Glanbia Plc Ord

Good day and thank you for standing by. Welcome to the Glambia 2025 four-year results presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I will now hand over to Liam Hennigan, Group Secretary and Head of Investor Relations, to open the presentation. Please go ahead.

Thank you. Good morning and welcome to the Dlandia full year 2025 results call. During today's call, the directors may make forward-looking statements. These statements have been made by the directors in good faith based on the information available to them up to the time of their approval of the full year 2025 results. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The directors undertake no obligation to update any forward-looking information made on today's call, whether as a result of new information, future events, or otherwise. I'm now handing the call over to Hugh Maguire, CEO of Glambia PLC.

Thank you, Liam. Good morning, everybody, and welcome to the Glanbia full-year 2025 results call and presentation. I'm joined in today's call by Mark Garvey. I will provide an overview of our performance for the year, and Mark will then cover the financials and outlook. At the end of the call, we will be happy to take your questions. Overall, we delivered a robust performance in 2025 with like-for-like revenue and volume growth across all three segments, driven by strong consumer demand for our better nutrition brands and ingredients, with adjusting earnings per share, of 134.93 cents. The group delivered pre-exceptionally EBITDA of 499.1 million, representing a decrease of 9.4%, and EBITDA margins of 12.6%, representing a decrease of 170 basis points and a constant currency basis, with margin expansion in health and nutrition offset by a contraction in margin in performance nutrition as a result of elevated way input costs. We continued our strong track record of delivering returns to shareholders by raising the interim dividend by 10% and returning approximately 197 million euro to shareholders via share buyback programs. The board has authorized a further 100 million euro share buyback program and we will commence an initial 50 million tranche of this program today. As well as delivering a strong operational and financial performance, we continue to progress our strategic agenda and we've made significant progress on our group-wide transformation program with a new operating model implemented to simplify our business and bring greater focus on high growth opportunities. We continue to make good progress on our portfolio with the sale of non-core brands completed during the year. We also acquired SweetMix, a Brazil-based nutritional pre-mix and ingredient solutions business within our health and nutrition division and agreed to acquire SciCore, a manufacturing facility in India which provides in-market manufacturing for both performance nutrition and health and nutrition with the acquisition completing post-year end. We hosted our Capital Markets Day on the 19th of November in London, where we outlined the group's growth strategy for the next three years, focused on five key drivers and our financial ambition for the period 2026 to 2028, and our confidence in driving continued shareholder return. We were pleased with the positive response and interest from attendees and look forward to delivering on our medium-term ambition. For performance nutrition, like-for-like revenue increased by 4.5%, excluding the impact of non-core brands, which was driven by our two priority growth brands, Optimum Nutrition and Isofure, and was a combination of strong category growth, increased distribution, and innovation. The volume increase was driven by strong growth in the online and food drug mass channels, as well as continued growth in international markets across both protein and energy categories, somewhat offset by lower revenues in the U.S. club and specialty channels. We implemented price increases in our international markets in quarter two and in the U.S. in quarter four to offset record-way inflation. During the year, we also implemented some tactical price reductions in higher-margin products in the energy category, which delivered a strong volume uplift. From a regional perspective, performance returns in Americas, which represented 63% of revenue, was down 0.5% versus last year due to the aforementioned club channel headwinds. Excluding non-core brands, Performance Nutrition America's revenue increased by 1.3%. We were pleased with the trajectory in our flagship brand, Optimum Nutrition, which showed a sequential improvement through the period, delivering double-digit life-for-life revenue growth in the second half of the year, but continued momentum in the protein powders and energy category. Our international business, which represents 37% of revenue, performed strongly, delivering like-for-like revenue growth of 8.8% or 10.5% excluding the impacts of non-core brands, driven by volume and pricing growth in the optimum tuition brands, particularly in China, India, Oceania and the UK. Growth was supported by our global supply chain footprint, enabling in-market supply and local innovation in key regions. EBITDA for the year declined by 23.2%, with an EBITDA margin of 13%. the contraction in margin is entirely as a result of record way input costs as previously disclosed, with an improvement in EBITDA margins in the second half of the year. In terms of brand performance, Optimum Nutrition, our largest brand of 75% performance nutrition revenue, excluding non-core brands, delivered like-for-like revenue growth of 6.4%, comprising volume growth of 5% and pricing growth of 1.4%. ON delivered double-digit like-for-like revenue growth in the second half of the year, led by a combination of strong velocities, distribution gains, lapping of a weaker comparative in the U.S. club channel, and innovation. We continue to see strong momentum in the category with an acceleration of the growth of the protein powder category in the last 12 months. U.S. consumption grew by 3.4% in the last 52 weeks, with double-digit growth in the food drug mass channel growing ahead of the category, and continued strong growth in the online channel. In the last 13 weeks, U.S. consumption accelerated to 4.6%, and ON continues to be a top driver of retail dollar consumption growth for protein powder and creating in measure channels in the US. We're also seeing strong consumption growth across many international regions, and we continue to increase our retail distribution with distribution gains for ON across retailers in Europe and Asia Pacific, and double digit growth in e-commerce channels in China. I'm pleased