Glanbia plc has bounced back from a difficult 2020 to record strong performances for the first half of 2021 – with revenues surpassing the €2 billion mark, as shown in the group’s financial results for the six-month period ended July 3, 2021.
In its results this morning, Glanbia says it delivered a performance “ahead of expectations” in the first half of 2021.
Strong revenue growth and margin improvements delivered adjusted earnings per share (EPS) growth of 85% on a constant currency basis (up 70.2% reported), the results show.
The group said it also delivered strong cash conversion in the period which has funded capital allocation towards an acquisition, increased dividend and a further share buyback programme.
Full-year guidance is for adjusted EPS growth of 17% to 22% (constant currency) versus the prior year.
Looking into things in more detail, wholly-owned revenues of €2,042.2 million (compared to €1,836.7 million in the first half-year (HY) of 2020) were reported, up 20.3% constant currency on the prior HY (up 11.2% reported).
Meanwhile, Glanbia Performance Nutrition (GPN) delivered revenue growth of 28.1% constant currency on the prior HY, up 19.9% reported.
Glanbia Nutritionals, Nutritional Solutions (NS) delivered like-for-like volume growth of 14.9% constant currency on the prior HY.
GPN delivered earnings before interest, taxes and amortization (EBITA) pre-exceptional of €90.2 million, up 418.4% constant currency on the prior HY (up 360.2% reported) driven by strong revenue growth and margin improvement.
The Glanbia Nutritionals (GN) business delivered EBITA pre-exceptional of €69.7 million, up 17.1% constant currency on the prior HY (up 6.6% reported) driven by a strong performance in NS.
Joint ventures (JVs) delivered pre-exceptional share of profit after tax of €29.9 million, down €1.9 million on the prior HY.
Adjusted EPS of 52.86c are reported, an increase of 85% constant currency (up 70.2% reported).
Exceptional items in the first half of 2021 resulted in a charge of €52.2 million (HY 2020: €14.6 million) related to GPN transformation programme and legacy pension scheme restructuring.
Basic EPS amounted to 27.90c (HY 2020: 18.73c), up 49.0% reported on the prior HY.
The report notes an operating cash flow of €161.4 million, which is up €114.2 million on the prior HY – and a cash conversion ratio of 84.4%.
Net debt to adjusted EBITDA ratio of 1.51 times (HY 2020 1.95 times), a reduction on the prior year due to strong cash flow.
Finally, an acquisition was completed in H1 2021 of a 60% stake in LevlUp, a European direct-to-consumer (DTC) gaming nutrition brand.
Overall, an interim dividend of 11.75c per share (HY 2020: 10.68c) has been recommended by the group’s board, which is an increase of 10.0% on the prior year.
Commenting, Glanbia’s group managing director Siobhán Talbot said:
“The Glanbia team has navigated the pandemic well to date, keeping a clear focus on both tactical activity and key strategic initiatives.
“While the group remains vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic, this focused approach gives us the confidence to guide to delivery of full year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year,” Talbot added.