Glanbia begins first half of EUR100 million share buyback as profit up

(Alliance News) - Glanbia PLC on Wednesday on launched the first half of a planned EUR100 million share buyback in 2024, as it reported a 65% rise in profit last year.

The Kilkenny, Ireland-based nutritional products maker said it has commissioned broker J&E Davy to repurchase Glanbia shares from Wednesday through to December 19. The buyback of up to EUR50 million shares will be carried out under board approval for up to EUR100 million in buybacks in 2024, the same amount as carried out in 2023.

Glanbia also declared a final dividend of 21.2 euro cents, up 10% from 19.28 cents a year before. This resulted in a full-year cash payout of 35.43 cents, up 10% from 32.21 cents.

The shareholder returns were on the back of a 65% jump in pretax profit to USD392.4 million in 2023 from USD237.4 million in 2022. Glanbia switched last year to reporting its financial results in dollars, but it still declares and pays dividends in euros.

Revenue declined by 8.7% to USD5.43 billion from USD5.94 billion, but Glanbia booked USD47.8 million in exceptional gains in 2023, compared to USD23.1 million in exceptional costs in 2022, helping profit.

Adjusted earnings per share were 131.37 US cents, up 20% from 109.57 cents in 2022, and Glanbia on Wednesday guided for 5% to 8% growth in adjusted EPS at constant currency in 2024.

Like-for-like branded revenue growth in Glanbia Performance Nutrition was 5.1%, all thanks to price increases, as volume edged down 0.3%. However, in Glanbia Nutritionals revenue on a like-for-like basis was down 12%, with prices down 9.0% and volume down 3.3%.

Looking to 2024, Performance Nutrition, the larger of those two divisions, is expected to see 4% to 7% revenue growth at constant currency, while for the Nutritionals division Glanbia guided 3% to 5% growth in volume and didn't give guidance for revenue.

Glanbia shares were up 8.2% to EUR16.67 in London on Wednesday.

By Tom Waite, Alliance News editor

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