Half Yearly Report

RNS Number : 4213W

Glanbia PLC

19 August 2015

2015

Glanbia Half year results

Delivering better nutrition for every step of life's journey

Wednesday, 19 August 2015

Good performance in first half driven by Global Performance Nutrition

Guidance of 9% to 11% constant currency (c25% reported) adjusted EPS growth in 2015

19 August 2015 - Glanbia plc ("Glanbia", the "Group", the "plc"), the global nutrition group, announces its results for the six months ended 4 July 2015.

Results highlights for the half year

· Adjusted earnings per share 40.60 cent, up 4.2% constant currency (up 25.1% reported);

· EBITA from wholly owned business €138.5 million, up 7.5% on prior half year, constant currency (up 29.1% reported);

· EBITA margins from wholly owned business 9.7%, up 110 bps on prior half year, constant currency (up 140 bps reported);

· Strong result from Global Performance Nutrition with EBITA of €60.7 million a 17.4% increase on prior half year, constant currency (up 41.5% reported);

· Satisfactory performance by Global Ingredients in the context of challenging dairy markets with EBITA of €60.3 million a 9.5% decrease on prior half year, constant currency (up 11.9% reported);

· Good result from Dairy Ireland with EBITA of €17.5 million, as margins recovered to 4.7%;

· Joint Ventures & Associates performed in line with expectations in the first half; and

· Recommended interim dividend of 4.88 cent per share, an increase of 10% on prior year.

Note on foreign exchange: Glanbia generates a significant proportion of its earnings in US dollar and reports in Euro. Constant currency reporting is used to eliminate the translational effect of foreign exchange on the Group's results. The average Euro US dollar exchange rate for the first half of 2015 was $1.115 compared to an average rate of $1.371 for the first half of 2014 leading to an improved reported result when compared to constant currency. Note, constant currency guidance incorporates certain trading headwinds in the period as a result of a strong US dollar .

Commenting today Siobhán Talbot, Group Managing Director, said:

"Glanbia delivered a good performance in the first six months of 2015 driven by a strong result from Global

Performance Nutrition. Total Group revenue for the half year was €1.9 billion with adjusted earnings per share of 40.60 cent. Today we are reiterating full year guidance of adjusted earnings per share growth of between 9% and 11%, on a constant currency basis. Given the strength of the US dollar this is likely to translate to reported

adjusted earnings per share growth of circa 25% for the full year if foreign exchange rates remain at current levels.

Today's results demonstrate that our strategy is on track. As a global nutrition company, whose purpose is 'delivering better nutrition for every step of life's journey', we are focused on the development of a branded and ingredient product portfolio to serve the growing consumer demand for nutritional products in formats suitable for healthy and active lifestyles. This has provided some insulation from the challenges of volatile global dairy markets."

2015 half year results	Reported			Constant currency
€m	HY 2015	HY 2014	Change	Change¹
Wholly-owned business
Revenue	1,431.7	1,294.2	+10.6%	-3.9%
EBITA²	138.5	107.3	+29.1%	+7.5%
EBITA margin	9.7%	8.3%	+ 140 bps	+110 bps
Joint Ventures & Associates
Revenue	445.3	503.4	-11.5%	-20.4%
EBITA	20.2	22.2	-9.0%	-17.6%
EBITA margin	4.5%	4.4%	+10bps	+10bps
Total Group³
Revenue	1,877.0	1,797.6	+4.4%	-8.4%
EBITA	158.7	129.5	+22.5%	+3.5%
EBITA margin	8.5%	7.2%	+130bps	+100bps

Adjusted earnings per share⁴	40.60c	32.45c	+25.1%	+4.2%

1. To arrive at the Constant Currency change, the average FX rate for the current period is applied to the relevant reported result from the same period in the prior year. The average FX rate for the first half of 2015 was €1 = $1.115 (HY 2014: €1 = $1.371).

2. EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items.

3. Total Group includes Glanbia's share of Joint Ventures & Associates.

4. Adjusted earnings per share is reconciled in Note 11 of the financial statements.

2015 half year overview and outlook

Glanbia delivered a good performance in the first half of 2015. Total Group revenue for the period, including the Group's share of Joint Ventures & Associates, was €1.9 billion. Total Group revenue declined 8.4% constant currency (up 4.4% reported) as good branded revenue growth was offset by pricing declines as a result of global dairy market weakness. Total Group EBITA was €158.7 million, up 3.5% constant currency (up 22.5% reported). Total Group EBITA margin was 8.5%, up 100 bps, constant currency. Adjusted earnings per share for the half year were 40.60 cent, up 4.2%, constant currency (up 25.1% reported).

Capital investment and corporate development

Glanbia's total investment in capital expenditure was €59 million in the first half of 2015, of which €45 million was strategic investment reflecting the ongoing focus on the organic growth potential of the business. The investment programme in Global Ingredients to increase capacity in high end whey proteins and other added value dairy ingredients continues to plan in Idaho, with commissioning scheduled for Q4 2015. In April, the Group disposed of its investment in Nutricima to PZ Cussons plc for a cash consideration of £21 million (€28.5 million), the impact of which will be immaterial to the ongoing profitability of the Group.

Board changes

On 12 June 2015, Henry Corbally was appointed Chairman replacing Liam Herlihy who retired at the AGM. Mr Corbally previously served as Vice Chairman for four years. Patrick Murphy was appointed Vice Chairman on the same date having served as a non-executive director for the past four years. Also in June three new non-executive directors were appointed; Patsy Ahern, Jim Gilsenan and Patrick Hogan, as nominees of Glanbia Co-operative Society Limited. David Farrell and Patrick Gleeson also retired at the AGM.

2015 outlook

Glanbia reiterates its guidance for 2015 of 9% to 11% growth in adjusted earnings per share, constant currency. If the Euro US dollar exchange rate remains at current levels for the full year Glanbia expects 2015 reported adjusted earnings per share growth of circa 25%. The constant currency guidance incorporates certain trading headwinds generated by a strong US dollar.

Global Performance Nutrition is expected to be the main driver of 2015 growth as momentum returns to the US business albeit this is somewhat offset by currency and geopolitical related challenges in certain non US markets. Global Ingredients continues to make good progress in its strategy of growing the value added dairy and non dairy ingredient portfolio, however the scale of the weakness in global dairy markets will result in some reduction in performance year on year. Dairy Ireland is forecast to deliver some recovery in margins versus a challenging prior year reflecting the benefit of investment in operational efficiencies and new product development. Joint Ventures & Associates are expected to deliver a performance in line with the prior year.

HY 2015 operations review

Segmental analysis (as reported)

	HY 2015			HY 2014
€m	Revenue	EBITA	EBITA %	Revenue	EBITA	EBITA %
Global Performance Nutrition	453.5	60.7	13.4%	374.6	42.9	11.5%
Global Ingredients	609.3	60.3	9.9%	565.8	53.9	9.5%
Dairy Ireland	368.9	17.5	4.7%	353.8	10.5	3.0%
Total wholly-owned businesses	1,431.7	138.5	9.7%	1,294.2	107.3	8.3%
Joint Ventures & Associates	445.3	20.2	4.5%	503.4	22.2	4.4%
Total Group	1,877.0	158.7	8.5%	1,797.6	129.5	7.2%

Global Performance Nutrition

	Reported			Constant Currency
€m	HY 2015	HY 2014	Change	Change
Revenue	453.5	374.6	+21.1%	+1.9%
EBITA	60.7	42.9	+41.5%	+17.4%
EBITA margin	13.4%	11.5%	+190bps	+180bps

Commentary is on a constant currency basis throughout

Global Performance Nutrition ('GPN') delivered a strong performance in the first half of 2015 against high 2014 comparative metrics. Revenues increased 1.9% to €453.5 million (revenue growth HY 2014, 21.8%). Drivers of revenue growth were a 0.6% improvement in price and an 8.4% revenue contribution from acquisitions offset by a 7.1% decline in volume, due to lower contract sales. Overall branded revenue growth was 16.4%; while on a like for like basis, branded revenue grew by 3.7%. EBITA increased strongly by 17.4% in the period as EBITA margin grew 180 bps to 13.4%. A number of factors contributed to the improvement in margin including continued investment driven operational efficiencies across the business, mix improvement from the increased proportion of branded sales, and some reduction in input costs.

The business remains focused on branded revenue growth and in the period GPN saw renewed momentum in its US business. There continue to be trading headwinds in non US markets as geopolitical events and a strong US dollar impacts consumer purchasing power in certain geographies with Brazil, Oceania and Russia particularly affected. The global performance nutrition market remains very competitive and the business has increased the level of promotional investment where required to maintain market position. The innovation pipeline is good and recent launches such as Optimum Nutrition Gold Standard Pre-workout and BSN Clean Series are performing well.

