Tipperary farming: Glanbia delivered 'resilient performance' in first six months

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Tipperary farming: Glanbia delivered 'resilient performance' in first six months

Glanbia managing director Siobhan Talbot: 'I have never been prouder of my colleagues'

Glanbia delivered a resilient operating performance whilst navigating the challenges resulting from the Covid-19 pandemic, according to the conglomerate which released its half-yearly figures this Wednesday.

“In my entire career at Glanbia, I have never been prouder of my colleagues, whose response to the extraordinary challenges of 2020 have been exemplary," said group managing director Siobhán Talbot.

She said that she was hugely appreciative of the agility, dedication and commitment that Glanbia employees, and particularly its frontline workers, suppliers, and customer partners, showed in quickly adopting new radical ways of working and maintaining operations throughout the pandemic.

"When the crisis emerged we set three priorities; to protect our people, to continue food supply and to maintain our strong financial position. Since then, our business continuity planning teams have managed health and safety rigorously, we have altered our operational plans where needed and executed those plans very well and our balance sheet strength has improved," said Ms Talbot.

In the first six months of 2020 wholly-owned revenues grew by 2.3%, on a constant currency basis. Glanbia Nutritionals (“GN”) delivered a good performance with earnings in line with prior year as key end market demand sustained throughout H1 2020.

Joint Ventures delivered a robust performance growing profits in the period. Glanbia Performance Nutrition (“GPN”) was impacted by Covid-19, with international market disruption and challenges in the North American specialty and distributor channels. As a result, adjusted earnings per share declined in the period by 17.2% on a constant currency basis.

The issues encountered by GPN were most pronounced in Q2 with performance improving as the period ended.

"Our compelling belief is that consumers increasing focus on health and wellbeing, as well as greater importance on trust and quality, positions Glanbia well for the future, given our core purpose of the delivery of better nutrition via our brands and ingredient solutions," she aid.

Ms Talbot said that while navigating Covid-19 Glanbia had maintained a strategic focus across the group.

"We have broadened the ambition within the transformation project in GPN and we have continued to scale our capabilities in GN as demonstrated by the acquisition of Foodarom. We continue to selectively pursue opportunities which meet our strategic and financial criteria. While the short term outlook remains uncertain, the Board is confident that Glanbia has the portfolio, the consumer insight and the operational expertise to succeed in this new environment," she said.

Among the highlights for the first six months were:

- All group activities continued throughout HY 2020 due to a tremendous effort from Glanbia employees, suppliers and customer partners

- Adjusted earnings per share of 31.05 cent, a decline of 17.2% constant currency (down 15.4% reported)

- Group is in a strong financial position, net debt improved by €126.7 million versus prior half year

- Net debt to adjusted EBITDA ratio 1.95 times

- Wholly-owned revenues of €1,836.7 million (HY 2019: €1,758.4 million), up 2.3% constant currency on prior half year (up 4.5% reported)

- Wholly-owned EBITA pre-exceptional of €85.0 million (HY 2019: €111.4 million), down 25.4% constant currency on prior half year (down 23.7% reported)

- Glanbia Performance Nutrition EBITA impacted by Covid-19 with conditions improving as the period ended. Transformation project expanded

- Glanbia Nutritionals delivered EBITA in line with the prior half year as demand in key categories sustained during H1 2020

- Joint Ventures delivered a robust performance with pre-exceptional share of profit after tax of €31.8 million up €5.0 million on prior half year

- Exceptional items after tax of €14.6 million; primarily relating to GPN transformation project

- Basic earnings per share of 18.73 cent (HY 2019: 28.22 cent) a decline of 33.6% reported on prior half year

- Interim dividend of 10.68 cent per share (HY 2019: 10.68 cent), recommended by the Board, representing a payout ratio of 34.4%

- Agreement to acquire Foodarom for $60m CAD, a specialist flavours solutions business based in Canada.