Glanbia (GL9) Q3 2024 TU earnings summary

Executive summary

• Strong volume growth across better nutrition brands, with double-digit volume growth in Optimum Nutrition and Isopure for the first nine months of 2024.

• Group performance year-to-date Q3 2024 in line with expectations, with continued momentum and robust financial position.

• Announced separation into three segments for 2025: Performance Nutrition, Health and Nutrition, and Dairy Nutrition, to simplify operations and drive growth.

• Reiterated full-year 2024 guidance of 5%-8% adjusted EPS growth.

• Group-wide transformation program launched to realign functions, drive efficiencies, and fund growth.

Financial highlights

• Group revenue grew 6.0% for the nine months ended 5 October 2024 compared to the same period in 2023.

• GPN revenue grew 1.7% in Q3, driven by 3.2% volume growth and a 4% price decline.

• Nutritional Solutions pro forma revenue up 14.4% in the first nine months, with 5% volume growth and 7.2% from acquisitions.

• Net debt at $620 million at Q3 end; committed facilities of $1.3 billion.

• Americas revenue flat year-over-year due to weight management headwinds; excluding this, Americas revenue up 5%.

Outlook and guidance

• Reiterated full-year 2024 guidance of 5%-8% adjusted EPS growth.

• GPN revenue growth expected between 2%-5% for 2024, with mid-single-digit volume growth in Q4.

• GPN EBITDA margins expected at 16%-16.5% for 2024, up from 15.7% in 2023.

• Nutritional Solutions volume growth expected at 3%-5% for 2024, with EBITDA margins of 18%-19%.

• FY24 capex expected at $80m–$90m.