Glanbia (LON:GLB) reported a “robust” full-year 2025 performance, led by like-for-like revenue and volume growth across all three segments, but faced a significant profitability headwind from record whey input costs in its Performance Nutrition business.
Chief Executive Officer Hugh McGuire said the group saw strong consumer demand for its better nutrition brands and ingredients, while Chief Financial Officer Mark Garvey highlighted that adjusted earnings per share came in at $1.3493, down 3.4% on a constant currency basis but ahead of prior guidance of $1.30 to $1.33.
Group results: Revenue up, EBITDA down on whey inflation
Group pre-exceptional EBITDA was $499.1 million, down 9.4% constant currency, primarily due to higher whey costs in Performance Nutrition. Group EBITDA margin declined to 12.6% from 14.4% in the prior year. Operating cash flow was just over $454 million, with 91% cash conversion, and free cash flow was $360 million.
Net debt ended the year at $526 million, up from $436 million, with net debt to adjusted EBITDA of 1.08x and interest cover of 13.7x. The company said it has $1.4 billion in committed debt facilities with no renewal due before late 2027.
Performance Nutrition: Growth led by Optimum Nutrition and Isopure, margin hit by whey
Performance Nutrition delivered like-for-like revenue growth of 4.5% excluding non-core brands, driven by Optimum Nutrition and Isopure. Glanbia cited strong growth in online and Food, Drug, Mass channels, as well as continued expansion in international markets, partly offset by weaker revenue in the U.S. club and specialty channels.
Segment EBITDA declined 23.2% and EBITDA margin fell to 13%, which management attributed “entirely” to record whey input costs. McGuire said the company implemented price increases internationally in the second quarter and in the U.S. in the fourth quarter to offset whey inflation, and also executed tactical price reductions on higher-margin energy products to drive volume.
Optimum Nutrition, representing 75% of Performance Nutrition revenue excluding non-core brands, grew like-for-like revenue 6.4% (5% volume, 1.4% pricing) and delivered double-digit growth in the second half. Management pointed to distribution gains, innovation, and improving trends following earlier club-channel headwinds. Isopure also delivered double-digit like-for-like growth, with the company highlighting expanded distribution and brand-building campaigns.
In Q&A, Garvey said whey costs are expected to rise at a double-digit rate year-over-year in 2026 versus 2025, and that the company has contracted whey supply into early Q4 2026, providing “very good visibility” on its cost base. Management said it does not expect a “significant reduction” in whey prices in 2026 and has assumed prices will remain elevated in its guidance.
McGuire detailed innovation efforts that began coming online in late 2025 and into 2026, including whey-and-collagen blends, clear whey in Europe, new creatine flavors, creatine gummies launched on TikTok Shop in the U.S., a new 40-gram shake, Amino Energy stick packs, and a new pre-workout product launched in January.
Health & Nutrition: Volume-driven growth and margin expansion
Health & Nutrition posted like-for-like revenue growth of 6.8%, driven by 7.4% volume growth and slightly negative pricing due to pass-through pricing dynamics. Total revenue rose 11.5%, reflecting acquisition contributions from Flavor Producers and SweetMix, partly offset by the prior-year 53rd week comparison.
Segment EBITDA was $115.8 million, up 16.7% constant currency, and EBITDA margin expanded 80 basis points to 18.4%. Management attributed the margin improvement to the full-year impact of Flavor Producers and strong volume growth, partially offset by tariffs in the second half.
McGuire said the business is focused on active lifestyle nutrition, functional beverages, and vitamins/minerals/supplements, and described Glanbia as a “focused and agile” player with deep customer relationships. The company outlined capacity expansion plans, including increased spray drying capabilities in the U.S., more than doubling premix capacity in Asia, and expanding capacity in Europe.
Capital allocation, transformation, and 2026 outlook
Glanbia increased its 2025 final dividend by 10%, bringing total 2025 dividend to EUR 0.4287 per share (a 35.9% payout ratio, within a 30% to 40% target range). The company returned EUR 197 million via share buybacks during 2025, acquiring and canceling 15 million shares at an average price of EUR 13.10. The board authorized a further EUR 100 million buyback program for 2026, starting with an initial EUR 50 million tranche.
The group’s transformation program, announced in late 2024, is expected to generate at least $60 million of annual cost savings by 2027, with approximately 40% of savings expected in 2026. Management said about half of the savings will be reinvested to drive growth in Performance Nutrition and Health & Nutrition.
Exceptional charges after tax totaled just over $100 million, primarily linked to transformation costs and losses on disposals of non-core brands. The company also recorded a non-cash impairment charge related to the LevlUp direct-to-consumer retail business, which it said it is exiting following the sale of Body & Fit.
For 2026, Glanbia guided to:
- Performance Nutrition organic like-for-like revenue growth (excluding dispositions) of 5% to 7%, expected to be pricing-led, with margin progression described as second-half weighted.
- Health & Nutrition revenue growth of 4% to 6%, expected to be volume-led, with EBITDA margins in the 17% to 19% range.
- Dairy Nutrition EBITDA of $150 million to $160 million, with continued strong demand for whey protein.
- Adjusted EPS growth of 7% to 11% constant currency, operating cash conversion above 85%, and ROCE of 10% to 13%.
In discussion, management emphasized that Performance Nutrition price increases are being implemented globally for execution in Q2 2026 to help offset ongoing whey inflation, while noting limited consumer elasticity observed from 2025 price increases to date. McGuire added that the company is focused on affordability initiatives such as smaller pack sizes, saying 10-serve and 14-serve formats have performed well and helped recruit new consumers, particularly online.
Closing the call, McGuire said Glanbia remains “well positioned for growth,” citing a sharper focus on Performance Nutrition and Health & Nutrition, continued transformation execution, and confidence in the company’s ability to drive shareholder returns.
About Glanbia (LON:GLB)
We are a better nutrition company, home to consumer brands and ingredients that help people around the world feel strong, nourished, and to perform well at any age. Everything we do has real nutritional benefit. Everything we do is in pursuit of better, for each other and the planet.
