Glanbia (GL9) H2 2024 earnings summary

Executive summary

• Delivered strong FY24 performance with adjusted EPS up 6.8% to 140.03¢ and revenue of $3.84bn/€3.8bn, driven by robust demand for nutrition brands and portfolio growth.

• Optimum Nutrition and Isopure brands achieved double-digit volume growth; Nutritional Solutions saw robust expansion, aided by the Flavor Producers acquisition.

• Strategic evolution included a group-wide transformation program targeting $50m/€50m annual cost savings by 2027 and a new operating model.

• Exited non-core businesses SlimFast and Body & Fit, with related impairments and assets held for sale.

• Returned €102m to shareholders via buybacks and increased dividend by 10%.

Financial highlights

• Adjusted EPS rose 6.8% to 140.03¢; group revenue increased 5.8% to $3.84bn; EBITDA up 11.8% to $551.3m, margin expanded to 14.4%.

• Operating cash flow was $485m (88% conversion); free cash flow reached $402.5m.

• Net debt at year-end was $436m/€436m (0.81x EBITDA), mainly due to the Flavor Producers acquisition.

• ROCE at 12.4%, in line with guidance; dividend payout ratio at 30.1%.

• Exceptional items included a net after-tax charge of $145.6m, mainly from transformation and impairment charges.

Outlook and guidance

• FY25 adjusted EPS expected between 124¢ and 130¢, reflecting input cost inflation in Performance Nutrition.

• Performance Nutrition revenues expected broadly flat like-for-like, but total segment down single digits due to business exits and 53rd week comparison.

• EBITDA margin in Performance Nutrition expected at 13–14%; Health & Nutrition to deliver mid-single-digit revenue growth and 17–18% margin.

• Dairy Nutrition and joint ventures expected to deliver profit growth; operating cash flow conversion to remain above 80%.

• Additional €100m share buyback planned for 2025.