Global Ingredients

	Reported			Constant Currency
€m	HY 2015	HY 2014	Change	Change
Revenue	609.3	565.8	+7.7%	-11.7%
EBITA	60.3	53.9	+11.9%	-9.5%
EBITA margin	9.9%	9.5%	+40bps	+20bps

Commentary is on a constant currency basis throughout

Global Ingredients ('GI') delivered a satisfactory performance in the first half of 2015 in the context of challenging global dairy markets. Revenues decreased by 11.7% to €609.3 million as volume growth of 6.8% was offset by an 18.5% decrease in price. While the business made progress in its strategy of growing value added dairy and non dairy ingredient sales the scale of the decline in global dairy markets resulted in a 9.5% reduction in EBITA in the period.

US Cheese

US Cheese increased volumes compared to last year as milk procurement dynamics improved relative to a challenging first half of 2014. There was a decrease in revenues due to reduced US cheese market prices which were down on average by 26% compared to the same period last year. Performance marginally improved as the benefit of higher volumes and continued focus on operational performance offset the impact of the significant price reduction. Cheese demand remains solid across the US retail and foodservice market and this countered the reduction in export activity to non US markets as a result of a strong US dollar.

Ingredient Technologies

Ingredient Technologies revenue and performance was behind the prior year as weaker dairy market conditions drove lower market pricing across a number of product categories. There continues to be an imbalance between supply and demand of dairy ingredients on global markets and this was exacerbated by a strong US dollar. Glanbia continues to develop its value added systems portfolio with bar solutions performing well in the period. The $85 million capital expenditure investment to increase production capacity of high end whey proteins and dairy ingredients is on track for commissioning in Q4 2015.

Customised Solutions

Customised Solutions had a strong first half benefiting from continued growth with key customers during the period. The business continues to leverage its global footprint, investing where appropriate, to sustain and build its relationships with key global and regional customers.

Positioning for growth

GI has commenced a programme to redesign the business to leverage future market opportunities. Building on its core strengths the current business unit structure will be integrated into one global GI organisation. This new organisation will have a regionally focused sales team to deliver the full suite of Glanbia's capability to its customers and markets, enabled by centres of excellence across key functions. It is envisaged that this programme will take 12-18 months to complete and will involve an investment of approximately €15 million which will be treated as an exceptional item in the Group's 2015 and 2016 financial statements.

Dairy Ireland

	Reported
€m	HY 2015	HY 2014	Change
Revenue	368.9	353.8	+4.3%
EBITA	17.5	10.5	+66.7%
EBITA margin	4.7%	3.0%	+170bps

Dairy Ireland had a good performance in the first half of 2015 against a relatively weak first half of 2014. Revenues increased 4.3% reflecting a 3.1% increase in volumes, 0.5% improvement in price and a 0.7% revenue contribution from acquisitions. A 170 bps recovery in margin drove an increase in EBITA versus the prior half year.

Consumer Products

Consumer Products delivered good growth in the period as the investment in operational efficiencies, new product development and some reduction in input costs has enabled a recovery in margins. Revenue growth was driven by increases in branded and value added milk sales plus bolt on acquisitions. Glanbia will continue to innovate and invest in its brand portfolio both domestically and internationally.

Agribusiness

Agribusiness delivered a satisfactory performance in the period. Lower animal feed and fertilizer sales were offset by cost improvement initiatives within the business.

Joint Ventures & Associates (Glanbia Share)

	Reported			Constant Currency
€m	HY 2015	HY 2014	Change	Change
Revenue	445.3	503.4	-11.5%	-20.4%
EBITA	20.2	22.2	-9.0%	-17.6%
EBITA margin	4.5%	4.4%	+10bps	+10bps

Commentary is on a constant currency basis throughout

Joint Ventures & Associates delivered a satisfactory performance in the period. Key drivers of the revenue movement were a 20.1% decline in pricing reflecting the dairy market environment and a 0.2% increase in volumes. The disposal of Glanbia's interest in Nutricima in the period led to a 0.5% decline in revenues compared to the prior half year. All Joint Ventures & Associates had a good operating performance with a focus on costs off-setting some of the challenges of lower dairy markets. The significant €235 million investment programme in Glanbia Ingredients Ireland ('GII') is largely complete and the commissioning of the new ingredient facility at Belview, Ireland is progressing with GII expecting to process an additional 15% milk volume from its suppliers in 2015 versus 2014.

Half year 2015 finance review

HY 2015 results summary pre exceptional				Constant Currency
€m	HY 2015	HY 2014	Change	Change
Revenue	1,431.7	1,294.2	+10.6%	-3.9%
EBITA	138.5	107.3	+29.1%	+7.5%
EBITA margin	9.7%	8.3%	+140bps	+110bps
- Amortisation of intangible assets	(15.6)	(10.6)
- Net finance costs	(10.7)	(10.5)
- Share of results of Joint Ventures Associates	13.3	15.3
- Income tax	(19.1)	(14.7)
Profit for the half year	106.4	86.8

Income statement

For the first half of 2015, wholly owned revenue decreased 3.9%, constant currency (up 10.6% reported) to €1.4 billion (HY 2014: €1.3 billion). EBITA grew by 7.5%, constant currency (up 29.1% reported) to €138.5 million (HY 2014: €107.3 million). EBITA margin increased by 110 bps to 9.7%, constant currency.

Net financing costs of €10.7 million were broadly in line with prior year (HY 2014: €10.5 million). The Group's average interest rate for the period was 3.9% (HY 2014: 4.8%). Glanbia operates a policy of fixing a significant amount of its interest exposure, with 85% of projected 2015 debt currently contracted at fixed rates for 2015.

The HY 2015 pre-exceptional tax charge increased by €4.4 million to €19.1 million (HY 2014: €14.7 million). This represents an effective rate, excluding Joint Ventures & Associates, of 17.0% (HY 2014: 17.0%).

The Group's share of results of Joint Ventures & Associates decreased by €2.0 million to €13.3 million (HY 2015: €15.3 million). Share of results of Joint Ventures & Associates is an after tax and interest amount.

Adjusted earnings per share

	HY 2015	HY 2014	Change	Constant Currency Change
Adjusted earnings per share^*	40.60c	32.45c	+25.1%	+4.2%

* Adjusted earnings per share is reconciled in Note 11 of the financial statements.

Total adjusted earnings per share grew 4.2% (25.1% reported), driven by growth in EBITA. Adjusted earnings per share is believed to be more reflective of the Group's underlying performance than basic earnings per share and is calculated based on the net profit attributable to equity holders of the parent before exceptional items and amortisation of intangible assets, net of related tax.

Dividend per share

The Board is recommending an interim dividend of 4.88 cent per share (HY 2014: interim dividend 4.43 cent per share). This represents an increase of 10% on the prior year interim dividend. The dividend will be paid on 16 October 2015 to shareholders on the register of members as at 04 September 2015. Irish withholding tax will be deducted at the standard rate where appropriate.

Exceptional items

€ m	HY 2015	HY 2014
1. Rationalisation costs	(1.1)	(0.6)
2. Organisational redesign costs	(3.1)	-
3. Disposal of interest in Joint Venture	(3.6)	-
4. Transaction related costs	-	(3.0)
Exceptional (charge) pre-tax	(7.8)	(3.6)
Taxation credit	0.5	0.9
Total exceptional (charge)	(7.3)	(2.7)

Exceptional items incurred in the first half of 2015 resulted in an exceptional charge of €7.3 million compared to a charge of €2.7 million for the same period in 2014. Details of the exceptional items are as follows:

1. Rationalisation costs primarily relate to the ongoing redundancy programme in the Dairy Ireland segment.

2. GI has commenced a programme to redesign the business to leverage future market opportunities. Building on its core strengths the current business unit structure will be integrated into one global GI organisation. This new organisation will have a regionally focused sales team to deliver the full suite of Glanbia's capability to its customers and markets, enabled by centres of excellence across key functions. It is envisaged that this programme will take 12-18 months to complete and will involve an investment of approximately €15 million which will be treated as an exceptional item in the Group's 2015 and 2016 financial statements.

