FIRSTQUARTER2017INTERIMMANAGEMENTSTATEMENT
GlanbiaQ12017update‐strategicinitiativesontrackandfullyearguidancereiterated
26April2017–Glanbiaplc,theglobalnutritiongroup(‘Glanbia’,the‘Group’orthe“plc”),isissuingthis
InterimManagementStatementforthethreemonthperiodended1April2017.Thisstatementisissued
inconjunctionwiththeplc’sAnnualGeneralMeetingwhichisbeingheldtoday.
Commentingtoday,SiobhánTalbot,GroupManagingDirectorsaid:
“Glanbia delivered good revenue growth in the first three months of 2017. Glanbia Nutritionals had a
goodperformanceandwasthemaindriverofgrowth.GlanbiaPerformanceNutritiondeliveredinline
with expectations, as a strong performance in non U.S. markets countered some challenges in the U.S.
market.Theoutlookfortheremainderof2017ispositiveandwereiterateourfullyearguidanceof7%to
10%growthinadjustedearningspershare,constantcurrency,fromthecontinuingGroup(pro‐forma*)
withgrowthweightedtothesecondhalfoftheyear.
Our strategicinitiatives remain on track;we havecompleted the acquisition ofBody&Fit, have signed
bindinglegalagreements,subjecttocertainapprovals,tosell60%oftheDairyIrelandsegmenttoGlanbia
Co‐operativeSocietyLimitedandcontinuetoplanwithourpartnersintheUSforthecreationofanew
jointventuretobuildascalecheeseandwheyplantintheStateofMichigan.”
Performanceupdate
Inthethreemonthsended1April2017,whollyownedrevenueincreased7.0%onareportedbasisand
wasup4.7%onaconstantcurrencybasiswhencomparedtothesameperiodin2016.Thiswasdriven
bypricinggrowthof2.1%mainlyasaresultofimproveddairymarketsversusprioryear,volumegrowth
of1.7%andacontributionfromacquisitionsof0.9%.TotalGroupRevenue,includingGlanbia’sshareof
JointVenturesandAssociates,increased9.6%onareportedbasisand7.7%onaconstantcurrencybasis.
GlanbiaPerformanceNutrition(constantcurrency**)
GlanbiaPerformanceNutrition(‘GPN’)deliveredinlinewithexpectationsinthefirstthreemonthsofthe
year.Revenuesdecreasedmarginallyby0.2%,asa0.3%increaseinpricingand2.6%growthfromthe
acquisition of Amazing Grass was offset by a 3.1% volume decrease. The overall revenue movement
reflected branded revenuegrowthoffsetby a continued decline in contract business. Ona like‐for‐like
basisfirstquartercomparativesintheU.S.impactedperformancehoweverthiswascounteredbystrong
year‐on‐year growth in non US markets. The Amazing Grass acquisition performed in line with
expectations in the period, while GPN closed the Body & Fit acquisition on 31 March 2017. Existing
management teams will remain with the acquired businesses and integration will largely be related to
installingGlanbiasupportsystems.GPNremainsfocusedongrowththroughinnovationandtherecently
launched thinkThin Super‐fruit bars and ON Cake Bites are exciting additions to the portfolio, both of
whichareperformingwell.
Thefullyear2017outlookforGPNisgood,withlike‐for‐likebrandedrevenuegrowthexpectedtobein
themid‐singledigitrange,drivenbyvolumegrowthweightedtowardsthesecondhalfoftheyear.Full
year EBITA margins are expected to be in the mid teen range albeit below 2016 levels as input cost
increasesarepartlyoffsetbyprice,mixandefficiencyimprovements.
GlanbiaNutritionals(constantcurrency**)
GlanbiaNutritionals(‘GN’)deliveredagoodperformanceinthefirstthreemonthsof2017withrevenue
growth of 10.3%. This was driven by a price increase of 7.6%, mainly as a result of improved dairy
markets,versusprioryearandvolumegrowthof2.7%,primarilydrivenbyNutritionalSolutions.
Glanbia plc - Delivering better nutrition for every step of life’s journey
Q1 IMS – 26 April 2017
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NutritionalSolutionsdeliveredpriceandvolumeincreasesintheperiodassalesgrowthofvalueadded
systemswasbroadbasedacrossarangeofformatsandsectors.Productmixcontinuestoimprovewithin
theNutritionalSolutionsportfolioincreasingexposuretohighergrowthendmarkets.
US Cheese performed in line with expectations in the first quarter of 2017. Demand remains solid and
averagecheesepriceswerehigherintheperiodversusprioryear.Operationallytheplantsperformed
well.
The full year 2017 outlook for GN is good. Revenue and EBITA growth is expected to be driven by the
continuedgrowthofNutritionalSolutionsandimproveddairymarkets.
DairyIreland
Dairy Ireland delivered a satisfactory performance in the first three months of the year despite the
challengesofhigherinputcosts.Revenueintheperiodincreasedby2.3%whichwasdrivenbyavolume
increaseof7.2%,offsetbyapricedeclineof4.9%.
