Interim Results
Glanbia PLC
29 August 2007
2007 Interim Results
A FULL COPY OF THIS PRESENTATION IS AVAILABLE ON WWW.GLANBIA.COM
STRONG FIRST HALF PERFORMANCE DELIVERS 26% GROWTH IN EARNINGS PER SHARE
UPWARD REVISION IN EARNINGS GUIDANCE TO HIGH TEENS FOR FULL YEAR
29 August 2007 - Glanbia plc, the international dairy foods and nutritional
ingredients Group, announces its interim results for the six months ended 30
June 2007.
2007 Interim Results Summary
Glanbia delivered strongly in terms of profits, margins and earnings per share
growth in the first half of 2007. The Group benefited, in particular, from good
underlying growth in Food Ingredients USA and the expansion of the global
Nutritionals business, against a background of positive trends in world dairy
markets.
H1 2007 H1 2006 Change
Revenue €1,040.3 m €922.8 m Up 13%
Operating profit €48.5 m €36.4 m Up 33%
Operating margin 4.7% 3.9% Up 80 bps
Net financing costs €8.6 m €6.5 m Up 32%
Share of results of joint ventures
and associates €(1.3 m) €0.3 m Down €1.6m
Profit before tax €38.6 m €30.2 m Up 28%
Profit for the period €33.8 m €26.9 m Up 26%
Earnings per share 11.47 c 9.12 c Up 26%
Adjusted earnings per share 11.47 c 9.12 c Up 26%
Dividend per share 2.50 c 2.38 c Up 5%
Net debt €269.1 m €301.2 m Down 11%
John Moloney, Group Managing Director, said:
'Glanbia had a very good first half this year, with earnings per share up 26%
which is ahead of market expectations.
The drivers of this performance were strong results from our Food Ingredients
USA and the global Nutritionals businesses, both of which are key to our
strategy to diversify our earnings base into higher value added ingredients.
Buoyant world dairy markets were also a contributing factor, as expanded demand
coupled with constrained supply, saw global markets rise to record levels in the
first half of the year. These market developments are also significantly
positive for the dairy farming sector.
Overall, the outlook for Glanbia is very satisfactory and we expect a strong
performance again in the second half. Notwithstanding the fact that there are
some short-term factors in our international joint ventures, we expect to
deliver full year earnings growth in the high teens, which is an upgrade to
current market expectations.'
Presentations
As part of the announcement of these results Glanbia plc will undertake a number
of presentations for investors, analysts and media. In addition, the Group is
hosting a conference call and webcast, details of which, together with the
results presentation, can be accessed via the Results Centre on www.glanbia.com.
2007 Interim Statement
Results for the half year ended 30 June 2007
FINANCE REVIEW
Glanbia delivered a strong performance on an overall basis, with a significant
increase in revenue, profits, margins and earnings per share recorded in the
first half of 2007.
Income statement
Revenue increased 13% (€117.5 million) in the first half of 2007 to €1.04
billion (H1 2006: €922.8 million). This increase is a combination of price and
volume growth in Food Ingredients USA and Nutritionals including a full six
month contribution from Seltzer Companies Inc., the Nutritionals acquisition
completed in October 2006. Operating profit grew 33% (€12.1 million) to €48.5
million (H1 2006: €36.4 million) and the operating margin improved 80 basis
points to 4.7% (H1 2006: 3.9%). The operating profit and operating margin both
reflect the changing mix of business towards higher added value food ingredients
and buoyant world dairy markets.
Financing costs increased €2.1 million to €8.6 million (H1 2006: €6.5 million)
mainly due to higher interest rates. Interest cover was 5.6 times in H1 2007 and
H1 2006.
The Group's share of results of joint ventures and associates recorded a loss of
€1.3 million (H1 2006: Group's share of profit €0.3 million), due to a lag in
the recovery of the significant increases in world dairy raw material prices in
their served markets.
Profit before tax grew 28% (€8.4 million) to €38.6 million (H1 2006: €30.2
million). Taxation amounted to €4.8 million in the first half of this year
compared with €3.3 million for the same period last year. Profit for the period
increased 26% (€6.9 million) to €33.8 million (H1 2006: €26.9 million).
