Glanbia PLC · EURONEXT:GL9
Glanbia — H1 2013 Earnings Presentation
27 slides from Glanbia's earnings presentation, Aug 21, 2013
Slide 1: 2013 Half Year Results
2013 HALF YEAR RESULTS 21 August 2013
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. Due to the inherent uncertainties, including both economic and
Slide 3: Half Year 2013 Performance Summary
HALF YEAR 2013 PERFORMANCE SUMMARY Total Group Total Group Total Group Adjusted Interim Revenue EBITA EBITA margin EPS* Dividend €1.7bn €124m 7.4% 30.69c 4.03c +13.0% +6.4% -40bps +11.3% +10.0% Good performance with 11.3% growth in adjusted EPS Key driver is 20%+ growth in Global Performance Nut
Slide 4: Half Year 2013 Results Summary
HALF YEAR 2013 RESULTS SUMMARY Constant currency1 Reported currency €m HY 2013 Change2 HY 2013 Change2 Wholly owned businesses Revenue 1,246.8 +13.6% 1,236.3 +12.6% EBITA 103.6 +5.8% 102.3 +4.6% EBITA margin 8.3% - 60 bps 8.3% - 60 bps Joint Ventures & Associates3 Revenue 431.1 +11.5% 426.8 +10.3% E
Slide 5: Segmental Overview
SEGMENTAL OVERVIEW Global Performance Global Nutrition Ingredients 16% 27% Branded sports nutrition: • US Cheese • ON • Ingredient Technologies Total Group 10% €124m • BSN • Customised Premix EBITA + 6.4% • ABB Solutions 47% Revenue €324m +14% Revenue €539m +17% EBITA €34m +20% EBITA €58m +8% EBITA
Slide 6: Segmental Revenue Growth Analysis
SEGMENTAL REVENUE GROWTH ANALYSIS Constant Reported Reported Revenue Currency Currency Currency €m HY 2013 HY 2012 Change Volume Price Other* HY 2013 FX Global Performance Nutrition 324.4 285.3 14% 13% 1% - 320.2 -1% Global Ingredients 539.2 461.8 17% 7% 6% 4% 532.9 -1% Dairy Ireland 383.2 350.9 9%
Slide 7: Global Performance Nutrition
GLOBAL PERFORMANCE NUTRITION Constant Currency Reported Currency HY 2013 HY 2012 Change HY 2013 Change Revenue €324.4m €285.3m +13.7% €320.2m +12.2% EBITA €34.0m €28.4m +19.7% €33.6m +18.3% EBITA margin 10.5% 10.0% + 50 bps 10.5% + 50 bps Strong growth in revenue, EBITA and margins 14% revenue g
Slide 8: Global Performance Nutrition – International Expansion
GLOBAL PERFORMANCE NUTRITION – INTERNATIONAL EXPANSION A repeatable business model UK South Ireland Germany Korea France Portugal Turkey Spain India Singapore Revenue by region Brazil EMEA LAPAC Australia NORTH AMERICA 8
Slide 9: Global Performance Nutrition – Innovation Agenda
GLOBAL PERFORMANCE NUTRITION – INNOVATION AGENDA New product launches in H1 2013…. N.O.-XPLODE Ready-to-Drink Performance & energy beverage delivering powerful energy, endurance and focus that can be used pre- workout or anytime you need energy & focus. It contains only ten calories and is sugar fre
Slide 10: Global Performance Nutrition – Investment
GLOBAL PERFORMANCE NUTRITION – INVESTMENT Significant ongoing investment in people, systems and infrastructure Infrastructure $45 million development of new capacity in Chicago due 2014 STG£3 million investment in Middlesbrough, UK plant more than doubling of capacity by Q3 2013 People Strengt
Slide 11: Global Ingredients
GLOBAL INGREDIENTS Constant Currency Reported Currency HY 2013 HY 2012 Change HY 2013 Change Revenue €539.2m €461.8m +16.8% €532.9m +15.4% EBITA €57.5m €53.4m +7.7% €56.6m +6.0% EBITA margin 10.7% 11.6% - 90 bps 10.6% - 100 bps Good performance overall 17% revenue growth split 7% organic volume,
Slide 12: Global Ingredients
GLOBAL INGREDIENTS US Cheese Organic volume growth, Blackfoot acquisition and higher market prices drove strong increase in revenues Market environment is positive with both retail and food service performing satisfactorily Ingredient Technologies Higher revenues reflecting Aseptic acquisition
Slide 13: Global Ingredients – Investment
GLOBAL INGREDIENTS – INVESTMENT Significant ongoing investment offers new capabilities and aligns us with key growth customers New value-added grain ingredients’ plant Flax and other speciality grain capabilities enhanced with new $29 million value-added grain ingredients plant in South Dakota due
