26th Feb 2025 11:07
(Alliance News) - Glanbia PLC on Wednesday said it plans to launch a share buyback worth up to EUR100 million during 2025, as profit for the recent year dived on a change to the recognition of revenue from the group's US joint venture.
The Kilkenny, Ireland-based sports nutrition company said pretax profit for its continuing operations was USD208.0 million in the year that ended January 4, falling 47% from GBP392.4 million the year before.
Revenue slipped 29% to GBP3.84 billion from GBP5.43 billion, while administration expenses increased 47% to GBP265.2 million from GBP179.9 million.
A change to the commercial arrangements of Glanbia's US joint venture is partly responsible for the decline, the firm explained.
Prior to the shift on January 1, the group was considered a principal under IFRS 15 and, therefore, recorded the gross value of revenue and sales made on joint venture products. Now, Glanbia is considered an agent under IFRS 15, and only recognises commissions earned on joint venture sales.
The amended commercial terms have changed the recognition of joint venture products, meaning such figures "are not comparable with those of the prior year".
Glanbia declared a final dividend of 23.33 euro cents per share, bringing the total dividend for the year to 38.97 euro cents, up 10% on-year.
"On behalf of the Glanbia team, I am pleased to report that the group delivered a strong performance in 2024 with adjusted [earnings per share] growth of 6.8% to 140.03 US cents, driven by growth across our portfolio of better nutrition brands and ingredients," Chief Executive Officer Hugh McGuire said.
"Optimum Nutrtition 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 business within Nutritional Solutions."
Glanbia also on Monday announced it will conduct a further EUR100 million share buyback programme during 2025, following a EUR102 million buyback completed in 2024 and the EUR50 million programme that began on December 16.
The group is targeting annualised cost savings of at least USD50 million by 2027.
McGuire continued: "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 US cents and 130 cents."
Shares in Glanbia were down 11% to EUR12.50 in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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