Basic and adjusted earnings per share amounted to 11.47 cent per share (H1 2006:
9.12 cent per share), which is a 26% increase when compared to the first half of
2006.
Balance sheet and cash flow
Net cash used in investing activities amounted to €26.5 million (H1 2006:€25.9
million). Net cash generated from operations pre movement in working capital was
€52.7 million (H1 2006: €34.2 million). Group net debt reduced by €32.1 million
to €269.1 million compared with net debt at 1 July 2006 (H1 2006: €301.2
million).
Since 2006 year end, the pension deficit reduced from €124.9 million to €83.3
million as a result of increased bond rates and improved investment returns
during the period. The principal effect of this on the Group's balance sheet was
to increase shareholders equity in the business from €193.9 million at 30
December 2006 to €244.9 million at 30 June 2007.
Dividends
The Board is recommending an interim dividend of 2.50 cent per share (H1 2006:
2.38 cent per share), representing an increase of 5%. Dividends will be paid on
3 October 2007 to shareholders on the register as at 14 September 2007, the
record date. Irish dividend withholding tax will be deducted at the standard
rate, where appropriate.
OPERATIONS REVIEW
Ireland
Alongside international expansion, Glanbia has also consistently invested in
Ireland to ensure that these core divisions continue to maintain or improve
performance, notwithstanding the competitive operating and cost environment in
the domestic market. In the first half of 2007, continued solid business
execution helped Irish operations deliver overall results in line with
expectations.
CONSUMER FOODS
Consumer Foods €'000 H1 2007 H1 2006 Change
This division includes:
Consumer Foods
incorporating nutritional Revenue 249,042 252,282 Down 1.3%
beverages, fresh dairy
products and cheeses, Operating profit 8,335 8,470 Down 1.6%
soups and spreads; and,
Pigmeat, which produces a Operating margin 3.3% 3.4% Down 10 bps
range of pork and bacon
products.
Revenue at the Consumer Foods division declined 1.3% to €249 million. (H1 2006:
€252.3 million). Operating profit decreased 1.6% (€0.2 million) to €8.3 million
(H1 2006: €8.5 million) and the operating margin decreased slightly to 3.3% (H1
2006: 3.4%).
Consumer Foods Ireland
Consumer Foods had a satisfactory first half and revenues, profits and margins
remained stable. This business unit continued to focus on widening its consumer
offering with a number of new products in the nutritional area and in the
convenience food segment. The business also continues to increase its marketing
investment to deepen its brand franchise, which currently has seven of the top
100 Irish grocery brands.
Outlook: The consumer foods retail environment in Ireland is very competitive
and Glanbia continues to counteract this through innovation, delivering new
products, reformulations and repackaging to the marketplace and consumers,
together with significant investment in marketing and promotions. For the full
year this business is expected to deliver a reduced performance on last year;
the key issue being the timing of the recovery from the marketplace of higher
milk cost.
Pigmeat
The Glanbia Meats performance was neutral when compared to the same period last
year. The rationalisation benefits of the closure of the cannery operation in
2006 were offset by a weaker performance in the slaughtering plants driven by
weak international pork markets.
Outlook: A reasonable recovery is anticipated in this business in the second
half as markets are expected to improve somewhat, in addition to the normal
seasonal performance uplift. A recent fire at one of the Group's pig processing
plants will not materially impact the 2007 results and performance for the full
year is expected to be largely in line with 2006.
AGRIBUSINESS AND PROPERTY
Agribusiness & Property €'000 H1 2007 H1 2006 Change
This division includes:
Agribusiness which is the Revenue 170,011 165,615 Up 2.7%
key linkage with the Group's
Irish farmer supply base; Operating profit 11,811 15,857 Down 26%
and Property, which has
responsibility for the Operating margin* 4.9% 5.8% Down 90 bps
maximisation of value from
the Group's property
portfolio.
*Note: the operating margin excludes Property
In the first half, revenue for Agribusiness and Property was up 2.7% to €170
million (H1 2006: €165.6 million). Operating profit declined €4 million or 26%
to €11.8 million (H1 2006: €15.9 million) mainly due to lower property disposals
in comparison with the first half of 2006, when the majority of the 2006
property transactions were completed.
