Half Year 2026 Glanbia PLC Earnings Call

August 6, 2026

Operator: Good day and thank you for standing by. Welcome to Glanbia Half Year 2026 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Mr. Liam Hennigan, Group Secretary and Head of Investor Relations. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the Glanbia Half Year 2026 Results Conference Call. At this time, all participants are in a listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *111 on your telephone.

Speaker #1: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *111 again. Please be advised that today's conference is being recorded.

Speaker #1: And I'd like to hand the conference over to Mr. Liam Hennigan, Group Secretary and Head of Investor Relations. Please go ahead.

Speaker #2: Thank you. Good morning, and welcome to the Glanbia 2026 Half Year Results Call. During today's call, the directors may make 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 the Glanbia Half Year 2026 Results Announcement.

Liam Hennigan: Thank you. Good morning and welcome to the Glanbia 2026 Half Year Results Call. During today's call, the directors may make 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 the Glanbia Half Year 2026 Results Announcement. Due to 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 made on today's call, whether as a result of new information, future events, or otherwise. I'm now handing the call over to Hugh McGuire, CEO, Glanbia PLC.

Speaker #2: Due to 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.

Speaker #2: The directors undertake no obligation to update any forward-looking statements made on today's call, whether as a result of new information, future events, or otherwise.

Speaker #2: I'm now handing the call over to Hugh McGuire, CEO of Glanbia PLC.

Speaker #3: Thank you, Liam. Good morning, everyone, and welcome to the Glanbia Half Year 2026 Results Call and presentation. I'm joined on today's call by Mark Garvey, who will provide an overview of our performance for the first half, and Mark will then cover the financials and outlook.

Hugh McGuire: Thank you, Liam. Good morning, everyone, and welcome to the Glanbia Half Year 2026 Results Call and Presentation. I'm joined on today's call by Mark Garvey. I will provide an overview of our performance for the H1, and Mark will then cover the financials and outlook. At the end of our prepared remarks, we will be happy to take your questions. Overall, we delivered a strong performance in the H1 of the year with adjusted earnings per share of EUR 0.8124, representing constant currency growth of 13% versus the prior year. This was driven by strong growth across all three of our operating segments, with very good demand for our Better Nutrition brands and ingredients. The group delivered revenues of $2.1 billion, representing an increase of 7% on a constant currency basis.

Speaker #3: At the end of our prepared remarks, we will be happy to take your questions. Overall, we delivered a strong performance in the first half of the year, with adjusted earnings per share of 81.24 cents.

Speaker #3: Representing constant currency growth of 13% versus the prior year. This was driven by strong growth across all three of our operating segments, with very good demand for our better nutrition brands and ingredients.

Speaker #3: The group delivered revenues of $2.1 billion, representing an increase of 7% on a constant currency basis. In performance nutrition, we saw continued momentum across our protein portfolio, with like-for-like revenue growth of 16.9%, driven primarily by our number-one sports nutrition brand, Optimum Nutrition.

Hugh McGuire: In Performance Nutrition, we saw continued momentum across our protein portfolio with like-for-like revenue growth of 16.9%, driven primarily by our number one sports nutrition brand, Optimum Nutrition, which delivered double-digit volumes and strong pricing growth. In Health and Nutrition, we also continued to see good momentum driven by demand in our core end-use markets and saw like-for-like revenue growth of 12% in the period. In Dairy Nutrition, we also saw strong growth in protein solutions translating to EBITDA of EUR 92.3 million within DN, an increase of 28.2% on the prior year. The group delivered pre-exceptional EBITDA of EUR 275.4 million, representing an increase of 14.1%, and EBITDA margins of 13.2%, representing an increase of 80 basis points, with margin expansion across Health and Nutrition and Dairy Nutrition, while margins and Performance Nutrition were broadly in line with the prior year as we continue to navigate record whey protein costs.

Speaker #3: This delivered double-digit volume and strong pricing growth. In Health and Nutrition, we also continue to see good momentum, driven by demand in our core end-use markets, and saw like-for-like revenue growth of 12% in the period.

Speaker #3: In dairy nutrition, we also saw strong growth in protein solutions, translating to EBITDA of €92.3 million within DEN, an increase of 28.2% on the prior year.

Hugh McGuire: In Dairy Nutrition, we also saw strong growth in protein solutions translating to EBITDA of EUR 92.3 million within DN, an increase of 28.2% on the prior year. The group delivered pre-exceptional EBITDA of EUR 275.4 million, representing an increase of 14.1%, and EBITDA margins of 13.2%, representing an increase of 80 basis points, with margin expansion across Health and Nutrition and Dairy Nutrition, while margins and Performance Nutrition were broadly in line with the prior year as we continue to navigate record whey protein costs.

Speaker #3: The group delivered pre-exceptional EBITDA of €275.4 million, representing an increase of 14.1%. EBITDA margin was 13.2%, representing an increase of 80 basis points, with margin expansion across Health and Nutrition and Dairy Nutrition, while margins in Performance Nutrition were broadly in line with the prior year as we continue to navigate record whey protein cuts.

Speaker #3: We continue to progress our strategic agenda and have made good progress on our group-wide transformation program. As a result, we're increasing our target annual savings from €60 million to €70 million by 2027.

Hugh McGuire: We continue to progress our strategic agenda and have made good progress on our groupwide transformation program. As a result, we are increasing our target annual savings from EUR 60 million to EUR 70 million by 2027. We expect to deliver approximately 40% of savings by the end of this year. This improvement has been driven primarily through the implementation of our new global supply chain structure and our digital transformation. We continue to identify significant opportunity across the group to optimize our capacity across our blending footprint for both our B2B and B2C businesses, and deliver above expected savings through operational efficiency, procurement effectiveness, and supply planning. Our digital transformation is progressing well with the implementation of our new IT operating model, laying the foundation for greater automation, AI-enabled support, and enhanced service delivery.

Speaker #3: We expect to deliver approximately 40% of savings by the end of this year. This improvement has been driven primarily through the implementation of our new global supply chain structure and our digital transformation.

Speaker #3: We continue to identify significant opportunity across the group to optimize our capacity across our blending footprint for both our B2B and B2C businesses. And deliver above expected savings through operational efficiency, procurement effectiveness, and supply planning.

Speaker #3: Our digital transformation is progressing well, with the implementation of our new IT operating model laying the foundation for greater automation, AI-enabled support, and enhanced service delivery.

Speaker #3: In addition, we have a focused set of AI deployments and agentic solutions working across innovation planning and the consumer and customer journey, as we continue to expand AI usage.

Hugh McGuire: In addition, we have a focused set of AI deployments and agentic solutions working across innovation, planning, and consumer and customer journey as we continue to expand AI usage. We continued our strong track record of delivering returns to shareholders by raising the interim dividend by 10% and returning approximately EUR 100 million to shareholders via our share buyback programs. As a result of the strong performance across all three segments, we are today pleased to upgrade our full-year adjusted earnings per share guidance to 17% to 20% constant currency growth. Mark will provide a detailed update on changes to segmental guidance. For Performance Nutrition, like-for-like revenue increased by 16.9%, driven by a 9.3% increase in volume and a 7.6% increase in price.

Speaker #3: We continued our strong track record of delivering returns to shareholders by raising the interim dividend by 10% and returning approximately €100 million to shareholders via our share buyback programs.

Speaker #3: And as a result of the strong performance across all three segments, we are today pleased to upgrade our fully adjusted earnings per share guidance to 17% to 20% constant currency growth.

Speaker #3: Mark will provide a detailed update on changes to segmental guidance. For Performance Nutrition, like-for-like revenue increased by 16.9%, driven by a 9.3% increase in volume and a 7.6% increase in price.

Speaker #3: The volume growth was driven by strong category and velocity growth, coupled with increased distribution, innovation, some shipment timing in Q2, and lapping of a weaker comparative in the prior year.

Hugh McGuire: The volume growth was driven by strong category and velocity growth, coupled with increased distribution innovation and some shipment timing in Q2, and lapping of a weaker comparative in the prior year. We implemented double-digit price increases in Q2 globally, and we started to see some early signs of elasticity concentrated in specific channels and pack sizes. Due to underlying consumer demand, the higher income skew of our shopper, and Optimum Nutrition's brand strength, consumption remains strong. In a recent survey we conducted in the US, Optimum Nutrition demonstrated the highest resilience to pricing out of all brands tested. We'll continue to monitor the situation closely, particularly as we implement further price increases in Q3 on our protein brands, which is supported by promotional efficiency, product mix, and price back architecture.

Speaker #3: We implemented double-digit price increases in Q2 globally, and we started to see some early signs of elasticity, concentrated in specific channels and pack sizes, but due to underlying consumer demand, the higher income skew of our shopper, and Optimum Nutrition's brand strength, consumption remained strong.

Speaker #3: In a recent survey we conducted in the US, Optimum Nutrition demonstrated the highest resilience to pricing out of all brands tested. We continue to monitor the situation closely, particularly as we implement further price increases in quarter three on our protein brands.

Speaker #3: This is supported by promotional efficiency, product mix, and price pack architecture. From a regional perspective, PN Americas—which represents 58% of revenue—grew like-for-like revenue by 9.2% versus last year, due to strong growth in Optimum Nutrition, somewhat offset by declines in other portfolio brands.

Hugh McGuire: From a regional perspective, PN Americas, which represents 58% of revenue, grew like-for-like revenue by 9.2% versus last year due to strong growth in Optimum Nutrition, somewhat offset by declines in other portfolio brands. Our global brand footprint continues to be a key strength, and our international business, which represents 42% of revenue, delivered like-for-like revenue growth of 29.6%, with strong volume and pricing growth in the Optimum Nutrition brand across priority markets, particularly in the UK, Oceania, China, and India. For Isopure, we continue to see double-digit US consumption growth in online and FDM channels as we grow household penetration and we continue to gain market share in the protein powder category, growing ahead of the category. This was somewhat offset by declines in the club channel. Isopure is our premium high protein, low carb brand grounded in purity.

Speaker #3: Our global brand footprint continues to be a key strength, and our international business, which represents 42% of revenue, delivered like-for-like revenue growth of 29.6%, with strong volume and pricing growth in the Optimum Nutrition brand across priority markets, particularly in the UK, Oceania, China, and India.

Speaker #3: For Isopure, we continue to see double-digit U.S. consumption growth in online and FDM channels, as we grow household penetration and continue to gain market share in the protein powder category, growing ahead of the category.

Speaker #3: This was somewhat offset by declines in the club channel. Isopure is our premium high-protein, low-carb brand grounded in purity. This brand allows us to target an incremental consumer from Optimum Nutrition, with a consumer profile that is more affluent and predominantly female, valuing high-quality and great-tasting solutions that they can incorporate into their daily nutrition regime.

Hugh McGuire: This brand allows us to target an incremental consumer from Optimum Nutrition with the consumer affluent and predominantly female, that values high quality and great-tasting solutions that they can incorporate into their daily nutrition regime. EBITDA in H1 increased by 7.4%, with an EBITDA margin of 12.6%, which is broadly in line with the prior year. While elevated whey input costs continued to create headwinds for margins during the period, we were able to partially offset this by a range of decisive actions, including revenue growth management initiatives, marketing spend effectiveness, and our groupwide transformation program. We carefully manage our cost base to ensure we're efficient, and adjust our marketing investment appropriately to ensure we prioritize spend on brand-building initiatives.

