LONDON (Alliance News) - Nutrition and ingredients group Glanbia PLC Wednesday reported higher revenue for 2014, driven by a strong sales and profit performance from its Global Performance Nutrition business, but its profit was hit by hefty exceptional costs.
The group reported a pretax profit of EUR147.2 million for 2014, compared with EUR176.0 million in 2013, after it booked EUR15.9 million in exceptional costs compared with a EUR5.8 million exceptional gain in 2013. Of the exceptional costs, EUR6.4 million was associated with rationalisation costs and EUR9.6 million from transaction related costs.
Total revenue, including the group's share of joint ventures and associates, rose 7.3% to EUR3.55 billion, from EUR3.28 billion in 2013.
The group announced a 10.3% increased in adjusted earnings per share to 61.16 cents, and recommended a final dividend of 6.57 cents per share. The total dividend for the year was 11.0 cents per share, a 10% increase on 2013.
"The group expects to achieve growth in 2015 of 9% to 11% in adjusted earnings per share, constant currency, with growth weighted towards the second half," the company said in a statement.
"The outlook for Global Performance Nutrition is positive and continued investment in this business will ensure we remain in a leading position in key markets and channels. We are expecting growth in Global Ingredients in 2015 with an improvement in dairy market dynamics and solid underlying demand across key sectors," the company added.
Glanbia said its total investment in capital expenditure was EUR116 million in 2014, having undertaken a number of key projects such as the commissioning of new production facility in the US, significant investment in its whey processing facility, and the completion of a plant in Dairy Ireland to produce fluid milk for export markets. The group also completed two acquisitions during the year for a total cost of EUR149 million - Scandinavian sports nutrition business Nutramino Holding, and The Isopure Company, a US based provider of premium branded sports nutrition products.
The group said ongoing efficiency measures in its Dairy Ireland business are expected to underpin a further improvement in performance.
"We reiterate our long term guidance beyond 2015 to 2018 for organic growth of 8% to 10% in adjusted earnings per share, constant currency and a return on capital employed of greater than 12%," the company said.
Glanbia shares were up 6.3% at EUR15.63 Wednesday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Glanbia (GLB)