Agribusiness
This business had a reasonable first half. Feed and fertiliser volumes were in
line with expectations, although margins reduced in what is a competitive
environment. The CountryLife retail offering continues to make good progress.
Outlook: A positive outlook for key sectors, including dairy and cereals, will
help to underpin the Agribusiness performance and deliver results in line with
2006.
Property
The pace of transactions in 2007 will be evenly spread between the first and
second half and the outcome for the year as a whole is expected to be broadly
similar to 2006.
FOOD INGREDIENTS AND NUTRITIONALS
Food Ingredients & €'000 H1 2007 H1 2006 Change
Nutritionals
This division has Food
Ingredients operations in
Ireland and the USA that
produce cheese, butter, Revenue 621,284 504,896 Up 23%
casein and protein
ingredients. It also Operating profit 28,398 12,079 Up 135%
includes the Group's
global Nutritionals Operating margin 4.6% 2.4% Up 220 bps
business - which supplies
advanced technology whey
proteins/fractions and
customised vitamin and
mineral premixes to the
global nutrition industry.
In the first half, revenue from this division was €621.3 million (H1 2006:
€504.9 million). Operating profit increased 135% (€16.3 million) to €28.4
million (H1 2006: €12.1 million) and operating margins improved 220 basis points
to 4.6% (H1 2006: 2.4%). Food Ingredients USA and the global Nutritionals
businesses were the drivers of this improved performance. The further expansion
of operations and the buoyant global dairy markets contributed to the strong
result from Food Ingredients USA while the profit and margin growth in the
global Nutritionals business was driven by continued organic expansion and the
contribution from Seltzer Companies Inc. The performance of Food Ingredients
Ireland was in line with the same period last year.
Food Ingredients Ireland
This business delivered a flat performance in the first half, compared with the
same period in 2006. While volumes and prices were ahead, these benefits were
largely offset by significant milk price increases to suppliers in the first
half. Margins in this business remained in line with 2006.
Outlook: In light of continuing strong world dairy markets, the performance for
the full year for Food Ingredients Ireland is expected to be ahead of 2006.
International
Food Ingredients USA
This business had an excellent first half driven by high cheese and whey markets
and strong volume growth, resulting from the capacity expansion programme
undertaken in 2006.
Outlook: We expect this business to perform strongly in the second half,
supported by good demand, strong volumes and a positive pricing and market
environment. Overall returns continue to be leveraged by operational excellence
and world class production.
Nutritionals
Organic growth in the Nutritionals business was good and revenues, profits and
margins grew in line with expectations. The Seltzer acquisition also performed
well in the first half contributing to the growth in overall performance of this
business.
Outlook: We continue to develop this business through investment in
acquisitions, new product development, innovation and people. The Seltzer
acquisition is integrated into the Group and performing in line with
expectations. The Nutritionals business unit overall is expected to deliver a
strong performance in the second half.
INTERNATIONAL JOINT VENTURES
Joint Ventures & Associates €'000 H1 2007 H1 2006 Change
(GLANBIA SHARE)
Glanbia has three Revenue (1) 176,130 96,306 Up 83%
principle international
joint ventures, based Operating profit (2) (1,308) 283 Down €1.6 m
in the UK, USA and
Nigeria
(1) Not included in Group revenue
(2) Included in the income statement as share of results of joint ventures and
associates
Glanbia's long-term strategy is to build international relevance in cheese,
nutritional ingredients and selected consumer foods and this incorporates a
number of joint ventures producing cheese, whey and milk products. These
investments are based in the UK (Glanbia Cheese), the USA (Southwest Cheese) and
Nigeria (Nutricima). Collectively these businesses had a challenging first half.
Glanbia Cheese is the No. 1 producer of mozzarella cheese for the European
market. This business had a difficult first half as the purchase price for its
raw material milk supply increased dramatically in line with world dairy
markets, resulting in margin pressure. Cheese price increases are being secured,
however there is a time lag given the scale of milk cost increases. Full year
performance will be less than last year.
Southwest Cheese (SWC) is the Group's cheese and whey joint venture in New
Mexico. This business had good volume growth in the first half of the year and
operationally the plant is performing very well. However, this good progress was
more than offset in the first half by a margin squeeze resulting from high raw
material costs. Based on market conditions, a breakeven performance is expected
for the full year.
