Glanbia Full-Year Results: What The Analysts Said

By Steve Wynne-Jones
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Glanbia Full-Year Results: What The Analysts Said

Performance and lifestyle nutrition brand Glanbia has reported a 0.6% increase in revenue in its full-year 2020, which the group described as a 'resilient' performance.

"Our business portfolio delivered a robust operating performance supported by our swift and decisive actions which resulted in improving trends across the group in the second half of the year," commented Siobhán Talbot, Glanbia group managing director.

Here's low leading industry analysts viewed the group's performance.

Cathal Kenny, Davy

"The key takeaways from Glanbia’s FY20 result include:(i) improved trajectory for Glanbia Performance Nutrition (GPN) through H2; (ii) impressive cash generation with year-end net debt/EBITDA at 1.7x; and (iii) guidance of 6-12% constant currency (cc) EPS growth, led by EBITA growth for GPN and Glanbia Nutritional (GN).

"Overall, the FY20 result bookends a challenging year for the GPN business — we expect the breadth of actions taken to rebuild revenue and margin within GPN to accrue through FY21 and FY22. We envisage no material change to forecasts as FX headwinds temper underling constant currency progress. We believe the equity is attractively priced on a free-cash and earnings basis."


Jason Molins, Goodbody

"Glanbia has reported FY20 results with EPS of 73.78c, -14.9% on a constant currency basis, reflecting the impact of COVID on the GPN division. This outcome is c.3% ahead of consensus, though we note is largely explained by a strong outturn within the Joint Ventures (share of profit +€13m to €61.6m).

"In terms of outlook, [...] the group is guiding to FY21 constant currency EPS growth of 6-12%. Combined with a c.6% FX headwind, this implies a mid-point FY21 EPS outcome of c.75.6c. This is c.7% below our forecast, of which half is explained by the recent dollar weakness."

CFI research Team, Cantor Fitzgerald

"Glanbia’s FY20 numbers came in marginally ahead of expectations, with guidance in line with consensus. The company reported a 16.3% fall in adj. EPS to 73.78c (69.7c forecast), from a 24.3% dip in EBITA to €209.6m and a 1.4% decrease in revenue to €3.82bn (€3.81bn forecast). With the market focussing on margin progression, Group EBITA margin contracted 160bps to 5.5% from 7.1%.

"Glanbia’s shares have been drifting down into these results (-2.6% year-to-date) albeit while largely remaining in the €10.00 to €10.50 range that it has been trading in over the past three months. The stock is trading at 12.2x both FY21 P/E and EV/EBITDA, a 10% discount to its dairy peers and 19% discount to its 10-year average. Despite this discount, we would continue to caution that the market still needs to see evidence of sustained volume growth in H121 before that discount will be addressed. We retain our hold recommendation and unchanged price target of €11.00."


Seaspray Financial Services

"Irish global nutrition group Glanbia has announced its 2020 earnings result, during which the the firm saw its net profits fall to €143.8 million from €180.2 million in 2019, while revenues were lower from €3.87 billion to €3.82 billion. Glanbia said that the board would recommend a dividend for 2020 of 26.62 cent per share, coming in in-line with the previous year's payout. This equates to a relatively strong dividend yield at current share prices of 2.65%."

"With regard to Brexit, the firm said that the UK's withdrawal has had no material financial impact on them. The shares are trading almost 4% lower in Dublin on the back of this release from Glanbia, to €9.99. This leads the stock 3.5% lower YTD so far, having traded flat during 2020."

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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