Glanbia plc Q3 2021 10 November 2021 - Group Managing Director Group Finance Director
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Glanbia plc Q3 2021 10 November 2021 Group Managing Director Group Finance Director
2 Glanbia plc | Quarter 3 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 3 2021 presentation
Q3 2021 Results summary
Glanbia delivers strong Q3 YTD; wholly-owned revenue +15.7% cc
GPN LFL Branded revenue +25.2% cc
GN Nutritional Solutions volume +15.7% cc
Strong cash conversion, net debt reduced by €39 million to
€589 million
Announcing proposed sale of PLC’s 40% shareholding in
Glanbia Ireland to Glanbia Co-op for €307 million
“cc” denotes constant currency
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Glanbia plc | Quarter 3 2021 presentation
2021 Strategic update and outlook
On schedule for targeted results Acquired PacMoore, in NS, for $52 million Maintain supply chain delivery
Delivering revenue growth and efficiencies Completed second share buyback Manage cost inflation
returning €100 million in past 12 months
2021 Adjusted EPS, constant currency, growth expected to be
at the upper end of the 17% to 22% range Maintain our strong financial position
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Glanbia plc | Quarter 3 2021 presentation
Proposed sale of PLC stake in Glanbia Ireland
Description Strategic rationale Transaction details
Glanbia has signed a memorandum of Enables both shareholders to focus Selling price €307 million
understanding with Glanbia Co-op to on their respective strategic agendas Transaction subject to agreement
sell its 40% shareholding in Glanbia of binding legal contracts
Ireland Proceeds will be deployed on growth
and shareholder returns
Glanbia Ireland is 60% owned by PLC will focus on driving sustainable Transaction subject to shareholder
Glanbia Co-op and 40% by the PLC growth in nutrition through its two approvals. Expected completion
growth platforms of GPN and GN H1 2022
Glanbia Performance Nutrition Q3 2021 review
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Glanbia plc | Quarter 3 2021 presentation
GPN Q3 YTD 2021 update
+25.2%
Q3 YTD 2021 Revenue Progression, cc
25%
0.8%
Americas
20% 4.4%
• Strong performance driven by Optimum Nutrition
• Price increase implemented during Q3
15% • Ongoing headwinds in Diet category
International
• ASPAC and Middle East very strong performance
10%
18.0% • European markets and DTC performing well
• GPN Transformation has facilitated revenue growth
management, route-to-market optimisation and brand focus
5%
during the year
0%
Volume Price Acquisition
“cc” denotes constant currency
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Glanbia plc | Quarter 3 2021 presentation
Leading brands positioned for growth
Brand health Brand health
• 12 week consumption to 3 October 2021 in NA • 12 week consumption to 3 October 2021 in NA measured
measured channels* +18.6% channels* -8.8%
Category update Category update
• Strong performance across all channels • Covid headwinds in Diet category
• Expanding into new consumer occasions • Focused on brand activation and innovation
*North America measured channels include Online, FDMC (Food, Drug, Mass, Club) and Specialty channels. Date provided is for L12 weeks to 3 October 2021
Glanbia Nutritionals Q3 2021 review
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Glanbia plc | Quarter 3 2021 presentation
Glanbia Nutritionals Q3 2021 update
Q3 2021 Revenue Progression, cc
20%
16%
Volume
(6.6%) • Strong customer demand across all business
segments
12% 1.0% Price
• Price related to lower year-on-year cheese markets
18.2%
8% Acquisition
4% • ‘PacMoore’ is a US food manufacturer specialising
in protein applications, including texturisation
• The acquisition will enhance NS’s growth in the
0% healthy snacking solutions category
Volume Price Acquisition • Purchase price of $52 million
“cc” denotes constant currency11
Glanbia plc | Quarter 3 2021 presentation
Nutritional Solutions Q3 2021 update
+15.7%
Q3 2021 Revenue Progression, cc
20%
3.3%
Volume
1.9% • Strong volume performance in micro-nutrients and
15% healthy snacking solutions
• Consumer trends accelerating demand
Price
10%
• Driven by healthy snacking solutions
• Strong demand for underlying dairy ingredients
15.7%
Acquisitions
5% • Foodarom and PacMoore performing well
0%
Volume Price Acquisition
“cc” denotes constant currency12
Glanbia plc | Quarter 3 2021 presentation
US Cheese Q3 2021 update
Q3 2021 Revenue Progression, cc
20%
Volume
• Q3 volumes driven by new Joint Venture capacity fully
16%
commissioned during the year
(10.1%)
12% Price
• Price decline driven by lower cheese markets
19.3%
8%
4%
0%
Volume Price
“cc” denotes constant currencyFinance Q3 2021 review
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Glanbia plc | Quarter 3 2021 presentation
Strong Cash Flow and Balance Sheet
Q3 2021 Q3 2020
Cash
Net Debt €589m €628m generative
Net debt: Adjusted
1.50X 1.95X
EBITDA
• Rolling 12 months operating cash flow well ahead of 80% target
Facilitating Balance
• Strong balance sheet facilitates investment capability
investment Sheet
capacity
• At Q3 2021 - Total committed facilities of €1.1 billion with earliest
maturity January 202415
Glanbia plc | Quarter 3 2021 presentation
Capital Allocation
Expect to invest in FY 21 Invested €84 million In last 12 months PolicyConclusion
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Glanbia plc | Quarter 3 2021 presentation
Conclusions
Good revenue momentum in Q3 2021 with trends continuing into Q4
Strategic initiatives on track and navigating inflation through
pricing and efficiencies
Strong balance sheet to fund growth
Positive outlook; in FY 21 Adjusted EPS growth, constant currency,
expected to be at the upper end of the 17% to 22% rangeQuestions
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