DAVY VIEW

We have pared our FY20 EPS by c.11%, primarily reflecting route-to-market and profit headwinds in GPN International – with performance across the B2B operations more resilient. Simplification of the International operating model is now a critical prerequisite to rebuilding profit and value. While visibility on the order ledger remains low, Glanbia has passed the Q2 nadir – with sequential recovery into July. Management’s tone around margin appears more constructive, with model and cost benefits to accrue from H2. Despite the challenging backdrop, year-end leverage remains comfortable – offering allocation optionality.