3. On 01 April 2015 the Group disposed of its investment in Milk Ventures (UK) Limited which is the parent company of Nutricima Limited, a non-core Joint Venture business involved in the supply and distribution of evaporated and powdered milk, based in Nigeria. PZ Cussons plc, Glanbia's partner in the Joint Venture Nutricima, acquired Glanbia's 50% stake for cash consideration of £21 million (€28.5 million). In line with IFRS 5 - Non Current Assets Held for Sale and Discontinued Operations, the disposal of the Group's interest resulted in a non-cash loss of €3.6 million. This comprised a profit on disposal of €1.4 million (cash consideration of €28.5 million less carrying value €27.1 million including loan to Joint Venture) offset by the recycle of €5.0 million cumulative foreign currency translation losses previously recognised in equity. Milk Ventures (UK) Limited was previously included in the Joint Ventures & Associates segment.

4. Transaction related costs in 2014 were comprised of costs relating to acquisition activities that did not come to fruition and additional contingent consideration relating to the acquisition of Nutramino Holding ApS, in excess of its fair value at date of acquisition.

Group financing and cash flow

Financing key performance indicators	HY 2015	FY 2014	HY 2014
Net debt €m	577	510	472
Net debt : adjusted EBITDA¹	1.97 times	1.97 times	2.00 times
Adjusted EBIT¹ : net finance cost	10.0 times	8.9 times	8.1 times

1. Definition of net debt, adjusted EBITDA and adjusted EBIT are as per financing agreements which include dividends from Joint Ventures & Associates and the pro forma effect of acquisitions.

The Group's financial position continues to be strong. Net debt at the end of HY 2015 was €577 million. This is an increase of €105 million relative to the end of HY 2014. Net debt to adjusted EBITDA was just under 2 times and interest cover was 10 times, both metrics remaining well within financing covenants. Relative to the year end of 2014, net debt has increased by €67 million. The key drivers of the net debt increase from year end 2014, have been a seasonal increase in working capital and the FX impact on the conversion of US dollar private placement debt to Euro for reporting purposes. The main uses of cash since year end 2014 have been a seasonal increase in working capital of €128.1 million, capital expenditure of €58.8 million, dividend payments of €19.4 million and interest of €14.0 million offset by the proceeds from the Nutricima disposal of €28.5 million.

Pension

On 04 July 2015, the Group's net pension liability under IAS 19 (revised) 'Employee Benefits', before deferred tax, decreased by €20.8 million to €94.0 million versus year end 2014(FY 2014 pension liability €114.8 million). This decrease primarily relates to a change in actuarial assumptions for the discount rate used for the Irish defined benefit pension schemes from 2.1% to 2.4%.

Principal risks and uncertainties affecting the Group's performance in 2015

The Board of Glanbia plc has the ultimate responsibility for risk management. The performance of the Group is influenced by global economic growth and consumer confidence in the markets in which it operates. In the second half of 2015 the principal risks and uncertainties affecting the Group's performance are:

· The competitive landscape for Global Performance Nutrition, recognising the impact of a stronger US dollar on the purchasing power of consumers in certain international markets;

· The overall impact on margins of movements in dairy pricing particularly in whey markets; and

· The potential impact of geopolitical unrest and macro-economic uncertainty on the international growth strategy.

The principal risks and uncertainties are outlined in detail on pages 50 to 57 in the 2014 Annual Report.

Cautionary statement

This announcement contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Directors undertake no obligation to update any forward-looking statements contained in this announcement, whether as a result of new information, future events, or otherwise.

Results webcast and dial-in details

There will be a webcast and presentation to accompany this results announcement at 8.30 a.m. BST today. Please access the webcast from the Glanbia website at http://www.glanbia.com/investors/results-centre, where the presentation can also be viewed or downloaded. In addition, a dial-in facility is available using the following numbers:

Ireland (01) 246 5601

UK (0203) 427 1902

USA (212) 444 0895

International +44 203 427 1902

The access code for all participants is: 8165082

A replay of the call will be available for 30 days approximately two hours after the call ends.

For further information contact

Glanbia plc +353 56 777 2200

Siobhán Talbot, Group Managing Director

Mark Garvey, Group Finance Director

Liam Hennigan, Head of Investor Relations +353 56 777 2308

Mark Garrett, Director of Communications and Public Affairs +353 86 601 9655

Responsibility statement

The Directors are responsible for preparing the half yearly financial report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Central Bank of Ireland and with IAS 34 - Interim Financial Reporting, as adopted by the European Union.

The Directors of Glanbia plc confirm that, to the best of their knowledge:

• The Group condensed interim financial statements for the half year ended 04 July 2015 have been prepared in accordance with the international accounting standard applicable to interim financial reporting (IAS34) adopted pursuant to the procedure provided for under Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002;

• The half yearly financial report includes a fair review of the development and performance of the business and the position of the Group;

• The half yearly financial report includes a fair review of the important events that have occurred during the first six months of the financial year, and their impact on the Group condensed financial statements for the half year ended 04 July 2015, and a description of the principal risks and uncertainties for the remaining six months;

• The half yearly financial report includes a fair review of related party transactions that have occurred during the first six months of the current financial year that have materially affected the financial position or the performance of the Group during that period and any changes in the related party transactions described in the last Annual Report that could have a material effect on the financial position or the performance of the Group in the first six months of the current financial year; and

The Directors of Glanbia plc are as listed in the Glanbia plc 2014 Annual Report, with the exception of the following changes in the period:

· David Farrell, Patrick Gleeson and Liam Herlihy^* retired on 12 May 2015.

· James Gilsenan, Patsy Ahern and Patrick Hogan were appointed on 12 June 2015.

^*Liam Herlihy retired as Chairman on 12 May 2015. Henry Corbally was appointed Chairman on 12 June 2015.

A list of current directors is maintained on the Glanbia plc website: www.glanbia.com

On behalf of the Board

Siobhán Talbot Mark Garvey

Group Managing Director Group Finance Director

18 August 2015

Condensed income statement for the half year ended 04 July 2015
		Half year 2015			Half year 2014			Year 2014
		Pre- exceptional	Exceptional	Total	Pre- exceptional	Exceptional	Total	Pre- exceptional	Exceptional	Total
		2015	2015	2015	2014	2014	2014	2014	2014	2014
	Notes	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
			(note 7)			(note 7)			(note 7)

Revenue	6	1,431,590	-	1,431,590	1,294,157	-	1,294,157	2,538,368	-	2,538,368

Earnings before interest, tax and amortisation (EBITA)		138,473	(7,838)	130,635	107,314	(3,638)	103,676	208,634	(15,949)	192,685
Intangible asset amortisation		(15,566)	-	(15,566)	(10,565)	-	(10,565)	(22,512)	-	(22,512)

Operating profit		122,907	(7,838)	115,069	96,749	(3,638)	93,111	186,122	(15,949)	170,173

Finance income	8	885	-	885	841	-	841	1,725	-	1,725
Finance costs	8	(11,588)	-	(11,588)	(11,337)	-	(11,337)	(22,050)	-	(22,050)
Share of results of Joint Ventures & Associates		13,267	-	13,267	15,276	-	15,276	23,729	-	23,729

Profit before taxation		125,471	(7,838)	117,633	101,529	(3,638)	97,891	189,526	(15,949)	173,577
Income taxes	9	(19,075)	533	(18,542)	(14,663)	874	(13,789)	(28,252)	1,870	(26,382)


Profit for the period		106,396	(7,305)	99,091	86,866	(2,764)	84,102	161,274	(14,079)	147,195


Attributable to:
Equity holders of the Parent				98,674			83,592			146,313
Non-controlling interests				417			510			882
				99,091			84,102			147,195


Earnings per share attributable to the equity holders of the Parent
Basic earnings per share (cents)	11			33.43			28.33			49.60

Diluted earnings per share (cents)	11			33.18			28.20			49.32

Condensed statement of comprehensive income for the half year ended 04 July 2015
			Half year	Half year	Year
			2015	2014	2014
	Notes		€'000	€'000	€'000

Profit for the period			99,091	84,102	147,195

Items that are not reclassified subsequently to the Group income statement:
Remeasurements - defined benefit schemes	17		18,178	(16,857)	(42,369)
Deferred tax (charge)/credit on remeasurements			(2,430)	1,760	4,868
Share of remeasurements - Joint Ventures & Associates		14	4,811	(3,582)	(8,900)
Deferred tax (charge)/credit on remeasurements - Joint Ventures & Associates			(601)	452	1,120

Items that may be reclassified subsequently to the Group income statement:
Currency translation differences	16		75,654	4,040	97,805
Recycle of currency reserve to the Group income statement on disposal of investment in Joint Venture	7		5,037	-	-
Net investment hedge	16		(6,980)	(245)	(9,544)
Revaluation of available for sale financial assets	16		1,052	1,409	1,457
Fair value movements on cash flow hedges	16		2,476	2,009	507
Deferred tax on cash flow hedges and revaluation of available for sale financial assets	16		(444)	(519)	(140)
Other comprehensive income/(expense) for the period, net of tax			96,753	(11,533)	44,804

