Globe International Limited Annual Report 2023

FY2023 Annual Report · Globe International Limited

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Glanbia plc
Annual Report and
Financial Statements 2023

Better
Nutrition

Glanbia is a Better Nutrition company, the home
of consumer brands and ingredients that nourish
millions around the world.

We know that people want to live full, healthy lives.
To reach their performance goals, recover quickly, and stay
strong, at any age. Better living requires better nutrition –
and Glanbia delivers just that.

Delivering…

Nutrition

The Glanbia Group comprises Glanbia Performance Nutrition, Glanbia Nutritionals and
strategic cheese joint venture operations. We offer an incredible breadth of expertise in
protein nutrition and we are home to Optimum Nutrition – the no. 1 sports nutrition brand
in the world.

Discover more about our
business on pages 32-39.

Performance

Leveraging strong market positions, driving innovation in our sales and marketing
processes, and operational excellence are all hallmarks of Glanbia. Driven by our
agile business model we continue to deliver for all our stakeholders.

Discover more about our
performance on pages 10-46.

Impact

At Glanbia, we aim to lead by example. To make an impact. As a global leader in
nutrition, we have opportunities—and responsibilities—to show how business can
be done better.

Discover more about our
sustainability goals on pages 46-71.

Contents

Strategic Report
Highlights

At a glance

Investment case

Group Chairman’s statement

Chief Executive Officer’s review

Strategy

Market trends and growth drivers

Our Business Model

Key performance indicators

People

Operations review

Chief Financial Officer’s review

Sustainability review

Task Force on Climate-related
Financial Disclosures

Risk management

Principal risks and uncertainties

Directors’ Report
Corporate Governance Report

Board of Directors and
Senior Management

Audit Committee Report

Environmental, Social and Governance
Committee Report

Nomination and Governance
Committee Report

Remuneration Committee Report

Statutory information and
Forward-looking statement

Directors’ Responsibility Statement

Financial Statements
Independent Auditor’s Report

Group financial statements

Notes to the financial statements

Company financial statements

Notes to the Company
financial statements

Other Information
Glossary of non-IFRS
performance measures

Shareholder information

Contacts

For definitions and more information on constant
currency and other performance measures see the
glossary on pages 252-260.

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*ESEF: European Single Electronic Format.

Glanbia plc | Annual Report and Financial Statements 2023

Find us online

Our online report
This copy of the statutory annual report
of Glanbia plc for the year ended
30 December 2023 is not presented
in the ESEF*-format as specified in the
Regulatory Technical Standards on ESEF
(Delegated Regulation (EU) 2019/815).
The ESEF annual report is available at:
www.glanbia.com/annualreport

Discover more about our 2025 ambition on pages 15-18.

@Glanbiaplc

@Glanbia

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONHighlights

Financial Highlights (based on continuing operations)

Revenue

$5.4bn

2022: $5.9bn

reduction of $0.5bn

Profit after tax

$347.7m

2022: $210.3m

+$137.4m

Adjusted EPS ($)

131.37c

2022: 109.57c

+19.9%1 / +20.5%2

Return on Capital Employed

12.2%2022: 10.7%

+150bps

EBITA (pre-exceptional)

$424.0m

2022: $365.7m

+15.9%1 / +16.4%2

Basic EPS ($)

130.41c

2022: 76.55c

+70.4%1 / +71.7%2

OCF³ conversion

90.4%

2022: 85.7%

increase of 470bps

Net debt

$248.7m

2022: $490m

reduction of $241.3m

“2023 was another year of strong performance for Glanbia
plc, with the Group delivering record earnings in terms of
adjusted earnings per share. I look forward to leading the
Group in its next phase of growth.”

Hugh McGuire
Chief Executive Officer

1. Reported currency
2. Constant currency
3. Operating cash flow

Glanbia plc | Annual Report and Financial Statements 2023

Non-Financial Highlights

Health and safety
Lost time case rate

improvement versus 2022

Scope 1 & 2
GHG emissions

15.9%

reduction versus 2022

Employee
engagement score

72 pts

increase of 1 point versus 2022

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONAt a glance

O U R P U R P O S E

O U R M A R K E T S

Delivering
Better
Nutrition

Glanbia is a Better Nutrition
company whose purpose is to
deliver better nutrition for every
step of life's journey. We employ over
5,500* people across 30 countries
and our brands and ingredients
reach millions of people every day.

* Including joint venture operations.

Glanbia plc | Annual Report and Financial Statements 2023

Serving growing
consumer trends

Focus on healthy living
As the foundation for healthy living has shifted to
prevention, consumers increasingly make food and
beverage choices based on health, nutritional benefit,
functionality, energy and immunity.

Increased trust in established brands
Consumers are loyal to established and trusted brands
in performance and lifestyle nutrition.

Mass appeal of protein
The functional and nutritional benefits of protein are
now recognised by a wide consumer set.

The rise of plant-based diets
Plant-based protein appeals to three growing consumer
cohorts: flexitarian, vegetarian and vegan.

Provenance and sustainability focus
Consumers want to know much more about ingredient
sourcing and want to understand the food system
better, rather than be passive participants in it.
Customers want sustainability embedded in the supply
chain.

Acceleration of eCommerce
eCommerce has emerged as the trend of the 2020s
with penetration and usage accelerating at pace.

Read more in ‘market trends and
growth drivers’ on pages: 19-21.