to see ON deliver double digit growth in household penetration and GDP in the US, reflecting strong recruitment and retention. We have an uncompromising dedication to product quality, and we are operating in high growth categories with the most trusted brands in sports attrition, driven by powerful consumer megatrends. From a marketing perspective, our focus continues to be on driving recruitment and conversion and broadening the brand's appeal through increased campaign reach and education. We've just launched the Optimum Advantage campaign, a disruptive campaign rolling out globally, where the concept involves elite athletes revealing one thing they never want to share. the marginal gains that give them their edge. The launch features McLaren Formula One star Lando Norris, rugby internationals Dan Sheehan from Ireland and Mark Smith from England, and US women's NBA star Cameron Brink. Early results show that the Optimum Advantage athlete strategy is driving both scalable media efficiency and authentic cultural relevance across channels. The AI-powered coach Optimum went live in several markets during 2025, with results showing excellent engagement rates. The protein calculator has been going from strength to strength, helping consumers realize how Optum Nutrition can help them fulfill their daily nutrition needs with trusted, high-quality products. We've also seen strong growth being driven by online channels and the success of the Quick Commerce channel in India. We have a world-class portfolio of high-quality products within the Optum Nutrition brand, and we continue to focus on innovation, in particular by expanding our usage occasions. We launched a number of products during the year across our protein and energy offerings including multiple creatine offerings, whey collagen blends, protein RTD shakes, and additional smaller pack sizes, including stick packs, addressing affordability through opening price points. We're particularly pleased with performance of O-Increatine, which delivered strong growth globally as we continue to cement our number one position in this fast-growing segment. Isopure, our premium high-protein, low-carb brand grounded in purity, continues to do well delivering double-digit life-for-life revenue growth in the year. This brand allows us to target an incremental consumer from Optum Nutrition, with a consumer affluent and predominantly female that values high-quality and great testing solutions that they can incorporate into their daily nutrition regime. During 2025, we rolled out more of What Matters campaign with strong engagement rates, reaching more than 20 million consumers through our digital channels, educating consumers on how to integrate IsoPure into their daily routines with influencers such as celebrity Tiffany Thiessen sharing simple baking hacks, highlighting the mixability into things like sauces and soups. Our partnership with top Bollywood celebrity Rashmika Mandana has helped deliver a reach of over 50 million plus for the brand in India. We've been expanding our distribution of IsoPure across food, drug masks and online retailers, elevating display execution and shelf placement. targeting aisles outside of performance nutrition to capture a broader consumer set. I'm pleased to see continued growth in our core brand metrics with double-digit growth in ACV, TDP, and household penetration. Innovation continues to be a core focus across our portfolio, and we launched several products under the iSphere brand, including protein water, stick packs, colostrum plus, and collagen peptides in the UK. Moving to our second growth platform of health and nutrition, which comprises nutritional pre-mixed solutions and flavours, and focuses on priority high-growth end-use markets of active lifestyle nutrition, functional beverages, and vitamin, mineral, and supplements. This segment delivered a strong performance in 2025, delivering like-for-like revenue growth of 6.8%. This was driven by a 7.4% increase in volume and a 0.6% decrease in price. Total revenue increased by 11.5% as a result of 6.5% increase from the acquisitions of flavor producers and Sweetmix, which were completed in April 2024 and August 2025, respectively, and the negative impact of the 53rd week in the prior year, 1.8%. We're pleased with the strong volume performance, which was driven by a good growth across both premix and flavors, underpinned by strong demand across our end-use markets. We saw particularly good growth in Europe and Asia. Pricing was slightly negative due to certain pass-through pricing of customers. Health and nutrition EBITDA was 115.8 million, up 16.7% constant currency. EBITDA margins were 18.4%, an increase of 80 basis points versus 2024 on a constant currency basis. Margin expansion was driven by the full year impact of flavor producers and strong volume growth from existing customers, somewhat offset by the impact of tariffs in the second half of the year. We have a strong global footprint in health and nutrition with a range of technologies and solutions. targeting functional nutrition and end-use markets across a broad range of customers. We have deep customer relationships and co-development capabilities to help our customers win in their markets. We have the number two global position in customized pre-mixed solutions and have a strong position in natural and organic flavor systems, operating in attractive end-use markets such as active nutrition, functional beverages, and vitamins, minerals, and supplements. We continue to invest in innovation, capacity, and new capabilities to ensure we have the best solutions to meet the growing demand for functional taste and macronutrient needs across a broad range of formats. During the year, we announced the acquisition of SweetMix and SciCorp. SweetMix is a high-quality Brazil-based nutritional pre-mix and ingredient solutions business, which will allow continued expansion in the Latin America region. SciCorp is a fully operational manufacturing facility in India, which provides us with our own in-market manufacturing for both performance nutrition and health and nutrition. In terms of capacity, We're substantially expanding our spray drying capabilities in the U.S., which will enable us to capture a larger opportunity in powdered flavor applications. We've also approved plans to more than double our Asian nutritional premium capacity and are also expanding our capacity in Europe. Dairy nutrition combines our U.S. cheese and dairy protein portfolios. This platform consists of a highly integrated manufacturing footprint with a high supply and operational interdependency. and is also the