Total comprehensive income for the period			195,844	72,569	191,999

Total comprehensive income attributable to:
Equity holders of the Parent			195,427	72,059	191,117
Non-controlling interests			417	510	882

Total comprehensive income for the period			195,844	72,569	191,999

Condensed balance sheet as at 04 July 2015
		Half year	Half year		Year
		2015	2014		2014
	Notes	€'000	€'000		€'000
ASSETS
Non-current assets
Property, plant and equipment		551,860	409,704		490,180
Intangible assets		704,663	471,856		662,169
Investments in associates		91,564	86,380		81,365
Investments in joint ventures		62,665	68,098		69,945
Trade and other receivables		1,850	9,735		9,863
Deferred tax assets		26,152	24,224		28,503
Available for sale financial assets		10,522	10,111		10,621
		1,449,276	1,080,108		1,352,646
Current assets
Inventories		350,819	302,251		336,802
Trade and other receivables		412,954	372,381		305,027
Derivative financial instruments		1,686	1,861		1,279
Cash and cash equivalents	13	94,400	89,014		110,370
		859,859	765,507	753,478

Total assets		2,309,135	1,845,615		2,106,124

EQUITY
Issued capital and reserves attributable to equity holders of the Parent
Share capital and share premium	15	105,370	104,335		104,728
Other reserves	16	294,073	134,876		218,581
Retained earnings		572,965	448,560		473,573
		972,408	687,771		796,882
Non-controlling interests		8,313	8,144		7,896
Total equity		980,721	695,915		804,778

LIABILITIES
Non-current liabilities
Borrowings	13	634,015	521,331		620,317
Deferred tax liabilities		135,153	98,477		128,002
Retirement benefit obligations	17	93,971	91,360		114,808
Provisions for other liabilities and charges	14	19,816	19,268		18,569
Capital grants		2,121	2,368		2,214
		885,076	732,804		883,910
Current liabilities
Trade and other payables		369,681	358,345		390,350
Current tax liabilities		21,350	472		3,115
Borrowings	13	37,448	39,447		416
Derivative financial instruments		408	1,325		574
Provisions for other liabilities and charges	14	14,451	17,307		22,981
		443,338	416,896		417,436

Total liabilities		1,328,414	1,149,700		1,301,346

Total equity and liabilities		2,309,135	1,845,615		2,106,124

Condensed statement of changes in equity for the half year ended 04 July 2015
		Attributable to equity holders of the Parent
			Share capital and share premium	Other reserves	Retained earnings	Total	Non -controlling interests	Total
Half year 2014	Notes		€'000	€'000	€'000	€'000	€'000	€'000

Balance at 04 January 2014			103,997	126,600	405,289	635,886	7,634	643,520

Profit for the period			-	-	83,592	83,592	510	84,102

Other comprehensive income/(expense)
Remeasurements - defined benefit schemes	17		-	-	(16,857)	(16,857)	-	(16,857)
Deferred tax on remeasurements			-	-	1,760	1,760	-	1,760
Share of remeasurements - Joint Ventures & Associates			-	-	(3,130)	(3,130)	-	(3,130)
Fair value movements	16		-	3,418	-	3,418	-	3,418
Deferred tax on fair value movements	16		-	(519)	-	(519)	-	(519)
Currency translation differences	16		-	4,040	-	4,040	-	4,040
Net investment hedge	16		-	(245)	-	(245)	-	(245)
Total comprehensive income			-	6,694	65,365	72,059	510	72,569

Dividends paid during the period	10		-	-	(17,650)	(17,650)	-	(17,650)
Cost of share based payments	16		-	2,931	-	2,931	-	2,931
Transfer on exercise, vesting or expiry of share based payments	16		-	4,444	(4,444)	-	-	-
Shares issued	15		5	-	-	5	-	5
Premium on shares issued	15		333	-	-	333	-	333
Purchase of own shares	16		-	(5,793)	-	(5,793)	-	(5,793)

Balance at 05 July 2014			104,335	134,876	448,560	687,771	8,144	695,915

		Attributable to equity holders of the Parent
		Share capital and share premium	Other reserves	Retained earnings	Total	Non -controlling interests	Total
Half year 2015		€'000	€'000	€'000	€'000	€'000	€'000

Balance at 03 January 2015		104,728	218,581	473,573	796,882	7,896	804,778

Profit for the period		-	-	98,674	98,674	417	99,091

Other comprehensive income/(expense)
Remeasurements - defined benefit schemes	17	-	-	18,178	18,178	-	18,178
Deferred tax on remeasurements		-	-	(2,430)	(2,430)	-	(2,430)
Share of remeasurements - Joint Ventures & Associates		-	-	4,210	4,210	-	4,210
Fair value movements	16	-	3,528	-	3,528	-	3,528
Deferred tax on fair value movements	16	-	(444)	-	(444)	-	(444)
Currency translation differences	16	-	75,654	-	75,654	-	75,654
Recycle of currency reserve to the Group income statement on disposal of investment in Joint Venture		-	5,037	-	5,037	-	5,037
Net investment hedge	16	-	(6,980)	-	(6,980)	-	(6,980)
Total comprehensive income		-	76,795	118,632	195,427	417	195,844

Dividends paid during the period	10	-	-	(19,448)	(19,448)	-	(19,448)
Cost of share based payments	16	-	3,565	-	3,565	-	3,565
Transfer on exercise, vesting or expiry of share based payments	16	-	(208)	208	-	-	-
Shares issued	15	9	-	-	9	-	9
Premium on shares issued	15	633	-	-	633	-	633
Purchase of own shares	16	-	(4,660)	-	(4,660)	-	(4,660)

Balance at 04 July 2015		105,370	294,073	572,965	972,408	8,313	980,721

Condensed statement of cash flows for the half year ended 04 July 2015
		Half year	Half year	Year
		2015	2014	2014
	Notes	€'000	€'000	€'000
Cash flows from operating activities
Cash generated from operating activities	20	25,463	27,225	230,716
Interest received		417	308	1,683
Interest paid		(14,414)	(10,418)	(24,358)
Tax refunded/(paid)		1,360	(14,514)	(34,393)
Net cash inflow from operating activities		12,826	2,601	173,648

Cash flows from investing activities
Acquisition of subsidiaries - purchase consideration		(544)	(21,135)	(125,812)
Acquisition of subsidiaries - liabilities settled at completion		(802)	-	(16,138)
Acquisition of subsidiaries - cash and cash equivalents		-	-	2,768
Disposal of investment in Joint Venture		28,511	-	-
Insurance proceeds		-	-	1,035
Purchase of property, plant and equipment	12	(52,241)	(53,020)	(101,953)
Purchase of intangible assets	12	(6,523)	(4,155)	(13,532)
Dividends received from Joint Ventures		3,237	3,171	12,648
Decrease in available for sale financial assets		1,151	815	334
Proceeds from sale of property, plant and equipment		132	47	63
Net cash (outflow) from investing activities		(27,079)	(74,277)	(240,587)

Cash flows from financing activities
Proceeds from issue of ordinary shares	15	608	338	731
Purchase of own shares		(4,660)	(5,793)	(7,981)
Sale of shares held by subsidiary		-	-	2,092
(Decrease)/Increase in borrowings		(21,471)	77,500	138,242
Redemption of preference shares		-	-	(39,062)
Dividends paid to Company shareholders	10	(19,448)	(17,650)	(30,751)
Dividends paid to non-controlling interests		-	-	(620)
Finance lease payments		(204)	(238)	(313)
Net cash (outflow)/inflow from financing activities		(45,175)	54,157	62,338

Net decrease in cash and cash equivalents		(59,428)	(17,519)	(4,601)

Cash and cash equivalents at the beginning of the period		110,370	106,259	106,259
Effects of exchange rate changes on cash and cash equivalents		6,418	274	8,712
Cash and cash equivalents at the end of the period	13	57,360	89,014	110,370

		Half year	Half year	Year
		2015	2014	2014
Reconciliation of net cash flow to movement in net debt		€'000	€'000	€'000

Net decrease in cash and cash equivalents		(59,428)	(17,519)	(4,601)
Cash movements from debt financing		21,675	(77,262)	(98,867)
Acquisition of subsidiary - debt acquired		-	(1,401)	(1,401)

		(37,753)	(96,182)	(104,869)
Fair value movement of currency swaps		(209)	(269)	(453)
Exchange translation adjustment on net debt		(28,738)	(869)	(30,597)

Movement in net debt in the period		(66,700)	(97,320)	(135,919)
Net debt at the beginning of the period		(510,363)	(374,444)	(374,444)

Net debt at the end of the period		(577,063)	(471,764)	(510,363)

Net debt comprises:
Borrowings	13	(634,423)	(560,778)	(620,733)
Cash and cash equivalents	13	57,360	89,014	110,370
,
		(577,063)	(471,764)	(510,363)

Notes to the condensed financial statements

for the half year ended 04 July 2015

1. General information

Glanbia plc (the "Company") and its subsidiaries (together the "Group") is a leading global nutrition Group with its main operations in Europe, USA, Middle East, Africa, Asia Pacific and Latin America.