Nutricima is a joint venture with PZ Cussons plc which manufactures and markets
branded dairy based consumer products for the Nigerian market. In developing
economies, such as Nigeria, there are timing issues in passing sharp raw
material price increases onto consumers and this, coupled with the need for
strong marketing spend to build the Nutricima brands, more than offset a good
operational performance and top line growth that delivered to plan. The
performance for the year is expected to be marginally lower than last year.
2007 Outlook
Glanbia continues to benefit from its spread of businesses against a backdrop of
positive trends in world dairy markets. 2007 has seen an unprecedented shift in
global dairy markets, which on an overall basis has had a positive effect on
Glanbia's performance in the first six months of the year. Food Ingredients and
Nutritionals, the Group's largest division is performing well. Irish milk
processing operations are recovering from a difficult 2006 and Food Ingredients
USA and our global Nutritionals business are having an excellent year. Other
aspects of the business are performing in line with expectations although the
operating and cost environment in the Irish market creates a challenging place
to do business. Overall, the outlook for Glanbia is very satisfactory and we
expect a strong performance again in the second half. Notwithstanding the fact
that there are some short-term factors in our international joint ventures, we
expect to deliver full year earnings growth in the high teens, which is an
upgrade to current market expectations.
Consolidated income statement
for the half year ended 30 June 2007
Half year 2007 Half year 2006 Year 2006
Pre- Pre- Pre-
excep- Excep- Total excep- Excep- Total excep- Excep- Total
Notes tional tional Total tional tional Total tional tional Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Revenue 3 1,040,337 - 1,040,337 922,793 - 922,793 1,853,427 - 1,853,427
-------- -------- -------- -------- -------- -------- -------- -------- --------
Operating profit 48,544 - 48,544 36,406 36,406 85,567 (12,455) 73,112
Finance income 5 2,335 - 2,335 2,125 - 2,125 4,883 - 4,883
Finance costs 5 (10,965) - (10,965) (8,662) - (8,662) (18,918) - (18,918)
Share of results
of joint ventures
and associates (1,308) - (1,308) 283 - 283 2,842 - 2,842
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit before taxation 38,606 - 38,606 30,152 - 30,152 74,374 (12,455) 61,919
Income taxes (4,790) - (4,790) (3,226) - (3,226) (7,970) 12,321 4,351
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit for the period 33,816 - 33,816 26,926 - 26,926 66,404 (134) 66,270
-------- -------- -------- -------- -------- -------- -------- -------- --------
Attributable to:
Equity holders
of the Parent 33,599 26,725 65,934
Equity minority
interest 217 201 336
-------- -------- --------
33,816 26,926 66,270
-------- -------- --------
Earnings per share (cent) 7
- Basic 11.47 9.12 22.51
- Diluted 11.46 9.11 22.47
Consolidated statement of recognised income and expense
for the half year ended 30 June 2007
Half year Half year Year
Notes 2007 2006 2006
€'000 €'000 €'000
Actuarial gain - defined benefit schemes 10 34,557 42,536 37,082
Deferred tax on pension gain 10 (3,575) (4,796) (3,923)
Currency translation differences 9 (2,790) (943) (9,401)
Fair value adjustments (943) 4,557 2,734
------- ------- -------
Net income recognised directly in equity 27,249 41,354 26,492
Profit for the period 33,816 26,926 66,270
------- ------- -------
Total recognised income for the period 61,065 68,280 92,762
------- ------- -------
Attributable to:
Equity holders of the Parent 60,848 68,079 92,426
Equity minority interest 217 201 336
------- ------- -------
61,065 68,280 92,762
------- ------- -------
Consolidated balance sheet
as at 30 June 2007
Half year Half year Year
Notes 2007 2006 2006
€'000 €'000 €'000
ASSETS
Non-current assets
Property, plant and equipment 331,076 337,597 335,152
Intangible assets 135,312 58,330 138,724
Investments in associates 10,976 11,066 10,933
Investments in joint ventures 58,731 58,107 58,668
Available for sale investments 12,363 29,452 12,527
