Glanbia (GL9) H1 2024 earnings summary

Executive summary

• Adjusted EPS grew 12.4% to EUR 0.682 (68.20c), driven by robust volume growth in core nutrition brands, especially Optimum Nutrition, and supported by 3.1% volume growth in both Performance Nutrition and Nutritionals segments.

• Optimum Nutrition led with 11.8% volume growth and 7.7% like-for-like revenue growth, offsetting SlimFast's 34% revenue decline.

• Completed the $298.8 million acquisition of Flavor Producers in April 2024, expanding flavor offerings and contributing to segment growth.

• Returned €50 million ($50 million) to shareholders via buybacks, announced a further €50 million buyback, and increased the interim dividend by 10%.

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

Financial highlights

• Group revenue for H1 2024 was $1.82 billion, down 1.1% constant currency; volumes up 1.8%, price down 4.0%, acquisitions added 1.1%.

• Group EBITDA rose 12.8% to $262 million, with margin expanding to 14.4% (up 180bps year-over-year).

• GPN EBITDA up 30.3% to $156.4 million, margin up 420bps to 17.7%; Nutritional Solutions EBITDA flat, US Cheese EBITDA down 22%.

• Operating cash flow for H1 was $99 million; trailing 12-month OCF $503 million, conversion rate 96.3%.

• Net debt at $645 million, net debt/EBITDA at 1.2x.

Outlook and guidance

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

• GPN revenue growth expected at 2%-5% for FY 2024, with mid-single-digit volume growth and -3% pricing; GPN EBITDA margin guided at 16%-16.5%.

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

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