The Company is a public limited company incorporated and domiciled in Ireland. The address of its registered office is Glanbia House, Kilkenny, Ireland. The Group is controlled by Glanbia Co-operative Society Limited ("the Society"). The Society can nominate up to 14 members of the Board of Directors of Glanbia plc for 2015 and currently holds, together with its subsidiaries, 39.8% of the issued share capital of the Company and is the ultimate parent of the Group.

The Company's shares are quoted on the Irish and London Stock Exchanges.

These condensed interim financial statements were approved for issue by the Board of Directors on 18 August 2015.

2. Basis of preparation

The condensed interim financial statements for the six months ended 04 July 2015 and for the six months ended 05 July 2014 have not been audited by the Group's auditors. These are not the statutory financial statements of the Group as defined in the Companies Act 2014. The amounts disclosed for the full year ended 03 January 2015 represent an abbreviated version of the Group's financial statements for that year, which received an unqualified audit report. The statutory accounts for the financial year ended 03 January 2015 were approved by the Board of Directors on 24 February 2015 and have been filed with the Companies Registration Office.

The Group's condensed interim financial statements for the six months ended 04 July 2015 have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Central Bank of Ireland and with IAS 34 - Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the financial statements for the year ended 03 January 2015, which have been prepared in accordance with International Financial Reporting Standards ("IFRS").

The Group meets its day-to-day working capital requirements through its bank facilities. The Group's forecasts and projections, taking account of changes in trading performance, show that the Group expects to be able to operate within the level of its current facilities. After making enquiries, the Directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future. In forming this view, the Directors have reviewed the Group's budget for a period of not less than 12 months, the medium term plans as set out in the four year strategic plan, and have taken into account the cash flow implications of the plans, including proposed capital expenditure, and compared these with the Group's committed borrowing facilities and Group financing key performance indicators ("KPIs"). The Group therefore continues to adopt the going concern basis in preparing its condensed interim financial statements for the six months ended 04 July 2015.

3. Accounting policies

The methods of computation, presentation and accounting policies adopted in the preparation of the Group's condensed interim financial statements are consistent with those applied in the Annual Report for the year ended 03 January 2015 ("2014 Annual Report"). The Group's accounting policies are set out in the financial statements in the 2014 Annual Report.

The following standard, issued by the IASB and the International Financial Reporting Interpretations Committee ("IFRIC"), is effective for the Group for the first time in the period ended 04 July 2015 and has been adopted by the Group.

Amendment to IAS 19 'Employee benefits' regarding defined benefit plans (effective for periods beginning on or after 01 July 2014).

The above standard did not have a significant impact on the results or the financial position of the Group during the six months ended 04 July 2015.

The following standards, amendments and interpretations have been published. The Group will apply the relevant standards from their effective dates and is currently assessing their impact on the Group's Financial Statements. The standards are mandatory for future accounting periods but are not yet effective and have not been early adopted by the Group.

Amendment to IAS16, 'Property, plant and equipment' and IAS 38, 'Intangible assets', on depreciation and amortisation (effective on or after 1 January 2016).

This amendment clarifies that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset.

Amendment to IAS 1, 'Presentation of financial statements' on the disclosure initiative (effective on or after 1 January 2016).

This amendment looks to improve presentation and disclosure in financial reports, effective for annual periods beginning on or after 1 January 2016, subject to EU endorsement.

Amendments to IFRS 11, 'Joint arrangements' on acquisition of an interest in a joint operation (effective on or after 01 January 2016).

This amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments specify the appropriate accounting treatment for such acquisitions.

Amendments to IAS 27, 'Separate financial statements' on the equity method (effective on or after 01 January 2016).

These amendments allow entities to use the equity method for investments in subsidiaries, joint ventures and associates in their separate financial statements.

Amendments to IFRS 10, 'Consolidated financial statements' and IAS 28, 'Investments in associates and joint ventures' (effective on or after 01 January 2016).

These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associates or joint venture. The main consequence of the amendment is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

IFRS 15 'Revenue from contracts with customers' (effective on or after 01 January 2018).

IFRS 15, 'Revenue from contracts with customers' is a converged standard from the IASB and FASB on revenue recognition. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally.

IFRS 9 'Financial instruments' (effective on or after 01 January 2018) .

This standard replaces the guidance in IAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model.

Amendments to IFRS 9, 'Financial instruments', regarding general hedge accounting (effective on or after 01 January 2018).

These amendments to IFRS 9, 'Financial instruments', bring into effect a substantial overhaul of hedge accounting that will allow entities to better reflect their risk management activities in the financial statements.

4. Changes in estimates and assumptions

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 03 January 2015.

5. Financial risk management

The Group's activities expose it to a variety of financial risks as follows: market risk, currency risk, interest rate risk, price risk, liquidity risk, cash flow risk and credit risk. The interim condensed financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's 2014 Annual Report.

There have been no changes to the risk management procedures or policies since 2014 year end.

Fair value estimation

The fair value of financial instruments traded in active markets (such as available for sale financial assets) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price.

The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined by using generally accepted valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.

In accordance with IFRS 13 - Fair Value Measurements, the Group has disclosed the fair value of instruments by the following fair value measurement hierarchy:

· quoted prices (unadjusted) in active markets for identical assets and liabilities (level 1);

· inputs, other than quoted prices included in level 1, that are observable for the asset and liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and,

· inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the Group's assets and liabilities that are measured at fair value at 04 July 2015 and 03 January 2015:

	Level 1	Level 2	Level 3	Total
04 July 2015	€'000	€'000	€'000	€'000
Assets
Derivatives used for hedging	-	1,686	-	1,686
Available for sale financial assets - equity securities	212	4,474	-	4,686

Total assets	212	6,160	-	6,372

Liabilities
Derivatives used for hedging	-	(408)	-	(408)

Total liabilities	-	(408)	-	(408)

	Level 1	Level 2	Level 3	Total
03 January 2015	€'000	€'000	€'000	€'000
Assets
Derivatives used for hedging	-	1,279	-	1,279
Available for sale financial assets - equity securities	272	3,281	-	3,553

Total assets	272	4,560	-	4,832

Liabilities
Derivatives used for hedging	-	(574)	-	(574)
Deferred acquisition payments	-	-	(6,504)	(6,504)

Total liabilities	-	(574)	(6,504)	(7,078)

There were no transfers between levels 1, 2 and 3 during the period.

There were no changes in valuation techniques during the periods.

Valuation techniques used to derive level 2 fair values

Level 2 equities are fair valued using the latest prices quoted in the grey market as at 04 July 2015.

Level 2 trading and hedging derivatives comprise mainly of foreign exchange contracts. These foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active market. The effects of discounting are generally insignificant for level 2 derivatives.

Group's valuation process

The Group's finance department includes a team that performs the valuations of financial assets and financial liabilities required for financial reporting purposes including level 3 fair values. The Group did not hold any level 3 financial assets at 04 July 2015 or 03 January 2015. The Group did not hold any level 3 financial liabilities at 04 July 2015. The level 3 financial liability held at 03 January 2015 related to a deferred acquisition payment (see note 7). This team reports directly to the Group Finance Director who in turn reports to the Audit Committee. Discussions of valuation processes and results are held between the Group Finance Director and the Audit Committee.

Changes in level 2 and level 3 fair values are analysed at each reporting date. As part of this discussion, the valuation team presents a report that explains the reasons for the fair value movements.

