Glanbia PLC · EURONEXT:GL9
Glanbia — H1 2008 Earnings Presentation
20 slides from Glanbia's earnings presentation, Aug 27, 2008
Slide 1: 2008 Half Yearly Results and Acquisition of leading US sports nutrition brands
2008 Half Yearly Results and Acquisition of leading US sports nutrition brands
Slide 2: Contents
Contents ● Section 1: 2008 Half Yearly Results 4-8 ● Section 2: Optimum Nutrition acquisition 10-13 ● Section 3: 2008 Outlook 15 ● Section 4: Supplementary information 17-19 2008 Half Yearly Results : August 27 Slide 2
Slide 3: Section 1: Half Yearly results
Section 1: Half Yearly results 2008 Half-yearly results : August 27 Slide 3
Slide 4: 2008 Half Yearly Results Summary
2008 Half Yearly Results Summary ● Good first half with strong growth ● Revenue up 6.3%, like-for-like1 up 20% ● PBT pre exceptional up 38%, like-for-like1 up 49% ● Adjusted EPS up 26% ● Dividend per share up 10% ● Divisional performances in line with expectations - Consumer Foods Ireland solid firs
Slide 5: 2008 Half Year Results Highlights
2008 Half Year Results Highlights € HY 2008 HY 2007 Change FY 2007 Revenue1 1,106.2m 1,040.3m Up 6.3% 2,206.6m Operating profit 56.5m 48.5m Up 16.5% 115.8m Operating margin 5.1% 4.7% Up 40 bps 5.2% Net financing costs (9.1m) (8.6m) Up €0.5m (17.3m) Share of joint ventures and associates1 5.6m (1.3m)
Slide 6: Half Yearly divisional results and outlook: Ireland
2008 Half Yearly divisional results and outlook IRELAND HY 2008 HY 2007 Revenue Operating Operating Revenue Operating Operating Consumer Foods Ireland and Profit* Profit* Margin%* Margin%* Agribusiness & Property €’000 €’000 €’000 €’000 417,722 21,923 5.2 418,369 20,141 4.8 * Pre exceptional ● Marke
Slide 7: Half Yearly divisional results and outlook: International
2008 Half Yearly divisional results and outlook INTERNATIONAL HY 2008 HY 2007 Revenue Operating Operating Revenue Operating Operating Food Ingredients & Profit Profit Margin% Margin% Nutritionals €’000 €’000 €’000 €’000 688,455 34,617 5.0 621,968 28,403 4.6 ● Market Environment - Food Ingredients Ir
Slide 8: Half Yearly results and outlook: Joint Ventures and Associates
2008 Half Yearly results and outlook JOINT VENTURES AND ASSOCIATES HY 2008 HY 2007 Three principal international Revenue Operating Operating Revenue Operating Operating joint ventures, one each in the Profit Margin% Profit Margin% USA, the UK and Nigeria. €’000 €’000 €’000 €’000 189,062 12,157 6.4 1
Slide 9: Section 2: Optimum Nutrition acquisition
Section 2: Optimum Nutrition acquisition 2008 Half-yearly results : August 27 Slide 9
Slide 10: Optimum Nutrition: The business
Optimum Nutrition : The business ● Strong stand alone business, with good margins and strong brands ● Largest US manufacturer of whey protein based sports nutrition products ● Leading supplier of branded products to sports nutrition sector ● Highly visible brands with premium product reputation ● St
Slide 11: Optimum Nutrition
Optimum Nutrition ● US$315 million (€213 million) total consideration - Acquired debt free - Funded from Glanbia’s existing finance facilities - Multiple of c.8 times EBITDA ● 2007 revenue of US$185 million (€125 million) ● 2007 operating profit US$32 million (€22 million) ● 2007 EBIT margins c. 17%
Slide 12: Optimum Nutrition: The investment rationale
Optimum Nutrition : The investment rationale ● Global nutrition market is large and growing - Estimated at US$228 billion - Forecast at c. 7-8% growth per annum to 2013 ● Sports nutrition is an attractive segment - Glanbia has extensive international and B2B experience - US sports nutrition and weig
Slide 13: Glanbia Nutritional Strategy
Glanbia Nutritional Strategy Post Optimum acquisition, the Organic growth Glanbia Nutritionals strategy Glanbia Nutritionals evolves to include B2C. Scale position with high margin products Strategy is : Acquisition Customised solutions for customers Strength in B2B • To create #1 global player in S
Slide 14: Section 3: 2008 Outlook
Section 3: 2008 Outlook 2008 Half-yearly results : August 27 Slide 14
Slide 15: Outlook: Expect to deliver double digit earnings growth for 2008
2008 Outlook ● Strong first half relative to HY07, second half expected to be somewhat ahead of 2007 ● Some risks noted - Volatility in global dairy markets - Global economic downturn impacting consumer purchasing trends ● Divisional outlook - Margin recovery in Consumer Foods Ireland - Satisfactory
Slide 16: Section 4: Supplementary information
Section 4: Supplementary information 2008 Half-yearly results : August 27 Slide 16
Slide 17: Pre-exceptional consolidated income statement
Pre-exceptional consolidated income statement € HY 2008 HY 2007 Change FY 2007 Revenue 1,106.2m 1,040.3m Up 6.3% 2,206.6m Operating profit 56.5m 48.5m Up 16.5% 115.8m Operating margin 5.1% 4.7% Up 40 bps 5.2% Net financing costs (9.1m) (8.6m) Up €0.5m (17.3m) Share of joint ventures and associates 5
Slide 18: Summary balance sheet
Summary balance sheet € HY 2008 HY 2007 Change FY 2007 Property, plant and equipment 311.2m 331.1m (19.9m) 298.7m Investments 93.9m 82.1m 11.8m 91.2m Intangible assets 127.9m 135.3m (7.4m) 137.6m Non-current receivables 26.9m 0 26.9m 13.9m Working capital 141.1m 99.6m 41.5m 72.9m Non current liabili
Slide 19: Summary Group Cash Flow
Summary Group Cash Flow € HY 2008 HY 2007 Operating profit 53.9m 48.5m Depreciation and amortisation 16.3m 16.9m Gain on disposal of assets and investments (2.6m) (4.1m) Interest and taxation (22.3m) (8.8m) Pension Contribution (6.9m) (7.0m) Other 1.1m 0.2m Cash from operations pre movements in work
Slide 20: 2008 Half-yearly results : August 27 Slide 20
2008 Half-yearly results : August 27 Slide 20