Good First Half From Glanbia as it Increases Capital Investment
Glanbia, the global nutritional solutions and cheese group which is based in Ireland, has increased EBITA by 6% to €129.5 million (up 10.3% at constant currency) as total revenue (including its share of joint ventures and associates) rose by 8.1% to €1.8 billion, for the six months ended 5 July 2014. Total Group EBITA margin at 7.2% was down 10 basis points but remained unchanged on a constant currency basis, reflecting an 8.3% margin in the wholly owned businesses and 4.4% in joint ventures and associates. Adjusted earnings per share were 32.45 cents, up 6.8% (11.5% at constant currency).
The Global Performance Nutrition business was the key growth driver as revenue growth of 21.8% and a 110 basis point margin expansion drove a strong increase in EBITA on a constant currency basis. Glanbia’s Global Ingredients business delivered a satisfactory performance in the context of a difficult operating environment with EBITA largely unchanged versus the prior year on a constant currency basis. However, the Dairy Ireland division’s performance was behind the prior year as stabilisation in the Consumer Products part of the business was more than offset by a lower performance in Agribusiness.
Strategic capital investment is a core element of Glanbia’s long term strategy and the group continues to invest significantly behind its two growth platforms – Global Performance Nutrition and Global Ingredients. Global Performance Nutrition recently commissioned the first phase of a new €50 million investment in a state-of-the-art manufacturing facility in Aurora, Illinois in the US. Glanbia has now announced a significant new capital investment programme within Global Ingredients.
The programme, totalling €60 million in Glanbia’s Idaho-based facilities, is strongly aligned with the group’s strategy of adding further value to its whey stream while also supporting the growth ambitions of Performance Nutrition. The programme, which is due to be fully commissioned by the end of 2015, involves the development of increased production capacity of higher end whey as well as increased capacity of lactoferrin, a specialty milk component used in a variety of sectors including infant formula and supplements.
“Glanbia had a good first half in 2014 resulting in a constant currency increase of 11.5% in adjusted earnings per share,” says Siobhán Talbot, group managing director of Glanbia. “We continue to invest in our strategy of maximising the value of our ingredients. We announced a new €60 million programme in Global Ingredients to further our ambition to be a leader in science-led nutritional solutions and systems. The outlook for the remainder of the year is positive and we expect to achieve our guidance of 8% to 10% growth in adjusted earnings per share on a constant currency basis for 2014.”
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Siobhán Talbot, group managing director, and Mark Garvey, group finance director of Glanbia.