Fair value of financial assets and liabilities measured at amortised cost

The fair value of borrowings are as follows:

	04 July 2015	03 January 2015
Non-current	658,058	645,781
Current	37,448	416
	695,506	646,197

The fair value of the following financial assets and liabilities approximate their carrying amount:

· Trade and other receivables

· Cash and cash equivalents

· Trade and other payables

6. Segment information

In accordance with IFRS 8 - Operating Segments, the Group has four segments, as follows: Global Performance Nutrition, Global Ingredients, Dairy Ireland and Joint Ventures & Associates. These segments align with the Group's internal financial reporting system and the way in which the Chief Operating Decision Maker assesses performance and allocates the Group's resources. A segment manager is responsible for each segment and is directly accountable for the performance of that segment to the Glanbia Operating Executive Committee which acts as the Chief Operating Decision Maker for the Group.

Each segment derives its revenues as follows: Global Performance Nutrition earns its revenue from performance nutrition products; Global Ingredients earns its revenue from the manufacture and sale of cheese, dairy and non dairy nutritional ingredients and vitamin and mineral premixes; Dairy Ireland earns its revenue from the manufacture and sale of a range of consumer products and farm inputs and Joint Ventures & Associates revenue arises from the manufacture and sale of cheese and dairy ingredients. Each segment is reviewed in its totality by the Chief Operating Decision Maker. The Glanbia Operating Executive Committee assesses the trading performance of operating segments based on a measure of earnings before interest, tax, amortisation and exceptional items.

Amounts stated below for Joint Ventures & Associates represents the Group's share.

6.1 The segment results for the period ended 04 July 2015 are as follows:
		Global Performance Nutrition	Global Ingredients	Dairy Ireland	JVs & Associates	Group including JVs & Associates
		€'000	€'000	€'000	€'000	€'000

Total gross segment revenue	(a)	453,818	626,732	368,862	445,327	1,894,739
Inter-segment revenue		(346)	(17,476)	-	-	(17,822)

Segment external revenue		453,472	609,256	368,862	445,327	1,876,917

Segment earnings before interest, tax, amortisation and exceptional items	(b)	60,686	60,342	17,445	20,204	158,677

Segment assets	(c)	867,221	816,024	342,088	156,082	2,181,415

Segment liabilities	(d)	153,560	219,648	188,241	-	561,449

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of €8 million and related party sales between Global Ingredients and Joint Ventures & Associates of €7.6 million. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions that would also be available to unrelated third parties.

6.1(a) Total gross segment revenue is reconciled to reported external revenue as follows:
	€'000
Total gross segment revenue	1,894,739
Inter-segment revenue	(17,822)
Joint Ventures & Associates revenue	(445,327)

Reported external revenue	1,431,590

6.1(b) Segment earnings before interest, tax, amortisation and exceptional items are reconciled to reported profit before tax and profit after tax as follows:
	€'000
Segment earnings before interest, tax, amortisation and exceptional items	158,677
Amortisation	(15,566)
Exceptional items	(7,838)
Joint Ventures & Associates interest, tax and amortisation	(6,937)
Finance income	885
Finance costs	(11,588)

Reported profit before tax	117,633
Income tax	(18,542)

Reported profit after tax	99,091

Finance income, finance costs and income taxes are not allocated to segments, as this type of activity is driven by central treasury and taxation functions which manage the cash and taxation position of the Group.

6.1(c) Segment assets are reconciled to reported assets as follows:
	€'000
Segment assets	2,181,415
Unallocated assets	127,720

Reported assets	2,309,135

Unallocated assets primarily include taxation, cash and cash equivalents, available for sale financial assets and derivatives.

6.1(d) Segment liabilities are reconciled to reported liabilities as follows:
	€'000
Segment liabilities	561,449
Unallocated liabilities	766,965

Reported liabilities	1,328,414

Unallocated liabilities primarily include items such as taxation, borrowings and derivatives.

6.2 The segment results for the period ended 05 July 2014 are as follows:

		Global Performance Nutrition	Global Ingredients	Dairy Ireland	JVs & Associates	Group including JVs & Associates
		€'000	€'000	€'000	€'000	€'000

Total gross segment revenue	(a)	374,627	585,140	353,824	503,444	1,817,035
Inter-segment revenue		-	(19,434)	-	-	(19,434)

Segment external revenue		374,627	565,706	353,824	503,444	1,797,601

Segment earnings before interest, tax, amortisation and exceptional items	(b)	42,907	53,871	10,536	22,158	129,472

Segment assets	(c)	585,454	648,620	336,298	164,213	1,734,585

Segment liabilities	(d)	95,902	200,155	188,750	-	484,807

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures and Associates of €5.3 million, and related party sales between Global Ingredients and Joint Ventures & Associates of €9.1 million. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions that would also be available to unrelated third parties.

6.2(a) Total gross segment revenue is reconciled to reported external revenue as follows:
	€'000
Total gross segment revenue	1,817,035
Inter-segment revenue	(19,434)
Joint Ventures & Associates revenue	(503,444)

Reported external revenue	1,294,157

6.2(b) Segment earnings before interest, tax, amortisation and exceptional items is reconciled to reported profit before tax and profit after tax as follows:
	€'000
Segment earnings before interest, tax, amortisation and exceptional items		129,472
Amortisation		(10,565)
Exceptional items		(3,638)
Joint Ventures & Associates interest, tax and amortisation		(6,882)
Finance income		841
Finance costs		(11,337)

Reported profit before tax		97,891
Income taxes		(13,789)

Reported profit after tax		84,102

6.2(c) Segment assets are reconciled to reported assets as follows:
	€'000
Segment assets	1,734,585
Unallocated assets	111,030

Reported assets	1,845,615

Unallocated assets primarily include taxation, cash and cash equivalents, available for sale financial assets and derivatives.

6.2(d) Segment liabilities are reconciled to reported liabilities as follows:
	€'000
Segment liabilities	484,807
Unallocated liabilities	664,893

Reported liabilities	1,149,700

Unallocated liabilities primarily include items such as taxation, borrowings and derivatives.

6.3 The segment results for the year ended 03 January 2015 are as follows:

		Global Performance Nutrition	Global Ingredients	Dairy Ireland	JVs & Associates	Group including JVs & Associates
		€'000	€'000	€'000	€'000	€'000

Total gross segment revenue	(a)	746,381	1,210,376	616,744	984,016	3,557,517
Inter-segment revenue		(154)	(34,979)	-	-	(35,133)

Segment external revenue		746,227	1,175,397	616,744	984,016	3,522,384

Segment earnings before interest, tax, amortisation and exceptional items	(b)	89,188	100,426	19,020	36,427	245,061

Segment assets	(c)	801,572	709,810	293,186	161,173	1,965,741

Segment liabilities	(d)	160,139	230,678	197,583	-	588,400

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of €21.2 million and related party sales between Global Ingredients and Joint Ventures & Associates of €18.2 million. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions that would also be available to unrelated third parties.

6.3(a)Total gross segment revenue is reconciled to reported external revenue as follows:
	€'000
Total gross segment revenue	3,557,517
Inter-segment revenue	(35,133)
Joint Ventures & Associates revenue	(984,016)

Reported external revenue	2,538,368

6.3(b) Segment earnings before interest, tax, amortisation and exceptional items is reconciled to reported profit before tax and profit after tax as follows:
	€'000
Segment earnings before interest, tax, amortisation and exceptional items	245,061
Amortisation	(22,512)
Exceptional items	(15,949)
Joint Ventures & Associates interest, tax and amortisation	(12,698)
Finance income	1,725
Finance costs	(22,050)

Reported profit before tax	173,577
Income taxes	(26,382)

Reported profit after tax	147,195

6.3(c) Segment assets are reconciled to reported assets as follows:
	€'000
Segment assets	1,965,741
Unallocated assets	140,383

Reported assets	2,106,124

Unallocated assets primarily include taxation, cash and cash equivalents, available for sale financial assets and derivatives.

6.3(d) Segment liabilities are reconciled to reported liabilities as follows:
	€'000
Segment liabilities	588,400
Unallocated liabilities	712,946

Reported liabilities	1,301,346

Unallocated liabilities primarily include items such as taxation, borrowings and derivatives.

7. Exceptional items

		Half year	Half year	Year
		2015	2014	2014
	Notes	€'000	€'000	€'000

Rationalisation costs	(a)	(1,162)	(644)	(6,379)
Organisational redesign costs	(b)	(3,099)	-	-
Disposal of joint venture	(c)	(3,577)	-	-
Transaction related costs	(d)	-	(2,994)	(9,570)

Total exceptional (charge) before tax		(7,838)	(3,638)	(15,949)
Exceptional tax credit		533	874	1,870

Total exceptional (charge)		(7,305)	(2,764)	(14,079)

(a) Rationalisation costs primarily relate to the ongoing redundancy programme in the Dairy Ireland segment and a related write down of tangible assets of €0.1 million (FY 2014: €3.2 million).

