DAVY VIEW

Glanbia has reported a very positive start to FY21, with both growth pillars delivering double-digit organic growth – exceeding our expectations against a challenging comp. Consistent with FY20, strong operating cash flow was a feature. The Q1 out-turn prompts an upward revision to FY guidance. While we do not envisage a material change to our FY21 EPS forecasts (+7% reported), upside risk remains with growth weighted to H1. We see the continued rebuild of growth and GPN brand equity as a key catalyst for the shares.