R O U T E S T O M A R K E T

O U R C U L T U R E & V A L U E S

Nutrition focused
brands and ingredients

Consumer branded
products

by Glanbia Performance Nutrition
#1 global sports nutrition brand1

A portfolio of leading brands
in performance and lifestyle nutrition.

2023 Revenue

$1,795.6m

2023 Revenue growth

+4.8% cc²

Read more about our consumer brands
on pages: 32-35.

Better Nutrition

Specialty nutritional
ingredients
by Glanbia Nutritionals
#1 US supplier of whey protein isolate
#2 global leader of custom premix solutions
#1 supplier of American-style cheddar cheese

Glanbia Nutritionals’ (“GN”) Nutritional Solutions (“NS”)
is a leading provider of both bespoke customised premix
solutions and whey protein isolate.

GN’s US Cheese business is the number one marketer
of American-style cheddar cheese.

2023 Revenue

$3,629.8m

2023 Revenue decline

(14.2)% cc²

Read more about our functional ingredients
and solutions on pages: 36-39.

1. Source: Euromonitor
2. Constant currency

Our purpose, vision, and values
provide focus and direction for the
organisation and guide us in our
business interactions.

Our diverse, engaged and energetic
workforce drive our strategy to
deliver better nutrition every day.

Customers' champion
We are the customers’ champion. Our customers
and consumers do not just choose us once but
rely on us delivering for them again and again.

Performance matters
We are committed to the highest standards of
performance in quality, consistency and safety.
We are not just delivering better nutrition but
delivering it better every day.

Find a better way
The drive to constantly improve is in our DNA.
It leads us to innovate and collaborate. It has
fuelled acquisitions, partnerships, new products
and smarter ways of working.

Winning together
We expect a lot from our people and offer much
in return. We nurture individuals but encourage
everyone to work together. Winning is great,
but together we are more.

Showing respect
Respect underpins everything we do. Caring for
people and the planet is embedded in the fabric
of our business. Respect builds a better future
for everyone and is vital for our success.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONInvestment case

Key strengths and unique
competitive advantage will
drive sustainable growth

A simplified strategy,
focused on better
nutrition

Glanbia has a unique portfolio
of Better Nutrition brands and
ingredients, which address
growing consumer demand
in major healthy nutrition
categories. Our brands and
ingredients play into the
growing market trends of
active lifestyles and health
and wellbeing, which have a
combined total addressable
market of $96bn*. Our core
strategy is focused on
delivering growth through our
Better Nutrition portfolio of
brands and ingredients.

Discover more on pages 15-21.

Sustainable
operations

Our ESG strategy has been fully
integrated into our business
model and targets. Our
sustainability strategy outlines
ambitious goals across our
priority areas – carbon, waste,
water and packaging. Aligned to
the UN Sustainable Development
Goals, we have committed to the
Science-Based Targets initiative
and are very clear on our
roadmap for achieving our
targets.

Discover more on pages 46-71.

Serving strong
consumer trends
through brands
and ingredients

In today’s world, consumers are
seeking authentic brands and
ingredients that focus on
performance, healthy lifestyles,
weight management and
boosting immunity. Individuals
and governments now recognise
that prevention is better than
medication and consumers
are reacting to that by taking
personal accountability for their
own health and wellbeing, and we
can be with them on that journey.

Discover more on pages 19-21.

* Source: Euromonitor. Glanbia team analysis.

Glanbia plc | Annual Report and Financial Statements 2023

Focused operating
model

We have optimised our business
for maximum long-term value
through disciplined and focused
capital allocation. We have
simplified our operating model
to focus on brand development
and nutrition solutions innovation.
Our strong results in recent years
highlight the strength of our
business, the diversity of our
products and markets, our
geographic spread, robust
financing and an organisational
design that permits fast and agile
decision-taking.

Discover more on pages 22-23.

Strong culture
and values

We are a purpose-led business,
committed to building an
inclusive culture that empowers
our people to thrive. Our diverse
and engaged workforce drive
our strategy to deliver better
nutrition every day. We listen to
our stakeholders, our employees,
our investors, our consumers and
customers to craft and deliver on
our strategy.

Discover more on pages 28-31.

Financial capacity

We have a strong balance
sheet, earnings growth, and
cash conversion, all facilitating
investment and shareholder
returns. 90% of Group EBITA is
now delivered through our
Better Nutrition growth
platform of Glanbia
Performance Nutrition and GN
Nutritional Solutions. Improving
the operational, commercial
and financial performance of
our business has helped us
maximise long-term value and
deliver superior returns.

Discover more on pages 40-45.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONDelivering
Nutrition

Our focus on delivering our Better Nutrition
strategy has enabled us to consolidate
into our two core growth platforms;
Glanbia Performance Nutrition and
Glanbia Nutritionals.

There is a strong complementary
thread of protein nutrition
expertise across both our
businesses enabling us to
deliver a range of leading consumer
brands and protein ingredient
solutions.

Discover more on pages 32-39.

Glanbia plc | Annual Report and Financial Statements 2023

Continuous Innovation
Glanbia takes a strategic
approach to innovation
that’s collaborative, agile
entrepreneurial, and
continuous.

Discover more on pages
35 and 38.

Consumer Trends
Our portfolio of brands and ingredients play
into attractive consumer nutrition trends
around performance, health and wellness.

