Glanbia Full Year 2024 results

Glanbia Full Year 2024 results

Strong performance with adjusted EPS1 growth of 6.8% constant currency

26 February 2025 - Glanbia plc ("Glanbia", the "Group", the "Company", the "plc"), the 'Better Nutrition company', announces its preliminary results for the 2024 financial year ended 4 January 2025 ("2024" or "FY24").

FY24 Highlights2:

· Group Financial Performance:

o  Adjusted EPS of 140.03 $cent (2023: 131.37 $cent) representing growth of 6.8% constant currency (up 6.6% reported) in line with guidance;

o  Group revenues of $3.8 billion2 (2023: $3.6 billion2) representing an increase of 5.8%2, pro forma constant currency;

o  Group EBITDA pre-exceptional of $551.3 million (2023: $493.4 million) representing an increase of 11.8% constant currency (up 11.7% reported);

o  Group EBITDA margin pre-exceptional of 14.4% (2023: 13.6%2) representing an increase of 80bps;

o  Basic EPS of 63.21 $cent (2023: 130.41 $cent) representing a decrease of 51.5%;

o  Operating Cash Flow ("OCF") conversion of 88.0% (2023: 90.4%);

o  Year-end net debt to adjusted EBITDA ratio of 0.81 times (2023: 0.50 times);

· Glanbia Performance Nutrition ("GPN"):

o  Revenue growth of +0.5% constant currency with volume +2.9%, pricing (4.2%) and the impact of the 53rd week +1.8%;

o  Optimum Nutrition brand delivered revenue growth of +7.5% constant currency;

o  EBITDA margin of 16.9% (2023: 15.7%), an increase of 120bps;

· Glanbia Nutritionals ("GN") - Nutritional Solutions ("GN NS"):

o  Revenue growth of +14.0%2 with volume +3.6%, pricing +0.4%, the impact of the 53rd week +2.3% and the impact of acquisitions +7.7%;

o  Good volume growth across premix and protein solutions businesses;

o  EBITDA margin of 19.8% (2023: 17.8%2), an increase of 200bps2;

· Capital allocation:

o  Recommended final dividend per share of 23.33 €cent; representing a total 2024 dividend of 38.97 €cent; a 10% increase on prior year, representing a payout ratio of 30.1%;

o  Returned €102 million to shareholders in the year via share buybacks (including €2 million from the launch of a €50 million share buyback programme announced on 6 November 2024 which is ongoing); and

o  Further €100 million buyback authorisation approved by the Board for 2025;

Strategic Updates:

· Group-wide transformation programme commenced to drive efficiencies and support the next phase of growth, targeting annual cost savings of at least $50 million by 2027. This programme includes:

o  A new operating model with three focused divisions: Performance Nutrition ("PN"), Health & Nutrition ("H&N") and Dairy Nutrition ("DN");

o  Unlocking supply chain efficiencies and accelerating digital transformation; and

o  The decision to exit the Benelux Direct-to-Consumer e-commerce business, Body & Fit, and the weight management brand, SlimFast3.

1. Earnings Per Share ("EPS")

2. For comparability purposes, commentary on revenue and EBITDA margins for the Glanbia Nutritionals segment and the Group is presented on a pro forma basis henceforth, reflecting the change in commercial arrangements associated with the Group's US joint venture. Refer to Appendix 1 for the reconciliation between 2023 reported and pro forma numbers. FY24 revenue and revenue growth include the impact of the 53rd week.

3. The decision to exit the Body & Fit e-commerce business was made by the Board of Directors prior to the year-end and it was classified as held-for-sale. The decision to exit the SlimFast brand was made by the Board of Directors subsequent to the year-end.

2025 Outlook:

· Glanbia expects to deliver adjusted EPS between 124 $cent and 130 $cent in FY 2025. This will be driven by a good performance from Health & Nutrition ("H&N"), Dairy Nutrition and the Group's US joint venture ahead of prior year, with Performance Nutrition ("PN") expected to deliver a decline in performance versus prior year as a result of an unprecedented level of input cost inflation.

Commenting today Hugh McGuire, Chief Executive Officer, 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$c, 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 operational 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. We continue to evolve and optimise our portfolio, which included the acquisition of Flavor 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."

Group EBITDA

The Group has adopted EBITDA as a key performance measure from 2024. This aligns with industry standards.

Summary financials1

1. This release contains certain alternative performance measures. Detailed explanation of the key performance indicators and non-IFRS performance measures can be found in the glossary on pages 37 to 45.

2. Referred to as "constant currency change" or "total constant currency" herein. To arrive at the constant currency change, the average exchange rate for the current period is applied to the relevant pro forma result or in the case of Glanbia Performance Nutrition segment, reported result from the same period in the prior year. The average US dollar euro exchange rate for 2024 was $1 = €0.9246 (2023: $1 = €0.9247).

FY24 results summary

2024 full year overview

Glanbia delivered a strong financial and operating performance in 2024. Group revenue was $3,839.7 million (2023: $3,629.8 million), up 5.8% on a pro forma and constant currency basis. Group EBITDA (before exceptional items) was $551.3 million (2023: $493.4 million), up 11.8% constant currency (up 11.7% reported). Group pre-exceptional profit after tax was $310.3 million (2023: $298.1 million), up 4.1% constant currency (up 4.0% reported).

Adjusted EPS was 140.03 $cent (2023: 131.37 $cent), up 6.8% constant currency (up 6.6% reported).