Slide 14: Global Ingredients – Innovation Agenda
GLOBAL INGREDIENTS – INNOVATION AGENDA Innovation is core to Global Ingredients and brings us closer to our customers Cheese Innovation Centre $11 million investment commissioned in July 2013; combined with new Blackfoot plant, provides market leading innovation capability. Innovation Award IFT
Slide 15: Dairy Ireland
DAIRY IRELAND Constant Currency Reported Currency HY 2013 HY 20121 Change HY 2013 Change Revenue €383.2m €350.9m +9.2% €383.2m +9.2% EBITA €12.1m €16.0m -24.4% €12.1m -24.4% EBITA margin 3.2% 4.6% - 140 bps 3.2% - 140 bps 9% revenue growth split 8% organic volume, 4% price and -3% Yoplait franchis
Slide 16: Joint Ventures & Associates
JOINT VENTURES & ASSOCIATES Constant Currency Reported Currency HY 2013 HY 20121 Change HY 2013 Change Revenue €431.1m €386.8m +11.5% €426.8m +10.3% EBITA €20.3m €18.6m +9.1% €19.9m +7.0% EBITA margin 4.7% 4.8% - 10 bps 4.7% - 10 bps 12% revenue growth reflects 6% volume growth and 6% price growth
Slide 17: Group Financing
GROUP FINANCING Financing KPIs HY 2013 HY 2012 Net debt1 / Adjusted EBITDA2 2.0 times 2.3 times Adjusted EBIT2 : net finance cost 8.6 times 6.9 times Return on capital employed 13.1% 12.5% 1. Includes cumulative redeemable preference shares. 2. The definitions of adjusted EBITDA and adjusted EBIT ar
Slide 18: Summary & Outlook
SUMMARY & OUTLOOK
Slide 19: Two Unique and Integrated Growth Platforms
TWO UNIQUE AND INTEGRATED GROWTH PLATFORMS €0.6 billion 2012 revenue €1 billion 2012 revenue Ingredient US Cheese Technologies Customised Premix Solutions Largest sports nutrition brand family World-class, large scale integrated globally cheese and whey manufacturing Organic and acquisition growt
Slide 20: Strategic Priorities and Outlook
STRATEGIC PRIORITIES AND OUTLOOK Key customers and markets Our two cores, Market-led innovation Global Performance Nutrition and Global Organic growth Ingredients, are focused on Acquisitions addressing common nutrition market Operational excellence drivers and growth trends Multi-discip
Slide 21: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 22: HY 2013 Segmental Overview – Constant Currency
HY 2013 SEGMENTAL OVERVIEW – CONSTANT CURRENCY HY 2013 HY 2012¹ Pre exceptional €m Revenue EBITA EBITA % Revenue EBITA EBITA % Global Performance Nutrition 324.4 34.0 10.5% 285.3 28.4 10.0% Global Ingredients 539.2 57.5 10.7% 461.8 53.4 11.6% Dairy Ireland 383.2 12.1 3.2% 350.9 16.0 4.6% Total Wholl
Slide 23: HY 2013 Segmental Overview – Reported Currency
HY 2013 SEGMENTAL OVERVIEW – REPORTED CURRENCY HY 2013 HY 2012¹ Pre exceptional €m Revenue EBITA EBITA % Revenue EBITA EBITA % Global Performance Nutrition 320.2 33.6 10.5% 285.3 28.4 10.0% Global Ingredients 532.9 56.6 10.6% 461.8 53.4 11.6% Dairy Ireland 383.2 12.1 3.2% 350.9 16.0 4.6% Total Wholl
Slide 24: FY 2012 Restated Segmental Overview
FY 2012 RESTATED SEGMENTAL OVERVIEW 2012¹ Pre exceptional €m Revenue EBITA EBITA % Global Performance Nutrition 585.9 57.3 9.8% Global Ingredients 994.9 98.1 9.9% Dairy Ireland 631.0 21.3 3.4% Total Wholly owned businesses 2,211.8 176.7 8.0% Joint Ventures & Associates1 826.3 37.9 4.6% Total Group 3
Slide 25: HY 2013 Summary Cash Flow
HY 2013 SUMMARY CASH FLOW €m HY 2013 HY 2012 EBITDA 115.3 109.7 Dividends from Joint Ventures & Associates 1.5 2.8 Working capital movement (94.1) (134.7) Net interest and tax paid (23.9) (15.6) Business sustaining capital expenditure (18.2) (15.2) Other outflows (4.5) (6.9) Free cash flow from cont
Slide 26: HY 2013 Summary Balance Sheet
HY 2013 SUMMARY BALANCE SHEET €m HY 2013 HY 2012 Property, plant and equipment 335.1 408.4 Intangible assets 475.2 471.7 Investments 146.0 85.7 Non-current receivables 16.4 14.9 Deferred tax/capital grants (66.4) (97.8) Working capital 287.8 382.3 Retirement benefit obligations (84.9) (117.4) Provis
Slide 27: i a e€ & o)
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