Discover more on pages 19-21.

Chief Executive Officer’s review
“Glanbia had an excellent performance in
2023, delivering double-digit earnings
growth and outperforming all of our
ambitious Group targets, set out at our
2022 Capital Markets Day.”

Hugh McGuire
CEO
Glanbia plc

Discover more on pages 12-14.

People
We are a purpose-led business, committed to
building an inclusive culture that empowers our
people to thrive.

Discover more on pages 28-31.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONGroup Chairman’s statement

A year of double
digit growth

Donard Gaynor
Group Chairman

“I am delighted to report that Glanbia enters 2024 in
great shape. Our portfolio of exciting consumer
performance nutrition and lifestyle brands and
nutritional ingredients leave us well positioned to
sustain our growth momentum.”

10 Glanbia plc | Annual Report and Financial Statements 2023

Dear Shareholder,

A thank you to Siobhán Talbot
It is impossible to reflect on the past year
without first talking to the retirement of
our Group Managing Director, Siobhán
Talbot. Siobhán’s leadership defined
the last decade of Glanbia. Siobhán
led the creation of a focused business,
with a defined purpose, strong values,
aligned with growing consumer trends;
and a clear ambition for growth. These
are all key parts of her distinguished
legacy. A deeply principled and values-
driven leader, her vision to reshape
the business and its culture has been
pivotal in positioning Glanbia as a
global leader in the world of better
nutrition. On behalf of the Board, I would
like to take this opportunity to thank
Siobhán most sincerely for her very
significant contribution over more than
three decades. On behalf of everyone
connected with Glanbia, we wish Siobhán
and her family every success and
happiness in the future.

Welcoming our new CEO
Hugh McGuire
A key role of the Board is to ensure there
are appropriate succession plans in
place for Board and senior management
roles. The Board diligently planned
for Siobhán’s succession, and we are
delighted that our process resulted in
the internal promotion of a leader of
Hugh McGuire’s calibre. Hugh, who took
over as CEO on 1 January 2024, has been
a highly valued member of Glanbia’s
Executive team for ten years. He has
deep consumer and ingredients industry
expertise as well as proven strategic
capabilities and a clear ability to build
and lead teams. I have no doubt that
Glanbia is in the right hands for the next
phase of its growth.

Our “Better Nutrition” strategy
The Board is strongly supportive of
Hugh’s commitment to the Company’s
three-year strategic vision which was
set out at our Capital Markets Day
(“CMD”) in November 2022. This “Better
Nutrition” strategy seeks to create and
sustain long-term shareholder returns
while building a responsible Company
guided by a strong sense of purpose. I
am pleased to report that in 2023 we
updated the market and raised our
adjusted EPS guidance three times from
5-10% to 17-20% and exceeded all of our
ambitious Group targets as set out at the
CMD in November 2022. (See page 14.)

While 2023 was again a year of broad
uncertainty with major economies facing
the challenge of inflation, cost-of-living
pressures and geopolitical uncertainty, as
ever my colleagues throughout Glanbia
responded to this operating environment
with agility and resilience. This spirit of
entrepreneurialism coupled with our
strong brands, ingredients and business
continued to drive double-digit earnings
growth in 2023.

Profit, cash and return on capital
employed (“ROCE”) all grew in 2023.
Pre-exceptional Group EBITA increased
by 16.4%, constant currency, to $424.0
million (+15.9% reported). ROCE, a key
metric for the Group, was 12.2% and our
strong Operating Cash Flow conversion
continued at 90.4%.

During the year, we also continued to
evolve our portfolio with the disposal of
our interest in the Glanbia Cheese UK
and EU joint ventures and the acquisition
of a bioactive ingredient business within
our Glanbia Nutritionals portfolio. Our
strategy to simplify our organisation
and focus on our two growth platforms
is serving us well and strengthening our
position as a global nutrition leader.

The fundamentals of the health and
nutrition categories in which we
play, remain attractive. The growth
of the health and wellness industry
and the growing desire amongst all
demographics for a more active lifestyle
are long-term, sectoral trends in which
we continue to focus.

Dividends
In testament to the strength of the
business, the Board believes it is
appropriate for Glanbia to deliver a
strong dividend for 2023. The Board is
recommending a final dividend of 21.21
euro cent per share for the year ended
30 December 2023. This brings the total

dividend per share for the year ended
30 December 2023 to 35.43 euro cent
per share, up 10% on the previous year.
The Board will continue to review the
availability of surplus cash and capital in
accordance with the Group’s policies on
financial leverage and capital allocation.
In 2023, we spent €100m on share
buybacks with an additional buyback
announced in February 2024.

Board and leadership changes
We have significantly refreshed the
composition of the Board over the past
number of years, to ensure we reflect an
appropriate mix of skills, experience and
diversity to suit the evolving nature of the
business and the expectations of society.
The reduction in the representation of
Tirlán Co-operative Society Limited
(the “Society”) to three in 2023, has also
enabled us to achieve greater diversity.
Patsy Ahern and John Murphy retired
from the Board on 4 May 2023. In addition
to retiring as Group MD, Siobhán also
stepped down from the Glanbia Board on
31 December 2023. I thank them for their
extensive contribution. On 1 June 2023,
we were delighted to appoint Gabriella
Parisse to the Board as an Independent
Non-Executive Director. Gabriella
also joins the Board’s Development
Committee. Gabriella brings to the
Glanbia Board significant experience in
consumer brand development, the food
ingredients industry, innovation and
strategic leadership of multinational
businesses. (See page 91 for biography).
We also made a number of changes
to our Committees. On 30 December
2023, Róisín Brennan succeeded Dan
O’Connor as Senior Independent Director
and Dan replaced myself as Chair of the
Environmental Social and Governance
(“ESG”) Committee.