Balance sheet and financing

The Group's continued focus on cash management delivered a strong performance with an Operating Cash Flow of $485.1 million (2023: $445.9 million), which represents an OCF conversion of 88.0% (2023: 90.4%). At year end, the Group had a net debt position of $436.0 million (2023: $248.7 million) with the increase largely driven by the acquisition of Flavor Producers which closed in the second quarter of 2024. Net debt to adjusted EBITDA was 0.81 times (2023: 0.50 times). At year end, the Group had committed debt facilities of $1.3 billion (2023: $1.3 billion) with a weighted average maturity of 3.8 years (2023: 4.7 years).

Capital investment

Glanbia's total investment in capital expenditure (tangible and intangible assets) was $87.1 million in 2024 (2023: $74.2 million). Strategic investment totalled $58.4 million and included ongoing capacity enhancement, business integrations, and IT investments to drive further efficiencies in operations. Total capital expenditure for 2025 is expected to be $80 million to $90 million. Glanbia's ability to generate cash and its available debt facilities ensure the Group has considerable capacity to finance future investments.

Dividend per share

The Board is recommending a final dividend of 23.33 €cent per share which brings the total dividend for the year to 38.97 €cent per share, a 10% increase on prior year. This total dividend represents a payout ratio of 30.1% of 2024 adjusted EPS, which is within the Company's target payout ratio of 25% to 35%. The final dividend will be paid on 2 May 2025 to shareholders on the share register on 21 March 2025. Irish withholding tax will be deducted at the standard rate where appropriate. The Company's primary dividend payment currency remains euro.

Share buyback

During the year, Glanbia purchased and cancelled 6.2 million ordinary shares, representing 2.4% of the total issued ordinary shares at the beginning of 2024, at a total cost of approximately €102 million (2023: €100 million). The Board approved a €50 million share buyback programme that was announced on 6 November 2024 and formally commenced on 16 December 2024. Today, the Group is announcing that the Board has approved a further €100 million share buyback authority in 2025 as part of its capital allocation policy.

Strategic updates

As announced on 6 November 2024, Glanbia has commenced a group-wide transformation programme to drive efficiencies across the Group's new operating model and support the next phase of growth through three focused divisions: Performance Nutrition, Health & Nutrition and Dairy Nutrition.

The programme is a three-year initiative expected to generate annual cost savings of at least $50m by 2027. These savings will be allocated across a mix of reinvestment into the business and profitability improvement.

The programme is focused on four key areas:

1) Operating model optimisation: The new operating model is designed to further simplify the business, increase focus on high-growth end-use markets, and provide greater insight into Glanbia's value drivers and growth opportunities.

· Health & Nutrition comprises the premix solutions and flavours platforms and will focus on high-growth priority end-use markets.

· Dairy Nutrition combines the US Cheese and Nutritional Solutions protein portfolios and will operate as a standalone business with a dedicated leadership team from 1 July, with the goal of optimising profits and returns as a leading dairy business.

2) Unlocking supply chain efficiencies: From a supply chain perspective the Group has identified further efficiency opportunities to be unlocked by consolidating the Performance Nutrition and Health & Nutrition supply chain organisations, particularly across manufacturing, procurement and quality as part of the new operating model.

3) Accelerating digital transformation: As part of Glanbia's digital transformation journey, the Group identified opportunities to enhance productivity across the Group, which will centralise and outsource the delivery of support functions. This will support improved business processes and accelerate growth through commercial excellence.

4) Ongoing portfolio evaluation: As part of its portfolio review and to ensure the Group can focus on high-growth opportunities, the Group has evaluated the role of its Benelux Direct-to-Consumer e-commerce business, Body & Fit, and its weight management brand SlimFast, making the decision to exit both businesses. The Group continues to evaluate its broader portfolio with a focus on delivering sustainable and profitable growth.

The Group believes the choices made under the programme will provide a solid foundation for managing any short-term challenges while supporting the Group's long-term growth ambition. The Group will hold a Capital Markets Day in the second half of 2025, presenting its strategic progress and associated financial ambition.

The Group remains confident in delivering the financial ambition outlined at the Capital Markets event in November 2022, which was as follows:

* All Group metrics are average annual metrics for the three years 2023-2025 and include M&A activity.

Board changes

The following Board changes have taken place at the Company since the beginning of 2024.

On 10 May 2024, the Group announced that Tirlán Co-operative Society Limited (the "Society") had nominated Gerard O'Brien and Thomas Phelan to replace Patrick Murphy and Brendan Hayes respectively on the Board of the Group with effect from 1 June 2024. Patrick Murphy retired on 1 May 2024 and Brendan Hayes retired on 31 May 2024. Paul Duffy and Kimberly Underhill were appointed to the Nomination and Governance Committee on 1 May 2024.

The Glanbia Board is comprised of 13 members: the Chairman, two Executive Directors, ten Non-Executive Directors including three representatives from the Society.

The Company Chairman, Donard Gaynor, has informed the Board of his intention to retire from the Glanbia Board at the conclusion of the Company's annual general meeting in 2026. The Senior Independent Director will lead a process to identify a successor for the Company Chairman.

Today, Glanbia announces that Mr Senan Murphy will join the Company's Board as a Non-Executive Director with his appointment becoming effective at the conclusion of the Company's annual general meeting on 30 April 2025. On appointment, Mr Murphy will also join the Audit and Sustainability Board committees. Mr Murphy brings to the Glanbia Board significant experience in finance and international business, having had a range of senior management roles at a number of public companies. Mr Murphy is currently a Non-Executive Director of Kingspan plc. Mr Murphy's full biography and disclosures as required by the Listing Rules are provided in a separate announcement published today.

Sustainability

Glanbia is focused on delivering against its stated commitments and integrating sustainability within its strategic decisions. The Group remains on track to meet its commitment to reduce Scope 1 & 2 carbon emissions by 50% by 2030 from a 2018 base, delivering a 7.5% reduction of Scope 1 & 2 carbon emissions in 2024 versus the previous year. The Group set an accelerated ambition for Scope 3 decarbonisation1, targeting a 30% reduction in FLAG emissions associated with dairy sourcing and a 25% reduction in non-FLAG emissions by 2030.

