Glanbia announces a total dividend maintained at 2019 levels representing a payout ratio of 36.1% ahead of target range of 25% to 35% due to strong cash flow. Recommended final dividend per share of 15.94 cent, total 2020 dividend 26.62 cent.
Other financial highlights include:
Group navigated Covid-19 well with the business portfolio delivering a resilient performance in 2020;
Solid top line with revenue of €3,823.1 million (2019: €3,875.7 million), up 0.6% constant currency on prior year (down 1.4% reported). Like-for-like* revenue grew 1.8% constant currency on prior year;
Strong operating cash flow ("OCF") of €334.8 million (2019 €279.9 million); 122.4% cash conversion rate;
Robust performance from Glanbia Nutritionals ("GN") which drove like-for-like revenue growth of 10.0% constant currency on prior year;
Glanbia Performance Nutrition ("GPN") impacted by Covid-19 restrictions, in particular in Q2, delivered like-for-like revenue decline of 13.3%, constant currency;
Pre-exceptional EBITA of €209.6 million in full year 2020 (FY 2019: €276.8 million) was down 22.6% constant currency (down 24.3% reported); primarily related to challenges associated with Covid-19 in GPN in Q2; improving trends resulted in delivery of €124.6 million EBITA in the second half 2020;
Joint Ventures ("JVs") delivered a strong performance with reported share of profits up €13.0 million to €61.6 million;
Adjusted earnings per share ("EPS") of 73.78 cent (2019: 88.10 cent) was down 14.9% constant currency (down 16.3% reported);
Profit after tax of €143.8 million (2019: €180.2 million); exceptional items after tax of €31.5 million (2019: €34.6 million);
Basic EPS of 48.72 cent (2019: 61.04 cent);
Group in a strong financial position with net debt reduced by €120.4 million versus prior year to €493.9 million; Net debt to adjusted EBITDA ratio of 1.70 times;
Share buyback programme of up to €50 million successfully launched in Q4 2020 and ongoing in 2021;
Strong progress on the Group's ESG agenda; Significant changes to Board composition proposed to facilitate increased Board diversity with a Group-wide Diversity and Inclusion strategy launched; and on the Environmental agenda, targets are now in place for the reduction of carbon emissions;
Positive outlook; in FY 2021 the Group expects to deliver 6% to 12% growth in adjusted EPS, constant currency, driven by wholly-owned businesses, GPN and GN.