As mentioned earlier, the most important
change made to the management of
our business was the appointment of
Hugh McGuire as Group CEO. Following
Hugh’s appointment, Steve Yucknut was
appointed CEO of Glanbia Performance
Nutrition (“GPN”). Steve previously held
the position of President, GPN Americas,
having joined GPN as Chief Operating
Officer in 2015.

Furthermore in 2023 we saw the
retirement of our Chief ESG and
Corporate Affairs Officer Michael Patten.
I would like to thank Michael for his work
and commitment to Glanbia and wish
him well in his retirement. Given the
importance of ensuring the delivery of our
ESG agenda, our Chief Financial Officer
Mark Garvey has now been appointed to
the ESG Committee.

Connecting our purpose
to strategy
As a global nutrition company, Glanbia
has an important role to play in the
changes required to tackle the global
food challenges we all face. “Delivering
Better Nutrition for every step of life’s
journey” is our purpose and we have put
this into action by establishing ambitious
targets that ensure impact beyond profit.
We’ve demonstrated our purpose through
partnerships and commitments that are
making a difference to our people and
planet, accelerating our sustainable
nutrition impact, and that of our customers.

Our focus on our sustainability strategy
“Better Nutrition, Better World” is
testament to our purpose. Together, they
inform our innovation and acquisition
strategies – driving us to invest in
markets and technologies where we can
make the greatest impact towards our
sustainability goals.

Employee engagement
As lead Board member for workforce
engagement, I engaged with hundreds
of colleagues across Europe, the US and
Asia. I continue to be impressed by their
passion. That passion was reflected
once again in the results of our annual
‘Your Voice’ employee survey. Employee
engagement remains very high at 72
points, up one point on last year. I believe
that our culture is a major differentiator
for Glanbia and a significant source of
our ongoing competitive advantage.

Summary
As a Board we continue to have a
clear focus on maximising long-term
shareholder value. I have no doubt that
Hugh will continue to drive a strong
values-led business, embedding a culture
that enables the business to innovate
and act with agility in a fast-paced,
interconnected world. We are building on
firm foundations to create the conditions
for long-term sustainable growth and
outperformance. Like every business,
we will face challenges ahead but our
continued investment in our brands
and ingredients, coupled with our deep
understanding of our consumers and
customers, positions us well to capture
opportunities in a market we believe has
very attractive fundamentals.

Donard Gaynor
Group Chairman

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONChief Executive Officer’s review

Creating value.
Delivering growth.

Hugh McGuire
CEO
Glanbia plc

“I am delighted to be introducing Glanbia’s 2023 Annual
Report, my first as CEO. Glanbia is an exceptional business
with market leading positions in key branded and nutritional
ingredients markets. It was particularly pleasing to see
Optimum Nutrition, our flagship global brand, break through
$1bn in sales in 2023 with lots of headroom for further growth.
We have great people, who are passionate about the needs
of our customers and consumers. I’m proud to be leading
such a team and I am excited about the growth potential for
our portfolio of great brands and ingredients.”

12 Glanbia plc | Annual Report and Financial Statements 2023

Dear Shareholder,
I am honoured to have been appointed
CEO of Glanbia plc at a moment of great
potential for our organisation.

Firstly, I would like to pay tribute to my
predecessor Siobhán Talbot, who leaves
Glanbia in a very strong position for
future growth. I look forward to building
on her legacy and I want to thank her
sincerely for her counsel, support and her
unwavering commitment to the growth
and continued strategic evolution of
Glanbia. On behalf of myself and all her
colleagues in Glanbia, we wish her the
very best in her retirement.

Delivering our Better
Nutrition strategy
Glanbia operates in a sector that is
closely aligned to my own passions
and values. The Group’s portfolio of
better nutrition brands and ingredients
continues to resonate strongly with
consumers seeking health and wellness,
with a particular focus on protein.

Over the past decade, the Group
has been simplified to focus on our
two growth platforms of Glanbia
Performance Nutrition (“GPN”) and
Glanbia Nutritionals (“GN”) both of which
have market leading positions.

In 2022, we laid out a clearly defined
three-year “Better Nutrition” strategy
for our next phase of sustainable growth
and to date, we are outperforming on all
of these ambitious Group targets. (See
page 14.)

Growth is my number one priority and
in 2023 the Group performed very
well, delivering double-digit earnings
growth with a very strong operational
and financial performance despite a
continuously volatile and inflationary
environment. In 2023, adjusted EPS rose
by +20.5% constant currency to 131.37c.
Pre-exceptional profit rose to $298.1m, an
increase of 20.2% reported.

This speaks to the strength of our brands
and ingredients, as well as to the quality
of our execution across all our markets,
where we have increased investment in
our market teams over recent years.

In this era of higher interest rates, the
ability of Glanbia to generate cash
remains strong, with the Company
achieving a cash conversion ratio
of 90.4% in 2023. This strong cash
performance allowed us to increase
the dividend by 10% and to return €100
million to shareholders via a share
buyback programme in 2023.