1. Aligning with the latest scientific consensus and the Forest, Land and Agriculture Guidance ("FLAG") from the Science Based Target Initiative.

2025 Outlook

In 2024, Glanbia delivered a solid performance with revenue growth across the Group, good margin expansion, strong cash generation and continued progress on the Group's strategic initiatives.

Based on current market conditions and the existing uncertainty in the geopolitical environment, Glanbia expects FY 2025 adjusted EPS to be in the range of 124 $cent to 130 $cent. The key components of this are expected to be as follows:

o  PN like-for-like revenue1 broadly in line with 2024 (excluding the impact of SlimFast and Body & Fit) and EBITDA margin in the range of 13% - 14%;

o  H&N like-for-like revenue growth1 of mid-single digit and EBITDA margin in the range of 17% - 18%;

o  Profit growth across DN and the Group's US joint venture, combined; and

o  Operating cash flow conversion rate of 80%+.

Glanbia operates in a growing sector and has a strong portfolio of better nutrition brands and ingredients which resonate strongly with consumers seeking health and wellness. We continue to remain focused on long-term sustainable growth for shareholders.

1. Like-for-like revenue and revenue growth exclude the impact of the 53rd week in 2024.

Inside Information

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of Glanbia plc is Liam Hennigan, Group Secretary and Head of Investor Relations. The time and date of this announcement is, at 7 am GMT, 26 February 2025.

2024 operations review

(Commentary on percentage movements is on a constant currency basis throughout)

Glanbia Performance Nutrition

· Revenue increase of 0.5% with an increase of 2.9% in volume, a decrease of 4.2% in pricing and an increase from the impact of the 53rd week of 1.8%.

· Optimum Nutrition, the number one global brand in the sports nutrition sector, delivered revenue growth of 7.5% which was driven by volumes increasing 10.4%, pricing decreasing 4.9% and an increase of 2.0% from the impact of the 53rd week.

· EBITDA margin of 16.9%, an increase of 120bps versus 2023.

GPN revenue increased by 0.5% in 2024. This was driven by volume increases of 2.9%, price decrease of 4.2% and the impact of the 53rd week of 1.8%. The volume increase was largely driven by the protein growth brands, Optimum Nutrition and Isopure, both of which delivered double digit volume growth. Optimum Nutrition, which represents 66% of GPN revenue, continues to strengthen its brand to drive global distribution and velocities. Pricing was negative largely as a result of promotional activity and some tactical price reductions during the year as a result of an increased competitive environment.

GPN EBITDA increased by 8.3% versus prior year to $305.4 million and EBITDA margin increased by 120 basis points to 16.9%. This was driven by lower input costs in the first half of the year, continued focus on revenue growth management initiatives, operating efficiencies and margin optimisation, somewhat offset by rising input costs in the second half of the year.

Americas

GPN Americas revenue decreased by 0.5%, with strong growth in the Optimum Nutrition and Isopure brands offset by declines in other portfolio brands, primarily driven by SlimFast.

Optimum Nutrition continues to strengthen its consumer position and delivered US consumption growth of 0.4%1, building on a strong comparative period. This was driven by growth in the online and FDM channels offset by declines in the specialty channel and competitive dynamics in the club channel in the second half of the year. The healthy lifestyle portfolio saw US consumption growth of 3.3%1 across the think!, Isopure and Amazing Grass brands.

A non-cash impairment charge of $91.4 million has been recognised during the year in respect of the SlimFast brand in the Americas reflecting continuing challenges in the diet category impacting performance and a decision has been made to exit this brand.

International

GPN International, which represents 36% of GPN revenue, grew revenue by 2.3%. Growth across the region was driven by strong volume growth in the Optimum Nutrition brand across key priority markets, including solid growth in Asia.

As part of its portfolio review, Body & Fit, the Benelux Direct-to-Consumer e-commerce business has been determined to be non-core and a decision has been made to exit this business. A fair value adjustment of $46.0 million has been recognised in 2024.

Glanbia Nutritionals

1 Consumption growth is US measured channels and includes Online, FDMC (Food, Drug, Mass, Club) and Specialty channels. Data compiled from published external sources and Glanbia estimates for the 52 week period to 28 December 2024.

Nutritional Solutions

· Revenue increase of 14.0% with volume growth of 3.6%, pricing growth of 0.4%, an increase of 2.3% from the impact of the 53rd week and an increase of 7.7% from acquisitions.

· EBITDA margin of 19.8%, an increase of 200 basis points versus 2023.

GN NS revenue increased by 14.0% in 2024. This was driven by 3.6% increase in volume, 0.4% increase in price, 2.3% increase as a result of the impact of the 53rd week and 7.7% increase driven by the impact of acquisitions. The volume increase was driven by a good performance in the premix solutions and proteins businesses. The price increase was driven by strong dairy market pricing, somewhat offset by negative premix pricing.

The acquisition of Flavor Producers, which was completed in April 2024, significantly expands GN NS's flavours offering in the attractive and growing natural and organic flavours market and is performing well.

GN NS EBITDA was $200.0 million, a 27.2% increase versus prior year. EBITDA margin increased by 200 basis points to 19.8% primarily as a result of stronger dairy pricing within the proteins business.

US Cheese

US Cheese revenue increased by 8.1% in 2024. This was driven by a 0.1% increase in volume, a 5.8% increase in price and a 2.2% increase as a result of the impact of the 53rd week. Price increases were primarily as a result of dairy market pricing.

US Cheese EBITDA decreased by 14.7% to $45.9 million due to market dynamics and lapping procurement benefits in the prior year.

