Financial Analysis of Glanbia

Question

You are required to undertake an examination of the 2018 annual report for Glanbia plc (“Glanbia”) and prepare a professional report that contains the following:

1. Publically listed companies publish a significant amount of accounting and other financial information on a regular basis. The publication of this information can result in share price reactions.

1. Provide an overview of the financial information and reports published by Glanbia for the past twelve months (since October 2018). How often is such financial information released and in what format(s) does it appear?
2. Your answer should include an analysis of how the market reacts to the information when it is released (e.g. was it a positive or negative reaction and why?). (Charts and diagrams may be useful for this).

Note: You should look at the “Investors” section of the Glanbia website for a lot of this information.

Points to note

• The report should be supplemented with appropriate images and graphs to enhance its overall presentation.
• Referencing should be in the form of footnotes with a collection of such references then provided in a bibliography at the end. Given the nature of the report there should be minimal academic journal references. Under no circumstances should you consider using websites such as Investopedia or similar low quality sources as references. Referencing information included in the footnotes is not considered part of the word count.

Answer

In 2018, the revenue from continuing operations increased by 4.1%. This increase was market by effective market operations, including acquisition. The acquisition resulted in the rise in the production of body and fit quarter one and SlimFast for one month.

The two products significantly increased the overall revenue. Sales volume also accounted for a 6.7% increase in revenue. The increase in sales volume was contributed by the new branded products that the company introduced in 2018, such as SlimFast.

The company’s Income before Tax, Interest, and Amortization grew by 5.1%. Based on the consensus obtained from different equity analysts, Glanbia’s EBITA and revenue were as follows.