Latest news with #DairyNutrition
Yahoo
3 days ago
- Business
- Yahoo
Glanbia PLC (GLAPF) (H1 2025) Earnings Call Highlights: Resilient Growth Amidst Challenges
Revenue: $1.9 billion, up 6% on a constant currency basis. Adjusted Earnings Per Share (EPS): $0.6303. Pre-exceptional EBITDA: $241.3 million, down 7.5%. EBITDA Margin: 12.5%, a decrease of 180 basis points. Health and Nutrition Revenue Growth: 6.5% like-for-like, with volume growth of 6.9%. Dairy Nutrition Revenue Growth: 14.1% like-for-like, with volume growth of 4.3% and pricing increase of 9.8%. Performance Nutrition Revenue Decline: 3.8% like-for-like, with volume decrease of 3.5% and price decrease of 0.3%. Net Debt: $650 million. Cash Conversion: 81.3% with operating cash flow of $432 million. Interim Dividend Increase: 10%. Share Buyback: EUR63 million returned to shareholders. Capital Expenditure: $47.7 million in the first half, with full-year expectation between $80 million and $90 million. Adjusted EPS Guidance: Upgraded to $1.30 to $1.33, a decline of approximately 5% to 7% constant currency. Warning! GuruFocus has detected 2 Warning Signs with GLAPF. Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Glanbia PLC (GLAPF) reported a resilient performance with adjusted earnings per share of $0.6303, driven by strong growth in Health and Nutrition and Dairy Nutrition divisions. The company delivered revenues of $1.9 billion, representing an increase of 6% on a constant currency basis. Health and Nutrition division saw like-for-like revenue growth of 6.5% with volume growth of 6.9%, driven by Nutritional premix and Flavor Solutions businesses. Dairy Nutrition experienced strong growth in Protein Solutions and favorable pricing due to strong whey protein demand. Glanbia PLC (GLAPF) raised the interim dividend by 10% and returned approximately EUR63 million to shareholders via share buyback programs. Negative Points Performance Nutrition division faced a decline with like-for-like revenue down 3.8%, driven by a decrease in volume and price. Group EBITDA pre-exceptional decreased by 7.5% with EBITDA margins declining by 180 basis points due to elevated whey protein costs. The company incurred exceptional items net of tax of $32.6 million, primarily related to the group-wide transformation program. Net finance costs increased by $3.2 million compared to the prior year due to higher average net debt. Performance Nutrition Americas, representing 61% of revenue, was down 8.7% versus last year due to headwinds in the US, club, and specialty channels. Q & A Highlights Q: Can you provide more details on the Performance Nutrition (PN) guidance, particularly regarding the expected price versus volume growth in the second half of the year? A: Hugh McGuire, CEO, Glanbia Performance Nutrition, explained that the second half growth will primarily be volume-driven. They are lapping previous challenges in the club channel and have a strong innovation program in place. The categories are growing strongly, especially in powders, which are an affordable source of protein. Q: Regarding Health and Nutrition (H&N), what is driving the strong performance despite a muted consumer backdrop, and how do you see margins evolving into 2026? A: Hugh McGuire noted that strong demand across all end markets is driving H&N's performance. Mark Garvey, CFO, added that while first-half margins were strong, they expect some softness in the second half due to tariff impacts. They plan to provide more detailed guidance for 2026 at their Capital Markets Day. Q: How do your whey protein contract prices for 2026 compare to 2025, and do you expect the cost backdrop to ease with new supply? A: Mark Garvey stated that whey costs for 2026 are not materially different from 2025. They have visibility on new supply coming online, which should help stabilize costs. Hugh McGuire added that they are covered for whey through Q1 2026 and are focused on securing additional supply. Q: Can you discuss the competitive intensity in the ready-to-mix protein powder category in the US and any notable changes in Q2? A: Hugh McGuire mentioned that the ready-to-mix category has always been competitive, but they are not seeing any significant changes in competitive dynamics. The category is growing, and they continue to invest in capturing market share. Q: What are the expected impacts of the Sweetmix acquisition, and does it require additional capital expenditure? A: Hugh McGuire expressed satisfaction with the Sweetmix acquisition, highlighting its strategic importance for expanding in Latin America. The facility is well-invested and does not require additional CapEx. It serves key markets like functional beverages and supplements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Irish Examiner
4 days ago
- Business
- Irish Examiner
Glanbia upgrades full-year outlook on strong performances of dairy and health segments
Irish food giant Glanbia upgraded its full-year guidance for 2025 on the back of strong results for the first half of the year, with revenues rising 6% to $1.93bn (€1.7bn) driven by growth in its Health & Nutrition (H&N) and Dairy Nutrition (DN) divisions. The Kilkenny firm, which separated from the farmer-owned co-op Tirlán to focus on its global business, increased its interim dividend by 10% to 17.20 cent per share and returned €62.8m to shareholders via share buyback programs. Glanbia's Health & Nutrition division, which creates flavourings and ingredients for other companies, saw an 18% revenue increase, driven by a 6.9% rise in volume and a significant 11.5% contribution from acquisition. Glanbia announced the acquisition of Sweetmix, a Brazil-based nutritional solutions business, to facilitate growth in the Latin American market. The Dairy Nutrition segment delivered a 14.1% increase in revenue. This was driven by a combination of volume growth and favourable dairy market pricing. Glanbia CEO Hugh McGuire. However, the company's Performance Nutrition (PN) division faced challenges, with a 3.8% decline in revenue. This was primarily attributed to elevated whey protein costs and anticipated declines in non-core brands. However, Glanbia said there were positive signs of recovery, particularly with the flagship Optimum Nutrition brand, which saw a revenue increase in the second quarter. CEO Hugh McGuire said: 'Today's results reflect a first half of significant execution and progress as we generated 6% revenue growth in the period, underpinned by strong growth in H&N and DN and a sequential improvement in PN through the period as the Group navigated significant macroeconomic volatility.' Glanbia announced the appointment of Paul Duffy as Chair-Designate, who will succeed Donard Gaynor on January 1.