In the medium term, my focus is to
continue to build on and deliver our
“Better Nutrition” strategy which centres
on three distinct priorities: grow the core;
optimise our business; and disciplined
capital allocation. (See pages 15-18.)
Working together as one Glanbia –
across regions, businesses and functions,
we will continue to drive growth across
the organisation.

A focused portfolio of brands
and ingredients
In 2023, we also continued to evolve our
portfolio with the sale of our interest in
the Glanbia Cheese joint ventures, the
sale of our noncore Aseptic Solutions
bottling facility, and the acquisition of a
bioactive ingredient business within our
Glanbia Nutritionals portfolio.

As a better nutrition company, we
are committed to building a portfolio
of nutritional brands and ingredient
solutions that evolve with consumer and
customer demands across a range of
categories and occasions offering a very
attractive runway for growth.

Glanbia Performance Nutrition
GPN has a portfolio of performance
nutrition and healthy lifestyle brands that
are loved by their consumers, supported
by innovation, with strong market
positioning and brand equity investment.
We continue to increase investment in
our brands people and capabilities, as we
drive awareness and distribution globally.

In 2023, GPN saw strong like-for-like
branded revenue growth of 5.1%,
constant currency and EBITA earnings
growth of 33.7%, constant currency.
Pricing was positive reflecting the
annualisation of strategic price increases
executed in 2022. Overall volume
momentum continued to improve in GPN
through 2023, with Optimum Nutrition
(“ON”), delivering double-digit global
volume growth. EBITA margin increased

“We have set out a clearly defined three-
year “Better Nutrition” strategy for our
next phase of sustainable growth and to
date, we are outperforming on all of
these ambitious Group targets.”

by 300bps to 14.2%. This was driven by
our continued focus on revenue growth
management initiatives, operational
efficiencies and margin optimisation.
We also increased brand and marketing
investment by over 200bps prioritising
our growth brands: ON, Isopure and think!

Optimum Nutrition is the world’s no.1
sports nutrition brand which became
a billion dollar brand in 2023. It now
represents over 60% of the GPN brand
portfolio and is experiencing strong
growth in all markets. We continue to
increase investment support behind the
brand to drive awareness, distribution
gains and volume growth. We are
excited about the latest campaign
under Optimum Nutrition’s “More of You
in You” communications platform that
launched in January 2023. “Unlock More
You” will run in all supported markets and
will feature on national television in the
US and the UK. Optimum Nutrition has
also become the official sports nutrition
partner of the McLaren Formula 1 team.
We see plenty of opportunities for ON
with lots of new consumers coming into
the category. (See pages 32-35.)

The trends in the healthy lifestyle
segment remain robust with strong
consumption growth across the
portfolio-Isopure, think!, and Amazing
Grass brands. The protein category
continues to resonate very strongly with
active lifestyle consumers and we are
ambitious to continue to grow this brand
portfolio in North America.

SlimFast, which now represents less than
10% of the GPN brand portfolio, continues
to be challenged as the diet category
continues to evolve. We are re-focusing
on the core proposition of high protein
meal replacement shakes in ready-to-
drink and powder formats. The increased
awareness of weight loss drugs has
contributed to the evolution of the diet
category, but we are optimistic about the
potential tailwind for our protein brands
and ingredients.

GPN has a portfolio of authentic and
unique nutrition brands that appeal

to consumers all over the world with
opportunity for growth across multiple
channels and geographies as we drive
awareness and reach.

Glanbia Nutritionals
In Glanbia Nutritionals, the customer is
at the core of everything we do, with our
unique portfolio of nutritional ingredients
and solutions combined with our deep
innovation capability driving partnerships
and collaboration with customers. GN’s
unique and premium ingredient solutions
can be found in many established
consumer brands sold all over the world
across a range of formats including
market-leading energy drinks, premium
healthy-snacking brands, including
bars and gummies, as well as leading
protein-based brands. Our Nutritional
Solutions (“NS”) revenue declined by
14.9%, constant currency, driven by a 9%
decline in price, a 3.3% decline in volume
and a decline of 2.6% driven by the net
impact of acquisitions and disposals.
The price decline was driven by dairy
market pricing, with positive pricing in
the custom premix solutions business.
The volume decline was driven largely by
customer supply chain rebalancing in the
custom premix solutions business. Overall
volume trends continued to improve
during the period, with good demand for
protein underpinning NS volume growth
in the second half of the year.

Our combined US Cheese business
and US JV operations make us the no.
1 supplier of American-style cheddar
cheese. Our US Cheese and US JV
delivered a strong performance driven
through solid operational efficiencies.
Our focus is on earnings and cash flow for
this business.

Our most recent acquisitions Sterling
Technology and the B2B business of
PanTheryx are exciting additions to
our portfolio of nutritional ingredients,
building out our dairy bioactive
platform with their colostrum-enriched
nutraceuticals that support gut health
and help strengthen immune systems.
We will continue to build on our core
strength in custom premix solutions, scale

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONChief Executive Officer’s review continued

our extensive protein capability, and
bolster our deep expertise in the healthy
snacking space.

Future growth opportunities
The positive global trends around
performance health and wellness
continue to underpin our “Better
Nutrition” strategy. Consumers have
never been so focused on their health
and wellbeing and want authenticity,
functionality and sustainability in what
they purchase. Our portfolio of great
brands and ingredients support these
trends. (See pages 19-21.)

