Half year results/media/Files/G/Glanbia-Plc/... · 2014-08-19 · first half of the year. In addition to the launch of BSN's Syntha 6 bar in EMEA and Optimum Nutrition’s PRO Series,

1 Glanbia plc 2013 half year results

Half year results

Leading global performance nutrition and ingredients group

2014

Wednesday, 20 August 2014

www.glanbia.com


GoodperformanceinfirsthalfdrivenbyGlobalPerformanceNutrition

Reiterating2014guidanceof8%to10%constantcurrencyadjustedEPSgrowth20 August 2014 ‐ Glanbia plc (“Glanbia”, the “Group”, the “plc”), the global performance nutrition andingredientsgroup,announcesitsresultsforthesixmonthsended5July2014.Resultshighlights TheGroupdeliveredagoodperformanceforthefirsthalfoftheyear.Onaconstantcurrencybasis,

TotalGrouprevenuegrew10.7%,TotalGroupEBITAincreasedby10.3%andadjustedearningspershare grew 11.5%. On a reported basis, Total Group revenue increased 8.1%, Total Group EBITAincreasedby6.0%andadjustedearningspersharegrewby6.8%;

GlobalPerformanceNutritionwasthekeygrowthdriverasrevenuegrowthof21.8%anda110basispointmarginexpansiondroveastrongincreaseinEBITAonaconstantcurrencybasis;

Global Ingredients delivered a satisfactory performance in the context of a difficult operatingenvironmentwithEBITAlargelyunchangedversustheprioryearonaconstantcurrencybasis;

DairyIrelandperformancewasbehindtheprioryearasstabilisationinConsumerProductswasmorethanoffsetbyalowerperformanceinAgribusiness;

JointVentures&Associatesdeliveredagoodperformanceoverall;and The Group today announces a €60 million strategic investment programme in Global Ingredients

aimedatmaximisingthevalueofourwheypoolandfurtherstrengtheningourpositionasaleaderinvalue‐addeddairyingredients.

2014halfyearresults1 Reported Constantcurrency

€m HY2014 HY2013 Change Change2

Wholly‐ownedbusinesses

Revenue 1,294.2 1,236.3 +4.7% +7.7%

EBITA 107.3 102.3 +4.9% +9.7%

EBITAmargin 8.3% 8.3% +0bps +20bps

JointVentures&Associates3

Revenue 503.4 426.8 +17.9% +19.3%

EBITA 22.2 19.9 +11.6% +13.3%

EBITAmargin 4.4% 4.7% ‐30bps ‐20bps

TotalGroup3

Revenue 1,797.6 1,663.1 +8.1% +10.7%

EBITA 129.5 122.2 +6.0% +10.3%

EBITAmargin 7.2% 7.3% ‐10bps +0bps

Adjustedearningspershare 32.45c 30.39c +6.8% +11.5%CommentingtodaySiobhánTalbot,GroupManagingDirector,said:“Glanbia had a good first half in 2014 resulting in a constant currency increase of 11.5% in adjustedearnings per share. Global Performance Nutrition was the key contributor delivering strong brandedrevenuegrowth,througheffectiveexecutionincorechannelsandcontinuedinternationalgrowth.GlobalIngredients delivered a satisfactory first half in the context of milk procurement issues in Idaho andunfavourablewheypricingdynamics.DairyIrelandperformedinlinewithexpectation,albeitbehindtheprioryearwhile JointVentures&Associateswasalsoin linewithexpectation.Wecontinueto invest inour strategy of maximising the value of our ingredients. Today we announce a new €60 millionprogrammeinGlobalIngredientstofurtherourambitiontobealeaderinscience‐lednutritionalsolutionsandsystems.Theoutlookfortheremainderoftheyearispositiveandweexpecttoachieveourguidanceof8%to10%growthinadjustedearningspershareonaconstantcurrencybasisfor2014.”

__________________________________1.Allfiguresshownarepreexceptionalitems.2.AsignificantportionofourearningsaredenominatedinUSdollars.ConstantcurrencyisbasedontranslatingHY2013resultsattheHY2014averagemarketexchangerate(€1=$1.371).ThereportedaverageexchangerateforHY2013was€1=$1.313.3.TotalGroupincludesGlanbia’sshareofJointVentures&Associates.


2014halfyearoverviewForthesixmonthsended5July2014

Glanbiadeliveredagoodperformance in the first half of 2014drivenprimarilybyGlobalPerformanceNutrition. Total Group revenues including the Group’s share of Joint Ventures & Associateswere €1.8billion, up 8.1% (10.7% constant currency). Total Group EBITA was €129.5 million, up 6.0% (10.3%constantcurrency).TotalGroupEBITAmarginwas7.2%,down10basispoints(unchangedonaconstantcurrencybasis),reflectingan8.3%margininthewhollyownedbusinessesand4.4%inJointVentures&Associates.Adjustedearningspersharewas32.45cents,up6.8%(11.5%constantcurrency).

CapitalinvestmentupdateStrategiccapitalinvestmentisacoreelementofGlanbia’slongtermstrategyandtheGroupcontinuestoinvestsignificantlybehinditstwogrowthplatforms,GlobalPerformanceNutritionandGlobalIngredients.GlobalPerformanceNutritionrecentlycommissionedthefirstphaseofanew€50millioninvestmentinastate‐of‐the‐art manufacturing facility in Aurora, Illinois and today we are pleased to announce asignificantnewcapitalinvestmentprogrammewithinGlobalIngredients.

Theprogramme,totalling€60millioninourIdahobasedfacilities,isstronglyalignedwithourstrategyofadding further value to our whey streamwhile also supporting the growth ambitions of PerformanceNutrition.Theprogramme,whichweexpect tobe fully commissionedby theendof2015, involves thedevelopment of increased production capacity of higher end whey as well as increased capacity oflactoferrin, a specialty milk component used in a variety of sectors including infant formula andsupplements.

BoardchangesJerryListon,Non‐ExecutiveDirector,retiredfromtheBoardon13May2014.PatrickCoveneyjoinedtheBoardasaNon‐ExecutiveDirectoron30May2014.Mr.Coveney, aged43, isChiefExecutiveOfficerofGreencore Group plc, a leading international convenience food group. Also on 30 May 2014, BrendanHayesjoinedtheBoardasaNon‐ExecutiveDirectornominatedbyGlanbiaCo‐operativeSocietyLimited.InvestorDay2014Glanbiawill hold its 2014 investor day in Chicago onWednesday, 19November 2014. This eventwillfocusonourGlobalPerformanceNutritionsegment.Aswellas learningaboutthe longtermstrategyofthebusiness,attendeeswillgainanin‐depthunderstandingofourapproachtomarketing,operationsandinternationalexpansion.Therewillalsobeavisittoourrecentlycommissionedmanufacturingfacility.Allof Glanbia’s executive management team will be in attendance as well as a number of senior GlobalPerformanceNutritionmanagement. 2014outlookOverall,theoutlookfortheGroupfor2014ispositive.WhileGlobalPerformanceNutritionisexpectedtobethemaindriverofgrowth,DairyIrelandisexpectedtodeliveranimprovedperformanceversustheprioryearwithGlobalIngredientslargelyunchanged.Onthisbasis,wearereiteratingourguidancefor2014of8%to10%growthinadjustedearningspershareonaconstantcurrencybasis.2014halfyearoperationsreviewCommentaryisonaconstantcurrencybasisthroughout

SegmentalanalysisHY2014 HY2013

€m Revenue EBITA EBITA% Revenue EBITA EBITA%GlobalPerformanceNutrition 374.6 42.9 11.5% 320.2 33.6 10.5%GlobalIngredients 565.8 53.9 9.5% 532.9 56.6 10.6%DairyIreland 353.8 10.5 3.0% 383.2 12.1 3.2%Totalwholly‐ownedbusinesses 1,294.2 107.3 8.3% 1,236.3 102.3 8.3%JointVentures&Associates 503.4 22.2 4.4% 426.8 19.9 4.7%TotalGroup 1,797.6 129.5 7.2% 1,663.1 122.2 7.3%


GlobalPerformanceNutritionReported ConstantCurrency

€m HY2014 HY2013 Change ChangeRevenue 374.6 320.2 +17.0% +21.8%EBITA 42.9 33.6 +27.7% +33.6%EBITAmargin 11.5% 10.5% +100bps +110bps

GlobalPerformanceNutrition(‘GPN’)deliveredastrongperformanceinthefirsthalfof2014.Revenuesincreased21.8%drivenprimarilybyorganicvolumegrowthof19.6%andtheimpactoftheNutraminoacquisition in January of 2.5%. Branded revenue growth remained strong at 18.6% primarily due togrowthacrosskeyinternationalmarkets.OverallbrandedrevenuegrowthwasweightedtowardsthefirstquarteroftheyearinadvanceofapriceincreaseimplementedinApril.Contractmanufacturingrevenuegrowth was also strong, however, this is expected to moderate in the second half of the year. EBITAincreased 33.6% reflecting the strong revenue performance partially offset by higher overheadsassociatedwiththeongoinginvestmentinsupportofbusinessandmarketgrowth.EBITAmarginfortheperiodwas11.5%reflectinga110basispointincreaseversusprioryear.

DemandtrendswithintheUSsportsnutritionmarketremainpositive.WithintheUSmarket,thespecialtyand internet channels,which are the largest and amongst the fastest growing segments of themarket,remainourprimaryfocus.Internationalrevenuegrowthremainsstrongreflectingtheawarenessofandhigh regard for our brands across the globe. This growth endorses our strategy of building strong in‐marketteamsineachofourkeygeographiesandwecontinuetoinvestinourpeopleandinfrastructuretosustainourinternationalgrowthtrajectory.TheacquisitionofNutramino,aleadingScandinaviansportsnutrition business, in January 2014, is fully aligned with this strategy and further strengthens ourinternationalpresenceaswellasprovidinguswithanentrypointintotheconveniencechannelinEurope.