Hugh McGuire: This brand allows us to target an incremental consumer from Optimum Nutrition with the consumer affluent and predominantly female, that values high quality and great-tasting solutions that they can incorporate into their daily nutrition regime. EBITDA in H1 of the year increased by 7.4%, with an EBITDA margin of 12.6%, which is broadly in line with the prior year. While elevated whey input costs continued to create headwinds for margins during the period, we were able to partially offset this by a range of decisive actions, including revenue growth management initiatives, marketing spend effectiveness, and our groupwide transformation program. We carefully manage our cost base to ensure we're efficient, and adjust our marketing investment appropriately to ensure we prioritize spend on brand-building initiatives.

Speaker #3: EBITDA in the first half of the year increased by 7.4%, with an EBITDA margin of 12.6%, which is broadly in line with the prior year.

Speaker #3: While elevated whey input costs continue to create headwinds for margins during the period, we were able to partially offset this by a range of decisive actions, including revenue growth management initiatives, marketing spend effectiveness, and our group-wide transformation program.

Speaker #3: We carefully manage our cost base to ensure we're efficient and adjust our marketing investment appropriately, to ensure we prioritize spend on brand-building initiatives. We also continue to look to broaden our product mix from whey protein to include other protein sources, such as collagen, milk, and plant protein, while also driving non-whey innovation, such as within our energy category—primarily driven by creating innovation and distribution gains globally.

Hugh McGuire: We also continue to look to broaden our product mix from whey protein to include other protein sources such as collagen, milk, and plant protein, while also driving non-whey innovation, such as within our energy category, primarily driven by creating innovation and distribution gains globally. EBITDA margins are expected to increase in H2 2026 as the full impact of price increases flows through. Whey protein has remained elevated due to continued strong demand, and the group has contracted substantial supply through early Q2 2027. We have seen new supply of high-end whey come on stream as expected, which has been taken up by demand. We continue to engage with our suppliers for longer-term supply investment and supply continues to increase. As we mentioned previously, we're also investing in our own WPI capacity within our joint venture, which will come on stream in early 2027.

Speaker #3: EBITDA margins are expected to increase in the second half of 2026, as the full impact of price increases flows through. Whey protein has remained elevated due to continued strong demand, and the group has contracted substantial supply through early quarter two, 2027.

Speaker #3: We have seen new supply of high-end whey come on stream as expected, which has been taken up by demand. We continue to engage with our suppliers for longer-term supply investment, and supply continues to increase. As we mentioned previously, we're also investing in our own WPI capacity within our joint venture, which will come on stream in early 2027.

Speaker #3: In terms of brand performance, Optimum Nutrition, our largest brand at 79% of performance nutrition revenue, delivered like-for-like revenue growth of 25.2%, with strong volume growth and increased pricing growth following recent pricing actions.

Hugh McGuire: In terms of brand performance, Optimum Nutrition, our largest brand at 79% of Performance Nutrition revenue, delivered like-for-like revenue growth of 25.2%, with strong volume growth and increasing pricing growth following recent pricing actions. Optimum Nutrition US consumption grew by 23.5% in the 13 weeks to 4 July 2026, with double-digit growth across FDMC and online channels, growing ahead of the category and gaining market share. The protein powder category is growing strongly, part of the general shift in consumers seeking health and wellness solutions with the value proposition resonating well with consumers. We also continue to see new consumers enter the category as they see powders as an attractive and clean source of protein, where Optimum Nutrition is the number one driver of category growth across protein.

Speaker #3: Optimum Nutrition U.S. consumption grew by 23.5% in the 13 weeks to July 4, 2026, with double-digit growth across FDMC and online channels, growing ahead of the category and gaining market share.

Speaker #3: The protein powder category is growing strongly, part of the general shift in consumers seeking health and wellness solutions with the value proposition resonating well with consumers.

Speaker #3: We also continue to see new consumers enter the category, as they see powders as an attractive and clean source of protein, with Optimum Nutrition as the number one driver of category growth across protein.

Speaker #3: I'm pleased to see ON deliver double-digit growth in household penetration and TDP in the US, with distribution gains across FDMC in particular. We are also seeing strong consumption growth across international regions, with double-digit measured sell-out in our priority growth markets, and we continue to increase our retail distribution.

Hugh McGuire: I'm pleased to see ON deliver double-digit growth in household penetration and TDP in the US, with distribution gains across FDMC in particular. We are also seeing strong consumption growth across international regions, with double-digit measured sell-outs in our priority growth markets, and we continue to increase our retail distribution, with distribution gains for Optimum Nutrition across major food or mass retailers in the UK and continental Europe, continued success in e-commerce channels across multiple markets, and continued market share gains. We have a world-leading portfolio of high-quality products within the Optimum Nutrition brand, and we continue to focus on innovation, in particular by expanding our usage occasion. We've launched a number of products in H1 across our protein and energy offerings, including expansion of our creatine range, Clear Whey, Electrolyte hydration powder, and additional small pack sizes addressing affordability through opening price point.

Speaker #3: With distribution gains for Optimum Nutrition across major food, drug, and mass retailers in the UK and continental Europe, as well as continued success in e-commerce channels across multiple markets and continued market share gains.

Speaker #3: We have a world-leading portfolio of high-quality products within the Optimum Nutrition brand, and we continue to focus on innovation, in particular by expanding our usage locations.

Speaker #3: And we've launched a number of products in the first half of the year across our protein and energy offerings, including expansion of our creating range, clear whey, electrolyte hydration powder, and additional small pack sizes addressing affordability through opening price points.

Speaker #3: We are particularly pleased with the performance of ON Creatine, which is delivering very strong growth globally, will continue to expansion of flavored offerings, new pack sizes, as well as the launch in creating gummies and creating stick packs in the US earlier this year.

Hugh McGuire: We are particularly pleased with the performance of ON Creatine, which is delivering very strong growth globally, with continued expansion of flavored offerings, new pack sizes, as well as the launch in creatine gummies and creatine stick packs in the US earlier this year. We've continued to invest behind Optimum Nutrition. Our focus is on driving recruitment and conversion and broadening the brand's appeal through increased campaign reach and education. During H1, we launched our global Optimum Advantage campaign, which reinforces the brand's premium position and deep connection with elite athletes such as McLaren Formula 1 star Lando Norris and US WNBA star Cameron Brink. Early results from the campaign show ads rank in the top 2% of ads in the category. We're seeing growth in both aided awareness and consideration across our top four markets.

Speaker #3: We continue to invest behind Optimum Nutrition and our focus is on driving recruitment and conversion, and broadening the brand's appeal through increased campaign reach and education.

Speaker #3: During the first half of the year, we launched our global Optimum Advantage campaign, which reinforces the brand's premium position and deep connection with elite athletes, such as McLaren Formula One star Lando Norris and US Women's NBA star Cameron Brink.

Speaker #3: Early results from the campaign show ads rank in the top 2% of ads in the category, and we're seeing growth in both agent awareness and consideration across our top four markets.

Speaker #3: In India, for example, we launched the Optimum Advantage of Champions through our partnership with the RCB cricket team, with ON positioned as the team's official sports nutrition partner for the 2026 Premier League season.

Hugh McGuire: In India, for example, we launched the Optimum Advantage of Champions through our partnership with the RCB cricket team, with ON positioned as the team's official sports nutrition partner for the 2026 Premier League season. Our sports partnership in the US is anchored in football, leveraging our longstanding partnership with NFL Flag and high-impact activations such as our successful activations with NFL standout Cooper DeJean, which together strengthens Optimum Nutrition's credibility, cultural relevance, and connection to the next generation of athletes. This year, Optimum Nutrition celebrates its 40th anniversary, making four decades of trusted quality, innovation, and category leadership in nutrition. As protein and energy consumption continues to become more mainstream, our continued investment in brand building, innovation, and consumer engagement is helping us strengthen category leadership and capture the accelerating growth in performance and active nutrition.

Speaker #3: Our sports partnership in the US is anchored in football, leveraging our longstanding partnership with IFLAG and high-impact activations such as our successful activations with NFL standout Cooper DeGene, which together strengthen Optimum Nutrition’s credibility, cultural relevance, and connections with the next generation of athletes.

Speaker #3: This year, Optimum Nutrition celebrates its 40th anniversary, marking four decades of trusted quality, innovation, and category leadership in nutrition. As protein and energy consumption continues to become more mainstream, our continued investment in brand-building, innovation, and consumer engagement is helping us strengthen category leadership and capture the accelerating growth in performance and active nutrition.

Speaker #3: Turning to our Health and Nutrition segment, which comprises the premix solutions and flavor platforms, and focuses on priority high-growth end-use markets such as active nutrition, functional beverages, and vitamin-mineral supplements.

Hugh McGuire: Turning to our Health and Nutrition segment, which comprises the Premix solutions and Flavor Solutions platforms and focuses on priority high-growth end-use markets such as active nutrition, functional beverages, and vitamin mineral supplements. This segment delivered a very strong performance in H1, delivering like-for-like revenue growth of 12%. This was driven by a 14.3% increase in volume and a 2.3% decrease in price. Total revenue increased by 15.6% as a result of a 3.6% increase from the acquisition of Sweetmix and Scicore, which we completed in August 2025 and January 2026, respectively. The integration of both acquisitions is on track. We're very pleased with the strong performance in the quarter, which was driven by good growth across our end-use markets, supported by strong underlying category momentum in protein and broader health and wellness trends.

Speaker #3: This segment delivered a very strong performance in the first half, delivering like-for-like revenue growth of 12%. This was driven by a 14.3% increase in volume and a 2.3% decrease in price.

Speaker #3: Total revenue increased by 15.6% as a result of a 3.6% increase from the acquisition of Sweet Mix and Sycor, which we completed in August 2025 and January 2026, respectively.

Speaker #3: The integration of both acquisitions is on track. We're very pleased with the strong performance in the quarter, which was driven by good growth across our end-use markets, supported by strong underlying category momentum in protein and broader health and wellness trends.

Speaker #3: A key driver of growth has been customer-led innovation, and we're collaborating closely with customers to support innovation pipelines, with the co-development translating into incremental growth.

Hugh McGuire: A key driver of growth has been customer-led innovation. We're collaborating closely with customers to support the innovation pipeline, with the co-development translating into incremental growth. We saw some benefit to revenues in Q2 pipeline fills as some of our customers expanded into new regions. Regionally, we saw strong growth, particularly in EMEA and Asia Pacific. Pricing was -2.3%, primarily as a result of tariff refunds provided to customers in Q2. This was a one-time effect. We expect pricing to revert to broadly neutral in H2. Health and Nutrition EBITDA was EUR 67.9 million, up 9.5% constant currency. EBITDA margins were 18.4%, a decrease of 110 basis points versus the prior year as a result of increased raw material costs, which are expected to persist into H2. Sweetmix and Scicore integrations are progressing well.

Speaker #3: We saw some benefit to revenues in Q2 pipeline fill, as some of our customers expanded into new regions. Regionally, we saw strong growth, particularly in EMEA and Asia Pacific.

Speaker #3: Pricing was negative 2.3%, primarily as a result of tariff refunds provided to customers in the second quarter. This was a one-time effect, and we expect pricing to revert to broadly neutral in the second half of the year.