As a Group, we will continue to focus on
our strategic priorities and drive growth
across our core platforms of GPN and
GN, optimise our business and drive
shareholder value. We will also continue to
invest in the business particularly the key
enablers of awareness and distribution
driving customer and consumer relevance.
The growth profile of Glanbia will continue to
be a blend of organic growth and acquisitions.
We are ambitious in M&A and currently have
debt capacity of approximately $1.3 billion.
In terms of organic growth, we have taken
Optimum Nutrition to over a billion dollars
in revenue. Within GN, we understand
protein and nutrition solutions like no other
company, and we see great opportunities
ahead.

Embedding sustainability across
the business
Guided by our strong purpose and values,
we will continue to drive the integration of
our sustainability programme across the
business through operational excellence,
innovation, and partnerships. “Better
Nutrition, Better World” is Glanbia’s global
sustainability programme and it is central
to our strategy. In 2023 we made good
progress across our ESG agenda and are
on track against our stated targets. A
key focus area for 2024 is the delivery, in
tandem with our partner suppliers, of a
Scope 3 dairy decarbonisation transition
plan. (See pages 46-71.)

Our valued people
Our people are our greatest asset. We
care for our people and we work to
foster an inclusive culture where every
employee can thrive and reach their full
potential. Supported by strong values,
employee engagement and development
opportunities, we continue to create high
performing, diverse teams that can drive and
support our growth agenda. I firmly believe
Glanbia’s success is built on the talent of our
great teams and people, with their innovative
and entrepreneurial mindset, whether it is
about driving performance, collaborating
with customers, delivering operational
excellence or building new businesses. I
would like to thank each and every one

of my colleagues for their hard work and
commitment in 2023 and I look forward to
celebrating our successes in 2024. We will
continue to deliver on our comprehensive
people agenda as outlined by our Chief
Human Resources Officer Sue Sweem
on pages 28-31. Over 5,500 people work in
Glanbia and I look forward to working with
them to ensure they are empowered to reach
their personal and professional goals.

Looking to the future
As your newly appointed CEO, I step into the
role at a time where significant progress
has already been made in positioning
the Group for future success. While our
business is not immune to external factors
beyond our control. I am confident that our
Better Nutrition portfolio of brands and
ingredients, and our strong culture and
values, coupled with our robust financial
capacity and simplified operating model,
gives Glanbia a unique competitive
advantage that will continue to drive
sustainable growth for all our stakeholders.

Hugh McGuire
Chief Executive Officer

Delivering sustainable value creation

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CMD Metrics* – November 2022

Metrics Delivered In 2023

Avg. Adj.
EPS Growth**
5-10%

Adj.
EPS Growth**
20.5%

Avg. OCF
conversion

80%+

Avg. ROCE

10-13%

OCF
conversion

90.4%

ROCE
12.2%

* Glanbia Group ambition targets as per Capital Market’s Day (“CMD”) November 2022.
** Constant Currency.

14 Glanbia plc | Annual Report and Financial Statements 2023

Strategy

Delivering on our
growth ambition

Our purpose: To deliver better nutrition for
every step of life’s journey.

Glanbia has evolved and grown over the past decade. Today, we are a “Better
Nutrition” company, the home of consumer brands and ingredients that nourish
millions around the world.

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The choices we do – and don’t – make, are guided by our purpose.
Everything we do reflects our respect for each other and the earth.

Each day, we set our sights on better. With ceaseless curiosity, our
experts meet the needs of our customers and consumers, using insight
and science-led innovation to create high-quality nutrition and more
sustainable ways of doing business. As a team, we stay ahead of the
curve by asking the right questions.

Our strategy
Our defined set of strategic priorities: grow the core; optimise our business;
and disciplined capital allocation will help us to achieve our 2025 ambitions.

To support these priorities and harness Glanbia’s global growth potential,
we will continue to develop our key enablers, our world-class strategic
capabilities and our strong assets.

Enablers

Powerful consumer trends:
Our markets have evolved and as
a Group we are evolving with them,
understanding and staying close to
our consumers and customers.

Culture and talent:
Glanbia’s culture and talent are key
sources of competitive advantage
for the Group.

Disciplined financial
management:
We invest in the future success
of our business. This investment
supports the delivery of a strong
performance and enables
sustainable growth.

Sustainable operations:
We seek to maintain a strong
position on key sustainability issues
in our sector including food safety
and quality, diversity, equity, and
inclusion and in particular our
environmental commitments.

Grow the core

Optimise our business

Disciplined capital allocation

See our business model on pages 22-23.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION
Strategy continued

Better Nutrition – Strategic priority #1

Grow the core

Our core brands and nutritional ingredients hold market-leading positions in
categories that are driven by strong underlying health and wellness trends.

Our strategy

Capture global potential of billion dollar ON brand;

Build North America’s branded lifestyle nutrition platform;

Continue to scale our international business;

Build on core strength in GN NS custom premix solutions; and

Scale GN NS’ extensive capability in protein.

Enablers

Powerful
consumer trends

Culture
and talent

Disciplined
financial
management

Sustainable
operations

2023 progress

Looking ahead to 2024

• Following price-led growth in 2022
and 2023, drive volume growth
in 2024 through distribution and
awareness;

• Capture further growth of GPN
lifestyle brands in key growing
markets; and

• Maintain GN NS’ momentum in

healthy snacking and ingredients
solutions.