(b) Global Ingredients has commenced a programme to redesign the business to leverage future market opportunities. Building on its core strengths the current business unit structure will be integrated into one global GI organisation. This new organisation will have a regionally focused sales team to deliver the full suite of Glanbia's capability to its customers and markets, enabled by centres of excellence across key functions. It is envisaged that this programme will take 12-18 months to complete and will involve an investment of approximately €15 million which will be treated as an exceptional item in the Group's 2015 and 2016 financial statements.

(c) On 01 April 2015 the Group disposed of its investment in Milk Ventures (UK) Limited which is the parent company of Nutricima Limited, a non-core Joint Venture business involved in the supply and distribution of evaporated and powdered milk, based in Nigeria. PZ Cussons plc, Glanbia's partner in the Joint Venture Nutricima, acquired Glanbia's 50% stake for cash consideration of £21 million (€28.5 million). In line with IFRS 5 - Non Current Assets Held for Sale and Discontinued Operations, the disposal of the Group's interest resulted in a non-cash loss of €3.6 million. This comprised a profit on disposal of €1.4 million (cash consideration of €28.5 million less carrying value €27.1 million including loan to Joint Venture) offset by the recycle of €5.0 million cumulative foreign currency translation losses previously recognised in equity. Milk Ventures (UK) Limited was previously included in the Joint Ventures & Associates segment.

(d) Transaction related costs in 2014 were comprised of costs relating to acquisition activities that did not come to fruition and additional contingent consideration relating to the acquisition of Nutramino Holding ApS, in excess of its fair value at date of acquisition.

8. Finance income and costs

	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000
Finance income
Interest income	885	841	1,725

Total finance income	885	841	1,725

Finance costs
Bank borrowing costs repayable within five years	(3,647)	(3,416)	(6,812)
Unwinding of discounts	(74)	(158)	(165)
Finance lease costs	(72)	(40)	(70)
Finance cost of private debt placement	(7,795)	(6,385)	(13,442)
Finance cost of preference shares	-	(1,338)	(1,561)

Total finance costs	(11,588)	(11,337)	(22,050)

Net finance costs	(10,703)	(10,496)	(20,325)

Net finance costs do not include borrowing costs of €1.25 million (HY 2014: €0.85 million) attributable to the acquisition, construction or production of a qualifying asset, which have been capitalised, as disclosed in note 12. Interest is capitalised at the Group's average interest rate for the period of 3.9% (HY 2014: 4.8%) .

9. Income taxes

The Group's income tax charge after exceptional items of €18.5 million (HY 2014: €13.8 million) has been prepared based on the Group's best estimate of the weighted average tax rate that is expected for the full financial year.

10. Dividends

A final dividend in respect of the year ended 03 January 2015 of 6.57 cents per share was paid on 15 May 2015. On 18 August 2015, the Directors declared the payment of an interim dividend for 2015 of 4.88 cents per share (2014 interim dividend: 4.43 cents per share). This dividend will be paid on 16 October 2015 to shareholders on the register of members at 04 September 2015, the record date. These condensed financial statements do not reflect this interim dividend.

11. Earnings per share

	Half year	Half year	Year
	2015	2014	2014

Basic
Profit attributable to equity holders of the Parent (€'000)	98,674	83,592	146,313

Weighted average number of ordinary shares in issue	295,124,380	295,028,064	295,011,089

Basic earnings per share (cents per share)	33.43	28.33	49.60

Diluted

Weighted average number of ordinary shares in issue	295,124,380	295,028,064	295,011,089
Adjustments for share options and share awards	2,224,885	1,420,214	1,645,431
Adjusted weighted average number of ordinary shares	297,349,265	296,448,278	296,656,520

Diluted earnings per share (cents per share)	33.18	28.20	49.32

Adjusted

Profit attributable to equity holders of the Parent (€'000)	98,674	83,592	146,313
Amortisation of intangible assets (net of related tax) (€'000)	13,620	9,244	19,698
Amortisation of Joint Ventures & Associates intangible assets (net of related tax) (€'000)	208	129	345
Net exceptional charge (€'000)	7,305	2,764	14,079
Adjusted net income (€'000)	119,807	95,729	180,435


Adjusted earnings per share (cents per share)	40.60	32.45	61.16

Diluted adjusted earnings per share (cents per share)	40.29	32.29	60.82

12. Property, plant & equipment and intangible assets

During the six month period to 04 July 2015 the Group spent €58.8 million (HY 2014: €57.2 million) on additions to property, plant & equipment and intangible assets. There were no significant disposals during the period. At 04 July 2015 the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to €24.6 million (HY 2014: €48.8 million). During the six month period the Group capitalised borrowing costs amounting to €1.25 million (HY 2014: €0.85 million) on qualifying assets.

13. Net debt

	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

Bank overdrafts	37,040	-	-
Other borrowings due within one year	408	39,447	416
Borrowings due after one year	634,015	521,331	620,317
Less:
Cash and cash equivalents	(94,400)	(89,014)	(110,370)

Net debt	577,063	471,764	510,363

Cash and cash equivalents include the following for the purposes of the Condensed statement of cash flows:
	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

Bank overdrafts	37,040	-	-
Cash and cash equivalents	(94,400)	(89,014)	(110,370)

Cash and cash equivalents per Condensed statement of cash flows	(57,360)	(89,014)	(110,370)

The Group has the following undrawn borrowing facilities:
	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

Expiring within one year	76,113	63,351	70,482
Expiring beyond one year	377,473	185,545	362,040

	453,586	248,896	432,522
Movement in net borrowings to the period ended 05 July 2014 is analysed as follows:
				€'000

Balance at 04 January 2014				374,444

Acquisition of subsidiary				21,135
Acquisition of subsidiary - net debt				1,401
Other borrowings				73,646
Fair value movement of currency swaps				269
Exchange translation adjustment on net debt				869

Balance at 05 July 2014				471,764

Movement in net borrowings to the period ended 04 July 2015 is analysed as follows:
					€'000

Balance at 03 January 2015					510,363

Net drawdown of borrowings					37,753
Fair value movement of currency swaps					209
Exchange translation adjustment on net debt					28,738

Balance at 04 July 2015					577,063

14. Provisions for other liabilities and charges

	Restructuring €'000	UK pension €'000	Legal claims €'000	Property & lease commitments €'000	Operational €'000	Total €'000
	Restructuring €'000	UK pension €'000	Legal claims €'000	Property & lease commitments €'000	Operational €'000	Total €'000
	note (a)	note (b)	note (c)	note (d)	note (e)

At 03 January 2015	2,750	18,506	7,164	1,219	11,911	41,550
Provided for in the year	596	-	-	-	-	596

Utilised in the period	(1,379)	(184)	(2,025)	(90)	(6,311)	(9,989)
Exchange differences	-	1,815	329	10	61	2,215
Unwinding of discounts	-	72	-	2	-	74
Reclassification	-	-	(179)	-	-	(179)

At 04 July 2015	1,967	20,209	5,289	1,141	5,661	34,267

Non-current	-	19,290	-	526	-	19,816
Current	1,967	919	5,289	615	5,661	14,451
	1,967	20,209	5,289	1,141	5,661	34,267

(a) The restructuring provision relates to the rationalisation programme that the Group is currently undertaking. The provision, which relates mainly to termination payments, is expected to be fully utilised during 2015. The amount provided in the year is recognised in the income statement as an exceptional item.

(b) The UK pension provision relates to administration and certain costs associated with pension schemes attached to businesses disposed of in prior years. This provision is expected to be fully utilised over the next 29 years.

(c) The legal claims provision represents legal claims brought against the Group. The balance at 04 July 2015 is expected to be utilised during 2015. In the opinion of the Directors, after taking appropriate legal advice, the outcome of these legal claims is not expected to give rise to any significant loss beyond the amounts provided for at 04 July 2015.

(d) The property and lease commitments provision relates to onerous leases in respect of two properties where the Group has a present and future obligation to make lease payments. It is expected that €0.6 million will be utilised during the next year and the balance will be fully utilised over the next two years.

(e) It is expected that €5.7 million of this provision will be utilised within the next year. Due to the nature of these items, there is some uncertainty around the amount and timing of payments.