Joint Ventures (Glanbia share)

The Group's share of joint ventures' profit after tax pre‐exceptional items decreased by $12.4 million to $0.1 million, largely driven by higher input costs as a result of unfavourable market pricing dynamics.

New Segmentation

From 2025 onwards, Glanbia Nutritionals will be split into two new segments - Health & Nutrition and Dairy Nutrition. The Health & Nutrition segment will primarily incorporate the premix solutions and flavours platforms with the Dairy Nutrition segment focusing on cheese and dairy ingredients and will comprise the portfolios of protein solutions (currently in NS) and US Cheese as well as being the commercial partner for the Group's joint venture MWC-Southwest Holdings LLC. Pro forma financials for the new segments have been separately released on the Group's website and are available at the following link: Restated and Pro Forma Financial Statements | Glanbia.

Appendix 1

Pro forma Revenue and EBITDA Margin

Revenue

Revenue increased in 2024 by 5.8% versus prior year pro forma on a constant currency basis to $3.8 billion, driven by volume increases of 2.3%, pricing declines of 0.5%, impact of 53rd week 2.0% and M&A related increase of 2.0%. Detailed analysis of revenue is set out within the operations review.

EBITDA (pre-exceptional)

EBITDA before exceptional items increased by 11.8% constant currency (11.7% reported) to $551.3 million (2023:

$493.4 million) with strong EBITDA growth in both GPN and GN. EBITDA margin in FY24 was 14.4%, compared to 13.6% in 2023 pro forma, representing an increase of 80 basis points. Detailed analysis of EBITDA is set out within the operations review.

Net finance costs (pre-exceptional)

Net finance costs (pre-exceptional) increased by $14.5 million to $26.8 million (2023: $12.3 million). The increase was primarily driven by an increase in the Group's average net financial indebtedness during 2024 due to the acquisition of the Flavor Producers business, as well as the full year impact of higher interest charges on $169 million of bank borrowings which were re-fixed at higher interest rates in late 2023. The Group's average interest rate was 4.6% (2023: 2.0%). Glanbia operates a policy of fixing a significant proportion of its interest rate exposure.

Share of results of joint ventures (pre-exceptional)

The Group's share of joint ventures' profit after tax (pre-exceptional) decreased by $12.4 million to $0.1 million, largely driven by higher input costs as a result of unfavourable market pricing dynamics.

Income taxes

The 2024 pre-exceptional tax charge increased by $12.6 million to $59.1 million (2023: $46.5 million). This represents an effective tax rate, excluding joint venture, of 16.0% (2023: 14.0%). The tax credit related to exceptional items is $15.8 million (2023: credit of $1.8 million) and relates primarily to the impairment of the SlimFast Americas cash generating unit. The Group currently expects that its effective tax rate for 2025 will be in the range of 14% to 16%.

Exceptional items

Details of the exceptional items are as follows:

1. Group-wide transformation programme: During 2023 the Group commenced a number of initiatives to realign support functions and optimise structures to more efficiently support business operations and growth. On 6 November 2024, a group-wide transformation programme was announced to drive efficiencies across the new operating model and support the next phase of growth. This multi-year programme is focused on driving efficiencies across the Group's operating model and supply chains while leveraging the Group's digital transformation capabilities.

During 2024, the Group incurred costs of $18.0 million (2023: $6.0 million) primarily related to advisory fees and people related costs.

2. Acquisition and integration costs: These costs relate to the transaction and integration costs associated with the Flavor Producers business.

3. Pension related costs: These costs relate to the restructure of certain legacy defined benefit pension schemes in the UK. Final wind up is anticipated in 2025.

4. Net gain on disposal/exit of operations: The prior year net gain related primarily to disposals of the UK and EU Leprino Foods (formerly known as Glanbia Cheese) joint ventures and a small US bottling facility (Aseptic Solutions) which were previously designated as held for sale.

5. Impairment of non-core assets held for sale: The charge relates to fair value adjustments to reduce the carrying value of assets held for sale to recoverable value. The assets relate to the Benelux Direct-To-Consumer ("DTC") online branded business (Body & Fit Sportsnutrition B.V.). Following the completion of a portfolio review, these assets and liabilities were determined to be non-core and a decision was made to divest of them, resulting in the designation as held for sale at year end. A process of disposal has commenced and a sale is expected to be executed in FY 2025.

6. Impairment of intangible assets: In accordance with IAS 36 Impairment of Assets, the Group is required to assess goodwill and other intangible assets for impairment. Accordingly, impairment reviews are performed annually, or more frequently if there is an indication that the carrying amount may not be recoverable. A non-cash impairment charge of $91.4 million has been recognised during the year in respect of the SlimFast Americas cash generating unit reflecting continuing challenges in the weight management category impacting the brand's performance. Subsequent to year end the Directors approved the commencement of a sales process for the SlimFast brand.

7. Exceptional charge after tax from discontinued operations: Prior year charge related to the crystallisation of certain contingent costs associated with the Group's divestment of Tirlán Limited.

Profit after tax

Profit after tax from continuing operations comprises pre-exceptional profit of $310.3 million (2023: $298.1 million). The $12.2 million increase in pre-exceptional profit after tax from continuing operations is driven by the continued growth in profitability of wholly-owned businesses net of reduced profitability of the joint venture, and an increase in net finance costs.

Exceptional charges after tax of $145.6 million in the year predominantly related to non-cash impairments in the GPN business. In the prior year, exceptional gains of $46.4 million mainly related to profit on disposal of UK and EU Leprino Foods joint ventures.

Profit after tax and exceptionals for the year was $164.7 million compared to $344.5 million in 2023, comprising continuing operations of $164.7 million (2023: $347.7 million).

