Food and nutrition group Glanbia has seen sales and earnings per share rise over the past year and has announced a new €50m share buyback.
In its full-year results, the group reported profit after tax of 167.4 million euros in 2021, 24 million euros more than in 2020, with earnings before interest, taxes, depreciation and amortization of 270.6 million euros.
Group sales increased 13.1 percent on a currency-neutral basis (and up 9.8 percent in constant currency) compared to 2020 to 4.2 billion euros, driven by the sports nutrition business, Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN).
Adjusted earnings per share were 87.15 cents, an increase of 22.1 percent from 2020 at constant exchange rates, while adjusted earnings per share for continuing operations were 77.84 cents, an increase of 23.9 percent at constant exchange rates .
GPN revenue increased 17.1 percent on a currency-neutral basis (14.5 percent on reported), while GN revenue increased 20.8 percent on a currency-neutral basis (and 17.5 percent on reported).
“I am pleased to report that Glanbia has delivered a strong performance in 2021 compared to last year,” said Siobhán Talbot, Group Managing Director.
“This was well above our expectations at the start of 2021 and was driven by strong global consumer demand in Glanbia’s areas of nutritional expertise across ingredient solutions and our portfolio of nutritional brands. Our robust and effective operational execution delivered outstanding cash performance with a cash conversion of 100.2 percent per year.”
GPN added Germany-based brand LevlUp to its portfolio, while GN acquired healthy snacks company PacMoore and opened a large-scale joint venture cheese and whey plant in Michigan, USA.
The group also agreed to the sale of its Glanbia Ireland dairy business to Glanbia Co-operative Society Limited for €307 million, increasing its focus on nutrition.
The group returned over 91.3 million euros to shareholders via share buybacks and a higher dividend of 10 percent last year.
The focus for 2022 is to drive the growth of both the GPN and GN brands. However, the ongoing impact of cost inflation, particularly related to dairy, would need to be actively managed.
Glanbia expects full-year 2022 adjusted earnings per share to increase between 2 percent and 8 percent on a currency-neutral basis, with growth primarily driven by GN.
Goodbody brokers said the results presented a “mixed update.”
“While this shouldn’t come as a surprise overall, we note the benefits of the transformation program and secure supply and dairy pricing should give Glanbia more visibility to meet the challenges of the coming year,” Goodbody said in a note.
https://www.independent.ie/business/irish/glanbia-announces-50m-share-buyback-41405943.html Glanbia announces share buyback worth 50 million euros