Speaker #3: Health and nutrition EBITDA was 67.9 million, up 9.5% cost of currency. EBITDA margins were 18.4%, a decrease of 110 basis points versus the prior year, as a result of increased raw material costs, which are expected to persist in the second half of the year.

Speaker #3: Sweet Mix and Sycor integrations are progressing well. We will open our new customer collaboration center in Montreal in the first half of the year, and our capacity expansions in the US, Europe, and China are well underway and progressing well, with new capacity expected by early 2027.

Hugh McGuire: We opened our new customer collaboration center in Montreal in H1, and our capacity expansions in the US, Europe, and China are well underway and progressing well, with new capacity expected by early 2027. Dairy Nutrition combines our US cheese and dairy proteins portfolios and is largely one integrated manufacturing footprint, and is also the route to market for our joint venture supply of whey and cheese ingredients. This business provides a leadership position in dairy as a leading producer of WPI and American-style cheddar cheese in the US. We continue to see sustained demand for our high-quality whey and non-whey protein solutions, driven by global trends in active nutrition and everyday wellness.

Speaker #3: Dairy nutrition combines our US cheese and dairy proteins portfolios and is largely one integrated manufacturing footprint, and is also the root to market for our joint venture supply of whey and cheese ingredients.

Speaker #3: This business provides a leadership position in dairy as a leading producer of whey protein isolates and American-style cheddar cheese in the U.S. We continue to see sustained demand for our high-quality whey and non-whey protein solutions, driven by global trends and active nutrition as well as everyday wellness.

Speaker #3: Our differentiative capabilities in protein science and manufacturing, combined with a proven track record to deliver consistent quality, functionality, and taste, position us as a trusted partner for customers' growing demand for premium protein solutions.

Hugh McGuire: Our differentiated capabilities in protein science and manufacturing, combined with a proven track record to deliver consistent quality, functionality, and taste, position us as a trusted partner for customers' growing demand for premium protein solutions. In H1, Dairy Nutrition delivered like-for-like revenue growth of 3.8%, driven by a 4.6% increase in volume and a 0.8% decrease in pricing. Our protein solutions business had double-digit volume and pricing growth, supported by favorable consumer trends and strong demand, particularly within the active nutrition end-use market of high protein, RTE, and healthy snacking categories. The overall pricing decline was due to negative cheese markets, as cheese revenue represents approximately two-thirds of the revenue within Dairy Nutrition.

Speaker #3: In the first half of the year, dairy nutrition delivered like-for-like revenue growth of 3.8%, driven by a 4.6% increase in volume, and a 0.8% decrease in pricing.

Speaker #3: Our protein solutions business had double-digit volume and pricing growth, supported by favorable consumer trends and strong demand, particularly within the active nutrition and healthy snacking categories.

Speaker #3: The overall pricing decline was due to negative cheese markets, as cheese revenue represents approximately two-thirds of the revenue within Dairy Nutrition. We continue to optimize our product mix towards higher-value protein solutions, leveraging the group's manufacturing expertise, customer relationships, and innovation capability. We saw good growth in existing and new customer wins in the first half of 2026.

Hugh McGuire: We continue to optimize our product mix towards higher-value protein solutions, leveraging the group's manufacturing expertise, customer relationships, and innovation capability, and saw good growth in existing and new customer wins in H1 2026. With that, I will hand over to Mark to take you through the financials.

Speaker #3: And with that, I will hand over to Mark to take you through the financials.

Speaker #1: Thanks, Hugh, and good morning to everyone on the call. Group revenue for the half year was $2.1 billion, up 7% on a constant currency basis.

Mark Garvey: Thanks, Hugh, good morning to everyone on the call. Group revenue for H1 was $2.1 billion, up 7% on a constant currency basis. On a like-for-like basis, reported revenues were up 10.7%, with volumes up 8.2%, driven by a strong performance across all three segments. Price was up 2.5%, driven by strong pricing in Performance Nutrition, somewhat offset by negative pricing in Health and Nutrition and Dairy Nutrition. The acquisitions of Sweetmix and Scicore added 0.6% to revenue growth, while the disposals of non-core brands reduced group revenues by 4.3%. Group EBITDA, pre-exceptional charges in H1 was $275.4 million, up 14.1% constant currency, driven by strong EBITDA growth across all three segments. Dairy Nutrition EBITDA growth was particularly strong, up 28.2% in H1, driven by protein solutions growth. Performance Nutrition EBITDA was up 7.4% and Health and Nutrition EBITDA was up 9.5%.

Speaker #1: On a like-for-like basis, reported revenues were up 10.7%, with volumes up 8.2%, driven by a strong performance across all three segments. Price was up 2.5%, driven by strong pricing in Performance Nutrition, somewhat offset by negative pricing in Health and Nutrition and Dairy Nutrition.

Speaker #1: The acquisitions of Sweet Mix and Sycor added 0.6% to revenue growth, while the disposals of non-core brands reduced group revenues by 4.3%. Group EBITDA pre-exceptional charges in the first half was $275.4 million, up 14.1% at constant currency, driven by strong EBITDA growth across all three segments.

Speaker #1: Dairy Nutrition EBITDA growth was particularly strong, up 28.2% in the half, driven by protein solutions growth. Performance Nutrition EBITDA was up 7.4%, and Health and Nutrition EBITDA was up 9.5%.

Speaker #1: Group EBITDA margin was 13.2%, compared to 12.5% in the prior year, primarily due to stronger EBITDA margins in Dairy Nutrition. Adjusted earnings per share for the half-year was 81.24 cents, an increase of 30% on the prior year, as a result of strong segment EBITDA growth, higher joint venture profit after tax, and some accretion resulting from share buyback activity.

Mark Garvey: Group EBITDA margin was 13.2% compared to 12.5% in the prior year, primarily due to stronger EBITDA margins in Dairy Nutrition. Adjusted earnings per share for the H1 was EUR 0.8124, an increase of 30% on the prior year as a result of strong segment EBITDA growth, higher joint venture profit after tax, and some accretion resulting from share buyback activity. Operating cash flow conversion for the 12 months ending 4 July was 95.1%, with operating cash flow of $507 million generated during the trailing 12-month period. The group had net debt of approximately $731 million at the end of the H1 and has $1.35 billion in committed debt facilities with a weighted average maturity of 2.2 years, with no facility due for renewal prior to late 2027. Net debt to adjusted EBITDA was 1.4 times, marginally higher than prior year.

Speaker #1: Operating cash flow conversion for the 12 months ending July 4th was 95.1%, with operating cash flow of 507 million dollars generated during the trailing 12-month period.

Speaker #1: The group had net debt of approximately $731 million at the end of the half and has $1.35 billion in committed debt facilities, with a weighted average maturity of 2.2 years, with no facility due for renewal prior to late 2027.

Speaker #1: Net debt to adjusted EBITDA was 1.4 times, marginally higher than the prior year. At year-end, following another year of strong operating cash conversion, we expect net debt to EBITDA will be approximately 1 time, subject to M&A activity.

Mark Garvey: At year-end, following another year of strong operating cash conversion, we expect net debt to EBITDA will be approximately 1 times subject to M&A activity. Investment in capital expenditure for the H1 was $50 million, of which $32 million was invested in strategic capital projects with investments in ongoing capacity enhancements, business integrations and IT investments to drive further efficiencies. For the full year, capital expenditure, both strategic and sustaining, is expected to be between $100 to 110 million, which will include spend related to the expansion of our health and nutrition facilities in the US, Asia and Europe, as Hugh has mentioned. We continue to focus on a consistent approach to shareholder returns, the board have approved a 10% increase to the group's interim dividend from EUR 0.172 to EUR 0.1892.

Speaker #1: Investment in capital expenditure for the first half was $50 million, of which $32 million was invested in strategic capital projects, with investments in ongoing capacity enhancement, business integrations, and IT investments to drive further efficiencies.

Speaker #1: For the full-year, capital expenditure—both strategic and sustaining—is expected to be between $100 million and $110 million, which will include spend related to the expansion of our health and nutrition facilities in the US, Asia, and Europe, as Hugh has mentioned.

Speaker #1: We continue to focus on a consistent approach to shareholder returns, and the Board have approved a 10% increase in the group's interim dividend, from 17.20 euro cents to 18.92 euro cents.

Speaker #1: We are committed to a progressive annual dividend, with a targeted payout ratio range of 30% to 40% of adjusted earnings per share. In February, we announced authorization for a €100 million share buyback program.

Mark Garvey: We are committed to a progressive annual dividend with a target payout ratio range of 30% to 40% of adjusted earnings per share. In February, we announced authorization for a €100 million share buyback program. This program was completed in 2 €50 million tranches. The 1st €50 million by way of our regular share buyback program, which completed in July, the 2nd €50 million in June through a directed share buyback with Tirlán, our largest shareholder. In total, the group repurchased and canceled approximately 4.9 million shares at an average price of €20.49. This completes our share buyback program for this year. As Hugh mentioned, we've upgraded our savings target for our group-wide transformation program from $60 million to $70 million of annual savings by 2027.

Speaker #1: This program was completed in two €50 million tranches. The first €50 million was by way of our regular share buyback program, which completed in July, and the second €50 million in June through a directed share buyback with Turlon, our largest shareholder.

Speaker #1: In total, the group repurchased and canceled approximately 4.9 million shares, as an average price of 20 euros 49 cents. And this completes our share buyback program for this year.

Speaker #1: As Hugh mentioned, we've upgraded our savings target for our group-wide transformation program from $60 million to $70 million of annual savings by 2027.

Speaker #1: The upgraded savings are primarily the result of initiatives in our global supply chain related to the optimization of lending capacity and procurement effectiveness. We expect 40% of savings from this transformation program to be achieved by the end of this year, and, of these, 50% of the savings will be reinvested to drive future growth.

Mark Garvey: The upgraded savings are primarily as a result of initiatives in our global supply chain related to optimization of blending capacity and procurement effectiveness. We expect 40% of savings from this transformation program to be achieved by the end of this year, at least 50% of the savings will be reinvested to drive future growth. We expect total charges related to this program will be approximately $110 million, previously $100 million, to date, we have incurred approximately $85 million of those charges. The group incurred exceptional items net of tax of $21.6 million in the H1 of the year. These primarily related to the group-wide transformation program. In addition, there was a remeasurement of contingent consideration as a result of the strong performance of the Sweetmix business post-acquisition.

Speaker #1: We expect total charges related to this program will be approximately $110 million, previously $100 million, and to date we have incurred approximately $85 million of those charges.

Speaker #1: The group incurred exceptional items, net of tax, of $21.6 billion in the first half of the year. These primarily related to the group-wide transformation program.

Speaker #1: In addition, there was a remeasurement of contingent consideration as a result of the strong performance of the Sweet Mix business post-acquisition. The joint venture performance increased by $9.3 million versus the prior year, primarily related to improved dairy market dynamics and some benefit from the federal milk marketing order change in the US in June last year.

Mark Garvey: The joint venture performance increased by $9.3 million versus prior year, primarily related to improved dairy market dynamics and some benefit from the Federal Milk Marketing Order change in the US in June 2025. Net finance costs were $15.9 million, up approximately $2.3 million compared to prior year, primarily due to higher average net debt. For H1, the effective tax rate was 15%, in line with the prior year. For the full year, we expect the effective tax rate to be between 14% and 16%. I will walk through the components of our updated guidance for the full year. We are ambitious for growth. We outlined our medium-term growth algorithm through 2028 at our Capital Markets Day last November.

