Tipperary farming: Glanbia announces 9% increase in share price earnings

Glanbia has announced 9% growth in pro-forma adjusted earnings per share, constant currency for 2018.

This was largely driven by strong volume growth across all its business, in particular in the branded portfolio of GPN and the Nutritional Solutions component of GN.

"Consumer demand for our brands and nutritional ingredients remains strong underpinned by positive long-term global health and wellness trends," said group managing director Siobhan Talbot at the announcement of the company's 2018 results.

Glanbia also delivered a strong cash performance with an operating cash conversion rate in 2018 of 92%.

Ms Talbot said that they were continuing to invest in expanding business and its capabilities and completed the acquisition of SlimFast in November 2018. 

Glanbia has agreed to acquire Watson for $89m.  Watson is a non-dairy ingredient solutions business headquartered in Connecticut, USA.  It is a highly complementary addition to Glanbia's Nutritional Solutions business and will help broaden its capabilities in the ingredients sector.

"We continue to drive sustainable growth and are on track to deliver our 2022 strategic ambitions. The outlook for 2019 is positive and Glanbia expects to deliver 5% to 8% growth in adjusted earnings per share, constant currency. If the euro to US dollar exchange rate remains at current levels, the reported 2019 result will be 3% higher than the constant currency outlook,” she said.

Among the highlights are:

- adjusted earnings per share 91.01 cent, up 9.0% constant currency on prior year on a pro-forma basis, (up 4.5% reported)

- wholly-owned revenue €2,386.3m (2017: €2,387.1m) up 4.1% on prior year, constant currency (in line with prior year on a reported basis)

- wholly-owned EBITA €284.9m (2017: €283.2m) up 5.2% on prior year, constant currency (up 0.6% reported)

- wholly-owned EBITA margin up 10 bps constant currency on prior year (in line with prior year on a reported basis)

- Glanbia Performance Nutrition (GPN) delivered revenue growth of 9.5% constant currency (up 5.2% reported) with like-for-like branded volume growth of 9.2% and EBITA of €173.1m, a 6.7% increase on prior year, constant currency (up 2.0% reported)

- Glanbia Nutritionals (GN) revenue declined 0.6% constant currency (down 4.7% reported) and delivered EBITA of €111.8m, a 3.0% increase on prior year, constant currency (down 1.5% reported). Volume growth in GN Nutritional Solutions was 8.5% in 2018

-  completed the acquisition of SlimFast for $350m in November 2018, a complementary brand within the GPN portfolio

- Glanbia announces that it has agreed to acquire Watson, a US based non-dairy ingredient solutions business, for $89m

- Joint Ventures reported share of profits after tax (before exceptional items) of €45.3m up €2.5m on prior year. A number of JV investments announced during 2018

-  reported profit for the year €234m up €2.6m on prior year on a pre-exceptional basis

- operating cash flow of €301.7m representing an operating cash conversion rate of 92%

- recommended final dividend of 14.49 cent per share. Full year dividend of 24.20 cent, a 10% increase on prior year and representing a pay-out ratio of 26.6% of adjusted earnings per share

- Glanbia announces plans to reorganise the composition of its board of directors during 2019 with appointment of three new independent non-executive directors to its board.