• Like-for-like (“LFL”) GPN branded
growth of 5.1% constant currency
with strong growth in sports nutrition
across all regions;

• Delivered double-digit global volume

in ON;

• Scaled international business

delivering 12.8% LFL revenue growth;
• Sequentially improved LFL NS volume
growth managed through significant
supply chain rebalancing;

• Ensured NS resiliently played into
market trending categories driven
by strong demand for functional and
nutritional ingredients; and
• Continued to build compelling

capabilities and innovative solutions
that are attractive to NS’ customers.

S T R A T E G Y I N A C T I O N

ON – a billion dollar brand
Firmly established as the world’s
no. 1 sports nutrition brand,
Optimum Nutrition (“ON”) surpassed
$1bn in revenue in 2023. For over
35 years ON has been a pioneer
in the sports nutrition category
through its commitment to quality,
performance and innovation across
a range of products and formats
including ON 100% Gold Standard
Whey, the worlds best selling protein
powder.

16 Glanbia plc | Annual Report and Financial Statements 2023

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KPIs

Adjusted EPS ($)
– continuing operations

131.37c

+20.5% constant currency

GPN revenue

$1.8bn

+4.8% constant currency

GN revenue

$3.6bn

-14.2% constant currency

Key risks
• Macroeconomic headwinds impacting

demand;

• Geopolitical uncertainties may
negatively impact consumer
demand; and

• Competitor promotional activity
or unexpected rapid changes in
consumer behaviour.

For more information about risk, see

pages 72-85.

Link to remuneration
• Adjusted Earnings Per Share is a

performance target in both the annual
incentive and LTIP for Executive
Directors;

• Business segment EBITA forms part of
the annual incentive and LTIP for the
CEOs of GPN and GN;

• GPN LFL branded revenue growth

and margin forms part of the annual
incentive of the CEO of GPN; and
• NS LFL revenue growth and margin
forms part of the annual incentive of
the CEO of GN.

For more information about

remuneration, see pages 126-149.

Better Nutrition – Strategic priority #2

Optimise our business

Improving the operational, commercial, sustainability and financial performance of
our business to maximise long-term value and deliver superior returns.

Our strategy:

Science-led innovation;

Refine business and operating model;

Optimise opportunities for margin expansion; and

Digital transformation.

Enablers

Powerful
consumer trends

Culture
and talent

Disciplined
financial
management

Sustainable
operations

2023 progress

Looking ahead to 2024

• Continued to refine Group and

• Continue to drive innovation in

Business Unit operating models
and pursued efficiencies resulting in
increased EBITA margins in GPN and
NS over prior year;

• Through our HR transformation

programme, focused on digitally
enabling ongoing talent development,
performance management and
employee engagement strategies;
• Embedded ESG strategy across the

business;

• Continued to optimise Group-wide
support functions to align with our
growth agenda; and
Implemented a business-wide digital
core platform which will enable
further digitisation across the Group.

•

GPN and build out dairy bioactives
business in NS;

• Following the implementation
of a business-wide digital core
platform, focus on further digital
transformation across the Group;
• Further embed our ESG strategy

across the business;

• Support full integration of

acquisitions across the organisation;

• Continue to optimise Group-wide

•

support functions to align with our
growth agenda; and
Implement new commercial
arrangements related to our US joint
venture.

S T R A T E G Y I N A C T I O N

Refining operating models
Glanbia is a resilient business,
well versed to operating in volatile
and high inflation markets. We
have a clear set of priorities and
objectives to drive growth. In 2023
we continued to optimise our
business portfolio with the sale of
Glanbia Cheese UK and EU JVs. This
allows us to continue to focus on our
two growth platforms and pursue
further efficiencies across the
organisation.

Better
Better
Nutrition
Nutrition

Optim i s e
our busi n e s

KPIs

Adjusted EPS ($)
– continuing operations

131.37c

+20.5% constant currency

Employee engagement score

72 points

+1 point

Increase in point score for employees who
said they were happy working at Glanbia.

Carbon emission reduction

15.9%

Scope 1 & 2 GHG emissions reduction
versus 2022.

ROCE – continuing operations

12.2%

+150bps

Key risks
• A failure to attract, develop, engage

and retain key talent;

• Adverse cyber security events resulting
in significant operational impacts; and

• Climate or pandemic-related events

impacting supply chains.

For more information about risk, see

pages 72-85.

Link to remuneration
• Adjusted Earnings Per Share is a

performance target in both the annual
incentive and LTIP for Executive Directors;

• Development of talent is a personal
objective of Executive Directors and
the Operating Executive; and
• STIP and LTIP incentives for the

Executive Team and Senior Leadership
Teams both include measurable
metrics aligned to our strategic road
map to deliver on our ESG targets.

For more information about

remuneration, see pages 126-149.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONStrategy continued

Better Nutrition – Strategic priority #3

Disciplined capital allocation

Optimising our business for maximum long-term value through the disciplined and
focused allocation and reallocation of capital.

Our strategy:

Portfolio optimisation;

Accretive M&A;

Focus on cash generation; and

Balance between investment and return of capital to shareholders.