InnovationiscentraltoourgrowthmodelinGPNandwehadanumberofexcitingproductlaunchesinthefirsthalfof theyear. Inadditiontothe launchofBSN'sSyntha6bar inEMEAandOptimumNutrition’sPROSeries,therecentlaunchofthenewBSNN.O.‐Xplodepre‐workoutsupplementrepresentedourfirstglobalproductlaunch.

Thefirstphaseofournewstate‐of‐the‐artmanufacturingplantinAurorawassuccessfullycommissionedinMay.Thisplantoffersimprovedefficienciesversusourexistingfacilitiesandallowsustoproducethemajority of our products internally. The second phase, bringing the total cost to approximately €50million,willbecommissioned inearly2015andwill support thedeliveryofourgrowth targets for thenext3‐4years.GlobalIngredients

Reported ConstantCurrency€m HY2014 HY2013 Change ChangeRevenue 565.8 532.9 +6.2% +10.7%EBITA 53.9 56.6 ‐4.8% +0.5%EBITAmargin 9.5% 10.6% ‐110bps ‐100bps

Global Ingredients delivered a satisfactory performance in the first half of the year in the context ofchallengingmilkprocurementconditionsinIdaho.Revenuesincreased10.7%reflectinga13.9%impactfromhigherpricingand1.6%fromtheacquisitionofasmallspecialtycheeseplantinBlackfoot,IdahoinMarch 2013. These were partially offset by an organic volume decline of 4.8%. EBITA increasedmarginallyintheperiodasagoodperformanceinCustomisedSolutionswasoffsetbyasomewhatweakerperformance inUSCheeseand IngredientTechnologies.Global Ingredients’EBITAmargindeclined100basispointsintheperiodto9.5%.

USCheeseWhile cheeseprices in theUSAhavedeclined fromtheir firsthalfpeaks, they remainat relativelyhighlevels.Thishasprimarily reflecteda tighter supply environment across theUSAasdemandacrosskeychannelshasbeenbroadlystable.


In response to a competitive milk procurement environment in Idaho, we revised milk procurementpoliciesintheperiod.Whilethisresultedinincreasedmilkinputcosts,wehaveachievedgreatersecurityofsupplywithtwoyearsupplycontractsnowinplacewiththemajorityofoursuppliers.Inthiscontext,USCheesehadasatisfactoryperformanceinthefirsthalfoftheyear.Revenuesincreasedas significantly stronger cheese pricingmore than offset the volume decline that resulted from tightermilkprocurementconditions.EBITAwasbehindtheprioryearastheimpactoflowervolumesandhigherinputcostswasnotfullyoffsetbyoperationalefficiencymeasuresandpricingchanges.

IngredientTechnologiesUnderlyingdemandconditionsacrossIngredientTechnologies’keyendmarketsremainpositive.Overallperformancewasbehindtheprioryearwithpositiverevenuegrowthmorethanoffsetbylowermargins.Theperformanceofthedairysideofthebusinesswasnegativelyimpactedasbasewheyprices,whichareakeydriverofmilkinputcosts,increasedrelativetohigh‐endwheyprices.Developmentofthenon‐dairygrainandbeverageplatformscontinueswithpositivecustomerengagementstodate.Ourstrategyofmaximisingthevalueofouringredientpoolremainsontrackasdemonstratedbythe€60million investment programme announced today. The additional high‐end whey and lactoferrinproductioncapabilitieswillstrengthenourpositionintheseproductcategoriesandfacilitateourgoalofbeingaleaderinthedevelopmentofscience‐lednutritionalsolutionsandsystems.

CustomisedSolutionsCustomised Solutions delivered a good performance in the first half of the year. Revenue growthwaspositivereflectingvolumegrowthcombinedwithapositivepriceandmixeffect.Anincreaseinmarginsdrivenprimarily by a favourablemix effect combinedwithpositive revenue growth resulted in a goodEBITAperformancefortheperiod.

While thesector remainscompetitivewecontinue toseegoodgrowthpotentialacrosskeyendmarketsegmentsincludingbeverage,infantformula,supplementandnutritionbarsegments.Ourexistingglobalfootprint and reputation for market leading customer service provides us with a strong platform tooptimisethesemarketopportunitiesastheypresentthemselves.DairyIreland

Reported ConstantCurrency€m HY2014 HY2013 Change ChangeRevenue 353.8 383.2 ‐7.7% ‐7.7%EBITA 10.5 12.1 ‐13.2% ‐13.2%EBITAmargin 3.0% 3.2% ‐20bps ‐20bps

ConsumerProductswasrelativelystableintheperiodwiththedeclineinoverallperformancearesultoflower Agribusiness sales in the period against a relatively good prior year. Revenues declined 7.7%reflectinga4.9%organicvolumedeclineanda2.8%declineinpricing.EBITAwas13.2%behindtheprioryearreflectinga20basispointdeclineinmargins.

ConsumerProductsConsumer Products delivered a satisfactory performance in the period against a continued challengingmarket backdrop. Revenue growthwas positive driven primarily by a favourable price andmix effect.Whilemilkinputcostshavereducedmodestlyinrecentmonths,averagemilkcostforthefirsthalfoftheyearwaswellaboveprioryearlevels.Overall,ConsumerProductsdeliveredanEBITAbroadlyinlinewiththeprioryearashigherinputcostswereoffsetbycostsavingsassociatedwithourefficiencyprogramme.Furthercostsassociatedwiththisprogrammeareexpectedtobeincurredinthesecondhalfoftheyear.ThenewUHT(Ultra‐Heat‐Treated)facilityinCo.Monaghanwassuccessfullycommissionedinthesecondquarterof theyearandwecontinuetoworktodevelopmarketopportunities forourbranded long‐lifeliquidmilkandcreamacrossChina,EuropeandtheMiddleEast.


AgribusinessAgribusiness’revenuesdeclinedversustheprioryearduetoacombinationoflowerpricesandvolumes.Thedeclineinvolumesrelatedprimarilytoanimalfeedandreflectedparticularlystrongdemandintheprioryearasaresultofpoorweatherconditionsformuchofthefirsthalfof2013.Volumeperformanceacrossotherproductcategorieswassatisfactoryand,inparticular,therecentlycommissionedoatsmillinPortlaoisecontinuestoperformwell.Overall,EBITAwasbehindtheprioryearas lowerrevenuesmorethanoffsetthebenefitofongoingcostandefficiencymeasures.JointVentures&Associates(GlanbiaShare)

Reported ConstantCurrency€m HY2014 HY2013 Change ChangeRevenue 503.4 426.8 +17.9% +19.3%EBITA 22.2 19.9 +11.6% +13.3%EBITAmargin 4.4% 4.7% ‐30bps ‐20bps

JointVentures&Associatesdeliveredagoodperformanceinthefirsthalfoftheyear.Revenuesincreased19.3% reflecting 6.3%organic volume growth and 13.0%pricing growth. Volume growthwaspositiveacross all key joint ventures and associates with Glanbia Ingredients Ireland and Glanbia Cheese, inparticular, benefiting from favourable milk supply environments. The main driver of the increase inpricingwasglobaldairymarketpriceswhich,despiteadownwardtrendinthefirsthalfoftheyear,areabove prior year levels. EBITA increased 13.3% driven primarily by the strong volume growthperformance.TheconstructionofGlanbiaIngredientsIreland’snew€150millionmilkprocessingplantinBelview,Co.Kilkenny isprogressingwell and is expected to commission inearly2015.Long termsupply contracts,whichhavebeensuccessfullyagreedwith94%ofoursuppliers todate,provide increasedsecurityandvisibilityinrespectofmilksupplyvolumesposteliminationofquotasin2015.2014outlookGlobal Performance Nutrition is expected to deliver a good performance in 2014 reflecting positiverevenuegrowthcombinedwithanexpectedupliftinmargins.Afterastrongperformanceinthefirsthalfof the year, revenue growth is expected to slow in the second half reflecting an anticipated decline incontractmanufacturingrevenues,thepotentialimpactoftheRussianimportbanoninternationalrevenuegrowth and increased competition in the US market. Notwithstanding these challenges, our brandedbusinessremainsstrongandisunderpinnedbyourmarketleadingbrandsandourongoinginvestmentinoperations,innovation,marketingandinternationalexpansion.

GlobalIngredientsperformanceforthefullyearistargetedtobebroadlyinlinewiththeprioryear.MilkthroughputinthecheeseandwheyfacilitiesinIdahoisexpectedtobebelow2013levelsfortherestofthe year. This, together with higher input costs, will impact performance for both US Cheese andIngredient Technologies in the second half. Within Global Ingredients these challenges will be largelyoffset by the ongoing progress being made by Ingredient Technologies in respect of its non‐dairyplatformsaswellasthecontinuedpositiveperformanceintheCustomisedSolutionsbusiness.

DairyIrelandisexpectedtodeliveranimprovedperformanceforboththesecondhalfoftheyearandthefullyear.ThisisexpectedtobedrivenprimarilybyConsumerProductsduetotheongoingrationalisationmeasuresbeingimplementedacrossthebusiness.JointVentures&Associatesareexpectedtodelivera2014performancebroadlyinlinewiththeprioryearasoveralldairymarketsareexpectedtobemorechallenging in thesecondhalfof theyearresulting insomemarginpressure.

Overall,theoutlookfortheGroupfor2014ispositive.WhileGlobalPerformanceNutritionisexpectedtobethemaindriverofgrowth,DairyIrelandisexpectedtodeliveranimprovedperformancefortheyearwithGlobalIngredientslargelyunchanged.Onthisbasis,wearereiteratingourguidancefor2014of8%to10%growthinadjustedearningspershareonaconstantcurrencybasis.


2014halfyearfinancereview

Resultssummarypreexceptional ConstantCurrency

€m HY2014 HY2013 Change ChangeRevenue 1,294.2 1,236.3 +4.7% +7.7%EBITA 107.3 102.3 +4.9% +9.7%EBITAmargin 8.3% 8.3% +0bps +20bps‐Amortisationofintangibleassets (10.6) (10.0) ‐Netfinancecosts (10.5) (10.8) ‐ShareofresultsofJointVentures&Associates 15.3 13.6 ‐Incometax (14.7) (13.9) Profitfortheperiod 86.8 81.2IncomestatementRevenueincreased4.7%(7.7%constantcurrency)to€1.3billion(HY2013:€1.2billion).EBITAgrewby4.9% (9.7% constant currency) to €107.3 million (HY 2013: €102.3 million). EBITA margin wasunchangedat8.3%(+20basispointsconstantcurrency).

