Glanbia PLC

GLB: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€65.50	Hxwyq	Zklhxpxk

Glanbia Reports Better-Than-Expected 2016 Results; Raising Fair Value Estimate by 10%

Adam Kindreich

Feb 22, 2017

No-moat dairy ingredients and performance nutrition manufacturer Glanbia reported a strong set of 2016 results driven by its global performance nutrition, or GPN, division. Organic sales were flat, while reported sales rose strongly due to acquisitions, and margins held up better than expected in the face of rising dairy prices. This division alone accounted for 80% of Glanbia's currency-adjusted EBITA increase on 2015. We are revising our estimates upward and increasing our fair value estimate by 10% to EUR 15.80. Shares are slightly overvalued at current levels. There is no change to our no-moat rating.

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