Glanbia (GL9) H1 2024 earnings summary

Executive summary

• Adjusted EPS rose 12.4% to €0.682 (68.20c), driven by robust demand for Optimum Nutrition and healthy lifestyle brands, with 3.1% volume growth in both GPN and Nutritional Solutions.

• Optimum Nutrition led with 11.8% volume growth and 7.7% like-for-like revenue growth, now 65% of GPN revenues.

• Completed Flavor Producers acquisition for $298.8m in April 2024, expanding flavor offerings and contributing to revenue and margin growth.

• Returned €50m to shareholders via buybacks, announced a further €50m program, and increased interim dividend by 10%.

• Full-year adjusted EPS growth guidance of 5%-8% constant currency reiterated.

Financial highlights

• Group revenue for H1 2024 was $1.82bn, down 1.1% constant currency, with volumes up 1.8% and price down 4%.

• Group EBITDA rose 12.8% to $262m, margin improved to 14.4% (up 180bps), mainly due to GPN margin strength.

• Operating cash flow for H1 was $99m, with 12-month cash flow at $503m and a 96.3% conversion rate.

• Net debt at $645m, net debt/EBITDA at 1.2x, with $1.3bn in committed facilities.

• Interim dividend increased 10% to €0.1564 per share.

Outlook and guidance

• Full-year adjusted EPS growth guidance of 5%-8% constant currency reiterated.

• GPN revenue growth for FY 2024 expected at 2%-5%, with EBITDA margin 16%-16.5%.

• Nutritional Solutions volume growth expected at 3%-5%, EBITDA margin 18%-19%.

• Operating cash flow conversion expected to exceed 80% for the year.

• GPN revenue growth range narrowed due to SlimFast and specialty channel softness.