Earnings Per Share (EPS)

Basic EPS from continuing operations decreased by 51.5% reported versus prior year, driven by exceptional charges predominantly related to non-cash impairments in the GPN business.

Adjusted EPS is a Key Performance Indicator ("KPI") of the Group, a key metric guided to the market and a key element of Executive Director and senior management remuneration. Adjusted EPS increased by 6.8% constant currency (6.6% reported) in the year, all from continuing operations.

Foreign exchange

Group results are impacted by year-on-year fluctuations in exchange rates versus the US dollar. Key non-US dollar currencies for the Group over the year were euro and Pound sterling, for which average and year-end rates were as follows:

Cash flow and capital allocation

Cash flow generation and conversion

Operating Cash Flow ("OCF") is a Group KPI guided to the market and is an element of Executive Director and senior management remuneration. The Group's OCF was $485.1 million in the year (2023: $445.9 million) and represents a strong cash conversion on EBITDA of 88.0% (2023: 90.4%). The OCF conversion target for the year was 80%.

The increase in OCF since prior year relates primarily to higher EBITDA of $57.9 million across the business, partially offset by a modest increase in working capital outflow of $12.5 million and an increase in business-sustaining capex of $6.2 million.

The Group's Free Cash Flow ("FCF") amounted to $402.5 million versus $389.8 million in the prior year. The increase was primarily due to an increase in OCF which was partially offset by higher interest payments and lower dividends received from joint venture.

Capital allocated for the benefit of shareholders includes regular dividend payments of $104.4 million (2023: $97.2 million). Acquisition spend relates primarily to the acquisition of Flavor Producers for an initial consideration of $299.7 million.

 Group financing

The Group's financial position continues to be strong. At year end 2024, net debt was $436.0 million (2023: $248.7 million), an increase of $187.3 million from prior year and the Group had committed debt facilities of $1.3 billion (2023: $1.3 billion) with a weighted average maturity of 3.8 years (2023: 4.7 years). Glanbia's ability to generate cash, as well as its available debt facilities ensures the Group has considerable capacity to finance future investments. Net debt to adjusted EBITDA was 0.81 times (2023: 0.50 times) and interest cover was 16.7 times (2023: 38.1 times), both metrics remaining well within financing covenants.

Capital expenditure

Cash outflow relating to capital expenditure for the year amounted to $87.1 million (2023: $74.2 million), including

$28.7 million of business-sustaining capital expenditure and $58.4 million of strategic capital expenditure. Key strategic projects completed in 2024 include ongoing capacity enhancement, business integrations and IT investments to drive further efficiencies in operations.

Dividends

The Board is recommending a final dividend of 23.33 €cent per share which brings the total dividend for the year to 38.97 €cent per share, a 10% increase on the prior year. This total dividend represents a payout ratio of 30.1% of 2024 adjusted EPS which is in line with the Board's target dividend payout ratio of 25% to 35%. The final dividend will be paid on 2 May 2025 to shareholders on the share register on 21 March 2025.

Share buyback

Share buyback activity continued during 2024, returning €102 million to shareholders in the year. With confidence in the strong cash generation abilities of the organisation, the Board has further authorised an additional €100 million in share buybacks for 2025 as an effective mechanism to return value to shareholders.

ROCE

ROCE increased in 2024 by 20 basis points to 12.4%. This increase was primarily due to the continued growth in profitability of the wholly-owned business, as well as operational efficiencies to improve margin and drive sustainable long-term returns. Acquisitions remain a key part of the growth strategy of the Group with investments assessed against a target benchmark of 12% return after tax by the end of year three.

Sustainability

Glanbia as an organisation is focused on delivering against our stated commitments and integrating sustainability within our strategic decisions. This includes enhancing our reporting capabilities and related Sustainability Reporting Framework to meet the EU Corporate Sustainability Reporting Directive requirements, coming into effect for Glanbia in financial year 2025.

The Group continued to progress our sustainability agenda including the effective management of the evolving regulatory environment globally.

During 2024, the Group agreed Sustainability Linked Loan ("SLL") status for all its bilateral Revolving Credit Facilities amounting to $729 million. The loan agreements now incorporate annual targets in relation to four separate environmental metrics, namely, Emissions, Water usage, Packaging and Waste throughout the remaining life of the facilities.

Investor relations

Glanbia has a proactive approach to shareholder engagement with the Annual General Meeting ("AGM") being a key event annually. In 2024, an in person AGM was held on 1 May at the Newpark Hotel in Kilkenny, Ireland. All details relating to the AGM were published on the Company's website: www.glanbia.com/ agm.

In 2024, the Group engaged with shareholders and investors through a series of strategic activities. These included a shareholder consultation on resolution 6 (remuneration policy), which was put to the AGM in May 2024. It also included several investor roadshows and media briefings following the Group's full year and half year results, providing opportunities for direct engagement and communication. Additionally, the Group held an investor day in the United States, which included a tour of Glanbia Performance Nutrition's production plant in Aurora, Illinois, and provided an update on key brands within the Glanbia Performance Nutrition portfolio.

In addition to full year and half year results, Glanbia publishes interim management statements after the first and third quarters to provide investors with a regular update on performance and expectations throughout the year. All releases, reports and presentations are made available immediately on publication on the Group's website: www.glanbia.com.

Audit Tender

In compliance with the regulations mandating public interest entities tender their audits every ten years, the Board commenced an audit tender process in 2024 to select the Group's next statutory auditor effective FY 2026. The Audit Committee recommended EY as the Group's statutory auditor to the Board, which they have approved. Subject to approval at the AGM, EY will be appointed as our new statutory auditor commencing from 4 January 2026.

