FDBusiness.com

Glanbia, the global performance nutrition and ingredients group, delivered a strong performance in 2014 as it continues to develop its two major business groups – Global Performance Nutrition and Global Ingredients.

Total group revenue, including Glanbia’s share from Joint Ventures & Associates, was up 7.3% on a reported basis to €3.5 billion and by 6.9% at constant currency for the year ended 3 January 2015. Total group EBITA was €245.0 million, up 7.9% at constant currency and 8.1% reported. Total group EBITA margin was 7.0%, up 10 basis points with an 8.2% margin in the wholly owned businesses, up 30 basis points. Adjusted earnings per share was 61.16 cents, up 10.1% (10.3% reported).

Global Performance Nutrition delivered a strong performance in 2014. Revenues increased 13.5% to €746.2 million reflecting volume growth of 7.4%, impact of acquisitions of 5.0% and net pricing of 1.1%. EBITA increased 26.0% in the period and EBITA margins increased 120 basis points to 12.0%. The improvement in margins reflected operating leverage and improved manufacturing efficiencies associated with a new production facility in the US, partially offset by continued investment in expanding the business. The acquisition of Nutramino and Isopure for a total cost of €149 million during the year further consolidated Glanbia’s position as the global leader in performance nutrition. Nutramino is a leading Scandinavian sports nutrition business with operations in Denmark, Sweden and Norway, and Isopure is a US-based provider of premium branded sports nutrition products.

Global Ingredients delivered a satisfactory performance in 2014 in the context of challenging dairy markets which impacted milk procurement and whey pricing dynamics. Revenues increased 9.3% to €1.18 billion reflecting market related price increases of 10.9% which were partially offset by a volume decline of 1.6%. EBITA decreased 1.4% arising from a decline in margins in the US Cheese and Ingredient Technologies business units.

Glanbia’s total investment in capital expenditure was €116 million in 2014, of which €73 million was strategic investment reflecting an ongoing focus on the organic growth potential of the business. The key projects undertaken in 2014 include the commissioning of a new production facility in Global Performance Nutrition in the US, and significant investment in high end whey processing (also in the US) in Global Ingredients.

Siobhán Talbot, group managing director of Glanbia, says: “I am pleased to announce the fifth consecutive year of double digit growth for Glanbia in 2014 with a 10.1% increase in adjusted earnings per share, constant currency. Our focus on two scale growth platforms, Global Performance Nutrition and Global Ingredients, continues to drive earnings as we leverage our market leadership and sector expertise. In Performance Nutrition our investment in brand growth, innovation and acquisitions drove a strong performance. Our Global Ingredients business delivered a satisfactory overall performance in the context of challenging dairy market dynamics in 2014.”

She continues: “The outlook for 2015 is positive and we are guiding 9% to 11% growth in adjusted earnings per share, constant currency. We continue to successfully execute our growth strategy and this positions Glanbia well for the delivery of our objectives from 2015 to 2018.”

The outlook for Global Performance Nutrition is positive and Glanbia will continue to invest in this business to ensure it remains in a leading position in key markets and channels. Glanbia is expecting growth in Global Ingredients in 2015 with an improvement in dairy market dynamics and solid underlying demand across key sectors.

CAPTION:

Siobhán Talbot, group managing director of Glanbia, with group finance director Mark Garvey.