Glanbia reported a steady performance for 2024 today, though its decision to sell its underperforming SlimFast brand and its predicted impact on 2025 results sent shares tumbling.
The group reported revenue of $3.8 billion for 2024, up from $3.6 billion the previous year, which represented an increase of 5.8%.
Group EBITDA for the year reached $551.3 million, up 11.8% on a constant currency basis from 2023’s $493.4 million.
Glanbia reported a 6.8% increase in full-year adjusted earnings in line with guidance, but warned that EPS would fall from 140.03 cent ($) to between 124 and 130 cent ($) in 2025.
A $200 million increase in the cost of producing some of Glanbia's performance nutrition product, as well as the impact of selling its US weight management brand SlimFast, will drive this drop in EPS.
The sale of SlimFast – which has been underperforming in recent quarters since the rise in popularity of weight loss drugs such as Ozempic and Wegovy – is part of a plan targeting annual cost savings of at least $50 million by 2027.
As a result of the announcement – which added that Glanbia expects earnings to fall by up to 11% – shares for the group fell by 15%.
‘Strong Performance’
Commenting on the results, CEO of Glanbia Hugh McGuire said, “On behalf of the Glanbia team, I am pleased to report that the Group delivered a strong performance in 2024 with adjusted EPS growth of 6.8% to 140.03 ($) cent, driven by growth across our portfolio of better nutrition brands and ingredients.
“Optimum Nutrition and Isopure, our protein growth brands, delivered double digit volume growth in the year and we saw good growth across our premix and protein solutions businesses within Nutritional Solutions.
“Our strong operations and financial performance continued to generate excellent cash flow, with 88.0% cash conversion in 2024.
“We increased the dividend by 10% and returned €102 million to shareholders via our share buyback programme, including €2 million of a €50 million buyback programme announced in November 2024 which is ongoing and authority for an additional €100 million of share buybacks announced today.”
‘Evolve And Optimise’
McGuire continued, “We continue to evolve and optimise our portfolio, which included the acquisition of Flavour Producers in April, and the decision to exit the Body & Fit business and the SlimFast brand.
“We have commenced a multi-year group-wide transformation programme to drive efficiencies and support the next phase of growth.
“This includes setting up a new operating model, delivering productivity initiatives, and further optimising our portfolio, targeting annual cost savings of at least $50 million by 2027.
“These actions are designed to drive focus, unlock value and position Glanbia for its next phase of growth.
“Looking ahead to 2025, we will focus on continuing to drive performance across our portfolio of better nutrition brands and ingredients, while navigating short-term input cost inflation.
“In FY 2025, we expect adjusted EPS to be in the range of 124 cent and 130 cent.”
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