DAVY VIEW

We have updated our Glanbia model. The key changes include a revenue-led upgrade for FY21, modelling the planned disposal of its 40% interest Dairy Ireland and a more cautious stance on Performance Nutrition (GPN) margin for FY22, with FY23 margin unchanged. For FY21, we revise our adjusted EPS to 87.4c (+2.5%). For FY22, will lower our EPS from 93.5c to 83.0c (-11.3%), driven by an underlying adjustment of -1.6% (c.1.5c) and Diary Ireland disposal -9.7% (c.9c). For FY23, we lower EPS by 6.3% to 91.3c. The balance sheet moves to net cash in FY23. On revised forecasts, Glanbia trades on an undemanding PE of 15.5x and 14.1x for FY22 and FY23 respectively.