Glanbia targets group revenue of over €5 billion by 2022

Glanbia outlined its group ambitions at the company’s Capital Markets Day in its US “innovation center” in Illinois.

The event was held yesterday (Wednesday, May 23) beginning at 8:00am and running through until 6:00pm local time.

The group gave a breakdown of its 2018 full year guidance, as well as an outline of its five-year financial ambition – targeting revenue growth of 38% by the end of 2022.

Commenting at the event, Siobhan Talbot, group managing director of Glanbia said: “I’m very pleased to host our 2018 Capital Markets Day at our innovation center in Downers Grove, Illinois.

Over the course of the event, my colleagues and I will outline our ambition to grow total group revenue from €3.6 billion, pro forma, in 2017 to over €5 billion by 2022.

“Glanbia is today a focused group with market leading platforms in performance nutrition, value-added nutritional solutions and dairy ingredients,” she added.

“We are well positioned to capture growth from global consumer nutrition trends related to health and wellness, active lifestyles and clean ingredients.”

Glanbia Group – with its three platforms of Glanbia Performance Nutrition, Glanbia Nutritionals and Strategic Joint Ventures – is positioned to deliver long-term sustainable growth, the company claims.

This will be enabled by organic growth and selective mergers and acquisitions, according to the dairy giant.

With a “strong balance sheet”, the group says it has the capacity to fund future growth opportunities.

Key performance indicators:
  • Total group revenue (including Glanbia share of Joint Ventures) by 2022 – €5 billion;
  • Five-year average adjusted earnings per share growth, constant currency, 2018 to 2022 – 5% to 10%;
  • Annual return on capital employed – 10% to 13%;
  • Annual operating cash conversion – greater than 80%.

Meanwhile, as revealed by Glanbia last week in its milk price announcement, the processor has introduced new measures for co-op members and suppliers.

Also Read: Glanbia announces cut to April milk price

Chairman Henry Corbally said: “We are acutely conscious that adverse weather has made 2018 a very challenging year to date for our milk suppliers. As a result, the board has made a number of decisions that will boost cash flow for members.”

The measures include:
  • As announced on May 1, Glanbia co-op members will be entitled to avail of interest-free cash flow support from the 2018 Glanbia Advance Payment (GAP) Scheme. This voluntary scheme will make 1c/L of interest-free cash flow support available to participating suppliers on April milk supply;
    An application form for the 2018 GAP scheme will issue shortly to all co-op members that supply their milk to Glanbia Ireland;
  • In the coming weeks, a payment of 26c per share of Share Interest (Special Dividend) will be paid to all co-op members on the share register at May 18, 2017. The Share Interest (Special Dividend) of €10 million will be worth over €1,000 – on average – to milk supplying shareholders;
  • The board will be recommending to the forthcoming Glanbia Co-op Annual General Meeting on May 30, 2018, a 30% increase to 13c per share in the Share Interest (Ordinary Dividend). If approved by members, this will be worth a total of €4.8 million, or €520 – on average – to milk supplying shareholders;
  • Glanbia Ireland will bring forward the payment of feed bonuses to participants in the milk and feed loyalty Scheme. This five-year scheme, which commenced on January 1, 2018, pays a Loyalty Bonus of €30/t on all dairy feed purchased by participants. For the year to date, this will be worth an average of €1,500 to scheme participants;
  • As previously announced, the processor will make a support payment of €50/t on all qualifying feeds purchased in April. This will result in approximately €2.5 million being credited to members in their trading accounts.