Glanbia releases 2020 half year results

Glanbia plc, the global nutrition group, is publishing its financial results for the six month period ended 4 July 2020. The company reports that it delivered a resilient operating performance whilst navigating the challenges resulting from the Covid-19 pandemic.

Glanbia’s results summary for the financial half year 2020 is as follows:

  • Adjusted earnings per share of 31.05 cent, a decline of 17.2% constant currency (down 15.4% reported);
  • Net debt improved by €126.7 million versus prior half year. Net debt to adjusted EBITDA ratio 1.95 times;
  • Wholly-owned revenues of €1,836.7 million (HY 2019: €1,758.4 million), up 2.3% constant currency on prior half year (up 4.5% reported);
  • Wholly-owned EBITA pre-exceptional of €85.0 million (HY 2019: €111.4 million), down 25.4% constant currency on prior half year (down 23.7% reported);
  • Glanbia Performance Nutrition EBITA impacted by Covid-19 with conditions improving as the period ended. Transformation project expanded;
  • Glanbia Nutritionals delivered EBITA in line with the prior half year as demand in key categories sustained during H1 2020;
  • Joint Ventures delivered a robust performance with pre-exceptional share of profit after tax of €31.8 million up €5.0 million on prior half year;
  • Exceptional items after tax of €14.6 million; primarily relating to GPN transformation project;
  • Basic earnings per share of 18.73 cent (HY 2019: 28.22 cent) a decline of 33.6% reported on prior half year;
  • Interim dividend of 10.68 cent per share (HY 2019: 10.68 cent), recommended by the Board, representing a payout ratio of 34.4%

Accompanying the results is Glanbia’s announcement of its agreement to acquire Foodarom for CAD 60 million, a specialist flavours solutions business based in Canada.

Commenting on the company’s results, Siobhán Talbot, group managing director, said: “In my entire career at Glanbia, I have never been prouder of my colleagues, whose response to the extraordinary challenges of 2020 have been exemplary. I am hugely appreciative of the agility, dedication and commitment that Glanbia employees and particularly our frontline workers, suppliers, and customer partners showed in quickly adopting new radical ways of working and maintaining operations throughout the pandemic. When the crisis emerged we set three priorities; to protect our people, to continue food supply and to maintain our strong financial position. Since then, our business continuity planning teams have managed health and safety rigorously, we have altered our operational plans where needed and executed those plans very well and our balance sheet strength has improved.”

She condluded: “While the short term outlook remains uncertain, the Board is confident that Glanbia has the portfolio, the consumer insight and the operational expertise to succeed in this new environment.”

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