TheGroup’sshareofresultsofJointVentures&Associatesincreasedby€1.7millionto€15.3million(HY2013:€13.6million).ShareofresultsofJointVentures&Associatesisanaftertaxandinterestamount.

Net financing costs decreased by €0.3million to €10.5million (HY 2013: €10.8million). The Group’saverage interest rate for the period was 4.4% (HY 2013: 4.8%). Glanbia operates a policy of fixing asignificantamountofitsinterestexposure,with85%ofprojected2014debtcurrentlycontractedatfixedratesfor2014.

The HY 2014 tax charge increased by €0.8 million to €14.7 million (HY 2013: €13.9 million). Thisrepresentsaneffectiverate,excludingJointVentures&Associates,of17.0%(HY2013:17.0%). Adjustedearningspershare

HY2014 HY2013 ChangeConstantCurrency

Change

Adjustedearningspershare 32.45c 30.39c +6.8% +11.5%AdjustedEPSiscalculatedastheprofitfortheyearattributabletotheequityholdersoftheparentbeforeexceptionalitemsandamortisationofintangibleassets(netoftax).AdjustedEPSincreased6.8%(11.5%constantcurrency)to32.45centspershare(HY2013:30.39centspershare).Exceptionalitems

€m1.Rationalisationcosts (0.6)2.Transactioncosts (3.0)3.Taxationcredit 0.9Totalexceptionalcharge (2.7)Exceptional items incurred in the first half of 2014 resulted in an exceptional charge of €2.7 million.Detailsoftheseitemsareasfollows:1. Rationalisationcostsamountingto€0.6millionwereincurredinDairyIrelandinthefirstsixmonths

of the year. These costs relate to the ongoing rationalisation and efficiency programmes beingimplemented inbothConsumerProductsandAgribusiness.Weexpect to incurexceptionalcostsof€11millionrelatedtotheseprogrammesforthefullyear2014.

2. Transaction costs relate to acquisition activities that did not come to fruition. The primary costsincurredwerelegal,taxation,duediligence,otherconsultancyandloanfacilityfees.

3. Thetaxcreditapplicabletoexceptionalitems1and2aboveamountedto€0.9million.


DividendpershareTheBoardisrecommendinganinterimdividendof4.43centspershare(HY2013:4.03centspershare)anincreaseof10%.DividendswillbepaidonFriday,10October2014toshareholdersontheregisterofmembersasatFriday,29August2014.Irishwithholdingtaxwillbedeductedatthestandardratewhereappropriate.NetdebtandcashflowTheGroup'snetdebtpositionat5July2014increasedby€27.1millionto€471.8millionrelativetothefirsthalfof2013(HY2013:€444.7million).Relativetotheyearended4January2014,theGroup’snetdebt increased by €97.4million (FY 2013: €374.4million). Themain uses of cash since the year endinclude an increase in working capital of €83.9 million, capital expenditure of €57.2 million and theacquisitionofNutraminofor€21.1million.GroupfinancingFollowingtheredemptionatmaturityof€39.1millionofcumulativeredeemablepreferenceshareson31July2014,theGroupcurrentlyhastwosourcesofcommitteddebtfinancetotalling€705.9million; Bilateralmulticurrencyrevolvingloanfacilitiestotalling€466.8millionwitheightbanks,allmaturing

January2018,whichwererenewedduring2012oncommontermsandconditions;and A$325million(€239.1million)privateplacementofseniorloannotes,dueJune2021.At5 July2014, theGrouphadanetdebt toadjustedEBITDA leverage ratioof2.0 times (HY2013:2.0times)comparedtotheGroup’sbankingcovenantof3.5times.AdjustedEBITtonetfinancingcostcoverstoodat8.1times(HY2013:8.6times)comparedtotheGroup’sbankingcovenantof3.5times.PensionThe Group’s net pension liability at 5 July 2014, under IAS 19 (revised) ‘Employee Benefits’, beforedeferredtax,increasedby€6.5millionto€91.4millionrelativetothefirsthalfof2013(HY2013:€84.9million). Relative to the year end 2013, the net pension liability increased by €13.4million (FY 2013:€78.0 million). This increase was driven primarily by changes in actuarial assumptions, the mostimportantofwhichwasthe60basispointreductioninthediscountrateapplicabletotheIrishpensionschemesto3.00%(FY2013:3.60%).PrincipalrisksanduncertaintiesaffectingtheGroup’sperformancein2014TheBoardofGlanbiaplchasultimateresponsibilityforriskmanagement.TheperformanceoftheGroupisinfluencedbyglobaleconomicgrowthandconsumerconfidenceinthemarketsinwhichitoperates.Inthesecondhalfof2014,theprincipalrisksaffectingtheGroup’sperformanceare: MilkavailabilityandrawmaterialinputcostfluctuationsinUSCheeseandIngredientTechnologies; Thepotentialimpactofgeopoliticalunrestonourinternationalgrowthstrategy; ThecontinuedchallengingmarketbackdropinConsumerProducts;and TheeffectiveexecutionofourgrowthstrategyinGlobalIngredientsandGlobalPerformanceNutrition.Furtherdetailsontheprinciplerisksanduncertaintiesareprovidedonpages38to41inthe2013AnnualReport. The Group actively manages these and all other known risks through its systems of riskmanagementandinternalcontrol.


Cautionarystatement

This announcement contains forward‐looking statements. These statements have been made by theDirectorsingoodfaithbasedontheinformationavailabletothemuptothetimeoftheirapprovalofthisreport.Due to the inherentuncertainties, includingbotheconomicandbusinessrisk factorsunderlyingsuchforwardlookinginformation,actualresultsmaydiffermateriallyfromthoseexpressedorimpliedbytheseforward‐lookingstatements.TheDirectorsundertakenoobligationtoupdateanyforward‐lookingstatements contained in this announcement,whether as a result of new information, future events, orotherwise.Resultswebcastanddial‐indetails

Therewill be awebcast and presentation to accompany this results announcement at 8.30 a.m. today.Pleaseaccessthewebcastfromourwebsiteathttp://glanbia.com/1H14‐webcast,wherethepresentationcanalsobeviewedordownloaded.Inaddition,adial‐infacilityisavailableusingthefollowingnumbers:Ireland 012465603UK 02034271915Europe +442034271915USA 2124440896Passcode 7382302Forfurtherinformationcontact

Glanbiaplc+353567772200SiobhánTalbot,GroupManagingDirectorMarkGarvey,GroupFinanceDirectorShanePower,HeadofInvestorRelations+353567772244GeraldineKearney,CorporateCommunicationsDirector+353872319430


ResponsibilitystatementThe Directors are responsible for preparing the half yearly financial report in accordance with theTransparency(Directive2004/109/EC)Regulations2007,therelatedTransparencyRulesoftheCentralBankofIrelandandwithIAS34‐InterimFinancialReporting,asadoptedbytheEuropeanUnion.TheDirectorsconfirmthat,tothebestoftheirknowledge: TheGroupcondensedfinancialstatementsforthehalfyearended05July2014havebeenpreparedin

accordance with the international accounting standard applicable to interim financial reportingadoptedpursuanttotheprocedureprovidedforunderArticle6oftheRegulation(EC)No.1606/2002oftheEuropeanParliamentandoftheCouncilof19July2002;

The half yearly financial report includes a fair review of the development and performance of thebusinessandthepositionoftheGroup;

The half yearly financial report includes a fair review of the important events that have occurredduringthe firstsixmonthsof the financialyear,andtheir impactontheGroupcondensed financialstatements for the half year ended 05 July 2014, and a description of the principal risks anduncertaintiesfortheremainingsixmonths;

Thehalfyearlyfinancialreportincludesafairreviewofrelatedpartytransactionsthathaveoccurredduring the first sixmonths of the current financial year that havematerially affected the financialposition or the performance of theGroupduring that period and any changes in the related partytransactions described in the last Annual Report that could have amaterial effect on the financialpositionortheperformanceoftheGroupinthefirstsixmonthsofthecurrentfinancialyear;and

TheDirectorsofGlanbiaplcareaslistedintheGlanbiaplc2013AnnualReport,withtheexceptionofthefollowingchangesintheperiod:JerryListonretiredon13May2014.PatrickCoveneyandBrendanHayeswereappointedon30May2014.AlistofcurrentdirectorsismaintainedontheGlanbiaplcwebsite:www.glanbia.com

OnbehalfoftheBoard

SiobhánTalbot MarkGarveyGroupManagingDirector GroupFinanceDirector

19August2014

Condensedincomestatementforthehalfyearended05July2014


Halfyear2014 Halfyear2013 Year2013 Pre‐

exceptional Exceptional TotalPre‐

exceptional Exceptional TotalPre‐

exceptional Exceptional Total 2014 2014 2014 2013 2013 2013 2013 2013 2013

Notes €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 (note7) (note7) (note7)

Revenue 6 1,294,157 ‐ 1,294,157 1,236,349 ‐ 1,236,349 2,382,133 ‐ 2,382,133 Earningsbeforeinterest,taxandamortisation(EBITA) 107,314 (3,638) 103,676 102,269 ‐ 102,269 187,665 5,804 193,469

Intangibleassetamortisation (10,565) ‐ (10,565) (10,020) ‐ (10,020) (21,011) ‐ (21,011)

Operatingprofit 96,749 (3,638) 93,111 92,249 ‐ 92,249 166,654 5,804 172,458

Financeincome 8 841 ‐ 841 1,077 ‐ 1,077 2,168 ‐ 2,168

Financecosts 8 (11,337) ‐ (11,337) (11,870) ‐ (11,870) (25,110) ‐ (25,110)ShareofresultsofJointVentures&Associates 15,276 ‐ 15,276 13,580 ‐ 13,580 26,488 ‐ 26,488