Trade and other receivables - 58,220 -
Derivative financial instruments 2,430 2,730 2,095
Deferred tax assets 20,348 11,073 23,923
------- ------- -------
571,236 566,575 582,022
------- ------- -------
Current assets
Inventories 164,629 157,619 145,158
Trade and other receivables 288,801 237,203 169,540
Derivative financial instruments 12,173 5,463 6,776
Cash and cash equivalents 8 148,891 33,183 259,311
------- ------- -------
614,494 433,468 580,785
------- ------- -------
Total assets 1,185,730 1,000,043 1,162,807
------- ------- -------
EQUITY
Issued capital and reserves
attributable
to equity holders of the Parent
Share capital 98,378 98,309 98,304
Other reserves 9 109,963 123,885 113,696
Retained earnings 10 36,519 (45,756) (18,116)
------- ------- -------
244,860 176,438 193,884
Equity minority interest 6,852 6,500 6,635
------- ------- -------
251,712 182,938 200,519
------- ------- -------
LIABILITIES
Non-current liabilities
Borrowings 8 417,110 333,392 444,570
Deferred tax liabilities 38,424 34,104 38,611
Trade and other payables - - 11,373
Retirement benefit obligations 83,269 120,124 124,888
Provisions for other liabilities and
charges 6,689 6,616 6,032
Derivative financial instruments 4,655 - 3,406
Capital grants 10,267 14,382 10,660
------- ------- -------
560,414 508,618 639,540
------- ------- -------
Current liabilities
Borrowings 8 854 986 39,235
Provisions for other liabilities and
charges - 2,357 7,110
Trade and other payables 355,542 295,993 270,773
Current tax liabilities 6,732 7,416 1,942
Derivative financial instruments 10,476 1,735 3,688
------- ------- -------
373,604 308,487 322,748
------- ------- -------
Total liabilities 934,018 817,105 962,288
------- ------- -------
Total equity and liabilities 1,185,730 1,000,043 1,162,807
------- ------- -------
Consolidated cash flow statement
for the half year ended 30 June 2007
Half year Half year Year
Notes 2007 2006 2006
€'000 €'000 €'000
Cash flows from operating activities
Cash (absorbed by)/generated from
operations 11 (1,732) (51,169) 58,486
Interest received 2,335 301 1,000
Interest paid (11,109) (8,837) (19,967)
Tax refunded/(paid) - 415 (6,274)
------- ------- -------
Net cash (absorbed by)/generated
from operating activities (10,506) (59,290) 33,245
------- ------- -------
Cash flows from investing activities
Acquisition of subsidiary, net of
cash acquired (deferred consideration) (7,166) (811) (69,892)
Purchase of property, plant and
equipment (17,382) (28,112) (38,085)
Purchase of available for sale
investments (2,287) (2,667) (3,406)
Disposal of subsidiary, net of
cash disposed - 812 (323)
Disposal of investments - 4,147 22,185
Repayment of loan note - - 52,822
Proceeds from sale of property,
plant and equipment 296 716 8,665
------- ------- -------
Net cash used in investing activities (26,539) (25,915) (28,034)
------- ------- -------
Cash flows from financing
activities
Proceeds from issue of ordinary shares 74 190 190
Sharesave Scheme - receipt from
Trustees - - 122
(Repayment)/drawdown of borrowings (61,844) 17,329 169,851
Finance lease principal
(payments)/drawdowns (632) 7,809 (1,077)
Dividends paid to Company's
shareholders (9,946) (9,499) (16,472)
Capital grants received - - 123
------- ------- -------
Net cash (used in)/generated from
financing activities (72,348) 15,829 152,737
------- ------- -------
Net (decrease)/increase in cash
and cash equivalents (109,393) (69,376) 157,948
Cash and cash equivalents at the
beginning of the year 259,311 104,405 104,405
Effects of exchange rate changes
on cash and cash equivalents (1,027) (1,846) (3,042)
------- ------- -------
Cash and cash equivalents at the
end of the period 148,891 33,183 259,311
------- ------- -------
Notes to the interim financial statements
for the half year ended 30 June 2007
1 Basis of preparation
This condensed interim financial information for the half year ended 30 June
2007 has been prepared in accordance with IAS 34, 'Interim Financial Reporting'.
The condensed interim financial information should be read in conjunction with
the annual financial statements for the year ended 30 December 2006.
