March 2016: Glanbia

Siobhán Talbot, group managing director, Glanbia

Food giant Glanbia’s annual results were good news for shareholders, and for managing director Siobhán Talbot.

Now with six consecutive years of double-digit earnings growth under its belt, Glanbia is on an encouraging run. Its 2015 results, announced in late February, saw adjusted earnings per share up by 10.6% on a constant currency basis, with EBITA standing at €271m, up by 10.5% in constant currency.

Its Glanbia Performance Nutrition unit was a star performer, reporting EBITA of €135.6m, up by nearly 30%. All this and more has meant a 10% update in the dividend, up to 12.1c per share.

“I am pleased to announce the sixth consecutive year of double digit growth for Glanbia in 2015 with a 10.6% increase in adjusted earnings per share, constant currency,” said group managing director Siobhán Talbot. “On a reported basis, earnings per share grew by 29.4% reflecting the translation effect of a strong US dollar.  The results demonstrate the resilience and diversification of the Glanbia model during a difficult year for dairy markets. Glanbia Performance Nutrition was the main driver of earnings growth supported by Dairy Ireland which saw a recovery in performance in 2015. The outlook for 2016 is positive and we are guiding 8% to 10% growth in adjusted earnings per share, constant currency.”

ACQUISITION AND TURNOVER

Glanbia is a household name in the Irish food industry, responsible for well-known brands such as Avonmore and Kilmeaden. It has a presence in 32 countries, in three main divisions – Dairy Ireland, Global Performance Nutrition and Global Ingredients – along with several joint ventures and other operations. Its turnover is over €3.5bn and it has around 6,000 employees worldwide.

The group spent over €123m on capital investment in 2015, commissioning a new high-end whey production facility in Idaho and adding packing capacity in Chicago. It also completed the acquisition of ThinkThin for €202.4m, boosting the group’s nutrition bar and snacks portfolio.

In March last year Taoiseach Enda Kenny and a host of dignitaries opened the group’s new high-spec infant formula facility in Kilkenny, as the company prepared for the end of the EU milk quota regime. Glanbia Ingredients Ireland’s investment programme of over €235m was billed as the largest by an Irish company for 80 years, and the new facility was expected to create 1,600 direct and indirect jobs, with all production destined for export markets such as Asia, the Middle East, Africa and Central America.

“Glanbia’s strategy is to respond to the global megatrends of nutrition as consumers focus on active, healthy lifestyles, seek protein and exert a powerful focus on where their food comes from,” said Talbot. “In responding to these trends, Glanbia takes pure and clean ingredients including milk, whey and grains, and using our expertise we produce high-quality nutritional ingredients and branded products for consumers worldwide. Our unique portfolio of performance nutrition brands and nutritional ingredients are right at the heart of emerging growth opportunities.”