DAVY VIEW

Glanbia’s flagship brand, Optimum Nutrition (ON), is finding its operating stride. The ON growth algorithm strikes a healthy balance between brand investment (marketing / promotion / innovation) and volume-led revenue growth. Category fundamentals, underpinned by broadening protein adoption, are highly attractive. Impressive cash generation is now a trademark of the business; for FY23-25(f), we expect it to generate over $1bn in free-cash flow. We upgrade our FY24 and FY25 EPS by 3% and 4.6% respectively and raise our price target to €20.60 (from €17.20). A healthy medium-term growth runway exists for both divisions.