The figures for the half years ended 30 June 2007 and 1 July 2006 have not been
audited. The figures for the full year ended 30 December 2006 represent an
abbreviated version of the Group's financial statements for that year, which
received an unqualified audit report.
2 Accounting policies
The accounting policies adopted are consistent with those adopted in the
preparation of the annual financial statements for the year ended 30 December
2006 and are as described therein.
The Group has considered all amendments to current standards and interpretations
together with all new standards and interpretations and have identified the
following as being applicable to the current year reporting:
IFRS 7 - Financial Instruments: Disclosures, and a complementary amendment to
IAS 1, Presentation of Financial Statements - Capital Disclosures
The Group assessed the impact of IFRS 7 and the amendment to IAS 1 and concluded
that the main additional disclosures will be the sensitivity analysis to market
risk and the capital disclosures required by the amendment to IAS 1. The Group
has determined that such disclosures are not significant to an understanding of
its 2007 Interim Results and the Group will adopt the provisions of IFRS 7 for
its full year Financial Statements.
3 Segment information
At 30 June 2007 the Group is organised into three main business segments:
- Consumer Foods
- Agribusiness and Property
- Food Ingredients and Nutritionals
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Turnover by business segment
Consumer Foods 249,042 252,282 511,022
Agribusiness and Property 170,011 165,615 264,492
Food Ingredients and Nutritionals 621,284 504,896 1,077,913
------- ------- -------
1,040,337 922,793 1,853,427
------- ------- -------
Pre-exceptional operating profit by business segment
Consumer Foods 8,335 8,470 24,525
Agribusiness and Property 11,811 15,857 16,876
Food Ingredients and Nutritionals 28,398 12,079 44,166
------- ------- -------
48,544 36,406 85,567
------- ------- -------
4 Exceptional items
Half year Half year Year
Notes 2007 2006 2006
€'000 €'000 €'000
Restructuring cost (a) - - (3,277)
The Cheese Company Holdings Limited (b) - - (9,178)
------- ------- -------
- - (12,455)
Exceptional tax credit (c) - - 12,321
------- ------- -------
Net exceptional items - - (134)
------- ------- -------
(a) Restructuring costs relate to the closure of the Pigmeat cannery operation.
Costs include redundancy and the release of unamortised capital grants.
(b) On 29 December 2006, the Group disposed of its 25% interest and related
2008-2018 loan note in The Cheese Company Holdings Limited to the majority
shareholder, Milk Link Limited.
(c) A deferred tax asset of €12.1 million arising from the expected use in
future years of UK tax losses, which previously had not been recognised due
to uncertainty as to recoverability, has been recognised in the 2006
financial statements. Also, in 2006, the restructuring provision in the
Pigmeat Division resulted in a corporation tax credit of €699,000 and a
deferred tax charge of €489,000.
5 Finance income and costs
(a) Finance income
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Interest income 2,335 2,125 4,883
------- ------- -------
5 Finance income and costs (continued)
(b) Finance costs
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Interest expense
- Bank borrowings repayable within five years (5,706) (6,695) (15,096)
- Bank borrowings repayable after five years (3,480) - -
- Finance leases (156) (147) (380)
------- ------- -------
(9,342) (6,842) (15,476)
Finance cost of preferred securities and
preference shares (1,623) (1,820) (3,442)
------- ------- -------
Total finance costs (10,965) (8,662) (18,918)
------- ------- -------
6 Dividends
A final dividend in respect of the year ended 30 December 2006 of 3.41 cent per
share was paid during the period. On 28 August 2006, the Directors approved the
payment of an interim dividend for 2007 of 2.50 cent per share (2006 interim
dividend: 2.38 cent per share). This interim dividend will be reflected in the
financial statements for the full year 2007 in line with IAS 10.