Looking ahead

As announced on 6 November 2024, Glanbia has commenced a group wide transformation programme to drive efficiencies across the new operating model and support the next phase of growth through three focused divisions: Performance Nutrition, Health & Nutrition and Dairy Nutrition.

Health & Nutrition comprises the premix solutions and flavours platforms and will focus on high-growth priority end-use markets. Dairy Nutrition combines the US Cheese and Nutritional Solutions protein portfolios and will operate as a standalone business with a dedicated leadership team from 1 July, with the goal of optimising profits and returns as a leading dairy business.

The new operating model is designed to further simplify the business, increase focus on high-growth end-use markets, and provide greater insight into Glanbia's value drivers and growth opportunities.

The programme is a three-year initiative expected to generate annual cost savings of at least $50 million by 2027. These savings will be allocated across a mix of reinvestment into the business and profitability improvement.

Principal Risks and Uncertainties

The Board of Glanbia plc has the ultimate responsibility for the Group's systems of risk management and internal control. The Directors of Glanbia have carried out a robust assessment of the Group's principal risks, including those that may threaten Glanbia's business model, future performance, solvency or liquidity. The risk categorisation recognises the external risks associated with the operating environment, which are typically considered and managed through strategic processes, and the mainly internal risks associated with people, processes and systems which are managed through Glanbia's internal controls. Emerging risks with the potential to impact longer term success are also considered to ensure appropriate plans are in place to respond to them over time.

The Group's principal risks and uncertainties which are summarised in the risk profile table below remain relevant and unchanged from the risks reported in last year's Annual Report. While no new principal risks were identified and no changes were observed in risk trends, the Group continues to navigate a dynamic and rapidly changing risk landscape. The Group has effectively managed the evolving risk environment in 2024 and continues to develop mitigation measures to address these challenges in the year ahead. There may be other risks and uncertainties that are not yet considered material or not yet known to Glanbia and this list will change if these risks assume greater importance in the future. Likewise, some of the current risks may drop off the key risks schedule as management actions are implemented or changes in the operating environment occur.

The key risk factors and uncertainties with the potential to impact on the Group's financial performance in 2025 include:

· Geopolitical risk - the geopolitical situation remains fragile. The ongoing war in Ukraine, regional conflicts in the Middle East, tensions in the South China Sea and Taiwan and increased economic competition between the US and China continue to create uncertainties and market volatility. The Board is closely monitoring tensions in key trading regions, where any potential conflict, economic sanctions or trade rulings could impact Glanbia's growth objectives.

· Economic and industry risk - while the macroeconomic outlook stabilised as recession risks declined, vulnerabilities persist due to geopolitical tensions, the increased risk of tariff wars, geoeconomic fragmentation and slow global growth leaving many countries vulnerable to economic shocks. The Group will continue to monitor these and any other adverse changes in economic conditions, which may increase the cost of living and disrupt demand through a slowdown in consumer spending.

· Market disruption risk - although inflationary pressures are easing, they remain persistent and vulnerable to negative impacts from geopolitical tensions, particularly with regard to the introduction of tariffs between the US and some of its key trading partners and unpredictable climate conditions, which may drive prices higher. Given the potential for a combination of external factors to influence this position, continued action is being taken by the Group to mitigate remaining inflationary pressures, competitor challenges and key ingredient price volatility.

· Supply chain risk - geopolitical tensions and the increased risk of tariff wars could potentially impact the importation of key raw materials and/or negatively impact on the Group's international sales channels. The Group is holding appropriate safety stocks for core raw materials, however a prolonged impact to supply chains, heightened inflation, occurrence of extreme weather events and natural disasters, or a geo-political event in a key trading region would have negative consequences from both a supply and pricing perspective.

· Customer concentration risk - while strategically the Group aims to build strong customer relationships with major customers, material disruption with, or loss of, one or more of these customers, or a significant deterioration in commercial terms, could materially impact profitability. This risk can also expose the Group to credit exposure and other balance sheet risks. The Board is focused on utilising available mitigation to limit such exposures where possible.

The Group actively manages these and all other risks through its risk management and internal control processes.

Cautionary statement

Glanbia plc has made forward-looking statements in this document that are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, information concerning the Group's possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words 'believe', 'develop', 'expect', 'ensure', 'arrive', 'achieve', 'anticipate', 'maintain', 'grow', 'aim', 'deliver', 'sustain', 'should' or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. The Group expressly disclaims any obligation to update these forward-looking statements other than as required by law. The forward-looking statements in this release do not constitute reports or statements published in compliance with any of Regulations 4 to 9 and 26 of the Transparency (Directive 2004/109/EC) Regulations 2007 or any equivalent provisions of the Disclosure and Transparency Rules of the FCA.

On behalf of the Board

Hugh McGuire Mark Garvey

Chief Executive Officer Chief Financial Officer

26 February 2025

Annual General Meeting (AGM)

Glanbia plc's AGM will be held on Wednesday 30 April 2025, in the Killashee House Hotel, Naas, Co. Kildare, Ireland.

Results webcast and dial-in details:

There will be an analysts' conference call and webcast presentation to accompany this results announcement at 8.30 a.m. (GMT) today. Please access the webcast from the Glanbia website at https://www.glanbia.com/investors/financial-calendar, where the presentation can also be viewed or downloaded.