15. Share capital and share premium

Half year 2014	Number of shares (thousands)	Ordinary shares €'000	Share premium €'000	Total €'000
Half year 2014	Number of shares (thousands)	Ordinary shares €'000	Share premium €'000	Total €'000

At 04 January 2014	295,646	17,738	86,259	103,997
Shares issued	85	5	333	338
At 05 July 2014	295,731	17,743	86,592	104,335

	Number of shares	Ordinary shares	Share premium	Total
Half year 2015	(thousands)	€'000	€'000	€'000

At 03 January 2015	295,876	17,752	86,976	104,728
Shares issued	155	9	633	642
At 04 July 2015	296,031	17,761	87,609	105,370

During the period ended 04 July 2015 155,000 of the 2002 Long Term Incentive Plan ("the 2002 LTIP") shares were exercised with exercise proceeds of €0.6 million. The related weighted average exercise price was €4.14 per share.

The total authorised number of ordinary shares is 350 million shares (HY 2014: 350 million shares) with a par value of €0.06 per share (HY 2014: €0.06 per share).

16. Other reserves

	Capital and merger reserve	Currency reserve	Hedging reserve	Available for sale financial asset reserve	Own shares	Share based payment reserve	Total
Half year 2014	€'000	€'000	€'000	€'000	€'000	€'000	€'000

Balance at 04 January 2014	115,973	10,535	(1,427)	1,396	(8,191)	8,314	126,600

Currency translation differences	-	4,040	-	-	-	-	4,040
Net investment hedge	-	(245)	-	-	-	-	(245)
Revaluation of interest rate swaps - gain in period	-	-	105	-	-	-	105
Foreign exchange contracts- gain in period	-	-	1,539	-	-	-	1,539
Transfers to income statement:
- Foreign exchange contracts - loss in period	-	-	271	-	-	-	271
- Forward commodity contracts- gain in period	-	-	(79)	-	-	-	(79)
Revaluation of forward commodity contracts - gain in period	-	-	173	-	-	-	173
Revaluation of available for sale financial assets - gain in period	-	-	-	1,409	-	-	1,409
Deferred tax on fair value movements	-	-	(54)	(465)	-	-	(519)
Cost of share based payments	-	-	-	-	-	2,931	2,931
Transfer on exercise, vesting or expiry of share based payments	-	-	-	-	8,188	(3,744)	4,444
Purchase of own shares	-	-	-	-	(5,793)	-	(5,793)

Balance at 05 July 2014	115,973	14,330	528	2,340	(5,796)	7,501	134,876

	Capital and merger reserve	Currency reserve	Hedging reserve	Available for sale financial asset reserve	Own shares	Share based payments reserve	Total
Half year 2015	€'000	€'000	€'000	€'000	€'000	€'000	€'000

Balance at 03 January 2015	115,973	98,796	(745)	2,538	(7,965)	9,984	218,581

Currency translation differences	-	75,654	-	-	-	-	75,654
Recycle of currency reserve to the Group income statement on disposal of investment in Joint Venture	-	5,037	-	-	-	-	5,037
Net investment hedge	-	(6,980)	-	-	-	-	(6,980)
Revaluation of interest rate swaps - gain in period	-	-	35	-	-	-	35
Foreign exchange contracts - gain in period	-	-	2,955	-	-	-	2,955
Transfers to income statement:
- Foreign exchange contracts - gain in period	-	-	(771)	-	-	-	(771)
- Forward commodity contracts - loss in period	-	-	700	-	-	-	700
Revaluation of forward commodity contracts - loss in period	-	-	(443)	-	-	-	(443)
Revaluation of available for sale financial assets - gain in period	-	-	-	1,052	-	-	1,052
Deferred tax on fair value movements	-	-	(97)	(347)	-	-	(444)
Cost of share based payments	-	-	-	-	-	3,565	3,565
Transfer on exercise, vesting or expiry of share based payments	-	-	-	-	486	(694)	(208)
Purchase of own shares	-	-	-	-	(4,660)	-	(4,660)

Balance at 04 July 2015	115,973	172,507	1,634	3,243	(12,139)	12,855	294,073

17. Retirement benefit obligations

The movement in the liability recognised in the Group condensed balance sheet is as follows:

	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

At the beginning of the period	(114,808)	(78,035)	(78,035)
Exchange differences	(2,362)	(1,134)	(1,423)
Service costs and net interest costs	(4,299)	(4,174)	(8,226)
Remeasurements - defined benefit schemes	18,178	(16,857)	(42,369)
Contributions paid by employer	9,320	8,840	15,245

At the end of the period	(93,971)	(91,360)	(114,808)

The amounts recognised in the Group condensed balance sheet are determined as follows:

	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

Fair value of plan assets	416,691	374,343	393,290
Present value of funded obligations	(510,662)	(465,703)	(508,098)

Liability in condensed balance sheet	(93,971)	(91,360)	(114,808)

The following actuarial assumptions have been made in determining the Group's retirement benefit obligations for the half year ended 04 July 2015 and full year ended 03 January 2015:

	Half year 2015		Year 2014
	IRL	UK	IRL	UK
Discount rate	2.40%	3.65%	2.10%	3.60%
Inflation rate	1.50%-1.60%	2.15%-3.15%	1.20% - 1.50%	1.95% - 2.95%
Future salary increases	2.60%	3.90%	2.50%	3.70%
Future pension increases*	0.00%	2.20%-2.95%	0.00%	2.05% - 2.80%

*Future pension increases on the Irish pension schemes have been calculated on a weighted average basis.

Mortality rates

The mortality assumptions imply the following life expectancies in years of an active member on retiring at age 65, 20 years from now:

	Half year 2015		Year 2014
	Irish mortality	UK mortality	Irish mortality	UK mortality
	rates	rates	rates	rates
Male	22.8	22.8	22.8	22.7
Female	25.2	25.3	25.2	25.2

The mortality assumptions imply the following life expectancies in years of an active member, aged 65, retiring now:

	Half year 2015		Year 2014
	Irish mortality	UK mortality	Irish mortality	UK mortality
	rates	rates	rates	rates
Male	20.2	21.4	20.2	21.4
Female	23.0	23.7	23.0	23.7

18. Related party transactions

The Group is controlled by Glanbia Co-operative Society Limited ("the Society") which holds 39.8% of the issued share capital of Glanbia plc (the "Company") and is the ultimate parent of the Group. On 20 August 2015 the Society expects to complete the spin out of 3.38% of its holding of the issued share capital of the Company to its members thus reducing its shareholding in the Company to 36.42%.

During the six months to 04 July 2015, sales to related parties amounted to €18.1 million (HY 2014: €15.8 million), purchases from related parties amounted to €39.5 million (HY 2014: €38.2 million) and net balances owed to related parties were €54.3 million (HY 2014: €40.4 million). The related party transactions relate primarily to trading between the Group, Southwest Cheese Company, LLC, Glanbia Ingredients Ireland Limited, Milk Ventures (UK) Limited and the Society.

In the opinion of the Directors, there have been no related party transactions, or changes therein, since the year ended 03 January 2015, that have materially affected the Group's financial position or performance during the six months ended 04 July 2015.

19. Contingent liabilities

Group bank guarantees amounting to €3.6 million (HY 2014: €2.9 million) are outstanding at 04 July 2015, mainly in respect of the payment of EU subsidies. The Group does not expect any material loss to arise from these guarantees.

20. Cash generated from operations

	Half year	Half year	Year
	2015	2014	2014
	€'000	€'000	€'000

Profit before taxation	117,633	97,891	173,577

Write-off of intangibles	-	-	73
Exceptional loss (non- cash)	5,386	3,638	10,290
Share of results of Joint Ventures & Associates	(13,267)	(15,276)	(23,729)
Depreciation	21,209	14,914	32,230
Amortisation	15,566	10,565	22,512
Cost of share based payments	3,565	2,931	5,516
Difference between pension charge and cash contributions	(5,023)	(4,666)	(7,019)
Loss/(Profit) on disposal of property, plant and equipment	96	(9)	(226)
Finance income	(885)	(841)	(1,725)
Finance expense	11,588	11,337	22,050
Amortisation of government grants received	(103)	(109)	(264)

Cash generated from operations before changes in working capital	155,765	120,375	233,285

Changes in net working capital:
- Decrease in inventory	7,184	14,697	15,740
- (Increase) in short term receivables	(88,962)	(110,351)	(16,264)
- (Decrease)/Increase in short term liabilities	(38,114)	12,411	9,321
- (Decrease) in provisions	(10,410)	(9,907)	(11,366)

Cash generated from operations	25,463	27,225	230,716

21. Business combinations

On 27 June 2015 the Group acquired 100% of the share capital of Dairyland Cuisine, a food service provider, distributing a range of fresh dairy and non-dairy products in Ireland for consideration of approximately €1.3 million.

This acquisition is included in the Dairy Ireland segment.