Profitbeforetaxation 101,529 (3,638) 97,891 95,036 ‐ 95,036 170,200 5,804 176,004

Incometaxes 9 (14,663) 874 (13,789) (13,847) ‐ (13,847) (24,692) (316) (25,008)

Profitfortheperiod 86,866 (2,764) 84,102 81,189 ‐ 81,189 145,508 5,488 150,996

Attributableto:

EquityholdersoftheParent 83,592 80,738 150,330

Non‐controllinginterests 510 451 666 84,102 81,189 150,996

EarningspershareattributabletotheequityholdersoftheParentBasicearningspershare(cents) 11 28.33 27.39 51.01

Dilutedearningspershare(cents) 11 28.20 27.22 50.66

Condensedstatementofcomprehensiveincomeforthehalfyearended05July2014


Halfyear Halfyear Year

2014 2013 2013 Notes €’000 €’000 €’000

Profitfortheperiod 84,102 81,189 150,996 Othercomprehensiveincome/(expense)ItemsthatarenotreclassifiedsubsequentlytotheCondensedincomestatement:

Remeasurements–definedbenefitschemes 17 (16,857) 8,512 (1,546)

Deferredtaxcredit/(charge)onremeasurements 1,760 (1,007) (166)

Shareofremeasurements–JointVentures&Associates (3,582) 1,802 (1,149)

Deferredtaxcredit/(charge)onremeasurements–JointVentures&Associates 452 (225) 220

ItemsthatmaybereclassifiedsubsequentlytotheCondensedincomestatement:

Currencytranslationdifferences 16 4,040 4,187 (24,592)

Netinvestmenthedge 16 (245) (588) 2,472

Revaluationofavailableforsalefinancialassets 16 1,409 779 1,425

Fairvaluemovementsoncashflowhedges 16 2,009 264 898

Deferredtaxoncashflowhedgesandrevaluationofavailableforsalefinancialassets 16 (519) (292) (541)

Othercomprehensive(expense)/incomefortheperiod,netoftax (11,533) 13,432 (22,979)

Totalcomprehensiveincomefortheperiod 72,569 94,621 128,017

Totalcomprehensiveincomeattributableto:

EquityholdersoftheParent 72,059 94,170 127,351

Non‐controllinginterests 510 451 666

Totalcomprehensiveincomefortheperiod 72,569 94,621 128,017

Condensedstatementofchangesinequityforthehalfyearended05July2014


AttributabletoequityholdersoftheParent

Sharecapitaland

sharepremium

Otherreserves

Retainedearnings Total

Non–controllinginterests Total

Halfyear2013 Notes €'000 €'000 €'000 €'000 €'000 €'000

Balanceat29December2012 102,095 145,289 289,997 537,381 7,275 544,656 Profitfortheperiod ‐ ‐ 80,738 80,738 451 81,189 Othercomprehensiveincome/(expense) Remeasurements‐definedbenefitschemes 17 ‐ ‐ 8,512 8,512 ‐ 8,512Deferredtaxonremeasurements ‐ ‐ (1,007) (1,007) ‐ (1,007)Shareofremeasurements‐JointVentures&Associates ‐ ‐ 1,577 1,577 ‐ 1,577Fairvaluemovements 16 ‐ 1,043 ‐ 1,043 ‐ 1,043Deferredtaxonfairvaluemovements 16 ‐ (292) ‐ (292) ‐ (292)Currencytranslationdifferences 16 ‐ 4,187 ‐ 4,187 ‐ 4,187Netinvestmenthedge 16 ‐ (588) ‐ (588) ‐ (588)

Totalcomprehensiveincome ‐ 4,350 89,820 94,170 451 94,621 Dividendspaidduringtheperiod 10 ‐ ‐ (16,009) (16,009) ‐ (16,009)Costofsharebasedpayments 16 ‐ 2,292 ‐ 2,292 ‐ 2,292Transferonexercise,vestingorexpiryofsharebasedpayments

16 ‐ 6,317 (6,317) ‐ ‐ ‐

Sharesissued 15 36 ‐ ‐ 36 ‐ 36Premiumonsharesissued 15 1,529 ‐ ‐ 1,529 ‐ 1,529Purchaseofownshares 16 ‐ (4,642) ‐ (4,642) ‐ (4,642)

Balanceat29June2013 103,660 153,606 357,491 614,757 7,726 622,483

AttributabletoequityholdersoftheParent

Sharecapitaland

sharepremium

Otherreserves

Retainedearnings Total

Non–controllinginterests Total

Halfyear2014 €'000 €'000 €'000 €'000 €'000 €'000

Balanceat04January2014 103,997 126,600 405,289 635,886 7,634 643,520 Profitfortheperiod ‐ ‐ 83,592 83,592 510 84,102 Othercomprehensiveincome/(expense) Remeasurements‐definedbenefitschemes 17 ‐ ‐ (16,857) (16,857) ‐ (16,857)Deferredtaxonremeasurements ‐ ‐ 1,760 1,760 ‐ 1,760Shareofremeasurements–JointVentures&Associates ‐ ‐ (3,130) (3,130) ‐ (3,130)Fairvaluemovements 16 ‐ 3,418 ‐ 3,418 ‐ 3,418Deferredtaxonfairvaluemovements 16 ‐ (519) ‐ (519) ‐ (519)Currencytranslationdifferences 16 ‐ 4,040 ‐ 4,040 ‐ 4,040Netinvestmenthedge 16 ‐ (245) ‐ (245) ‐ (245)

Totalcomprehensiveincome ‐ 6,694 65,365 72,059 510 72,569 Dividendspaidduringtheperiod 10 ‐ ‐ (17,650) (17,650) ‐ (17,650)Costofsharebasedpayments 16 ‐ 2,931 ‐ 2,931 ‐ 2,931Transferonexercise,vestingorexpiryofsharebasedpayments ‐ 4,444 (4,444) ‐ ‐ ‐Sharesissued 15 5 ‐ ‐ 5 ‐ 5Premiumonsharesissued 15 333 ‐ ‐ 333 ‐ 333Purchaseofownshares ‐ (5,793) ‐ (5,793) ‐ (5,793)

Balanceat05July2014 104,335 134,876 448,560 687,771 8,144 695,915

Condensedbalancesheetasat05July2014


Halfyear Halfyear Year 2014 2013 2013 Notes €'000 €'000 €'000

ASSETS

Non‐currentassets

Property,plantandequipment 409,704 335,108 373,972

Intangibleassets 471,856 475,214 454,486

Investmentsinassociates 86,380 76,063 80,492

Investmentsinjointventures 68,098 61,758 62,894

Tradeandotherreceivables 9,735 16,436 9,376

Deferredtaxassets 24,224 18,781 22,464

Availableforsalefinancialassets 10,111 8,140 9,498

1,080,108 991,500 1,013,182

Currentassets

Inventories 302,251 281,879 314,481

Tradeandotherreceivables 372,381 397,520 257,216

Derivativefinancialinstruments 1,861 2,090 1,750

Cashandcashequivalents 13 89,014 73,060 106,259

765,507 754,549 679,706

Totalassets 1,845,615 1,746,049 1,692,888

EQUITY

IssuedcapitalandreservesattributabletoequityholdersoftheParent

Sharecapitalandsharepremium 15 104,335 103,660 103,997

Otherreserves 16 134,876 153,606 126,600

Retainedearnings 448,560 357,491 405,289

687,771 614,757 635,886

Non‐controllinginterests 8,144 7,726 7,634

Totalequity 695,915 622,483 643,520

LIABILITIES

Non‐currentliabilities

Borrowings 13 521,331 517,753 441,641

Deferredtaxliabilities 98,477 82,592 95,584

Retirementbenefitobligations 17 91,360 84,888 78,035

Provisionsforotherliabilitiesandcharges 14 19,268 21,803 18,492

Capitalgrants 2,368 2,577 2,471

732,804 709,613 636,223

Currentliabilities

Tradeandotherpayables 358,345 374,476 344,642

Currenttaxliabilities 472 16,646 1,415

Borrowings 13 39,447 ‐ 39,062

Derivativefinancialinstruments 1,325 2,585 1,725

Provisionsforotherliabilitiesandcharges 14 17,307 20,246 26,301

416,896 413,953 413,145

Totalliabilities 1,149,700 1,123,566 1,049,368

Totalequityandliabilities 1,845,615 1,746,049 1,692,888

Condensedstatementofcashflowsforthehalfyearended05July2014


Halfyear Halfyear Year 2014 2013 2013 Notes €’000 €’000 €’000Cashflowsfromoperatingactivities Cashgeneratedfromoperatingactivities 20 27,225 17,799 163,493Interestreceived 308 332 2,253Interestpaid (10,418) (12,238) (26,409)Taxpaid (14,514) (11,974) (31,600)Netcashinflow/(outflow)fromoperatingactivities 2,601 (6,081) 107,737

Cashflowsfrominvestingactivities

Acquisitionofsubsidiary 21 (21,135) ‐ ‐Insuranceproceeds ‐ ‐ 7,670Purchaseofproperty,plantandequipment 12 (53,020) (37,678) (94,897)Purchaseofintangibleassets 12 (4,155) (8,800) (11,543)Dividendsreceivedfromjointventures 3,171 1,524 10,937Loansrepaidfromjointventuresandassociates ‐ ‐ 7,178Decreaseinavailableforsalefinancialassets 815 1,785 1,752Proceedsfromsaleofproperty,plantandequipment 47 104 780Netcash(outflow)frominvestingactivities (74,277) (43,065) (78,123)

Cashflowsfromfinancingactivities Proceedsfromissueofordinaryshares 15 338 1,565 1,902Purchaseofownshares (5,793) (4,642) (7,387)Increase/(decrease)inborrowings 77,500 (134,088) (162,921)DividendspaidtoCompanyshareholders 10 (17,650) (16,009) (27,929)Dividendspaidtonon‐controllinginterests ‐ ‐ (307)Financeleasepayments (238) ‐ ‐Netcashinflow/(outflow)fromfinancingactivities 54,157 (153,174) (196,642)

