Glanbia plc

For the half year, Glanbia reported revenue of $2.1 billion, up 7% on a constant currency basis, and like-for-like reported revenue growth of 10.7% with volumes up 8.2% and price up 2.5%. Adjusted EPS was $0.8124, up 30% constant currency year over year. Group pre-exceptional EBITDA was $275.4 million, up 14.1%, and EBITDA margin was 13.2% versus 12.5% last year. By segment, Performance Nutrition like-for-like revenue grew 16.9%, Health & Nutrition grew 12%, and Dairy Nutrition grew 3.8%; Dairy Nutrition EBITDA was $92.3 million, up 28.2%, Performance Nutrition EBITDA was up 7.4%, and Health & Nutrition EBITDA was $67.9 million, up 9.5%. For the full year, management raised adjusted EPS growth guidance to 17% to 20% constant currency. Segment guidance now calls for Performance Nutrition like-for-like revenue growth of 12% to 14%, Health & Nutrition like-for-like revenue growth of 8% to 10%, and Dairy Nutrition EBITDA of $170 million to $180 million. Operating cash flow conversion for the 12 months ending July 4 was 95.1%, with operating cash flow of $507 million over the trailing 12 months. Net debt was approximately $731 million, net debt to adjusted EBITDA was 1.4x, and the company expects year-end net debt to EBITDA to be approximately 1x, subject to M&A. Full-year capex is expected to be between $100 million and $110 million. The interim dividend was increased 10% from EUR 0.172 to EUR 0.1892, and the EUR 100 million share buyback program was completed.

Hugh McGuire framed the quarter as evidence that Glanbia is benefiting from durable health-and-wellness demand across protein, energy and fortification. He emphasized Optimum Nutrition’s brand strength, international expansion, innovation, and the group’s ability to take pricing while still seeing strong consumer demand, while acknowledging limited elasticity in some channels and SKUs. His tone was confident and upbeat, with repeated comments that the business is ahead of plan and that the momentum supports upgraded guidance.

Mark Garvey highlighted the hard numbers behind the beat: $2.1 billion revenue, $275.4 million pre-exceptional EBITDA, 13.2% EBITDA margin, and $0.8124 adjusted EPS, all supported by volume-led growth and pricing. He pointed to 95.1% operating cash flow conversion, $507 million of operating cash flow over the trailing 12 months, and net debt of approximately $731 million, with leverage at 1.4x and expected to fall to about 1x by year-end subject to M&A. He also noted capex of $50 million in the first half, full-year capex of $100 million to $110 million, upgraded transformation savings of $70 million by 2027, and total program charges of about $110 million, of which approximately $85 million had already been incurred.

Analysts focused heavily on Performance Nutrition pricing, elasticity, and the durability of whey inflation. Management said elasticity has been limited so far but is appearing in certain markets, channels and pack sizes, and that they are planning further price increases in Q3 and possibly later in 2026 or early 2027 depending on raw material costs and demand. Questions also probed whether strong whey prices structurally change the category; management said demand remains strong, that the market is more resilient than in prior cycles, and that Glanbia benefits from a natural hedge because Dairy Nutrition also benefits from higher whey prices. Analysts also asked about weaker Healthy Lifestyle brands, supply additions, retailer shelf-space gains, and M&A; management said think! and some club-channel exposures are the main drags, shelf space is expanding for key protein brands, and the M&A pipeline is active, mainly in Health & Nutrition.