Speaker #1: Net finance costs were $15.9 million, up approximately $2.3 million compared to the prior year, primarily due to higher average net debt. For the first half of the year, the effective tax rate was 15%, in line with the prior year.

Speaker #1: For the full year, we expect the effective tax rate to be between 14% and 16%. Now, I will walk through the components of our updated guidance for the full year.

Speaker #1: We are ambitious for growth, and we outlined our medium-term growth algorithm through 2028 at our Capital Markets Day last November. Given the strength we are currently seeing in the categories in which we operate, expectations for 2026 are now above our medium-term guidance algorithm.

Mark Garvey: Given the strength we are currently seeing in the categories in which we operate, expectations for 2026 are now above our medium-term guidance algorithm. Following the strong performance in H1, Performance Nutrition like-for-like revenue growth is now expected to be in the range of 12% to 14% for the year, which assumes some volume elasticity in H2 following Q2 and Q3 pricing actions. The revenue growth of Performance Nutrition during H1 was strong due to our category leadership, accelerating consumer demand, increased distribution and innovation, the lapping of a weaker comparative. There was also a benefit from some shipment and promotional timing. Pricing sequentially increased, resulting from the Q4 2025 and Q2 2026 pricing implementations.

Speaker #1: Following the strong performance in the first half, performance nutrition like-for-like revenue growth is now expected to be in the range of 12 to 14 percent for the year.

Speaker #1: This assumes some volume elasticity in the second half, following the Q2 and Q3 pricing actions. The revenue growth in performance nutrition during the first half of the year was strong due to our category leadership, accelerating consumer demand, increased distribution, innovation, and the lapping of a weaker comparative.

Speaker #1: There was also a benefit from some shipment and promotional timing. Pricing sequentially increased, resulting from the Q4 2025 and Q2 2026 pricing implementations. Although volumes in the first half have remained resilient following these recently introduced price increases, we are now seeing initial signs of limited elasticity in some markets, which we are monitoring closely.

Mark Garvey: Although volumes in H1 have remained resilient following these recently introduced price increases, we are now seeing initial signs of limited elasticity in some markets, which we are monitoring closely. We are executing further price increases in Q3, given continued whey inflation. While we are confident that underlying consumer demand will continue and the Optimum Nutrition brands will perform well, we are pragmatic in expecting some volume elasticity as H2 progresses, as consumers adapt to higher prices on the shelf. As a result, H2 revenue growth is expected to be pricing-led with assumed elasticity impacting volumes, coupled with a tougher comparable due to the lapping of some distribution gains in Q3 2025.

Speaker #1: We are executing further price increases in Q3, given continued hay inflation, and while we are confident that underlying consumer demand will continue, and the Optimum Nutrition brand will perform well, we are pragmatic in expecting some volume elasticity as the second half progresses, as consumers adapt to higher prices on shelf.

Speaker #1: As a result, half two revenue growth is expected to be pricing-led, with assumed elasticity impacting volumes, coupled with a tougher comparable due to the lapping of some distribution gains in Q3 of last year.

Speaker #1: We continue to manage hay costs through forward procurement, and at this point, we have procured all of our hay needs for 2026 and our anticipated needs through early Q2 2027.

Mark Garvey: We continue to manage whey costs through forward procurement. At this point, we have procured all of our whey needs for 2026 and our anticipated needs to early Q2 2027. Based on procurement to date, we are seeing higher costs in 2027 over 2026. Consequently, we expect to increase prices further in late 2026 or early 2027. We expect Performance Nutrition EBITDA margins will be higher in H2 compared to H1 as a result of executed pricing actions. For the full year, we expect some margin progression over the 2025 13% EBITDA margin. We continue to offset higher whey costs with revenue growth management initiatives, marketing spend effectiveness, transformation program, as well as the benefit of the sale of non-core brands last year.

Speaker #1: Based on procurement to date, we are seeing higher costs in 2027 over 2026, and consequently we expect to increase prices further in late 2026 or early 2027.

Speaker #1: We expect performance nutrition EBITDA margins will be higher in the second half compared to the first half, as a result of executed pricing actions. For the full year, we expect some margin progression over the 2025 13% EBITDA margin.

Speaker #1: We continue to offset higher hay costs with revenue growth management initiatives, marketing spend effectiveness, our transformation program, as well as the benefit from the sale of non-core brands last year.

Speaker #1: Should volume trends in the second half prove to be significantly better than our current expectations, this would utilize additional higher cost ways to meet demand and, as a result, have some short-term impact on EBITDA margins until future pricing actions take full effect.

Mark Garvey: Should volume trends in H2 prove to be significantly better than our current expectations, this would utilize additional higher cost whey to meet demand, and as a result, have some short-term impact on EBITDA margins until future pricing actions take full effect. Health and Nutrition delivered a strong performance in H1 of the year, with some benefit from timing of orders from certain customers in Q2. As a result of the strong H1 performance, we now expect like-for-like revenue growth of 8% to 10% for the full year, volume less. Growth is expected to be good across both Premix and Flavor Solutions businesses, as we are seeing strong category momentum in our end markets.

Speaker #1: Health and Nutrition delivered a strong performance in the first half of the year, with some benefit from timing of orders with certain customers in the second quarter.

Speaker #1: As a result of the strong first-half performance, we now expect like-for-like revenue growth of 8% to 10% for the full year, volume-led.

Speaker #1: Growth is expected to be good across both premix and flavor solutions businesses, as we are seeing strong category momentum in our end markets. Half one benefited from some pipeline fill by certain customers as they expanded into new regions, and we therefore expect half two revenue to moderate to more normalized levels.

Mark Garvey: H1 benefited from some pipeline fill by certain customers as they expanded into new regions. We therefore expect H2 revenue to moderate to more normalized levels, albeit still at the upper end of our medium-term guidance range. We continue to expect Health and Nutrition EBITDA margins to be in a range of 17% to 19%, with increased costs in H2 resulting from supply chain disruption ongoing from the conflict in the Middle East. The strong performance in Dairy Nutrition in H1 of the year was driven by pricing and volume growth in protein solutions, serving the high protein ready-to-eat and healthy snacking categories. Following the strong H1, we now expect Dairy Nutrition EBITDA to be in a range of $170 to 180 million for the full year.

Speaker #1: Albeit still at the upper end of our medium-term guidance range, we continue to expect Health and Nutrition EBITDA margins to be in a range of 17% to 19%, with increased costs in the second half resulting from supply chain disruption ongoing from the conflict in the Middle East.

Speaker #1: The strong performance in Dairy Nutrition in the first half of the year was driven by pricing and volume growth in protein solutions, serving the high-protein, ready-to-eat, and healthy snacking categories.

Speaker #1: Following the strong first half, we now expect Dairy Nutrition EBITDA to be in a range of $170 to $180 million for the full year.

Speaker #1: We also expect profitability growth in the joint venture, and now expect profit after tax to be approximately $20 million for the full year.

Mark Garvey: We also expect profitability growth in the joint venture and now expect profit after tax to be approximately $20 million for the full year. Operating cash flow conversion is expected to exceed our 85% target for the year. As a result of the strong top-line performance in Performance Nutrition and Health and Nutrition and continued strength in Dairy Nutrition EBITDA and joint venture profit after tax, we are pleased to upgrade our expectations for 2026 adjusted earnings per share growth to a range of 17% to 20% constant currency. With that, I will hand it back to Hugh.

Speaker #1: Operating cash flow conversion is expected to exceed our 85% target for the year. Therefore, as a result of the strong top-line performance in Performance Nutrition and Health and Nutrition, and continued strength in Dairy Nutrition EBITDA and joint venture profit after tax, we are pleased to upgrade our expectations for 2026 adjusted earnings per share growth to a range of 17% to 20% constant currency.

Speaker #1: And with that, I will hand it back to Hugh.

Speaker #2: Thank you, Mark. Just to close, today's results reinforce our confidence in Glanbia's growth opportunity. Our purpose is delivering better nutrition, and we're operating in exciting, high-growth categories supported by powerful consumer trends.

Hugh McGuire: Thank you, Mark. Just to close, today's results reinforce our confidence in Glanbia's growth opportunity. Our purpose is delivering better nutrition, and we're operating in exciting high-growth categories supported by powerful consumer trends. As we outlined at our Capital Markets Day, we have a focused strategy for the next stage of growth. We've made strong progress in H1 of 2026. We strengthened our business through our transformation program and sharpened our focus on our key growth engines of Performance Nutrition and Health and Nutrition. We are pleased to upgrade our guidance today, reflecting the momentum across all three segments and the continued strong consumer demand for our better nutrition brands and ingredients. With that, I would like to hand it over to the operator for questions.

Speaker #2: As we outlined at our Capital Markets Day, we have a focused strategy for the next stage of growth. We've made strong progress in the first half of 2026.

Speaker #2: We've strengthened our business through our transformation program and sharpened our focus on our key growth engines in performance nutrition and health and nutrition. We are pleased to upgrade our guidance today, reflecting the momentum across all three segments and the continued strong consumer demand for better nutrition brands and ingredients.

Speaker #2: And with that, I would like to hand it over to the operator for questions.

Speaker #3: Thank you. We will now begin the question-and-answer session. As a reminder, to ask a question, please press star one and one on your telephone and wait for your name to be announced.

Operator: Thank you. We will now begin the question and answer session. As a reminder, to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. A moment for our first question. We will now take our first question from the line of Patrick Higgins from Goodbody. Please ask your question, Patrick. Your line is open.

Speaker #3: To withdraw your question, please press star one and one again. Please hold a moment for our first question. We will now take our first question from the line of Patrick Higgins from Goodbody.

Speaker #3: Please ask your question, Patrick. Your line is open.

Speaker #4: Thanks. Morning, everyone. I have a couple of questions on performance nutrition, if that's okay. Firstly, just on the Q2 print, I guess—there was incredible volume momentum in the quarter.

Patrick Higgins: Thanks. Morning, everyone. A couple of questions from me on Performance Nutrition, if that's okay. Firstly, just on the Q2 print, I guess incredible kind of volume momentum in the quarter despite the price increases you took. I know you've mentioned some elasticities have crept in already, but maybe you could just kind of elaborate on where you're seeing those elasticities and in terms of the consumer reaction to the price increases, have you seen any shifts in buying patterns during the quarter or so far in Q3? My second question is just around, I guess the moving parts of Optimum Nutrition growth during H1 and Q2. Maybe you could just unpack how much that's driven by category growth versus distribution gains. You mentioned increased shipments. Maybe you could just give a little bit more color there.

Speaker #4: Despite the price increases you took—I know you've mentioned some elasticity has crept in already—but maybe you could just kind of elaborate on where you're seeing those elasticities in terms of the consumer reaction to the price increases.

Speaker #4: Have you seen any shifts in buying patterns during the quarter or so far in Q3? And then my second question is just around the moving parts of Optimum Nutrition growth during H1 and Q2.

Speaker #4: Maybe you could just pick out how much that's driven by category growth versus distribution gains? You mentioned increased shipments—maybe you could just give a little bit more color there. And I guess, how much are you benefiting from some of your competitors, I guess, not being able to source supplies as consistently as you guys can?

