Glanbia - Interim results in line with forecast; FY guidance reiterated

Davy Research
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Glanbia’s interim results provide a good foundation for it to achieve its FY17 guidance of 7-10% pro-forma constant currency EPS growth. A strong performance from Global Nutritionals (GN) and JV & Associates drove the majority of earnings growth in H1. Glanbia Performance Nutrition (GPN) is expected to make a more meaningful contribution in H2 with organic branded growth likely to accelerate. We envisage no material change to our underlying forecasts. We believe the recent de-rating is overdone in the context of on-going operational delivery across its growth platforms, mid-teens returns and a strengthening balance sheet. We reiterate our ‘Outperform’ call.