Netdecreaseincashandcashequivalents (17,519) (202,320) (167,028)

Cashandcashequivalentsatthebeginningoftheperiod 106,259 275,572 275,572Effectsofexchangeratechangesoncashandcashequivalents 274 (192) (2,285)Cashandcashequivalentsattheendoftheperiod 13 89,014 73,060 106,259 Halfyear Halfyear Year 2014 2013 2013Reconciliationofnetcashflowtomovementinnetdebt €’000 €’000 €’000

Netdecreaseincashandcashequivalents (17,519) (202,320) (167,028)Cashmovementsfromdebtfinancing (77,262) 134,088 162,921Acquisitionofsubsidiary–debtacquired 21 (1,401) ‐ ‐

(96,182) (68,232) (4,107)Fairvaluemovementofcurrencyswaps (269) 1,106 674Exchangetranslationadjustmentonnetdebt (869) (1,007) 5,549

Movementinnetdebtintheperiod (97,320) (68,133) 2,116Netdebtatthebeginningoftheperiod (374,444) (376,560) (376,560)

Netdebtattheendoftheperiod (471,764) (444,693) (374,444)

Netdebtcomprises:Borrowings 13 (560,778) (517,753) (480,703)Cashandcashequivalents 13 89,014 73,060 106,259

(471,764) (444,693) (374,444)

Notestothecondensedfinancialstatementsforthehalfyearended05July2014


1. GeneralinformationGlanbia plc (the “Company”) and its subsidiaries (together the “Group”) is a leading global performance nutrition andingredientsGroupwithitsmainoperationsinEurope,USA,MiddleEast,Africa,AsiaPacificandLatinAmerica.The Company is a public limited company incorporated and domiciled in Ireland. The address of its registered office isGlanbiaHouse,Kilkenny,Ireland.TheGroupiscontrolledbyGlanbiaCo‐operativeSocietyLimited(“theSociety”).TheSocietycannominateupto14membersoftheBoardofDirectorsofGlanbiaplcfortheyears2014to2015(inclusive)andcurrentlyholds,togetherwithitssubsidiaries,41.3%oftheissuedsharecapitaloftheCompanyandistheultimateparentoftheGroup.TheCompanysharesarequotedontheIrishandLondonStockExchanges.

2. BasisofpreparationThe condensed interim financial statements for the sixmonthsended05 July2014and for the sixmonthsended29 June2013 have not been audited by the Group’s auditors. The amounts disclosed for the full year ended 04 January 2014represent an abbreviated version of the Group’s financial statements for that year, which received an unqualified auditreport.Thestatutoryaccountsforthefinancialyearended04January2014wereapprovedbytheBoardofDirectorson11March2014andhavebeenfiledwiththeCompaniesRegistrationOffice.TheGroup’scondensedinterimfinancialstatementsforthesixmonthsended05July2014havebeenpreparedinaccordancewith theTransparency (Directive2004/109/EC)Regulations2007, the relatedTransparencyRulesof theCentralBankofIreland and with IAS 34 – Interim Financial Reporting. These condensed interim financial statements do not constitutestatutory accounts within the meaning of section 19 of the Companies (Amendment) Act 1986. The condensed interimfinancialstatementsshouldbereadinconjunctionwiththefinancialstatementsfortheyearended04January2014,whichhavebeenpreparedinaccordancewithIFRS.The Group meets its day‐to‐day working capital requirements through its bank facilities. The Group’s forecasts andprojections,takingaccountofchangesintradingperformance,showthattheGroupexpectstobeabletooperatewithinthelevelofitscurrentfacilities.Aftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphassufficientresourcestocontinueinoperationalexistencefortheforeseeablefuture.Informingthisview,theDirectorshavereviewedtheGroup’sbudgetforaperiodofnotlessthan12months,themediumtermplansassetoutinthefiveyearstrategicplan,andhavetakenintoaccountthecashflowimplicationsoftheplans,includingproposedcapitalexpenditure,andcomparedthesewith theGroup’s committedborrowing facilitiesandGroup financingkeyperformance indicators (KPIs).TheGrouptherefore continues to adopt the going concern basis in preparing its condensed interim financial statements for the sixmonthsended05July2014.3. AccountingpoliciesThemethodsofcomputationandaccountingpoliciesadoptedinthepreparationoftheGroup’scondensedinterimfinancialstatements are consistent with those applied in the Annual Report for the year ended 04 January 2014 (“2013 AnnualReport”)exceptfortheIFRSsoutlinedbelow.TheGroup’saccountingpoliciesaresetoutinthefinancialstatementsinthe2013AnnualReport.The following standards and interpretations, issued by the International Accounting Standards Board (‘IASB’) and theInternational Financial Reporting Interpretations Committee (‘IFRIC’), are effective for the Group for the first time in thecurrentfinancialperiodandwhererelevanthavebeenadoptedbytheGroup:

IAS27(revised)–Separatefinancialstatements IAS28(revised)–Associatesandjointventures IFRS10–Consolidatedfinancialstatements IFRS11–Jointarrangements IFRS12–Disclosureofinterestsinotherentities AmendmentstoIFRS10,11,12–Transitionguidance AmendmentstoIFRS10,IFRS12andIAS27–Exceptionfromconsolidationfor‘investmententities’ AmendmentstoIAS32–Financialinstruments:Presentation,offsettingfinancialassetsandfinancialliabilities AmendmentstoIAS36–Impairmentofassets,recoverableamountdisclosuresfornon–financialassets



Amendments to IAS 39 – Financial instruments; Recognition and measurement, novation of derivatives andcontinuationofhedgeaccounting

IFRIC21‐Levies(NotyetendorsedbyEU)AdoptionofthestandardsabovehadnosignificantimpactontheresultsorfinancialpositionoftheGroupduringtheperiod.4. ChangesinestimatesandassumptionsInpreparingthesecondensedinterimfinancialstatements,thesignificantjudgementsmadebymanagementinapplyingtheGroup’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to theconsolidatedfinancialstatementsfortheyearended04January2014.5. FinancialriskmanagementTheGroup’sactivitiesexposeit toavarietyof financialrisksasfollows:marketrisk,currencyrisk, interestraterisk,pricerisk,liquidityrisk,cashflowriskandcreditrisk.Theinterimcondensedfinancialstatementsdonotincludeallfinancialriskmanagementinformationanddisclosuresrequiredintheannualfinancialstatements,andshouldbereadinconjunctionwiththeGroup’s2013AnnualReport.Therehavebeennochangestotheriskmanagementproceduresorpoliciessince2013yearend.FairvalueestimationThefairvalueoffinancialinstrumentstradedinactivemarkets(suchasavailableforsalefinancialassets)isbasedonquotedmarketpricesatthereportingdate.ThequotedmarketpriceusedforfinancialassetsheldbytheGroupisthecurrentbidprice.Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarket(forexample,overthecounterderivatives)isdeterminedbyusinggenerallyacceptedvaluationtechniques.TheGroupusesavarietyofmethodsandmakesassumptionsthatarebasedonmarketconditionsexistingateachreportingdate.InaccordancewithIFRS7–FinancialInstruments:Disclosures,theGrouphasdisclosedthefairvalueofinstrumentsbythefollowingfairvaluemeasurementhierarchy:

quotedprices(unadjusted)inactivemarketsforidenticalassetsandliabilities(level1) inputs,other thanquotedprices included in level1, thatareobservable for theassetand liability,eitherdirectly

(thatis,asprices)orindirectly(thatis,derivedfromprices)(level2) inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(thatis,unobservableinputs)(level3)

ThefollowingtablepresentstheGroup’sassetsandliabilitiesthataremeasuredatfairvalueat05July2014and04January2014:

Level1 Level2 Level3 Total

05July2014 €’000 €’000 €’000 €’000

Assets

Derivativesusedforhedging ‐ 1,861 ‐ 1,861

Availableforsalefinancialassets‐equitysecurities 344 3,161 ‐ 3,505

Totalassets 344 5,022 ‐ 5,366

Liabilities

Derivativesusedforhedging ‐ (1,325) ‐ (1,325)

Totalliabilities ‐ (1,325) ‐ (1,325)



Level1 Level2 Level3 Total

04January2014 €’000 €'000 €'000 €'000

Assets

Derivativesusedforhedging ‐ 1,750 ‐ 1,750

Availableforsalefinancialassets‐equitysecurities 307 1,789 ‐ 2,096

Totalassets 307 3,539 ‐ 3,846

Liabilities

Derivativesusedforhedging ‐ (1,725) ‐ (1,725)

Totalliabilities ‐ (1,725) ‐ (1,725) Therewerenotransfersbetweenlevels1,2and3duringtheperiod.Therewerenochangesinvaluationtechniquesduringtheperiods.Valuationtechniquesusedtoderivelevel2fairvaluesLevel2equitiesarefairvaluedusingthelatestpricesquotedinthegreymarketasat05July2014.Level2 trading andhedgingderivatives comprisemainlyof foreignexchange contracts.These foreignexchange contractshave been fair valued using forward exchange rates that are quoted in an active market. The effects of discounting aregenerallyinsignificantforLevel2derivatives.Level2debtinvestmentsarefairvaluedusingadiscountedcashflowapproach,whichdiscountsthecontractualcashflowsusingdiscountratesderivedfromobservablemarketpricesofotherquoteddebtinstrumentsofthecounterparties.Group’svaluationprocessThe Group’s finance department includes a team that performs the valuations of financial assets and financial liabilitiesrequiredforfinancialreportingpurposes.ThisteamreportsdirectlytotheGroupFinanceDirectorwhointurnreportstotheAuditCommittee.DiscussionsofvaluationprocessesandresultsareheldbetweentheGroupFinanceDirectorandtheAuditCommittee.Changes in level2fairvaluesareanalysedateachreportingdate.Aspartofthisdiscussion,thevaluationteampresentsareportthatexplainsthereasonsforthefairvaluemovements.FairvalueoffinancialassetsandliabilitiesmeasuredatamortisedcostThefairvalueofborrowingsareasfollows:

