decline of 8.7% on a constant currency basis when compared to the 2022 figure of $5.9 billion.
However, adjusted earnings per share (EPS) stood at 131.37 cents, up by a fifth on the previous year on a constant currency basis (109.57 cents).
The financial results show that group EBITDA pre-exceptional (earnings before interest, taxes, depreciation, and amortisation) for the year was $420 million (2022: $365.7 million), an increase of 16.4% on a constant currency basis.
Profit after tax increased by 20% on the 2022 figure ($248 million) to $298.1 million last year.
Last March, the group announced that it was changing its reporting currency from euro to US dollar.
Glanbia
Glanbia Performance Nutrition (GPN) reported revenue growth of 4.8% to €1.79 billion, with pricing up by 5.4% and volume down by 0.6%.
The volume decline was largely driven by the SlimFast brand, which represents 9% of GPN revenue.
The Optimum Nutrition (ON) brand, which is 62% of GPN revenue, delivered like-for-like revenue growth of 17% with both volume and price growth.
The report shows there was increased brand and marketing investment, which prioritised the protein growth brands of Optimum Nutrition.
The EBITA margin in the division stood at 14.2% (2022: 11.2%), an increase of 300 basis points (bps).
In the Glanbia Nutritional Solutions (GN NS) division there was a 14.9% drop in revenue.
This was driven by a 3.3% decrease in volume, a 9% decrease in price and a decrease of 2.6% due to the impact of acquisitions and disposals.
GN NS EBITA was $126.2 million, a 6.2% decline on the previous year, primarily as a result of the volume decline in the first half of 2023.
EBITA margins increased by 110 basis points (bps) on 2022 to 12.5% as a result of both operating efficiencies and the impact of lower dairy pricing.
Glanbia noted that GN NS volume trends improved through the second half of FY23 with volume growth in the third and fourth quarters of the year.
Shareholders
The Glanbia board has recommended a final dividend per share of 21.21 cents (in euro); representing a total 2023 dividend of 35.43 cents (in euro), up 10% on 2022.
During 2023 Glanbia purchased and cancelled 7,215,827 million ordinary shares, representing 2.7% of total issued ordinary shares at the beginning of the year, at a total cost of €100 million.
Glanbia said that based on “the group’s strong cash flow and financial position” a further €100 million will be returned through share buybacks in 2024. This will commence with a €50 million buyback programme being launched today.
Commenting on the financial results, Hugh McGuire, Glanbia chief executive, said that the group had delivered “an excellent performance in 2023).
“This was driven by strong global consumer demand, with Optimum Nutrition continuing its growth momentum, delivering volume and price growth in the period.
“In our Nutritional Solutions business, overall volume trends continued to improve through the year, with a sequential improvement in volume growth in the fourth quarter,” he said.
“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,” McGuire added.
“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 earnings per share (EPS) growth of 5% to 8% constant currency, which will be driven by a strong operating performance across both GPN and GN NS,” he said.