7 Earnings per share
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Basic
Profit attributable to equity
holders of the Company 33,599 26,725 65,934
-------- -------- --------
Weighted average number of
ordinary shares in issue 292,984,514 292,943,460 292,958,667
-------- -------- --------
Basic earnings per share (cent
per share) 11.47 9.12 22.51
-------- -------- --------
Diluted
Weighted average number of
ordinary shares in issue 292,984,514 292,943,460 292,958,667
Adjustments for share options 254,170 493,424 480,072
-------- -------- --------
Adjusted weighted average number
of ordinary shares 293,238,684 293,436,884 293,438,739
-------- -------- --------
Diluted earnings per share (cent
per share) 11.46 9.11 22.47
-------- -------- --------
Adjusted
Profit attributable to equity holders
of the Company 33,599 26,725 65,934
Exceptional items - - 134
-------- -------- --------
33,599 26,725 66,068
-------- -------- --------
Adjusted earnings per share (cent per share) 11.47 9.12 22.55
-------- -------- --------
Diluted adjusted earnings per share (cent per
share) 11.46 9.11 22.52
-------- -------- --------
8 Borrowings
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Borrowings due within one year 854 986 39,235
Borrowings due after one year 417,110 333,392 444,570
Less:
Cash and cash equivalents (148,891) (33,183) (259,311)
------- ------- -------
Net Group borrowings 269,073 301,195 224,494
------- ------- -------
9 Other reserves
Capital
and
mergers Currency Fair value
reserves reserve reserves Total
€'000 €'000 €'000 €'000
Balance at 31 December
2006 116,421 (7,603) 4,878 113,696
Translation differences on
foreign currency net
investments - (2,790) - (2,790)
Revaluation of investments - - (199) (199)
Gain on interest rate swaps - - 620 620
Interest rate swaps
reclassified as fair
value hedges - - (1,291) (1,291)
Foreign exchange contracts
- gain in period - - 1,148 1,148
Transfers to income statement
- Foreign exchange contracts - - (749) (749)
- Forward commodity contracts - - (594) (594)
- Interest rate swaps - - (717) (717)
Revaluation of forward
commodity contracts - - 1,124 1,124
Deferred tax on fair
value adjustments - - (285) (285)
------- ------- ------- -------
Balance at 30 June 2007 116,421 (10,393) 3,935 109,963
------- ------- ------- -------
10 Retained earnings
Retained Goodwill
earnings reserve Total
€'000 €'000 €'000
Balance at 31 December 2006 74,845 (92,961) (18,116)
Actuarial gain - defined benefit schemes 34,557 - 34,557
Deferred tax on pension gain (3,575) - (3,575)
------- ------- -------
Net income recognised directly in equity 30,982 - 30,982
Profit for the period 33,599 - 33,599
------- ------- -------
Total recognised income for the period 64,581 - 64,581
Dividends paid in the period (9,946) - (9,946)
------- ------- -------
Balance at 30 June 2007 129,480 (92,961) 36,519
------- ------- -------
11 Cash generated
Half year Half year Year
2007 2006 2006
€'000 €'000 €'000
Profit for the period 33,816 26,926 66,270
Non-cash loss on repayment of loan note - - 9,178
Share of results of joint ventures and
associates 1,308 (283) (2,842)
Income taxes 4,790 3,226 (4,351)
Depreciation 14,938 13,122 25,415
Amortisation 2,340 1,788 4,452
Cost of share options 201 123 199
Exchange losses - 66 -
Gain on disposal of investments - (1,538) (1,541)
Gain on disposal of property, plant and
equipment (4,079) (7,128) (7,531)
Interest income (2,335) (2,125) (4,883)
Interest expense 10,965 8,662 18,918
Amortisation of government grants received (393) (471) (4,322)
------- ------- -------
Net profit before changes in working capital 61,551 42,368 98,962
Change in net working capital
Increase in inventory (20,204) (15,379) (2,684)
Increase in short term receivables (124,721) (91,792) (25,137)
Increase/(decrease) in short term
liabilities 88,752 19,710 (11,332)
Decrease in provisions (7,110) (6,076) (1,323)
------- ------- -------
Cash (absorbed by)/generated from operations (1,732) (51,169) 58,486
------- ------- -------
For further information contact
Glanbia plc +353 56 777 2200
Geoff Meagher, Deputy Group Managing Director/Group Finance Director
Siobhan Talbot, Deputy Group Finance Director
Geraldine Kearney, Corporate Communications Director + 353 87 231 9430
Hogarth Partnership UK +44 207 357 9477
John Olsen
This information is provided by RNS
The company news service from the London Stock Exchange
Monday, 20th May 2024
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