Glanbia plc Q1 2021 06 May 2021 - Group Managing Director Group Finance Director
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Glanbia plc Q1 2021 06 May 2021 Group Managing Director Group Finance Director
2 Glanbia plc | Quarter 1 2021 presentation Important notice 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 business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward- looking statements. The Directors undertake no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise.
3
Glanbia plc | Quarter 1 2021 presentation
Q1 2021 Results summary
Glanbia delivers strong Q1; wholly-owned revenue +10.5% cc
Good performance across GPN & GN
GPN LFL Branded revenue +17.6% cc
GN Nutritional Solutions volume +10.3% cc
FY 21 Adjusted EPS growth, constant currency, expected to be in
the upper end of the 6% to 12% range
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Glanbia plc | Quarter 1 2021 presentation
2021 Outlook
Deliver double-digit GPN EBITA Vigilant to risks and navigating
Deliver good LFL revenue growth
margins ongoing headwinds
Progressing to plan across demand
and efficiency workstreams
2021 Adjusted EPS, constant currency, growth expected to be in the upper end of
the 6% to 12% range Maintain our strong financial position
Glanbia Performance Nutrition Q1 2021 review
6
Glanbia plc | Quarter 1 2021 presentation
GPN Transformation delivering benefits
Efficiency
• Exit of contract business in North America Demand Efficiency
• Consolidation of supply chain activity
Growth
• Driving consumption through marketing investment
• Route-to-market optimisation projects largely
completed
Growth Margin
• Re-organisation of talent and teams focused on improvement
Americas and International business
Q1 2021 Good price and volume momentum in Q1 is continuing into Q2
update GPN on track for low double-digit EBITA margins for H1
Overall Targeting EBITA margins of 12% to 13% by 2022
target
7
Glanbia plc | Quarter 1 2021 presentation
GPN Q1 2021 update
Q1 2021 Revenue progression
20% +14.1% +17.6%
16%
12% 4.6%
8%
Americas
• Strong performance driven by Optimum Nutrition
9.5% • Lifestyle brands flat with trends improving
4%
• Q1 revenue driven by good consumption growth and market
inventory rebuild
0%
Volume Price International
• ASPAC channels re-opening drove good demand
• EMEA ongoing headwinds due to continued restrictions
• Ecommerce a key driver of growth
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Glanbia plc | Quarter 1 2021 presentation
Leading brands positioned for growth
Brand health Brand health
• 12 week consumption to 18 April 2021 in NA • 12 week consumption to 18 April 2021 in NA
measured channels* +23.6% measured channels* -0.5%
Category Update Category Update
• Strong start in Americas as restrictions eased • Covid headwinds in Diet category, as expected
• Good growth across Online, FDM and Specialty • Consumption trends improving in recent weeks
*North America measured channels include Online, FDMC (Food, Drug, Mass, Club) and Specialty channels. Date provided is for L12 weeks to 18 April 2021Glanbia Nutritionals Q1 2021 review
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Glanbia plc | Quarter 1 2021 presentation
Glanbia Nutritionals Q1 2021 update
Q1 2021 Revenue progression
20%
16%
Volume
• Q1 LFL volume increased by 12.4% driven by
12%
strong demand in NS and new capacity in
(4.5%) Cheese
1.1%
8% Price
12.4% • Q1 LFL price decreased by 4.5% driven by
4%
lower cheese pricing versus prior year
0%
Volume Price Acquisition11
Glanbia plc | Quarter 1 2021 presentation
Nutritional Solutions Q1 2021 update
+11.2%
Q1 2021 Revenue progression
20%
Non-dairy Ingredients
15%
• Strong volume performance in vitamin & mineral premix
3.7% • Consumer trends in health and wellbeing driving
demand
10%
0.9% • Foodarom acquisition performing well
Dairy Ingredients
• Specialist dairy ingredient solutions demand robust
5% 10.3%
0%
Volume Price Acquisition12
Glanbia plc | Quarter 1 2021 presentation
US Cheese Q1 2021 update
Q1 2021 Revenue progression
20%
Volumes
• Q1 volumes driven by new Joint Venture capacity
16%
Price
12% • Price decline driven by lower cheese markets
(6.9%)
8% New Michigan plant
13.4% • Commissioning expected to be completed as
planned in Q2
4%
0%
Volume PriceFinance Q1 2021 review
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Glanbia plc | Quarter 1 2021 presentation
Strong Cash Flow and Balance Sheet
Q1 2021 Q1 2020
Cash
Net Debt €499m €690m generative
Net debt: Adjusted
1.5X 1.9X
EBITDA
• Rolling 12 months operating cash flow generation
ahead of 80% conversion target Facilitating Balance
investment Sheet
• Strong Balance Sheet facilitates investment capability capacity
• At Q1 2021 - Total committed facilities of €1.1 billion with
weighted average maturity of 4.6 years15
Glanbia plc | Quarter 1 2021 presentation
Capital Allocation
€50m Share Buyback Programme completed
Share Buyback Programme summary
• €50m Share Buyback Programme
completed in April 2021
Total spend €50m
Total shares repurchased 4.8m
• Capital expenditure for FY 21 expected
to be in the €80 to €90m range
Average share price €10.44
Shares in issue post-completion 291.3m • Dividend payout ratio in the 25-35%
Discount to VWAP 2% rangeConclusion
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Glanbia plc | Quarter 1 2021 presentation
Conclusions
Good performance in Q1 2021 with trends continuing in Q2
Strategic initiatives on track
Strong balance sheet to fund growth
Positive outlook; in FY 21 Adjusted EPS growth, constant
currency*, expected to be in the upper end of the 6% to 12%
range
*Based on the assumption of an alleviation of Covid-19 related disruption in H2 2021Questions
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