Patrick Higgins: I guess how much are you benefiting from some of your competitors, I guess, not being able to source supplies as consistently as you guys can? Thanks.

Speaker #4: Thanks.

Speaker #5: Morning, Patrick. How are you? So maybe I'll start with the first question, in terms of being very happy with, obviously, Q2 and half one performance.

Hugh McGuire: Morning, Patrick. How are you? Maybe I'll start with the first question in terms of very happy with obviously Q2 and H1 performance.

Speaker #5: Very strong growth. I think what we're seeing, generally, is very strong category growth. We're clearly benefiting from the positive trends in health and wellness overall.

Hugh McGuire: Very strong growth. I think what we are seeing generally, what I would say is very strong category growth. We are clearly benefiting from the positive trends generally in health and wellness. Whether that be just interest in protein, interest in additional fortification, or interest in energy. Definitely a positive category trend that we are benefiting from. When I look at elasticity, now, look, we have seen some limited elasticity to date. It is kind of in certain markets, certain channels, and certain SKUs. Some of it will be where competitors haven't quite moved yet on some of the pricing. Certainly in H1, as you can see from our numbers, we have seen continued very strong consumer demand. We continue to see that demand as well as we look out into H2.

Speaker #5: Whether that be just interest in protein, interest in additional fortification, or interest in energy. So, definitely a positive category trend that we're benefiting from.

Speaker #5: When I look at elasticity—no, look, we've seen some limited elasticity to date. It's kind of in certain markets, in certain channels, and certain SKUs.

Speaker #5: Some of it will be where competitors haven't quite moved yet, and some of the pricing, but certainly in H1 we actually can see from our numbers we've seen continued very strong consumer demand.

Speaker #5: And we continue to see that demand as well as we look out into H2. I suppose what we're just being very pragmatic on is the cues of effective pricing.

Hugh McGuire: I suppose what we are just being very pragmatic on is the SKUs affect pricing, post price increase late last year, price increase in Q2, and additional price increase in Q3. That is obviously been proven since we look ahead. In terms of organic growth, look very happy. I would say what I said, a lot of it will be velocity. As I said, we are clearly benefiting from general category growth in all markets, not just in the US, in all of the international markets as well. Also, I think we are showing clear category leadership as well in terms of our investment behind the brand. Our marketing now is more effective, better creative, more efficient, better consumer targeting.

Speaker #5: Post price increase late last year, price increase in Q2, and additional price increase in Q3. So that's obviously been prudent as we look ahead.

Speaker #5: In terms of our own growth, look, very happy. I'd say what I'd say is a lot of it will be velocity. As I said, we're clearly benefiting from general category growth in all markets, not just in the US and in all of the international markets as well, but also I think we're showing clear category leadership as well in terms of our investments behind the brand.

Speaker #5: Our marketing now is more effective—better creative, more efficient, better consumer targeting. I think the cautiousness we've taken, or the pragmatic approach to pricing strategy in RGM, we've been very thoughtful in opening price points, making sure we give value to the consumer.

Hugh McGuire: I think the cautiousness we have taken as a pragmatic approach to pricing strategy and RGM, we have been very thoughtful on opening price points, making sure we give value to the consumer, whether that be a single-serve, a 10-serve, or an 80-serve product offering. We certainly see the benefit of that in terms of bringing in new consumers to our brand franchise, new consumers into the category. That is a clear benefit. Lastly, in a digital world, we are benefiting from, it has always been a key focus for us. We are the most viewed, most ordered, most recommended brand. As the world increasingly moves digital and AI and search, we are benefiting from that. We do regular audits, we continue to see Optimum Nutrition as the number 1 recommended brand, and that is a key focus for us.

Speaker #5: Whether that be a single server, 10 server, or an 80 server product offering. So we certainly see the benefit of that in terms of bringing in new consumers to our brand franchise, new consumers into the category.

Speaker #5: So that's a clear benefit. And lastly, in a digital world, we're benefiting from—it’s always been a key focus for us. We are the most reputable, most quotable, most recommended brand.

Speaker #5: And as the world increasingly moves digital and AI and search, we're benefiting from that. We do regular audits and we continue to see optimum nutrition as the number one recommended brand that the key focus for.

Speaker #5: So, if I sum it all up, we're seeing very good category growth in health and wellness demand, and then we're seeing very good performance from our protein brands—Optimum Nutrition—and I see what we're particularly doing with Optimum Nutrition.

Hugh McGuire: If I just sum it all up, we are seeing very good category growth in health and wellness demand, then we are seeing very good performance from our protein brands, Optimum Nutrition and Isopure, but particularly driven by Optimum Nutrition. In terms of shipments, very small. Look, that is primarily Middle East. As we navigate the conflict in the Middle East, obviously our inventory levels are higher there, getting product into the market there takes a little bit longer, and there was a little bit of Q3 into Q2 with Amazon Prime as well. Lastly, look, you had the competitive question you asked. Not really. We are competing against scale players now. I do not think supply is necessarily an issue there. Maybe for some of our smaller suppliers, we have certainly seen that within our dairy nutrition business.

Speaker #5: In terms of shipments, very small. Look, that's primarily Middle East, as we navigate the conflict in the Middle East. Obviously, our inventory levels are higher there.

Speaker #5: It's getting talked into our market there, takes about a bit longer. There was a little bit of quarter three to quarter two with Amazon Prime as well.

Speaker #5: And lastly, look, on the competitor question you asked—not really, we're competing against scale players now. I don't think supply is necessarily an issue there.

Speaker #5: Maybe for some of our smaller suppliers, we certainly see that within our dairy nutrition business. It's worth remembering that within the protein category, we're not only competing against dairy proteins.

Hugh McGuire: Worth remembering that within the protein category, we're not only competing against dairy proteins, we're competing against a broader protein category, which is to include plant protein, collagen proteins, et cetera. Very pleasing to see our brand do well across the broader protein category.

Speaker #5: We're competing against a broader protein category, which includes plant proteins, collagen proteins, etc. So, it's very pleasing to see our brand do well across the broader protein category.

Speaker #4: Very clear. Thank you.

Patrick Higgins: Very clear. Thank you.

Speaker #3: Thank you. We will now take our next question from David Rue at Morgan Stanley. Please ask your question, David. Your line is open.

Operator: Thank you. We will now take our next question from the line of David Roux from Morgan Stanley. Please ask your question, David. Your line is open.

Speaker #2: Yeah. Good morning, Hugh and Mark, and congratulations on a very strong set of results. I've got three questions. Firstly, on reformulation, which you mentioned.

David Roux: Good morning, Hugh and Mark, and congratulations on a very strong set of results. I've got three questions. Firstly, on reformulation, which you mentioned, how do you see reformulation to other sort of protein sources playing out across your portfolio? In particular, given your flagship products is whey on the front, I'd be interested to know how you see that working across your offering. The second one is also in Performance Nutrition and notably the healthy lifestyle brands portfolio. Back in the start, this was still down quite a bit in the quarter, similar to last quarter. Maybe you can give us some color there. Also we note that RTE and RTD, like for like, was down for PN overall, in H1. Any color there would be appreciated.

Speaker #2: How do you see reformulation to other sorts of protein sources playing out across your portfolio? I mean, in particular, given your flagship product says 'whey' on the front.

Speaker #2: So I'd be interested to know how you see that working across your offering. The second one is also on performance nutrition and notably the healthy lifestyle brands portfolio.

Speaker #2: Back in the South, this was still down quite a bit in the quarter, similar to last quarter. Maybe you can give us some color there, and also, we note that RT and RTD like-for-like was done for PN overall in the half.

Speaker #2: So, any color there would be appreciated. And then, just lastly, on the PN margin, is it still the ambition to target the 50 basis points that was mentioned at the beginning of the year in terms of margin expansion? Or, when you're thinking about pricing, is it still really about maintaining margin or protecting absolute profits, just given there's an immense top-line tailwind from price?

David Roux: Just lastly, on the PN margin, is it still the ambition to target the 50 basis points that was mentioned at the beginning of the year in terms of margin expansion? Or when you are thinking about pricing, is it still really about maintaining margin or protecting absolute profits, just given there is this immense top line tailwind from price? Thanks very much.

Speaker #2: Thanks very much.

Speaker #5: Good morning, David, and thank you. I'll answer the first two questions; David and Mark will address the margin point and PN. Yeah, when we talk about reformulation, it's primarily around new innovation in reality.

Hugh McGuire: Good morning, David, and thank you. I will answer the first two questions, David, and Mark will address the margin point of the PN. When we talk about reformulation, it is primarily around new innovation. In reality, look, you just said it rightly, Gold Standard Whey is a big brand for us. That is Whey in the brand name. We will not be changing that. We will not be changing the quality. We will not be changing the formulation. We do not believe that there is any supply issue for that brand long term. Formulation is really around ensuring that we give the consumer choice, whether that be in a broader mix of proteins or a different price point. We have a number of innovation. We have already started that. We are launching products that contain clear protein and collagen. We are launching milk protein innovation as well.

Speaker #5: You said it rightly. Gold Standard Whey is a big brand for us. 'Whey' is in the brand name. We won't be changing that. We won't be changing the quality.

Speaker #5: We won't be changing the formulation, and we don't believe that there's any supply issue for that brand long term. Formulation is really about ensuring that we give the consumer a choice, whether that be in a broader mix of proteins or at a different price point.

Speaker #5: So we have a number of innovation. We've already started that. We're launching products that contain clear protein and collagen. We're launching milk protein innovation as well.

Speaker #5: So it's just a broader push towards having a broader selection of protein availability within our brands. It's actually one of the drivers as well of our dairy nutrition business where it's not just dairy protein.

Hugh McGuire: It is just a broader push towards having a broader selection of protein available within our brands. It is actually one of the drivers as well of our dairy nutrition business, where it is not just dairy protein. We provide proteins, great tasting, high-quality protein solutions that work functionally. That is a mix also of whey, milk, and plant protein solutions as well. It is an increasing area of focus for the group, which as a protein powerhouse, just to ensure we have a broad base of protein solutions. In terms of healthy lifestyle, if I look at healthy lifestyle, we have spoken about some fish. Isopure, very happy with performance of Isopure. We are lapping a very strong performance in Baby-Ruth. You see that in our IRi data. We are just lapping a club channel delisting, which was Orange and Blue Juice.

Speaker #5: We provide proteins with great safety and high-quality protein solutions that work functionally. And that's a mix of whey, milk, and plant protein solutions as well.

Speaker #5: So it's an increasing area of focus for the group, which has a protein powerhouse, just to ensure we have a broad base of protein solutions.

Speaker #5: In terms of healthy lifestyle, yeah, if I look at healthy lifestyle, we've spoken about Optimum Nutrition, ISOPURE—very happy with quantity, ISOPURE.

Speaker #5: We're lapping a very strong performance in Duty of Mass; you can see that in the NIQ data. We're also just lapping a club channel delisting, which was margin dilutive.

Speaker #5: We lapped that as we head into Q4. And then the other primary driver of that decline will be Pink, which we've spoken about as well.

Hugh McGuire: We lapped that as we head into Q4. The other primary driver of that decline will be think!, which we have spoken about as well. That is just lost distribution from the tail end of last year, and we have new innovation, a complete relaunch of the think! high protein bar proposition at the end of this year, which we are excited about. We should see that trend change as we go into 2027.

