DAVY VIEW

We maintain our FY21 adjusted EPS and lift our FY22 adjusted EPS by 3.6%, with Performance Nutrition (GPN) and JV profit upgrades partly offset by Nutritional Solutions (NS) and FX. Our implied sum-of-parts (SOP) model derives a high-single-digit EV/EBITDA multiple for GPN, which represents a material discount to peers and offers a margin of safety to the equity. Strong cash generation and balance sheet flexibility now represent significant features of the investment case. Allied to an earnings recovery cycle and an undemanding P/E multiple (12.6x FY22), we reiterate our buy recommendation.