Glanbia boasts positive Half Year Results for 2022

Results had “exceeded” company's plans.

Glanbia plc says the first half of 2022 was characterised by “good momentum”, taking in €2.8 billion in revenue representing an increase of 26.8% on a constant currency basis.

The results mean that Glanbia has now upgraded its growth outlook for the year from 9% to 13% in adjusted earnings per share (EPS).

In the first six months of this year the company also reported a “strong operating performance”, with the Glanbia Performance Nutrition (GPN) division seeing increases in like-for-like volume of 1.9% and in pricing 13.9%.

Meanwhile, the Nutritional Solutions (NS) division recorded increases in like-for-like volume of 1.6% and in pricing of 17.9%.

Group earnings before interest, taxes, depreciation and amortisation (EBITDA) was €171.7 million (not counting exceptional items), a decrease of 3.5% on a constant currency basis compared to the first half of 2021 (though a nominal increase).

Adjusted EPS was ahead of expectations, Glanbia said, hitting 52.31c (also a decrease on a constant currency basis but a nominal increase).

Basic EPS in the first half of the year was 66.13c, compared to 27.90c in the first half 27.90c.

In the first half of 2022 Glanbia plc also disposed of its 40% interest in Glanbia Ireland while acquiring Sterling Technology, a US bioactive ingredient company.

Glanbia returned €127.1 million to its shareholders in the six-month period, while its interim dividend increased by 10% to 12.93c/share.

Commenting on today’s results, Siobhán Talbot, Group Managing Director, said she was pleased that the half year results had “exceeded” their expectations, and stated the positive return demonstrated the impact of a “series of actions” implemented since the latter part of last year in response to what she described as “unprecedented” inflation.

“Revenues grew strongly with significant pricing initiatives and volume growth in all business segments in the period. Adjusted EPS1at 52.31 cent, reflected improving momentum across the Group,building on a strong 2021 comparator. We continue to make progress on our strategic agenda and with the completion of the sale of the Company’s minority interest in Glanbia Ireland, Glanbia plc continues to evolve as a focused, purpose led global nutrition company.”

She added that Glanbia would “continue to monitor” inflationary trends into the second half of the year, but are confident that “further pricing action” and other “operational efficiencies” would help deliver “improving margins and strong year-on-year” EBITA growth.

“Current expectations for improved EBITA growth in GPN underpin the upgrade in full year guidance for the Group, with growth in adjusted EPS1now expected to be 9% to 13%, constant currency. Based on current foreign exchange rates, the reported adjusted EPS growth is expected to be 21% to 25%.”