Speaker #5: That's just loss distribution from the tail end of last year. And we have a new innovation—a complete relaunch of the Pink High Protein Bar proposition—at the end of this year, which we're excited about.

Speaker #5: So we should see that trend change as we go into 2027.

Speaker #4: Yeah. And hi, David. On the margin point, we are still forecasting margin progression for this year, moderated a little bit from what I might have said.

Mark Garvey: Yeah. Hi, David. On the margin point, we are still forecasting margin progression for this year. Moderated a little bit from what I might have said earlier, primarily because we're seeing more volumes come through. Demand is very strong, as you can see, and that's demand driven. That's causing whey prices to increase, and we are seeing some extra whey costs coming through in the P&L. We expect to have progression. You'll see stronger H2 margins than the H1 margin. Pricing, which will lap basically into the H2, will more than offset the cost increases. The transformation savings that we're seeing come through, they'll come through more in the H2 as well. It's just the level of progression.

Speaker #4: Earlier and primarily because we're seeing more volumes come through. So demand is very strong as you can see. And that's demand-driven. That's causing whey prices to increase.

Speaker #4: And we are seeing some extra whey costs coming through in the P&L. But we expect to have progression. You'll see stronger second-half margin to the first-half margin.

Speaker #4: Pricing, which will lap basically into the second half, will more than offset the cost increases. And also, the transformation savings that we're seeing come through—they'll come through more in the second half as well.

Speaker #4: So, it's just a level of progression. It's hard to fully predict right now, but we expect progression, and that's our goal as we look to '28—to continue to see margin progression.

Mark Garvey: It's hard to fully predict right now, but we expect progression, and clearly that's our goal as we look to 2028, to continue to see margin progression.

Speaker #2: Very clear. Thank you.

David Roux: Very clear. Thank you.

Speaker #3: Thank you. We will now take our next question. The next question comes from Nicola Tang from BNP Paribas. Please go ahead, Nicola. Your line is open.

Operator: Thank you. We will now take our next question. The next question comes from Nicola Tang from BNP Paribas. Please go ahead, Nicola. Your line is open.

Speaker #6: Hi everyone. Thanks for taking the questions. First, just around PN pricing, I wanted to clarify sort of your planned price increases from here. Is it right to still assume a double-digit price increase in Q3?

Nicola Tang: Hi, everyone. Thanks for taking the questions. First, just around PN pricing, I wanted to clarify your planned price increases from here. Is it right to still assume a double-digit price increase in Q3, I think I picked up from your commentary. Mark, I think you also mentioned potentially further pricing in late 2026 or early 2027. I was just checking if that was an incremental wave of pricing. I suppose, how are you thinking about that, or how will you assess the magnitude of that relative to elasticity? What are you seeing competitors doing around pricing or planned pricing and promotional activity? Just maybe another one on the PN margins.

Speaker #6: I think I picked that up from your commentary. And then, Mark, I think you also mentioned potentially further pricing in late 2026 or early 2027.

Speaker #6: I was just checking if that was an incremental wave of pricing. And I suppose, how are you thinking about that, or how will you assess the magnitude of that relative to elasticity?

Speaker #6: And what are you seeing competitors doing around pricing or planned pricing and promotional activity? And then just maybe another one on the PN margins.

Speaker #6: I understand in terms of the whey cost headwinds and sort of how much you've procured, but I was wondering why given the strong demand, you didn't see an H1 or you don't expect to see better operating leverage associated with that.

Nicola Tang: I understand in terms of the whey cost headwinds and how much you've procured, but I was wondering why, given the strong demand, you didn't see in H1 or you don't expect to see better operating leverage associated with that. I heard you mention marketing spend adjustments. What are your expectations in terms of spend for marketing this year? Thanks.

Speaker #6: And I heard you mention sort of marketing spend adjustments. What are your expectations in terms of spend for marketing this year? Thanks.

Speaker #5: Good morning, Nicola. I might quickly answer the marketing question and then I'll go to the first question on pricing and then Mark might answer the question on leverage margin.

Hugh McGuire: Good morning, Nicola. I might quickly answer the marketing question, I'll go to the first question on pricing, Mark might answer the question on leverage. Marketing, what we said is we're more effective in terms of marketing spend. We still continue to invest substantially behind the brands. There's no pullback in marketing spend. It's just more focused, particularly given the growth of the category, it's really focused on recruitment of new consumers, driving brand awareness. That's a key focus, particularly for us internationally. If I talk about pricing, look, you can imagine we are very considerate and careful and lots of debate internally on ensuring we navigate, as we call the cycle, in terms of significant record protein price inflation. We want very good category growth, and we want to make sure we maintain our category leadership. Lots of debate and discussion.

Speaker #5: So look, marketing, what we said is we're more effective in terms of marketing spend. There still is a we still continue to invest substantially behind the brand.

Speaker #5: So there's no pullback in marketing spend. It's just more focused, particularly given the growth of the category. It's really focused on recruitment of new consumers, driving brand awareness—that's a key focus, particularly for us internationally.

Speaker #5: If I talk about pricing, look, you can imagine we are very considerate and careful and lots of debate internally on ensuring we navigate, as we call this, ice rope in terms of significant record protein price inflation.

Speaker #5: But we want very good category growth, and we want to make sure we maintain our category leadership. So, lots of debate and discussion.

Speaker #5: You might remember we increased prices at the back end of last year as we came into 2026. Prices increased in Q2, and that's in market now.

Hugh McGuire: You might remember we price increased at the back end of last year as we came into 2026. Price increased in Q2. That's in market now. Price increase recent Q2, that's implemented with customers. We start to see that hit shelf probably late August, early September. It depends on how customers decide to put it through. We watch elasticity carefully. As I said, it's been limited to date. I think category trends are very strong. We watch that carefully, we are planning for price increase at the back end of this year and early into 2027 as well. That's always something we would keep under review as we watch raw material costs, as we watch elasticity, as we watch demand. In terms of competitors, look, everybody is moving on price. Given the scale of price increases, you're seeing all our competitors move.

Speaker #5: Price increase in quarter two—that's implemented with customers. We start to see that hit shelf probably late August, early September. It depends on how customers decide to put it through.

Speaker #5: And then, depending on that, we'll watch elasticity carefully. As I said, it's been limited space. I think category trends are very strong. We'll watch that carefully, but we are planning for price increases at the back end of this year and early into 2027 as well.

Speaker #5: But that's all with something we will keep under review as we watch raw material costs, as we watch elasticity and as we watch demand.

Speaker #5: In terms of competitors, look, everybody is moving in price. Given the scale of price increases, we are seeing all the competitors move. But what we will often see is we are first to move.

Hugh McGuire: What we will often see is we are first to move, there may be a lag that will sometimes cause a little bit of elasticity. As soon as the competitor decides to move the price, we tend to see that elasticity wane. A key focus for the business, Nicola, and lots of debate as we navigate this record inflation carefully.

Speaker #5: So, there may be a lag that will sometimes cause a little bit of elasticity, but as soon as the competitors set and move their price, we tend to see that elasticity wane.

Speaker #5: So a key focus for the business, Nicola, and lots of debate as we navigate this record inflation carefully.

Speaker #4: Yeah. Hi, Nicola. On the margin point, we are seeing operating leverage. We have transformation savings coming through, and we obviously have pricing as well coming through.

Mark Garvey: Yeah. Hi, Nicola. On the margin point, we are seeing operating leverage. We have transformation savings coming through. We obviously have pricing as well coming through. We've got some benefit from the sale of non-core brands. Currently, they're offsetting the cost increase you've seen in H1. You'll see those more than offset in H2 as we roll that through into H2. In terms of my comments around procurement for 2027, yes, we would expect to see more price increases come through towards the end of this year as we look to margin progression for next year. I think overall, once we see stabilization of the whey dynamic with the pricing dynamic, we're going to see upside, obviously, in the margin progression that we would expect.

Speaker #4: We've got some benefit from the sale of non-core brands. Currently, they're offsetting the cost increase we've seen in the first half. You'll see those more than offset in the second half.

Speaker #4: It's a role that's through into the second half. And in terms of my comments around procurement for '27, yes, we would expect to see more price increases come through towards the end of this year to look to margin progression for next year.

Speaker #4: I think overall, once we see stabilization of the whey dynamic with the pricing dynamic, we're going to see upside, obviously, in the margin progression that we would expect.

Speaker #3: All right, thank you. We will now take our next question from Setu Shada from Barclays. Please ask your question, Setu. Your line is open.

Operator: All right. Thank you. We will now take our next question from Setu Shah from Barclays. Please ask your question, Setu. Your line is open.

Speaker #7: Yeah. Thanks for taking my question and first of all, congratulations on good set of numbers. Just to get some more color on the pricing power of the categories.

Setu Shah: Yeah. Thanks for taking my question. First of all, congratulations on good set of numbers. Just to get some more color lying on the pricing power of the categories, historically, whey inflation has been seen as a headwind for sports nutrition. This cycle, however, demand has remained strong despite higher pricing. Has this changed your view on the structural resilience and the pricing power of the category? My second question around the Glanbia Dairy Nutrition dynamics versus Glanbia Performance Nutrition, where can you help us think about the group's earnings bridge? If the whey remains high, the Glanbia Dairy Nutrition clearly benefits from the higher whey prices. The PN margins face pressure. Net-net, is high whey still positive for group earnings, or does it become more of a constraint over time? My third question is regarding the earnings upgrade.

Setu Sharda: Yeah. Thanks for taking my question. First of all, congratulations on good set of numbers. Just to get some more color lying on the pricing power of the categories, historically, whey inflation has been seen as a headwind for sports nutrition. This cycle, however, demand has remained strong despite higher pricing. Has this changed your view on the structural resilience and the pricing power of the category? My second question around the Glanbia Dairy Nutrition dynamics versus Glanbia Performance Nutrition, where can you help us think about the group's earnings bridge? If the whey remains high, the Glanbia Dairy Nutrition clearly benefits from the higher whey prices. The PN margins face pressure. Net-net, is high whey still positive for group earnings, or does it become more of a constraint over time? My third question is regarding the earnings upgrade.

Speaker #7: Historically, whey inflation has been seen as a headwind for post-nutrition and this cycle, however, demand has remained strong despite higher pricing. So has this changed your view on the structural resilience and the pricing power of the category?

Speaker #7: My second question is around the dairy nutrition dynamics versus performance nutrition. Where can you help us think about the group's earnings bridge? If whey remains high, dairy nutrition clearly benefits from the higher whey prices.

Speaker #7: But the PN margins face pressure. Net-net, is high whey still positive for group earnings, or does it become more of a constraint over time?

Speaker #7: And my third question is regarding the earnings upgrade. On the guidance upgrade, how much of the improvement should we think of as structural rather than any cyclicality in it?

Setu Shah: On the guidance upgrade, how much of the improvement should we think of as structural rather than any cyclicality into it? Are we seeing a step up in Glanbia's medium-term earnings power, or is this part of simply the benefit of the current whey environment? Yeah.

Setu Sharda: On the guidance upgrade, how much of the improvement should we think of as structural rather than any cyclicality into it? Are we seeing a step up in Glanbia's medium-term earnings power, or is this part of simply the benefit of the current whey environment? Yeah.

Speaker #7: Are we seeing a step-up in Glanbia's medium-term earnings power, or is this simply the benefit of the current whey environment? Yeah.

