Glanbia delivered a performance ahead of expectations in the first half of 2021, its latest financial results show.
The group reported revenue growth of 28.1% during the period.
Glanbia Nutritionals, Nutritional Solutions (NS) delivered like-for-like volume growth of 14.9% constant currency on prior half year.
Glanbia Nutritionals (GN) delivered earnings, before, interest, tax, amortization (EBITA) pre-exceptional of €69.7 million, up 17.1% constant currency compared to the same period last year.
In the first six months of 2021 wholly-owned revenues grew by 20.3%, on a constant currency basis.
This was driven by very strong demand across our GPN branded business relative to the pandemic related challenges in 2020, and our NS ingredients business, which built on a very resilient 2020 performance.
According to Siobhán Talbot, group managing director, this performance drove a significant improvement in profit with adjusted earnings per share of 52.86 cent in the period which was an increase of 85% on a constant currency basis versus the prior year.
"The Glanbia team has navigated the pandemic well to date keeping a clear focus on both tactical activity and key strategic initiatives," she commented.
"While the Group remains vigilant to the continued volatile and disruptive potential of the COVID-19 pandemic, this focused approach gives us the confidence to guide to delivery of full year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year," Talbot said.
GPN Transformation Programme
Talbot highlighted that the group made strong progress on our strategic agenda in the first half with significant progress on the GPN transformation programme driving revenue and margin growth, the acquisition of a 60% stake in LevlUp, a European gaming nutrition brand, commissioning of a $470 million JV plant in Michigan, the progression of our environmental, social and governance (“ESG”) strategy, and the restructure of legacy pension liabilities to de-risk our balance sheet.
In the first half, the group generated over €160 million of operating cash flow and reduced our net debt by over €100 million.
"As a result of this strong performance we plan to increase returns to shareholders by raising our interim dividend by 10% as well as launching a share buyback programme today of up to €50 million," she said.
"Our compelling belief has always been that consumers increasing focus on health and wellbeing positions Glanbia well for the future, given our portfolio of nutrition brands and ingredient solutions."
"Our focused actions to drive demand coupled with the consumer response to market reopenings in the first half of 2021 has strengthened our belief that these trends will continue to deliver long-term growth for Glanbia,” Talbot added.