Agribusiness delivered improved volumes from sales of animal feed and fertiliser which was offset
somewhat by commodity related price declines. Consumer Foods delivered an improvement in overall
productmixascontinuedgrowthinvalue‐added‐milksoffsetareductioninprivatelabelbusiness.
JointVentures&Associates(constantcurrency**)
RevenuesfromJointVentures&Associates(“JVAs”)increasedby19.2%inthefirstthreemonthsof2017
versusprioryear.Pricingincreasedby17.7%asaresultofimproveddairymarkets.Volumeincreasedby
1.5%asgrowthinGlanbiaIngredientsIrelandmorethanoffsetsomevolumedeclinesinotherJVAs.
GoodprogresshasbeenmadeonstrategicdevelopmentswithinJVAs.Theprojecttoexpandproduction
capacityby25%attheSouthWestCheesefacilityintheU.S.isprogressingtoplanwithcommissioning
expected in 2018. In addition the proposed creation of a new Joint Venture in Michigan, US to build a
largescalecheesefacilityisontrack.
Financing
Glanbia'snetdebtat1April2017was€735million,whichrepresentsanincreaseof€297millionversus
thenetdebtpositionatyearend2016.ThiswasprimarilydrivenbytheacquisitionsofAmazingGrass
andBody&Fitwhichclosedintheperiod,andseasonalworkingcapitalrequirements.Total2017capital
expenditureisexpectedtobeapproximately€90millionto€100million.
UpdateonDairyIrelandsaleprocess
Today, Glanbia has announced that it has signed binding transaction agreements with Glanbia Co‐
operativeSocietyLimited(the“Society”)toselltotheSocietya60%interestintheDairyIrelandsegment
and related associate businesses (the “Proposed Transaction”). The Proposed Transactionis subjectto
shareholder approvals by both the Society and Glanbia which are likely to take place in May 2017. A
separate announcement has been published today which outlines the key terms of the Proposed
Transaction. A Circular outlining the Proposed Transaction will be posted shortly to all Glanbia
shareholdersontheregisterat25April2017.IfapprovedbytheshareholdersofGlanbiaandtheSociety
and remaining pre completion requirements are met, Glanbia expects the Proposed Transaction to
complete by mid‐year. The Dairy Ireland transaction is expected to be 5%‐7% adjusted earnings per
sharedilutiveonafull‐yearbasis.
Fullyearoutlook
Glanbia plc - Delivering better nutrition for every step of life’s journey
Q1 IMS – 26 April 2017
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Glanbiareiteratesitsguidancethatonapro‐forma*basisadjustedearningspershareforthecontinuing
Groupisexpectedtogrowbetween7%‐10%constantcurrencyforfullyear2017withgrowthevenly
balancedacrossGlanbiaPerformanceNutritionandGlanbiaNutritionals.
*Pro‐formaadjustedEPSofthecontinuingGrouphasbeenprovidedassumingtheDairyIrelandtransactiontookplaceatthestart
ofFY2016.
**ToarriveattheConstantCurrencyChange,theaverageFXrateforthecurrentperiodisappliedtotherelevantreportedresult
fromthesameperiodintheprioryear.TheaverageEuroUSDollarFXrateforQ12017was€1=$1.07(Q12016:€1=$1.10).
Ends
Cautionarystatement
This announcement contains forward‐looking statements. These statements have been made by the
Directorsingoodfaithbasedontheinformationavailabletothemuptothetimeoftheirapprovalofthis
report.Duetotheinherentuncertainties,includingbotheconomicandbusinessriskfactorsunderlying
suchforwardlookinginformation,actualresultsmaydiffermateriallyfromthoseexpressedorimpliedby
theseforward‐lookingstatements.TheDirectorsundertakenoobligationtoupdateanyforward‐looking
statements contained in this announcement, whether as a result of new information, future events, or
otherwise.
IMSconferencecalldial‐indetails
Therewillbeananalysts’conferencecalltoaccompanythisInterimManagementStatementat8.30a.m.
(GMT)today.
Tolistentothecall,pleasedial‐inusingthefollowingnumbers:
Ireland
UK
Europe
USA
012465621
03303369411 +44 3303369411
7193252385
Passcode
3209114
A replay of the call will be available for 30 days from this afternoon. Please see the link below to the
InvestorRelationssectionoftheGlanbiaplcwebsitefordetails:
http://www.glanbia.com/investors/results‐centre
Forfurtherinformationcontact
Glanbiaplc+353567772200
MarkGarvey,GroupFinanceDirector
LiamHennigan,HeadofInvestorRelations:
+353860468375
MarkGarrett,DirectorofCommunications&PublicAffairs:+353866019655
Glanbia plc - Delivering better nutrition for every step of life’s journey
Q1 IMS – 26 April 2017
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