05July2014 04January2014

Non‐current 539,383 456,064

Current 39,447 39,062

578,830 495,126Thefairvalueofthefollowingfinancialassetsandliabilitiesapproximatetheircarryingamount:

Tradeandotherreceivables Cashandcashequivalents(excludingbankoverdrafts) Tradeandotherpayables



6. SegmentinformationIn accordancewith IFRS8 –Operating Segments, theGrouphas four segments, as follows:Global PerformanceNutrition,GlobalIngredients,DairyIrelandandJointVentures&Associates.ThesesegmentsalignwiththeGroup’s internal financialreportingsystemandthewayinwhichtheChiefOperatingDecisionMakerassessesperformanceandallocatestheGroup’sresources. A segment manager is responsible for each segment and is directly accountable for the performance of thatsegmenttotheGlanbiaOperatingExecutiveCommitteewhichactsastheChiefOperatingDecisionMakerfortheGroup.Each segment derives its revenues as follows: Global Performance Nutrition earns its revenue from sports nutritionsolutions;GlobalIngredientsearnsitsrevenuefromthemanufactureandsaleofcheese,wheyproteinandothercustomisedsolutions;DairyIrelandearnsitsrevenuefromthemanufactureandsaleofarangeofconsumerproductsandfarminputsandJointVentures&Associatesrevenuearisesfromthemanufactureandsaleofcheese,wheyproteinsanddairyconsumerproducts.Eachsegment isreviewed in its totalitybytheChiefOperatingDecisionMaker.TheGlanbiaOperatingExecutiveCommittee assesses the trading performance of operating segments based on ameasure of earnings before interest, tax,amortisationandexceptionalitems.6.1Thesegmentresultsfortheperiodended05July2014areasfollows:

GlobalPerformance

NutritionGlobal

IngredientsDairy

Ireland JVs&

Associates

GroupincludingJVs&Associates

€'000 €'000 €'000 €'000 €'000

Totalgrosssegmentrevenue (a) 374,627 585,140 353,824 503,444 1,817,035

Inter‐segmentrevenue ‐ (19,434) ‐ ‐ (19,434)

Segmentexternalrevenue 374,627 565,706 353,824 503,444 1,797,601

Segmentearningsbeforeinterest,tax,amortisationandexceptionalitems (b) 42,907 53,871 10,536 22,158 129,472

Segmentassets (c) 585,454 648,620 336,298 164,213 1,734,585

Segmentliabilities (d) 95,902 200,155 188,750 ‐ 484,807IncludedinexternalrevenuearerelatedpartysalesbetweenDairyIrelandandJointVentures&Associatesof€5.3millionandrelatedpartysalesbetweenGlobalIngredientsandJointVentures&Associatesof€9.1million.Inter‐segmenttransfersortransactionsareenteredintoundernormalcommercialtermsandconditionsthatwouldalsobeavailabletounrelatedthirdparties.

6.1(a)Totalgrosssegmentrevenueisreconciledtoreportedexternalrevenueasfollows:

€'000

Totalgrosssegmentrevenue 1,817,035

Inter‐segmentrevenue (19,434)

JointVentures&Associatesrevenue (503,444)

Reportedexternalrevenue 1,294,157



6.1(b)Segmentearningsbeforeinterest,tax,amortisationandexceptionalitemsarereconciledtoreportedprofitbeforetaxandprofitaftertaxasfollows:

€'000

Segmentearningsbeforeinterest,tax,amortisationandexceptionalitems 129,472

Amortisation (10,565)

Exceptionalitems (3,638)

JointVentures&Associatesinterest,taxandamortisation (6,882)

Financeincome 841

Financecosts (11,337)

Reportedprofitbeforetax 97,891

Incometax (13,789)

Reportedprofitaftertax 84,102Finance income, finance costs and income taxes are not allocated to segments, as this type of activity is driven by central treasury andtaxationfunctionswhichmanagethecashandtaxationpositionoftheGroup.

6.1(c)Segmentassetsarereconciledtoreportedassetsasfollows:

€'000

Segmentassets 1,734,585

Unallocatedassets 111,030

Reportedassets 1,845,615

Unallocatedassetsprimarilyincludetax,cashandcashequivalents,availableforsalefinancialassetsandderivatives.

6.1(d)Segmentliabilitiesarereconciledtoreportedliabilitiesasfollows:

€'000

Segmentliabilities 484,807

Unallocatedliabilities 664,893

Reportedliabilities 1,149,700Unallocatedliabilitiesprimarilyincludeitemssuchastax,borrowingsandderivatives.6.2Thesegmentresultsfortheperiodended29June2013areasfollows:

GlobalPerformance

NutritionGlobal

IngredientsDairy

IrelandJVs&

Associates

Groupincluding

JVs&Associates

€'000 €'000 €'000 €'000 €'000

Totalgrosssegmentrevenue (a) 320,202 550,048 383,247 426,797 1,680,294


Segmentexternalrevenue 320,202 532,900 383,247 426,797 1,663,146


Segmentassets (c) 562,496 585,989 357,879 154,257 1,660,621

Segmentliabilities (d) 111,959 207,975 207,454 ‐ 527,388IncludedinexternalrevenuearerelatedpartysalesbetweenDairyIrelandandJointVenturesandAssociatesof€6.6million,andrelatedpartysalesbetweenGlobalIngredientsandJointVentures&Associatesof€7.5million.Inter‐segmenttransfersortransactionsareenteredintoundernormalcommercialtermsandconditionsthatwouldalsobeavailabletounrelatedthirdparties.



6.2(a)Totalgrosssegmentrevenueisreconciledtoreportedexternalrevenueasfollows:

€'000




Reportedexternalrevenue 1,236,3496.2(b)Segmentearningsbeforeinterest,tax,amortisationandexceptionalitemsisreconciledtoreportedprofitbeforetaxandprofitaftertaxasfollows:

€'000




Financeincome 1,077



Incometaxes (13,847)

Reportedprofitaftertax 81,189 Finance income, finance costs and income taxes are not allocated to segments, as this type of activity is driven by central treasury andtaxationfunctionswhichmanagethecashandtaxationpositionoftheGroup. 6.2(c)Segmentassetsarereconciledtoreportedassetsasfollows:

€'000



Reportedassets 1,746,049Unallocatedassetsprimarilyincludetax,cashandcashequivalents,availableforsalefinancialassetsandderivatives.6.2(d)Segmentliabilitiesarereconciledtoreportedliabilitiesasfollows:

€'000



Reportedliabilities 1,123,566Unallocatedliabilitiesprimarilyincludeitemssuchastax,borrowingsandderivatives.



6.3Thesegmentresultsfortheyearended04January2014areasfollows:

IncludedinexternalrevenuearerelatedpartysalesbetweenDairyIrelandandJointVentures&Associatesof€11.0millionandrelatedpartysalesbetweenGlobalIngredientsandJointVentures&Associatesof€15.8million.Inter‐segmenttransfersortransactionsareenteredintoundernormalcommercialtermsandconditionsthatwouldalsobeavailabletounrelatedthirdparties.6.3(a)Totalgrosssegmentrevenueisreconciledtoreportedexternalrevenueasfollows:

€'000




Reportedexternalrevenue 2,382,1336.3(b)Segmentearningsbeforeinterest,tax,amortisationandexceptionalitemsisreconciledtoreportedprofitbeforetaxandprofitaftertaxasfollows:

€'000



Exceptionalitems 5,804


Financeincome 2,168



Incometaxes (25,008)

Reportedprofitaftertax 150,996 Finance income, finance costs and income taxes are not allocated to segments, as this type of activity is driven by central treasury andtaxationfunctionswhichmanagethecashandtaxationpositionoftheGroup. 6.3(c)Segmentassetsarereconciledtoreportedassetsasfollows:

€'000



Reportedassets 1,692,888Unallocatedassetsprimarilyincludetax,cashandcashequivalents,availableforsalefinancialassetsandderivatives.

GlobalPerformance

NutritionGlobal

IngredientsDairy

Ireland

JVs&

Associates

Groupincluding

JVs&Associates

€'000 €'000 €'000 €'000 €'000

Totalgrosssegmentrevenue (a) 655,289 1,118,526 652,192 900,466 3,326,473


Segmentexternalrevenue 655,289 1,074,652 652,192 900,466 3,282,599


Segmentassets (c) 539,849 600,543 273,305 152,762 1,566,459

Segmentliabilities (d) 104,231 222,620 166,059 ‐ 492,910



6.3(d)Segmentliabilitiesarereconciledtoreportedliabilitiesasfollows:

€'000



Reportedliabilities 1,049,368Unallocatedliabilitiesprimarilyincludeitemssuchastax,borrowingsandderivatives.7. Exceptionalitems

Halfyear Halfyear Year 2014 2013 2013 Notes €'000 €'000 €'000

Irishdefinedbenefitpensionschemes (a) ‐ ‐ 13,833

Rationalisationcosts (b) (644) ‐ (8,029)

Transactioncosts (c) (2,994) ‐ ‐

Totalexceptional(charge)/creditbeforetax (3,638) ‐ 5,804

Exceptionaltaxcredit/(charge) 874 ‐ (316)

Totalexceptional(charge)/credit (2,764) ‐ 5,488

(a) TheGroupundertookareviewofpensionarrangementsduring2009and2010acrossitsmainIrishdefined

benefit pension schemes. In 2013, revisions to the Group’s pension arrangements for two smaller Irishdefinedbenefitschemeswascompletedgivingrisetoanexceptionalgainintheyear,inaccordancewithIAS19, of €13.8million. This gain relates to negative past service cost, settlement, and curtailment of €8.9million,€4.0million and€0.9million respectively.The curtailment gains andnegativepast service costsarise following the removal of guaranteed increases to pensions in payment for all members and theprovisionofbenefitsformembersinemploymentonacareeraveragebasisfromafinalsalarybasis.

(b) RationalisationcostsprimarilyrelatetotheongoingredundancyprogrammesintheDairyIrelandsegment.(c) Transactioncostsrelate toacquisitionactivities thatdidnotcometo fruition.Theprimarycosts incurred

werelegal,taxation,duediligence,otherconsultancyandloanfacilityfees.