A replay of the call will be available for 30 days from this afternoon. Please see the link below to the Investor Relations section of the Glanbia plc website for details:

https://www.glanbia.com/investors/results-centre

For further information contact

Glanbia plc +353 56 777 2200

Group income statement

for the financial year ended 4 January 2025

Group statement of comprehensive income

for the financial year ended 4 January 2025

Group balance sheet

as at 4 January 2025

Group statement of changes in equity

for the financial year ended 4 January 2025

Group statement of cash flows

for the financial year ended 4 January 2025

Notes to the financial statements

for the financial year ended 4 January 2025

1. Accounting policies

The financial information set out in this document does not constitute full statutory financial statements but has been derived from the Group financial statements for the year ended 4 January 2025 (referred to as the 2024 Financial Statements). The 2024 Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and their interpretations approved by the International Accounting Standards Board ('IASB') as adopted by the European Union ('EU') and those parts of the Companies Act 2014, applicable to companies reporting under IFRS. The 2024 Financial Statements have been audited and have received an unqualified audit report. Amounts are stated in US dollar millions ($m) unless otherwise stated. These financial statements are prepared for the 53‐week period ended 4 January 2025. Comparatives are for the 52‐week period ended 30 December 2023. The balance sheets for 2024 and 2023 have been drawn up as at 4 January 2025 and 30 December 2023 respectively.

The financial statements have been prepared under the historical cost convention as modified by use of fair values for certain other financial assets, contingent consideration, put option liability, and derivative financial instruments.

All notes to the financial statements include amounts for continuing operations, unless indicated otherwise.

The Group's accounting policies which will be included in the 2024 Financial Statements are consistent with those as set out in the 2023 financial statements other than the change in US joint venture commercial arrangements and change in Group income statement format as detailed below.

The 2024 Financial Statements were approved and authorised for issue by the Board of Directors on 25 February 2025 and signed on its behalf by D Gaynor, H McGuire, and M Garvey.

Change in US joint venture commercial arrangements

Following an announcement on 16 August 2023, the Group amended the commercial arrangements between Glanbia Nutritionals and its US joint venture effective 1 January 2024. Under the previous commercial terms, the Group was considered to be a principal under IFRS 15 and consequently recorded the gross value of revenues and corresponding cost of sales on joint venture products sold. Under the new commercial terms, the Group is considered to be an agent under IFRS 15 and recognises commissions earned on the sale of joint venture products. The change in commercial terms has impacted the recognition and presentation of revenues and cost of sales from 2024 onwards only. Consequently, revenues, costs of sales, and corresponding transactional amounts with its joint venture in the current year are not comparable with those of the prior year.

Change in Group income statement format

Certain line items on the Group income statement that were previously presented in the Operating profit note (cost of goods sold, gross profit, selling and distribution expenses, administration expenses, net impairment gain on financial assets) have now been presented directly on the Group income statement. Refer to the Group income statement for the amounts involved. There is no impact on reported profit or net assets as a result of this change. This change supports the Group's intention to simplify reporting to be more in line with peers.

Going concern

After making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements. The Group therefore considers it appropriate to adopt the going concern basis in preparing its financial statements.

Adoption of new and amended standards

There were no new or amended standards that were effective for the Group during the financial year.

New and amended standards that are not yet effective

The Group has not applied new amendments to existing standards that have been issued but are not yet effective. The Group intends to adopt these amended standards, if applicable, when they become effective. The Group is currently evaluating the impact of the amendments and IFRS 18 on future periods.

Classification of Liabilities as Current or Non-current - Amendments to IAS 1 (EU effective date: on or after 1 January 2024)

The amendments clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g. the receipt of a waiver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the 'settlement' of a liability.

Non-current Liabilities with Covenants - Amendments to IAS 1 (EU effective date: on or after 1 January 2024)

The amendments improve the information an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants. The amendments also respond to stakeholders' concerns about the classification of such a liability as current or non-current.

IFRS 18 - Presentation and Disclosure in Financial Statements (IASB effective date: on or after 1 January 2027)

IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and complementing them with new requirements.

IFRS 18 introduces new requirements to:

• present specified categories and defined subtotals in the statement of profit or loss.

• provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements.

• improve aggregation and disaggregation.

Other changes to IFRS have been issued but are not yet effective for the Group. However, they are either not expected to have a material impact on the Group or they are not currently relevant for the Group.

2. Segment information

In accordance with IFRS 8 'Operating Segments', the Group has identified Glanbia Performance Nutrition and Glanbia Nutritionals as reportable segments as at 4 January 2025. Glanbia Performance Nutrition manufactures and sells sports nutrition and lifestyle nutrition products through a variety of channels including specialty, online, Food, Drug, Mass, Club (FDMC), and distributor in a variety of formats, including powders, Ready-to-Eat (bars and snacking foods) and Ready-to-Drink beverages. Glanbia Nutritionals manufactures and sells cheese, dairy and non-dairy nutritional and functional ingredients, and vitamin and mineral premixes targeting the increased market focus on health and nutrition.

All other segments and unallocated include both the results of joint ventures who manufacture and sell cheese and dairy ingredients and unallocated corporate costs. These investees did not meet the quantitative thresholds for reportable segments in 2024 or 2023. Amounts stated for joint ventures represents the Group's share.

These segments align with the Group's internal financial reporting system and the way in which the CODM assesses performance and allocates the Group's resources. Each segment is reviewed in its totality by the CODM. The CODM assesses the trading performance of operating segments based on a measure of earnings before interest, tax, depreciation, amortisation and exceptional items. Given that net finance costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for the purposes of the information presented to the CODM and are accordingly omitted from the detailed segmental analysis below.

Revenue of $433.8 million is derived from an external customer within the Glanbia Nutritionals segment. Within the same segment in the prior period, revenues from two external customers were $966.2 million and $771.3 million respectively.

Segment earnings before interest, tax, depreciation, amortisation and exceptional items are reconciled to reported profit before taxation and profit after taxation as follows:

Geographical information

Revenue from external customers, and non-current assets, other than financial instruments, deferred tax assets, and retirement benefit assets attributable to the country of domicile and all foreign countries of operation for which revenue/non-current assets exceed 10% of total Group revenue/non-current assets are set out below.