Speaker #5: Good morning, Setu. Thank you for the questions. I'll answer your first question, and then Mark will address the question on earnings. Yeah, I think we are, and you can see it in the category group.

Hugh McGuire: Good morning, Setu. Thank you for the questions. Your first question, which I'll answer, then Mark will answer the question on earnings. Look, you can see it in the category growth. Certainly the category, as I said earlier on in terms of demand for health and wellness, demand for protein, demand for energy, demand for fortification is very, very strong. You're firstly seeing a general increase in health and wellness. GLP-1 is certainly a tailwind. The inversion of the food pyramid in the US is also a tailwind for us. Yeah, I think you are. I think growth rates we have in the category now are strong and are accelerating. I've certainly not seen any indication that they will come off or decline. That's across all formats as well. It's not just the powder format that we substantially play in.

Speaker #5: Certainly, category, as I said earlier on, in terms of demand for health and wellness, demand for protein, demand for energy, demand for fortification, is very, very strong.

Speaker #5: So your first is seen as a general increase in health and wellness. GLP-1 is certainly a tailwind. The inversion of the food pyramid in the U.S. is also a tailwind for us.

Speaker #5: So yeah, I think you are. I think growth rates we have in the category now are strong and are accelerating. And certainly not seen any indication that they are that they will come off or decline.

Speaker #5: And that's across all formats as well. It's not just the powder formats that we substantially play in. We know ourselves that the consumer benefits to our brand and product are very strong.

Hugh McGuire: We know ourselves that the consumer benefits to our brand and product are very strong. Consumers tell us it's around the quality, it's around the mixability, it's around the versatility of powder. I think the usability and the affordability are really important to our consumers, as is the taste. I think then the Optimum Nutrition brand, as I said earlier on, is driving the category. It's around, we're celebrating 40 years of the brand this year. Our heritage, our quality, our taste, and the most recommended brand plays to the strengths of particularly for new consumers coming into the category. We see that in pricing power. We've actually taken our third round of pricing increases. Yes, we are watching carefully for elasticity. I think there will be some elasticity this time with the cumulative effect, demand remains very, very strong.

Speaker #5: Consumers tell us it's around the quality, it's around the reachability, and it's around the versatility of powder. So I think the usability and the affordability are really important to our consumers, as is the height.

Speaker #5: And I think the Optimum Nutrition brand, as I said earlier on, is driving the category. We're celebrating 40 years of the brand this year.

Speaker #5: Our heritage, our quality, our taste, and the most recommended brand play to our strengths, particularly for new consumers coming into the category. So, we see that in pricing power, without taking our third round of pricing pieces.

Speaker #5: And yes, we are watching carefully for elasticity. I think there will be some elasticity this time with the cumulative effect, but demand remains very, very strong.

Hugh McGuire: I think what I just said before I hand over to Mark on your question on the earnings bridge, which I'm sure we won't get into too much detail, the business is unique to Glanbia, the strength of our portfolio. We're playing broadly across all three segments in health and wellness, which is hugely positive. We have trusted, capable businesses. We are the biggest buyer of whey protein, straight ingredients globally, and we work with all suppliers. Then we're one of the biggest in whey protein solutions to our dairy nutrition business. Certainly, there's a natural hedge across those two businesses, and it is a unique strength of our portfolio given the growth in health and wellness.

Speaker #5: I think what I just said—before I hand over to Mark—on your question on the earnings bridge, which I'm sure we won't get into too much detail, is that the business is unique to Glanbia.

Speaker #5: The strength of our portfolio—we're playing broadly across all three segments of health and wellness, which is a huge positive. We have trusted, capable businesses.

Speaker #5: We are the biggest buyer of whey protein, straight ingredients, globally. And we work with all suppliers. And then we're one of the biggest in whey protein solutions to our dairy nutrition business.

Speaker #5: So certainly, there's a natural hedge across those two businesses, and it is a unique strength of our portfolio given their growth in health and wellness.

Speaker #4: Yeah, I would just add, Setu, that, look, we have three very strong businesses, as you have said. They stand on their own two feet in terms of how they're performing.

Mark Garvey: I would just add, Setu, that look, we have three very strong businesses, as Hugh has said. They stand on their own two feet in terms of how they're performing. They're doing very well in terms of the categories that they're selling into. Yes, there's certainly a benefit that Dairy Nutrition is seeing now with high protein markets. Dairy Nutrition, since we set it up as a separate business, has been doing very well operationally in terms of how it's being managed as well. I see a lot of strength coming through there. In addition, frankly, to what we're seeing on the protein side. If you think about the algorithm that we have, we're obviously very confident of the algorithm that we pointed out last November.

Speaker #4: They're doing very well in terms of the categories that they're selling into. Yes, there's certainly a benefit to dairy nutrition, as is being seen now with high protein markets.

Speaker #4: But dairy nutrition, since we've set it up as a separate business, has been doing very well operationally in terms of health being managed as well.

Speaker #4: So I see a lot of strength coming through there in addition, frankly, to what we're seeing in the protein side. And if you think about the algorithm that we have, we're obviously very confident in the algorithm that we pointed out last November.

Speaker #4: We're ahead of that this year, and I would say, given the categories that we are currently playing in, momentum seems good to us as we head into next year as well.

Mark Garvey: We're ahead of that this year. I would say given the categories that we are currently playing in, momentum seems good to us as we head into next year as well.

Speaker #7: Wow. Thank you, that's quite helpful. I will back in the queue.

Setu Shah: Thank you. That's quite helpful. I will back in the queue.

Setu Sharda: Thank you. That's quite helpful. I will back in the queue.

Speaker #3: Thank you. We will now take our next question from Carol Zutet from Kappa Shiver. Please ask your question, Carol. Your line is open.

Operator: Thank you. We will now take our next question from Karel Zoete from Kepler Cheuvreux. Please ask your question, Karel. Your line is open.

Speaker #6: Yes, good morning, Jens Montage. I have a question on pricing, as expected, but zooming out a bit. The whey prices have been cyclical.

Karel Zoete: Yes. Good morning, gentlemen. Thanks for taking the questions. I have, as expected, a question on pricing. Zooming out a bit, the whey prices have been cyclical. Supply comes on stream and prices go down. The way you talk about it feels a bit that this time it could be a bit different. Do you think that if you look back in 2, 3 years' time, that this uptick in the whey cycle is really going to reshape your PN industry a bit? The other thing is regarding marketing spend. I think there's no longer a 10% to sales target with regards to marketing investments. Can you share what you've been investing behind incrementally, and how you've changed a bit how you invest? Yeah, effective and more efficient marketing spend is a perpetual goal, I guess. What have you done differently?

Speaker #6: Supply comes on stream and prices go down. But the way you talk about it, it feels a bit that this time could be a bit different.

Speaker #6: Do you think that if you look back in two or three years' time, that this uptick in the whey cycle is really going to reshape your PN industry a bit?

Speaker #6: And then the other thing is regarding marketing spend. I think there's no longer a 10% to sales target with regards to marketing investments. But can you share what you've been investing behind incrementally, and how you've changed a bit how you invest?

Speaker #6: Because yeah, effective and more efficient marketing spend is a perpetual goal, I guess. So what have you done differently? Thank you.

Karel Zoete: Thank you.

Speaker #5: Good morning, Harold. How are you? Maybe on the way, yeah. Look, if you look back, it was probably one of the things that changed for us in 2024 into 2025.

Hugh McGuire: Morning, Karel. How are you? Maybe on the whey part. Yeah, look, if you look back, it was probably one of the things that changed for us in kind of 2024 into 2025. We've always had a traditional cycle in terms of whey demand. Increasing protein demand drives increasing supply. Prices go up when supply is short, and as new supply comes on, pricing goes down. We've certainly seen a fundamental shift in that, and all driven by demand. Demand is very strong.

Speaker #5: We've always had a traditional cycle in terms of whey demand. Increasing protein demand drives increasing supply. Prices go up when supply is short, and as new supply comes on, pricing goes down.

Speaker #5: We've certainly seen a fundamental shift in that, and all driven by demand. So, demand is very strong. The additional supply that we forecast and that we work with suppliers to bring on stream across the broader protein market has come on stream.

Hugh McGuire: The additional supply that we forecast and that we work with suppliers to bring on stream across the broader protein market have come on stream, and that's all been soaked up by demand. That's an advantage we can see on both sides of the business for demand, and we're not seeing either at the consumer or the customer level a lessening in high-quality protein. Might that change with elasticity volumes come back? Might that change as Certainly, I think the demand generally for protein is very strong, and that looks like it's sustainable. As we look into next year, we're certainly not planning for a decline in pricing for proteins given the demand we're seeing. A bit of the marketing spend, primarily digital, Karel.

Speaker #5: And that's all been soaked up by demand. And we're certainly not seeing on either—that's an advantage. We can see on both sides of the business the demand, and we're not seeing, either at the consumer or the customer level, unless there's a demand for high-quality protein.

Speaker #5: Might that change with elasticity, if volumes come back? Might that change as demand—it's certainly, I think, it's the demand generally for protein is very strong, and that looks like it's going to sustain.

Speaker #5: So as we look into next year, we're certainly not planning for a decline in pricing for proteins, given the demand we're seeing.

Speaker #5: If you look at marketing spend, primarily digital, Carol, while we've cut back in percentage terms—and that's as you can expect as we navigate very strong demand and ensure that we meet margin expectations as well.

Hugh McGuire: While we've cut back in percentage terms, that's as you can expect as we navigate very strong demand and ensure that we meet margin expectations as well, the spend still in dollar terms is substantial. The primary investment there is consumer recruitment, but also then digital. That's where we've all, I think brands across nutrition last year doing particularly well in terms of investing in search, investing in engaging with consumers online. That's been a key strength of the business now for probably 15 years.

Speaker #5: The spend still in dollar terms is substantial. And the primary investment there is a consumer recruitment, but also then digital. That's where we've all, I think, brand opportunity in particularly well in terms of investing in search and investing in engaging consumers online.

Speaker #5: And that's been a key strength of the business now for probably 15 years.

Speaker #6: All right, interesting. Thank you.

Karel Zoete: Right. Interesting. Thank you.

Speaker #3: Thank you. We will now take our next question from the line of Damien Manila from Deutsche Bank. Please go ahead, Damien. Your line is open.

Operator: Thank you. We will now take our next question from the line of Damian McNeela from Deutsche Bank. Please go ahead, Damian. Your line is open.

Speaker #6: Yeah, thank you. Morning, Jens. A few for me, please. Just firstly, on the sort of sustained category demand, I was just wondering, in your conversations with customers, particularly in the performance nutrition segment, whether you would expect to gain incremental distribution space within retailers over the coming years, given the strength of the backdrop, and if you could give any color on how those conversations are going with retailers, please.

Damian McNeela: Thank you. Morning, gents. A few from me, please. Just firstly on the sort of sustained category demand. I was just wondering, in your conversations with customers, particularly in the Performance Nutrition segment, whether you would expect to gain incremental distribution space within retailers over the coming years, given the strength of the backdrop, and if you could give any color on how those conversations are going with retailers, please. The second one is following on from Karel's question around the sort of supply environment. I think historically you've spoken to sort of incremental 10% to 15% of incremental WPI coming into the market. Can you sort of provide any update on whether that's still the right number, if there are any more sort of supply side investments adding to that?