8. Financeincomeandcosts

Halfyear Halfyear Year 2014 2013 2013 €'000 €'000 €'000

Financeincome

Interestincome 841 1,077 2,168 Totalfinanceincome 841 1,077 2,168

Financecosts

Bankborrowingsrepayablewithinfiveyears (3,416) (3,982) (9,327)

Unwindingofdiscounts (158) (58) (118)

Financeleasecosts (40) ‐ ‐

Financecostofprivatedebtplacement (6,385) (6,492) (12,989)

Financecostofpreferenceshares (1,338) (1,338) (2,676)

Totalfinancecosts (11,337) (11,870) (25,110)

Netfinancecosts (10,496) (10,793) (22,942)

9. IncometaxesTheGroup’sincometaxchargeafterexceptionalitemsof€13.8million(HY2013:€13.8million)hasbeenpreparedbasedontheGroup’sbestestimateoftheweightedaveragetaxratethatisexpectedforthefullfinancialyear.10. DividendsAfinaldividendinrespectoftheyearended04January2014of5.97centspersharewaspaidduringtheperiod.On19August2014,theDirectorsdeclaredthepaymentofaninterimdividendfor2014of4.43centspershare(2013interimdividend:4.03centspershare).Theinterimdividendwillbereflectedinthefinancialstatementsforthefullyear2014inlinewithIAS10‐EventsAftertheReportingPeriod.



11. Earningspershare


2014 2013 2013

Basic

ProfitattributabletoequityholdersoftheParent(€’000) 83,592 80,738 150,330

Weightedaveragenumberofordinarysharesinissue 295,028,064 294,804,164 294,712,649

Basicearningspershare(centspershare) 28.33 27.39 51.01

Diluted

Weightedaveragenumberofordinarysharesinissue 295,028,064 294,804,164 294,712,649

Adjustmentsforshareoptionsandshareawards 1,420,214 1,807,398 2,041,339

Adjustedweightedaveragenumberofordinaryshares 296,448,278 296,611,562 296,753,988

Dilutedearningspershare(centspershare) 28.20 27.22 50.66

Adjusted

ProfitattributabletoequityholdersoftheParent(€’000) 83,592 80,738 150,330

Amortisationofintangibleassets(netofrelatedtax)(€’000) 9,244 8,768 18,385

Amortisationofjointventuresandassociatesintangibleassets(netofrelatedtax)(€’000) 129 94 222

Netexceptionalcharge/(credit)(€’000) 2,764 ‐ (5,488)

Adjustednetincome(€’000) 95,729 89,600 163,449

Adjustedearningspershare(centspershare) 32.45 30.39 55.46

Dilutedadjustedearningspershare(centspershare) 32.29 30.21 55.08



12. Property,plant&equipmentandintangibleassets

Duringthesixmonthperiodto05July2014theGroupspent€57.2million(HY2013:€46.5million)onadditionstoproperty,plant&equipmentandintangibleassets.Inaddition,theGroupalsoacquiredNutraminoHoldingApSwhichincluded€2.2millionproperty, plant& equipment,€15.1million intangible assets and€7.3million goodwill. Therewereno significantdisposals during the period. At 05 July 2014 the Group had entered into contractual commitments for the acquisition ofproperty,plantandequipmentamountingto€48.8million(HY2013:€39.0million).13. Netdebt Halfyear Halfyear Year 2014 2013 2013 €’000 €’000 €’000

Borrowingsduewithinoneyear 39,447 ‐ 39,062

Borrowingsdueafteroneyear 521,331 517,753 441,641

Less:

Cashandcashequivalents (89,014) (73,060) (106,259)

Netdebt 471,764 444,693 374,444

TheGrouphasthefollowingundrawnborrowingfacilities:

Halfyear Halfyear Year 2014 2013 2013 €’000 €’000 €’000

Expiringwithinoneyear 63,351 65,256 63,020

Expiringbeyondoneyear 185,545 238,006 263,394

248,896 303,262 326,414

Movementinnetborrowingstotheperiodended05July2014isanalysedasfollows:

€’000Balanceat04January2014 374,444‐Acquisitionofsubsidiary 21,135

‐Acquisitionofsubsidiary‐netdebt 1,401

‐Otherborrowings 73,646

‐Fairvaluemovementofcurrencyswaps 269

‐Exchangetranslationadjustmentonnetdebt 869Balanceat05July2014 471,764

On31 July2014allof theGroup’sremainingcumulativepreferenceshareswereredeemed.Theshareswereredeemedattheirissuepriceforatotalof€39millioninaccordancewiththeirterms.

Movementinnetborrowingstotheperiodended29June2013isanalysedasfollows:

€’000

Balanceat29December2012 376,560

‐Netdrawdownofborrowings 68,232

‐Fairvalueofinterestrateswapsqualifyingasfairvaluehedges (1,106)

‐Exchangetranslationadjustmentonnetdebt 1,007

Balanceat29June2013 444,693



14. Provisionsforotherliabilitiesandcharges

(a) The restructuring provision relates to the rationalisation programme that the Group is currently

undertaking.Theprovision,whichrelatesmainly to terminationpayments isexpected tobe fullyutilisedduring2014.

(b) The UK pension provision relates to administration and certain costs associated with pension schemes

attachedtobusinessesdisposedofinprioryears.Thisprovisionisexpectedtobefullyutilisedoverthenext29years.

(c) The legal claimsprovision represents legal claimsbrought against theGroup.Due to thenature of these

claimsthereissomeuncertaintyaroundtheamountandtimingofpayments.IntheopinionoftheDirectors,after takingappropriate legaladvice, theoutcomeof these legalclaims isnotexpectedtogiverise toanysignificantlossbeyondtheamountsprovidedforat05July2014.

(d) The property and lease commitments provision relates to onerous leases in respect of three propertieswhere the Group has a present and future obligation to make lease payments. It is expected that €0.1millionwillbeutilisedduring2014andthebalancewillbefullyutilisedoverthenext3years.

(e) It is expected that€5.6million of this provisionwill be utilisedduring2014.Due to thenature of these

items,thereissomeuncertaintyaroundtheamountandtimingofpayments.

15. Sharecapitalandsharepremium Numberofshares Ordinaryshares Sharepremium Total

Halfyear2013 (thousands) €'000 €'000 €'000

At29December2012 294,956 17,697 84,398 102,095

Sharesissued 600 36 1,529 1,565

At29June2013 295,556 17,733 85,927 103,660

Numberofshares Ordinaryshares Sharepremium Total

Halfyear2014 (thousands) €'000 €'000 €'000

At04January2014 295,646 17,738 86,259 103,997

Sharesissued 85 5 333 338

At05July2014 295,731 17,743 86,592 104,335During theperiodended05 July201485,000of the2002LongTermIncentivePlan(‘the2002LTIP’)shareswereexercisedwithexerciseproceedsof€0.3million.Therelatedweightedaverageexercisepricewas€3.98pershare.Thetotalauthorisednumberofordinarysharesis350millionshares(HY2013:306millionshares)withaparvalueof€0.06pershare(HY2013:€0.06pershare).Allissuedsharesarefullypaid.

Restructuring UKpension Legalclaims

Property&lease

commitments Operational Total €'000 €'000 €'000 €'000 €'000 €'000 note(a) note(b) note(c) note(d) note(e)

At04January2014 13,320 18,126 6,046 1,554 5,747 44,793Chargedintheperiod 644 ‐ ‐ ‐ ‐ 644Utilisedintheperiod (9,159) (233) (174) (217) (124) (9,907)Exchangedifferences ‐ 863 12 8 4 887Unwindingofdiscounts ‐ 128 ‐ 30 ‐ 158At05July2014 4,805 18,884 5,884 1,375 5,627 36,575Non‐current ‐ 18,021 ‐ 1,247 ‐ 19,268Current 4,805 863 5,884 128 5,627 17,307

4,805 18,884 5,884 1,375 5,627 36,575



16. Otherreserves

Capitaland

mergerreserve

Currencyreserve

Hedgingreserve

Availableforsalefinancial

assetreserve

Ownshares

Sharebased

paymentreserve Total

Halfyear2014 €'000 €'000 €'000 €'000 €'000 €'000 €'000

Balanceat04January2014 115,973 10,535 (1,427) 1,396 (8,191) 8,314 126,600

Currencytranslationdifferences ‐ 4,040 ‐ ‐ ‐ ‐ 4,040

Netinvestmenthedge ‐ (245) ‐ ‐ ‐ ‐ (245)Revaluationofinterestrateswaps–gaininperiod

‐ ‐ 105 ‐ ‐ ‐ 105

Foreignexchangecontracts–gaininperiod ‐ ‐ 1,539 ‐ ‐ ‐ 1,539

Transferstoincomestatement:

‐Foreignexchangecontracts–lossinperiod ‐ ‐ 271 ‐ ‐ ‐ 271

‐Forwardcommoditycontracts–gaininperiod ‐ ‐ (79) ‐ ‐ ‐ (79)Revaluationofforwardcommoditycontracts‐gaininperiod

‐ ‐ 173 ‐ ‐ ‐ 173

Revaluationofavailableforsalefinancialassets‐gaininperiod

‐ ‐ ‐ 1,409 ‐ ‐ 1,409

Deferredtaxonfairvaluemovements ‐ ‐ (54) (465) ‐ ‐ (519)

Costofsharebasedpayments ‐ ‐ ‐ ‐ ‐ 2,931 2,931Transferonexercise,vestingorexpiryofsharebasedpayments ‐ ‐ ‐ ‐ 8,188 (3,744) 4,444

Purchaseofownshares ‐ ‐ ‐ ‐ (5,793) ‐ (5,793)