root market for our joint venture partner supply of whey and cheese ingredients. This business underpins our scale leadership position in dairy as a leading producer of whey protein isolate and American-style cheddar cheese in the U.S. We also hold exciting positions in dairy bioactives with strong demand, particularly for colostrum, targeting gut health and immunity trends. In 2025, Dairy Nutrition delivered like-product revenue growth of 5% in the period. driven by a 4.2% increase in volume and a 0.8% increase in pricing. The increase in volume was across cheese and protein solutions, and the price increase was driven by strong high protein solutions category demand, somewhat offset by negative dairy market pricing in the second half of the year. We're seeing sustained demand for high quality whey and non-whey protein solutions, driven by global trends in performance nutrition and everyday wellness. Our expertise in protein chemistry and our unique assets combined with the ability to deliver consistent functionality and nutritional density, positions us as a partner of choice for customers seeking premium, science-led protein solutions. We saw good growth in existing and new customer wins in 2025. An example of this momentum includes our novel protein solutions, such as the Oven Pro series, targeting high-protein breakfast and other snacking usage occasions. These solutions exemplify pleasure with purpose indulging products with protein content that tastes good, meeting end consumer demand for great taste without compromise. Turning to whey and whey volatility, we're one of the largest suppliers and the largest buyer of whey protein isotope globally, and we have a clear ongoing strategy in whey procurement. As consumer demand for protein continues to grow, which is driving growth in our priority brands, we also continue to see whey pricing hit record levels driven by this strong demand. We have a lot of experience across dairy complex, but there's currently no way to effectively hedge whey protein, but we have a robust program using all available levers to manage it. As you can imagine, there will always be a lag impact on margin as we implement consumer price increases and navigate this input volatility. We have now contracted supply into early quarter four, providing certainty on our cost base for 2026, with prudent assumptions for the remainder of the year. New global supply of high end way of approximately 15 to 20% has started to come on stream and is expected to expand across 2026. We continue to engage with our suppliers for longer term supply investment. And as mentioned previously, we're also investing in our own WPI capacity within our joint ventures, which will come on stream in early 2027. We continue to take decisive action to mitigate the impact as much as possible. And we're very thoughtful on this to ensure we do it in a measured way to maintain revenue growth and protect share. In 2025, we increased prices in international markets in quarter two and in the US in quarter four. And we are currently implementing price increases globally for execution in quarter two, which is supported by promotional efficiency and product mix. To date, we have seen limited elasticity from price increases in 2025, but we'll continue to monitor demand carefully, particularly as we move through the second round of price increases. We continue to review the possibility of further revenue growth management initiatives later in the year, depending on consumer reaction and the evolution of weight prices. In addition, we also carefully manage our cost base to ensure we're efficient and adjust our marketing investment appropriately to ensure we prioritize spend on brand building initiatives. We will also be pricing across our protein solutions business in dairy nutrition. And lastly, with innovation, we're looking to broaden our product mix from whey protein to include other protein sources, such as collagen, milk, and plant proteins, while also driving non-whey innovation, as you've seen with our energy platform. We made good progress on our group-wide transformation program during the year, which is focused on driving efficiencies across our new operating model and supporting the next phase of growth through three focus segments. The program is expected to generate annual cost savings of at least 60 million by 2027, and we are on track to deliver approximately 40% of savings in 2026. Of these savings, we expect to reinvest approximately 50% to drive growth across our performance nutrition and health and nutrition segments. Significant progress has been made across four key pillars to give us confidence in delivering on these targets. New operating model is now established, simplifying our structure with dairy nutrition and health and nutrition established as new dedicated segments, and the reorganized performance nutrition Americas injecting new capabilities into the business. The second pillar is to unlock efficiencies, and we're centralizing and streamlining key activities and capabilities across procurement, engineering, planning, and quality, and driving operation efficiency through a mixture of automation and continuous improvement. We're also accelerating our procurement savings and leveraging the transformation of our back office functions and continues to focus on automation and the implementation of AI and analytics to enable front office growth initiatives. We are leveraging agentic AI across the group, which is supporting marketing campaigns and new product innovation and performance attrition, customer interactions, providing us with both the intelligence and the infrastructure. The final pillar is we're focused on simplifying our group, our margins, and we also and Psycorps. We have a clear strategy in place to drive the next stage of growth, and we shouldn't say it's much less than 25. Firstly, we're looking for a portfolio of lives on hands. We are focused on optimizing dairy nutrition to maximize profits across our scale dairy operations while growing our protein solutions and bio-activist business. We continue to expand internationally, leveraging our scale and global supply chain footprint. And lastly, Investing in innovation to stay at the forefront of our growing categories is vital to us, and the savings from our transformation program will allow us to continue reinvesting in innovation. Delivery against each of these requires focus and execution excellence enabled by our group-wide transformation program, our teams, talents, and culture, as well as our strong financial discipline. And with that, I'll hand over to Mark to take it to the financials.