Speaker #6: The second one is following on from Carol's question around the sort of supply environment. I think historically you've spoken to sort of 10% to 15% of incremental WPI coming into the market.

Speaker #6: Can you provide any update on whether that's still the right number, or if there are any more supply-side investments adding to that?

Speaker #6: And just to confirm, whether your own investment will be completely taken up by yourselves—i.e., it’s not going to be sold to any third parties—when that comes on stream in ’27?

Damian McNeela: Just to confirm whether your own investment will be completely taken up by your sales, i.e., it's not going to be sold to any third parties when that comes on stream in 2027. The final one is just on, you've completed the buyback. Just wondering, you're obviously talking about retaining balance sheet flexibility for M&A. I'm just wondering if you could give any sense of what that pipeline looks like and whether the focus is still on the H&N part of the business, please.

Speaker #6: And then the final one is just on, you've completed the buyback. I was just wondering, obviously talking about retaining balance sheet flexibility for M&A.

Speaker #6: I was just wondering if you could give any sense of what that pipeline looks like, and whether the focus is still on the H&N part of the business, please.

Speaker #5: Thank you, Damien. There are three quite varied questions. If I start with the first one, in terms of—I think I've spoken on the category growth, which is very strong.

Hugh McGuire: Thank you, Damian. They are three quite varied questions. If I start with the first one in terms of, I think I've spoken on the category growth, which is very strong. Yes, I think without a doubt we are seeing good distribution, particularly for ON, double-digit growth in UPCs, double-digit growth in distribution. We see it in Isostar as well. If you look at the club channel, we do see customers expanding shelf space both in terms of protein and creatine particularly. We know that our brand and these categories are drivers of foot traffic in store. Competitors know that as well. You will be seeing increase in shelf space. Luckily, these categories now and products have become mainstream. Look, turning to supply. Yeah, the 10% to 15% we spoke about is coming on stream. Demand has topped that up.

Speaker #5: And yes, I think without a doubt we're seeing good distribution particularly for ON, double-digit growth in GDPs, double-digit digital growth in distribution. We're seeing a nice growth as well if you exclude the job channel.

Speaker #5: We do see customers expanding shelf space both in terms of protein and creating, in particular. So we know that our brand and these categories are drivers of foot traffic in-store.

Speaker #5: Retailers know that as well, so you will be seeing increasing shelf space. Bluntly, these categories now on products have become mainstream. Turning to supply, yes, the 10% to 15% we spoke about is coming on stream.

Speaker #5: Demand has soaked that up. In fact, it's probably more than that has come on stream over the last 12 to 18 months. There is more supply coming on stream next year.

Hugh McGuire: In fact, it's probably more than that has come on stream over the last 12 to 18 months. There is more supply coming on stream next year. Demand definitely is, given the pricing we are seeing, all of our suppliers are looking to increase their capacity and buy into and that's a positive. If I look at our own supply, yes, that will either go to performance nutrition in terms of supply of nutrition or go to our protein solutions business. It will remain within Glanbia. Lastly, just on M&A pipeline. Yes, very active actually. Very active, yes, primarily in health solutions.

Speaker #5: So, demand is definitely there, given the pricing we're seeing. All of our suppliers are looking to increase their capacity and buy into protein, and that's a positive.

Speaker #5: If I look at our own supply, yes, that'll either go to Performance Nutrition in terms of supply and opportunity in our secure, or go to our Protein Solutions business.

Speaker #5: So it will remain within Plan B. And lastly, just on the M&A pipeline—yeah, very active actually. Very active, and yes, primarily in health nutrition.

Speaker #6: Great. Thank you very much, Hugh.

Damian McNeela: Great. Thank you very much, Hugh.

Speaker #3: Thank you. We will now take our next question from Carl, Kenny from Davey, please ask your question. Your line is open. Carl, can you unmute your line and ask your question, please?

Operator: Thank you. We will now take our next question from Cathal Kenny from Davy. Please ask your question. Your line is open. Cathal, can you unmute your line and ask your question, please? Cathal, your line is muted. Can you unmute and ask your question, please? All right. We are not getting a response. We'll move to the next question. Our next question comes from the line of Fatma Agnès Hamdani from Oddo BHF. Please ask your question.

Speaker #3: Carl, your line is muted. Can you unmute and ask your question, please? All right. We are not getting a response. We'll move to the next question.

Speaker #3: And our next question comes from the line of Fatma Onions Hamdani from Auto BHF. Please ask your question.

Speaker #7: Yes, good morning to all. I have two questions. Could you elaborate more on USupure's growth in H1, and how did the rest of the brand portfolio perform in the same period?

Fatma Agnès Hamdani: Yes, good morning to all. I have two questions. Could you elaborate more on Isopure growth in H1 and how did the rest of the brand portfolio in the same period, and how are your expectations for all of them going forward? The second question, could you provide some color on the raw material inflation seen in health and nutrition business during H1? What were the main driver behind this inflation, and how do you expect it to evolve over 2027? Should we expect more pricing to compensate next year? Thank you.

Speaker #7: And how are your expectations for all of them going forward? And the second question, could you provide some color on the raw material and inflation seen in the Health and Nutrition business during H1?

Speaker #7: What were the main drivers behind this inflation, and how do you expect it to evolve through 2027? Should we expect more pricing to compensate next year?

Speaker #7: Thank you.

Speaker #5: Good morning, Otto. I'll answer the ice question, and Mark will answer the raw material question. So, in terms of being very happy with ice for growth—and as I said earlier in our briefing—the main double-digit, very good double-digit growth in food, drug, mass, and convenience in the US is primarily ice. It’s primarily a US business first.

Hugh McGuire: Good morning, Oddo. I'll answer the Isopure question, and Mark will answer the raw material question. In terms of, very happy with Isopure growth in H1. As I said earlier, We've seen the main double-digit good, very good double-digit growth in Food, Drink, Mass, and Convenience in the US. It's primarily Isopure, primarily the US business for us. The overall numbers are pulled back a little bit as we lap a club channel business, but strong growth in distribution in Food, Drink, Mass. As I said, double-digit consumption, strong growth in household penetration as well. Very happy with that performance. We will lap that lost distribution in club as we head into Q4, and certainly into 2027. As I spoke about the rest of the portfolio, look, the biggest brand there is think!.

Speaker #5: The overall numbers are pulled back a little bit as we lack a club channel business. But strong growth in distribution in food, drug, mass—as I said, double-digit consumption, and strong growth in household penetration as well.

Speaker #5: So, very happy with that plan performance. And we will lack that loss distribution in close as we head into quarter four and certainly into 2027.

Speaker #5: As I spoke with the rest of the portfolio look, the biggest brand there is Hink brand. That's suffering from loss distribution at the tail end of last year with a major new relaunch of Hink coming back in this year as we go into 2027.

Hugh McGuire: That's suffering from lost distribution at retail in the last year with a major new relaunch of think! back end this year as we move to 2027. It is one of the top high-protein bars. There's 20g of great quality protein in a bar, so it's a priority for us, and that'll be relaunched at the back end of the year.

Speaker #5: It is one of the top high-protein bars, with 20 grams of great quality protein in a bar. So it's a priority for us, and that'll be relaunched back into the year.

Speaker #8: Good morning, Otto. In terms of the cost increases we’re seeing in health and nutrition, they are primarily coming through as a result of the Middle East conflict, which is causing some challenges in terms of petrochemical feedstocks feeding into manufacturing over in Asia.

Mark Garvey: Good morning. Although in terms of the cost increase we're seeing in Health and Nutrition, primarily coming through as a result of the Middle East conflict, which is causing some challenges in terms of petrochemical feedstocks feeding into manufacturing over in Asia. That is causing some increases in costs that are coming through to us. We are going to see that in the H2. We will look to offset as much of that as we can. That is our transformation savings, which obviously feed into Health and Nutrition business as well. We still are very confident in our 17% to 19% margin overall for the business.

Speaker #8: And that's causing, then, some increases in costs that are coming through to us. We're going to see that in the second half. We will look to offset as much of that as we can.

Speaker #8: That's our transformation savings, which obviously feed into the Health and Nutrition business as well. But we are still very confident in our 17% to 19% margin overall for the business.

Speaker #7: Okay. Thank you. And for '27? Next year, do we see some?

Fatma Agnès Hamdani: Okay, thank you. For 2027, next year, do you see some-

Speaker #8: Well, for '27, again, we'll see how long this process continues. Obviously, if the conflict continues, we would expect to see higher costs, but then, obviously, we would look to pass those on in terms of pricing as well next year.

Mark Garvey: Well, for 2027, again, we will see how long this process continues. Obviously, if the conflict continues, we would expect to see higher costs, obviously we look to pass those on in terms of pricing as well next year.

Speaker #7: Okay. Thank you. Thank you very much.

Fatma Agnès Hamdani: Okay, thank you. Thank you very much.

Speaker #3: That's the end of the question and answer session. Thank you all very much for your questions. I'll now turn the conference back to Mr. Hugh McGuire for his closing comments.

Operator: That's the end of the question and answer session. Thank you all very much for your questions. I'll now turn the conference back to Mr. Hugh McGuire for his closing comments.

Speaker #5: Yeah, folks, just to say thank you very much for all your questions. Delighted with half-year performance, and look forward to sharing more with you over the coming days as we catch up.

Hugh McGuire: Yeah, folks, just to say thank you very much for all your questions. Delighted with H1 performance and look forward to sharing more with you over the coming days as we catch up.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Speaker #3: lines.

Speaker #1: Good morning, and welcome to the Glanbia 2026 half-year results call. During today's call, the directors may make 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 the Glanbia half-year 2026 results announcement.

Liam Hennigan: Good morning, welcome to the Glanbia 2026 H1 Results Call. During today's call, the directors may make 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 the Glanbia H1 2026 results announcement. Due to 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 made on today's call, whether as a result of new information, future events, or otherwise. I'm now handing the call over to Hugh McGuire, CEO, Glanbia PLC.

Speaker #1: Due to 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.

Speaker #1: The directors undertake no obligation to update any forward-looking statements made on today's call, whether as a result of new information, future events, or otherwise.

Speaker #1: I'm now handing the call over to Hugh McGuire, CEO of Glanbia PLC.

Speaker #2: Thank you, Liam. Good morning, everyone, and welcome to the Glanbia half-year 2026 results call and presentation. I'm joined on today's call by Mark Garvey.

Hugh McGuire: Thank you, Liam. Good morning, everyone, welcome to the Glanbia H1 2026 Results Call and Presentation. I'm joined on today's call by Mark Garvey. I will provide an overview of our performance for the H1, and Mark will then cover the financials and outlook. At the end of our prepared remarks, we will be happy to take your questions. Overall, we delivered a strong performance in the H1 of the year with adjusted earnings per share of EUR 0.8124, representing constant currency growth of 13% versus the prior year. This was driven by strong growth across all three of our operating segments, with very good demand for our better-

Speaker #2: I will provide an overview of our performance for the first half, and Mark will then cover the financials and outlook. At the end of our prepared remarks, we will be happy to take your questions.

Speaker #2: Overall, we delivered a strong performance in the first half of the year, with adjusted earnings per share of 81.24 cents. Representing constant currency growth of 13% versus the prior year.

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Half Year 2026 Glanbia PLC Earnings Call

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