Balanceat05July2014 115,973 14,330 528 2,340 (5,796) 7,501 134,876

Capitaland

mergerreserve

Currencyreserve

Hedgingreserve

Availableforsalefinancial

assetreserve

Ownshares

Sharebased

paymentreserve Total

Halfyear2013 €'000 €'000 €'000 €'000 €'000 €'000 €'000

Balanceat29December2012 115,973 32,655 (2,254) 441 (8,221) 6,695 145,289

Currencytranslationdifferences ‐ 4,187 ‐ ‐ ‐ ‐ 4,187

Netinvestmenthedge ‐ (588) ‐ ‐ ‐ ‐ (588)Revaluationofinterestrateswaps‐gaininperiod ‐ ‐

532 ‐ ‐ ‐ 532

Foreignexchangecontracts–lossinperiod ‐ ‐ (503) ‐ ‐ ‐ (503)

Transferstoincomestatement:

‐Foreignexchangecontracts–lossinperiod ‐ ‐ 155 ‐ ‐ ‐ 155

‐Forwardcommoditycontracts–lossinperiod ‐ ‐ 161 ‐ ‐ ‐ 161Revaluationofforwardcommoditycontracts‐lossinperiod

‐ ‐ (81) ‐ ‐ ‐ (81)

Revaluationofavailableforsalefinancialassets‐gaininperiod ‐ ‐

‐ 779 ‐ ‐ 779

Deferredtaxonfairvaluemovements ‐ ‐ (35) (257) ‐ ‐ (292)

Costofsharebasedpayments ‐ ‐ ‐ ‐ ‐ 2,292 2,292Transferonexercise,vestingorexpiryofsharebasedpayments

‐ ‐ ‐ ‐ 9,094 (2,777) 6,317

Purchaseofownshares ‐ ‐ ‐ ‐ (4,642) ‐ (4,642)

Balanceat29June2013 115,973 36,254 (2,025) 963 (3,769) 6,210 153,606



17. Retirementbenefitobligations

ThemovementintheliabilityrecognisedintheCondensedbalancesheetisasfollows: Halfyear Halfyear Year 2014 2013 2013 €’000 €’000 €’000

Atthebeginningoftheperiod (78,035) (98,133) (98,133)

Exchangedifferences (1,134) 1,137 436

Totalexpenses (4,174) (4,318) (8,801)

Negativepastservicecosts,gainsandlossesonsettlements ‐ ‐ 13,833

Remeasurements‐definedbenefitschemes (16,857) 8,512 (1,546)

Contributionspaidbyemployer 8,840 7,914 16,176

Attheendoftheperiod (91,360) (84,888) (78,035)

TheamountsrecognisedintheCondensedbalancesheetaredeterminedasfollows: Halfyear Halfyear Year 2014 2013 2013 €’000 €’000 €’000

Fairvalueofplanassets 374,343 341,576 346,484

Presentvalueoffundedobligations (465,703) (426,464) (424,519)

LiabilityinCondensedbalancesheet (91,360) (84,888) (78,035)

Thefollowingactuarialassumptionshavebeenmade indeterminingtheGroup'sretirementbenefitobligationsforthehalfyearended05July2014andfullyearended04January2014:

Halfyear2014 Year2013 IRL UK IRL UK

Discountrate 3.00% 4.25% 3.60% 4.40%

Inflationrate 1.70% 2.25%‐3.25% 2.00% 2.35%‐3.35%

Futuresalaryincreases 2.70% 4.00% 3.00% 4.10%

Futurepensionincreases 0.00% 2.30%‐3.00% 0.00% 2.40%‐3.05%

MortalityratesThemortalityassumptionsimplythefollowinglifeexpectanciesinyearsofanactivememberonretiringatage65,20yearsfromnow:

Halfyear2014 Year2013Irishmortality UKmortality Irishmortality UKmortality

rates rates rates rates

Male 24.5 22.7 24.5 22.6

Female 27.3 25.3 27.3 25.2

Themortalityassumptionsimplythefollowinglifeexpectanciesinyearsofanactivemember,aged65,retiringnow:

Halfyear2014 Year2013Irishmortality UKmortality Irishmortality UKmortality

rates rates rates rates

Male 21.0 21.4 21.0 21.3

Female 23.8 23.7 23.8 23.7



18. RelatedpartytransactionsThe Group is controlled by Glanbia Co‐operative Society Limited (the “Society")which holds 41.3% of the issuedsharecapitalofGlanbiaplc(the“Company”)andistheultimateparentoftheGroup.Duringthesixmonthsto05July2014,salestorelatedpartiesamountedto€15.8million(HY2013:€16.1million),purchasesfromrelatedpartiesamountedto€23.9million(HY2013:€21.0million)andnetbalancesowedtorelatedparties were €40.4 million (HY 2013: €23.9 million). The related party transactions relate primarily to tradingbetween the Group, Southwest Cheese Company, LLC, Glanbia Ingredients Ireland Limited, Milk Ventures (UK)LimitedandtheSociety.In the opinion of the Directors, there have been no related party transactions, or changes therein, since the yearended04 January2014, thathavemateriallyaffected theGroup’s financialpositionorperformanceduring the sixmonthsended05July2014.19. ContingentliabilitiesGroupbankguaranteesamountingto€2.9million(HY2013:€2.1million)areoutstandingat05July2014,mainlyinrespectofthepaymentofEUsubsidies.TheGroupdoesnotexpectanymateriallosstoarisefromtheseguarantees.20. Cashgeneratedfromoperations


2014 2013 2013

€’000 €’000 €’000

Profitbeforetaxation 97,891 95,036 176,004

Developmentcostscapitalised ‐ ‐ (5,803)

Write‐offofintangibles ‐ ‐ 76

Exceptionalloss/(gain) 3,638 ‐ (5,804)

ShareofresultsofJointVentures&Associates (15,276) (13,580) (26,488)

Depreciation 14,914 13,108 27,203

Amortisation 10,565 10,020 21,011

Costofsharebasedpayments 2,931 2,292 4,568

Differencebetweenpensionchargeandcashcontributions (4,666) (3,596) (7,375)

(Profit)/lossondisposalofproperty,plantandequipment (9) (102) 206

Financeincome (841) (1,077) (2,168)

Financeexpense 11,337 11,870 25,110

Amortisationofgovernmentgrantsreceived (109) (110) (219)

Cashgeneratedfromoperationsbeforechangesinworkingcapital 120,375 113,861 206,321

Changesinnetworkingcapital:

‐Decrease/(increase)ininventory 14,697 862 (40,516)

‐(Increase)/decreaseinshorttermreceivables (110,351) (124,567) 2,620

‐Increaseinshorttermliabilities 12,411 29,496 3,340

‐(Decrease)inprovisions (9,907) (1,853) (8,272)

Cashgeneratedfromoperations 27,225 17,799 163,493



21. BusinessCombinations On 17 January 2014 the Group acquired 100% of NutraminoHolding ApS ("Nutramino"). Nutramino is a leadingScandinaviansportsnutritionbusinesswithoperationsinDenmark,SwedenandNorway.Goodwill is attributable to the profitability and development opportunities associated with the extension of theGroup’s portfolio by complementing and enhancing existing performance nutrition capabilities. Goodwill is notdeductiblefortaxpurposes.

Detailsofnetassetsacquiredandgoodwillarisingfromtheacquisitionareasfollows:

€’000

Purchaseconsideration–cashpaid 16,364

Contingentconsideration 4,771

Totalconsideration 21,135

Less:Fairvalueofassetsacquired (13,849)

Goodwill 7,286

Thefairvalueofassetsandliabilitiesarisingfromtheacquisitionareasfollows:

AcquisitionrelatedcostschargedtotheCondensedincomestatementduringtheperiodended5July2014amountedto€0.1million(FY2013:€0.5million).ThecontingentconsiderationarrangementrequirestheGrouptopaytheformerownersofNutraminoanearnoutifthe2014actualadjustedearningsbeforeinterest,tax,depreciationandamortisation("EBITDA")exceedstheactual2013 adjusted EBITDA by a minimum agreed amount. The fair value of the Group’s estimated contingentconsiderationbasedontheearnoutdefinitionis€4.8millionbutcanfallsomewherebetweenzeroand€12.6milliondependingonperformance.TheEBITDAusedisbasedonmanagement’s forecastatthedateofacquisition.Shouldtheactualresultchangefromtheforecast,anyincreaseordecreasewillresultinacorrespondingchargeorcredittotheIncomeStatement.Theestimatedcontingentconsiderationof€4.8millionhasbeentransferredtoanescrowaccountandisduetobepaidbefore17March2015.Asaresult,thecontingentconsiderationrecognisedof€4.8millionwasnotdiscountedastheeffectofdiscountingwasnotmaterial.RevenueincludedintheCondensedincomestatementfrom17January2014to05July2014contributedbythenewbusinesswas€8.0million.Thebusinessalsocontributedprofitbeforeinterest,taxandamortisationof€0.7millionoverthesameperiod.The revenue and profit for the period ended 5 July 2014, determined in accordance with IFRS 3 ‐ BusinessCombinations,as though theacquisitiondate for theNutraminobusinesseffectedduring theyearhadbeenat thebeginningoftheyearwouldnotbemateriallydifferent.Thefairvalueoftradeandotherreceivablesattheacquisitiondateamountedto€2.6million.TheGrosscontractualamountfortradereceivablesdueis€2.4millionofwhich€0.1millionisprovidedforasanallowancefordoubtfuldebts.Nocontingentliabilityaroseaspartoftheacquisition.

Fairvalue€’000

Property,plantandequipment 2,200

Intangibleassets‐brands 9,918

Intangibleassets‐customerrelationships 5,160

Inventories 994

Tradeandotherreceivables 2,573

Tradeandotherpayables (2,287)

Deferredincometaxliabilities (3,308)

Netborrowings (1,401)

Fairvalueofassetsacquired 13,849



22. EventsafterthereportingperiodThere have been no material events subsequent to the end of the interim period 05 July 2014 which requiredisclosureinthisreport.23. InformationCopiesofthishalfyearlyfinancialreportareavailablefordownloadfromtheGroup’swebsiteatwww.glanbia.com.

Documents

Half year results/media/Files/G/Glanbia-Plc/... · 2014-08-19 · first half of the year. In addition to the launch of BSN's Syntha 6 bar in EMEA and Optimum Nutrition’s PRO Series,