Revenue from external customers in the table below and in the disaggregation of revenue by primary geographical markets table below is allocated to geographical areas based on the place of delivery or collection of the products sold as agreed with customers as opposed to the end use market where the product may be consumed.

Disaggregation of revenue

Revenue is disaggregated based on the Group's internal reporting structures, the primary geographical markets in which the Group operates, the timing of revenue recognition, and channel mix as set out in the following tables.

* Current period revenue is not comparable with that of the prior period. Refer to note 1 for details.

The disaggregation of revenue by channel mix is most relevant for Glanbia Performance Nutrition.

3. Exceptional items

The nature of the total exceptional items is as follows:

Details of the exceptional items are as follows:

(a) Group-wide transformation programme: During 2023 the Group commenced a number of initiatives to realign support functions and optimise structures to more efficiently support business operations and growth. On 6 November 2024, a group-wide transformation programme was announced to drive efficiencies across the new operating model and support the next phase of growth. This multi-year programme is focused on driving efficiencies across the Group's operating model and supply chains while leveraging the Group's digital transformation capabilities.

During 2024, the Group incurred costs of $18.0 million (2023: $6.0m) primarily related to advisory fees and people related costs.

(b) Acquisition and integration costs: These costs relate to the transaction and integration costs associated with the Flavor Producers business.

(c) Pension related costs: These costs relate to the restructure of certain legacy defined benefit pension schemes in the UK. Final wind up is anticipated in 2025.

(d) Net gain on disposal/exit of operations: The prior year net gain related primarily to disposals of the UK and EU Leprino Foods joint ventures and a small US bottling facility (Aseptic Solutions) which were previously designated as held for sale.

(e) Impairment of non-core assets held for sale: The charge relates to fair value adjustments to reduce the carrying value of assets held for sale to recoverable value. The assets relate to the Benelux Direct-To-Consumer (DTC) online branded business (Body & Fit Sportsnutrition B.V.). Following the completion of a portfolio review, these assets and liabilities were determined to be non-core and a decision was made to divest of them, resulting in the designation as held for sale at year end. A process of disposal has commenced and a sale is expected to be executed in FY 2025.

(f) Impairment of intangible assets: In accordance with IAS 36 Impairment of Assets, the Group is required to assess goodwill and other intangible assets for impairment. Accordingly, impairment reviews are performed annually, or more frequently if there is an indication that the carrying amount may not be recoverable. A non-cash impairment charge of $91.4 million has been recognised during the year in respect of the SlimFast Americas cash generating unit reflecting continuing challenges in the weight management category impacting the brand's performance. Subsequent to year end the Directors approved the commencement of a sales process for the SlimFast brand.

(g) Exceptional charge after tax from discontinued operations: Prior year charge related to the crystallisation of certain contingent costs associated with the Groups divestment of Tirlán Limited.

4. Finance income and costs

5. Income taxes

The tax credit on exceptional items has been disclosed separately above as it relates to costs and income which have been presented as exceptional.

The tax on the Group's profit before tax differs from the theoretical amount that would arise applying the corporation tax rate in Ireland, as follows:

Factors that may affect future tax charges and other disclosure requirements

The total tax charge in future periods will be affected by any changes to applicable tax rates in force in jurisdictions in which the Group operates and other relevant changes in tax legislation. The total tax charge of the Group may also be influenced by the effects of corporate development activity and the resolution of uncertain tax positions where the outcome is different from the amounts recorded.

The Group adopted the amendments to IAS 12 in the prior year. The IASB amended the scope of IAS 12 to clarify that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Global Anti-Base Erosion ('GloBE') rules published by the OECD (the 'Pillar Two' model rules) including tax law that implements qualified domestic minimum top-up taxes described in those rules.

The amendments introduced a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group is required to disclose that it had applied the exception and to disclose separately its current tax expense/(income) related to Pillar Two income taxes.

The Group has applied the temporary exception contained in the amendments issued by the IASB from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

On 18 December 2023, the government of Ireland enacted Pillar Two income taxes legislation in Ireland, effective 1 January 2024, under which Glanbia plc, the ultimate parent company of the Group, will be required to pay to the Irish tax authorities top-up tax on the profits of its subsidiaries with an effective tax rate of less than 15 per cent for each jurisdiction in which the Group operates, or it can elect to rely on safe harbour criteria to exclude qualifying subsidiaries.

No current tax income or expense related to Pillar Two income taxes was recognised in the tax charge for the year ended 4 January 2025 (2023:nil).

6. Earnings Per Share

Basic

Basic Earnings Per Share is calculated by dividing profit after tax attributable to the equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Group and held as own shares (note 9). The weighted average number of ordinary shares in issue used in the calculation of Basic Earnings Per Share is 260,554,311 (2023: 266,548,048).

Diluted

Diluted Earnings Per Share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares. Share awards are the Company's only potential dilutive ordinary shares. The share awards, which are performance based, are treated as contingently issuable shares, because their issue is contingent upon satisfaction of specified performance conditions, as well as the passage of time. Contingently issuable shares are included in the calculation of Diluted Earnings Per Share to the extent that conditions governing exercisability have been satisfied, as if the end of the reporting period were the end of the vesting period.

7. Dividends

The dividends paid and recommended on ordinary share capital are as follows:

Reconciliation to Group statement of cash flows and Group statement of changes in equity

The amount of dividends recommended is based on the number of issued shares at year end. The actual amount will be based on the number of issued shares on the record date (note 14).

8. Net debt

Net debt is a non-IFRS measure which we provide to investors as we believe they find it useful. It is also used to calculate leverage under the Group's financing arrangements, as defined within covenants. Refer to the Financing measures section in the Glossary for more details. Net debt comprises the following:

9. Other reserves