Burgeoning demand for sports nutrition products has been a real winner for Irish ingredients giant Glanbia (GLB). The company reported an 11 per cent increase in adjusted full-year profit, marking its fifth consecutive year of double-digit earnings growth. Its global performance nutrition division, which makes things like protein powders, protein drinks and protein bars for athletes, was largely responsible.
Sales in the division grew 14 per cent to €746m (£543m) as demand surged. The margin also beefed up - by 120 basis points to 12 per cent - thanks to operational leverage and manufacturing efficiencies at Glanbia's new US factory. That translated into a 26 per cent jump in trading profit to €89.2m.
Glanbia's global ingredients business, which makes high-tech additives for foods such as infant formula, also served up an admirable performance given the well-documented challenges in the global dairy market. Meanwhile, Dairy Ireland, Glanbia's branded consumer goods division, enjoyed an 80 basis point margin gain following significant cost savings. That more than offset lower sales and left profit up by a quarter at €19m.
Management has guided analysts towards growth of 9 to 11 per cent this year, giving adjusted EPS of 67-68¢.
| GLANBIA (GLB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,598¢ | MARKET VALUE: | €4.7bn | |
| TOUCH: | 1,597-1,600¢ | 12-MONTH HIGH: | 1,598¢ | LOW: 1,040¢ |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 269¢* | NET DEBT: | 63% | |
| Year to 3 Jan | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 2.17 | 135 | 36.9 | 7.52 |
| 2012 | 1.93 | 106 | 38.2 | 8.27 |
| 2013 | 2.21 | 150 | 49.3 | 9.09 |
| 2014** | 2.38 | 176 | 51.0 | 10 |
| 2015 | 2.54 | 174 | 49.6 | 11 |
| % change | +7 | -1 | -3 | +10 |
Ex-div: 6 Apr Payment: 15 May *Includes intangible assets of €662m, or 224¢ a share **Year to 4 Jan 2014 £1=€1.36 | ||||
