Glanbia posts full year results, plus new acquisition and board changes

Glanbia, the global nutrition group, has announced its results for the financial year ended 29 December 2018. Its subsidiary, Glanbia Nutritionals, has also acquired US-based Watson for $89m (€78.4m).

Glanbia delivered a good performance in 2018. Wholly-owned revenue from continuing operations was €2.3bn, which was in line with prior year on a reported basis (up 4.1% constant currency). The drivers of revenue growth were a 6.7% growth in volume, a 4.7% decrease in price and a 2.1% revenue contribution from acquisitions. Wholly-owned EBITA €284.9 million (2017: €283.2 million) up 5.2% on prior year, constant currency (up 0.6% reported). Wholly-owned EBITA margin was up 10 bps constant currency on prior year (in line with prior year on a reported basis).

Total Group profit in 2018 was €234.0 million, up €2.6m on prior year, while the reported share of profit after tax (before exceptional items) from joint ventures increased by €2.5 million to €45.3 million in 2018.

Adjusted earnings per share was 91.01 €cents, an increase of 4.5% on a reported basis (up 9.0% constant currency).

Siobhán Talbot, group managing director, said: “Consumer demand for our brands and nutritional ingredients remains strong, underpinned by positive long-term global health and wellness trends. We continue to invest in expanding our business and its capabilities through sustainable growth, and are on track to deliver our 2022 strategic ambitions.”

In November 2018, Glanbia completed the acquisition of SlimFast for $350m (€308m), a complementary brand within the Glanbia Performance Nutritionals (GPN) portfolio.

In 2019, Glanbia Nutrition (GN) has announced it is acquiring Watson, a US-based manufacturer and supplier of high-quality custom nutrient premix, bakery ingredient, edible film and material conditioning solutions for the nutrition, food and beverage, personal care and supplement industries.

With over 80 years experience in the field, Watson will strengthen Glanbia’s capability set with microencapsulation, agglomeration, micronising, spray drying and edible film technologies.

“We are excited to welcome Watson with its established reputation of expertise, technical capability and commitment to excellence,” said Brian Phelan, CEO of Glanbia Nutritionals. “The customers of both organisations will stand to benefit significantly from the combined capabilities that the two teams now bring together.”

Glanbia also announced changes to the organisation of its board of directors during 2019 with the appointment of three new independent non-executive directors. Two have been named as Mary Minnick, an experienced board director, currently a member of the boards of Target Corporation and Leo Holdings Corp; and Richard Laube, who has held a variety of executive and board member roles throughout his career, and is currently director of Gnubiotics Sciences and Piqur Therapeutics SA.

The reorganised board will be comprised of 16 members; two executive directors; a group managing director and a group finance director; six independent non-executive directors and eight non-executive directors.

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