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Glanbia plc (LSE:GLB), renowned for its focus on better nutrition, has announced its half-year results for the six-month period ending 29 June 2024 (“Half Year 2024” or “HY 2024”). The company's results highlight a significant rise in adjusted earnings per share (EPS) and improved EBITDA margins, despite a slight decrease in overall revenues.
Strong Financial Performance
For HY 2024, Glanbia reported an adjusted EPS of 68.20 $cent, up 12.4% on a constant currency basis compared to 60.78 $cent in HY 2023. This represents a 12.2% increase when reported in actual terms, reflecting the company’s effective cost management and operational efficiency. The growth in adjusted EPS underscores Glanbia's commitment to delivering shareholder value through strategic initiatives and robust financial management.
Group revenues for the period totaled $1.82 billion, a decrease of 1.1% on a constant currency basis from $1.84 billion in HY 2023. The decline in revenue is attributed to a combination of factors, including a 4.0% decrease in pricing, offset by a 1.8% increase in volume and a 1.1% contribution from acquisitions. Despite the revenue decline, the company’s volume growth and successful acquisition integration are notable achievements.
Increased EBITDA and Margins
Glanbia’s EBITDA pre-exceptional reached $261.6 million, marking a 12.8% increase on a constant currency basis from $232.2 million in HY 2023. The reported increase stands at 12.7%. The Group’s EBITDA margin pre-exceptional improved to 14.4%, up 180 basis points from 12.6% in the previous year. This improvement reflects Glanbia’s focus on enhancing operational efficiencies and cost control measures, contributing to stronger profitability and margin expansion.
However, the basic EPS for HY 2024 was reported at 54.71 $cent, a decrease from 71.90 $cent in HY 2023. This drop is attributed to various factors including exceptional items and other financial impacts.
Outlook for 2024
Looking ahead, Glanbia has reiterated its full-year guidance for 2024, expecting adjusted EPS growth of 5% to 8%. This guidance reflects the company’s confidence in its strategic direction and ongoing initiatives aimed at driving sustainable growth and enhancing shareholder value.