Enablers

Powerful
consumer trends

Culture
and talent

Disciplined
financial
management

Sustainable
operations

2023 progress

Looking ahead to 2024

• Continue progressive capital
allocation strategy through
mechanisms such as dividends and
share buyback programmes;
• Transition to new commercial

arrangements associated with the
Group’s joint venture operations; and

• Pursue other margin accretive
strategic M&A opportunities to
complement the current portfolio.

• Transitioned to a US dollar

presentation currency for reporting
purposes better representing core
Group markets;

• Delivered strong cash generation

with 90.4% operating cash
conversion;

• Net debt: adjusted EBITDA 0.5 (2022:
1.13) and adjusted EBIT: adjusted net
finance cost 38.1 (2022: 17.0);

• Completed sale of Glanbia Cheese

UK and EU joint ventures;

• Acquired a colostrum enriched
nutraceutical business; and

• Continued growth in dividend (+10%)

and €100m returned via share
buyback programme.

S T R A T E G Y I N A C T I O N

Delivering shareholder value
Creating sustainable long-term value for
our shareholders and other stakeholders
remains the primary objective of the
Board and management. The Group’s
ability to generate cash and its available
debt facilities ensure the Group has
considerable capacity to finance future
investments. We have clear capital
allocation priorities, with a balanced
approach to investing in the business
and providing returns to shareholders.
We have a progressive dividend
policy and remain enthusiastic about
opportunities to accelerate growth via
organic and M&A investments.

18 Glanbia plc | Annual Report and Financial Statements 2023

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Nutrition

KPIs

OCF conversion

90.4%

2022: 85.7%

ROCE – continuing operations

12.2%

2022: 10.7%

Net debt

$248.7m

2022: $490.0m

Key risks
•

Ineffective due diligence, transaction
completion or business integration;
and

• Failing to obtain accurate and relevant

market intelligence.

For more information about risk, see

pages 72-85.

Link to remuneration
• OCF conversion is a performance
target in the annual incentive for
Executive Directors and the Operating
Executive; and

• ROCE is a performance target in the
LTIP for Executive Directors and the
Operating Executive.

For more information about

remuneration, see pages 126-149.

Market trends and growth drivers

G L A N B I A ’ S M A R K E T
P O S I T I O N

Optimum Nutrition

sports nutrition brand in the
world.

GN NS

supplier of whey protein
isolate.

Maximise
athletic
performance

Performance nutrition
The importance of nutrition in sports and
fitness cannot be overstated. It plays
an essential role in optimising training
outcomes, hastening recovery periods,
maintaining optimal body weight,
minimising the risk of injuries and
ensuring performance consistency.

How we’re meeting this market need
World-leading brands and
ingredients

Our portfolio of brands and ingredients hold significant
leadership positions in the performance nutrition category.
Most notably, Optimum Nutrition (“ON”) is the world’s #1 sports
nutrition brand and has been a pioneer of performance nutrition
for over 35 years. Available in over 90 countries, ON holds leading
positions in protein powder with its Gold Standard Whey and
Serious Mass products.

GPN’s brand portfolio also includes Isopure which provides low
and zero carb protein powders and drinks to premium consumers
looking to support their active lifestyles, while BSN is targeted at
consumers looking to build muscle mass with a range of protein
and energy-based products.

In our Nutritional Solutions (“NS”) ingredients business we build
our business around healthy categories. We are the #1 global
supplier of whey protein isolate supplying key market segments
including performance nutrition. Our functional and nutritional
ingredients appeal to the heightened desire of our customers
for tailor-made ingredient solutions to enrich their food and
beverage products.

$25bn

The size of the global sports nutrition market

Discover more on pages 32-39.

Source: Euromonitor. Glanbia team analysis.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONMarket trends and growth drivers continued
Our Business Model

G L A N B I A ’ S
M A R K E T
P O S I T I O N

GPN is the world’s

sports nutrition
company.

GN NS the world’s

global supplier of
micronutrient premixes.

A desire for
healthy, active
lifestyles

Improve physical and cognitive health
More and more people are focused on
nutrition that supports a healthy and active
lifestyle as well as boosting their mental
health. Consumer interest in fortified foods
and beverages with functional claims
continues to increase, as people seek
to supplement their diets with immune
boosting nutrients to improve their energy
levels and health.

How we’re meeting this market need
Delivering trusted healthy lifestyle
brands and ingredients

GPN offers a range of healthy lifestyle nutrition brands. think!
offers high protein low sugar bars for consumers looking for
healthy on-the-go snacking options. Isopure provides everyday
nutrition with a commitment to purity, simplicity, and quality
through products made with minimal ingredients, and only those
you trust. Amazing Grass is a leader in the Greens segment with
a range of Greens Superfood powders for consumers looking
to supplement their intake of vegetables. This brand appeals to
the growing consumer groups of flexitarians, vegetarians and
vegans.

In our GN NS business, we offer tailor-made and sustainable
nutritional ingredients and supplements that provide energy
without compromising quality. Our ingredients are used in the
bakery, beverage, snack bar, dairy and foodservice markets. Our
capabilities range from producing ‘straight’ ingredients
to bespoke premix blends. Historically anchored in dairy proteins,
our capabilities now extend from marketing ‘straight’ ingredients
to developing bespoke nutritional solutions using a wide range
of ingredients, providing greater market reach and broader
customer relevance.

$160bn

The fitness sector is worth $160bn and will increase by 172% to
$435bn by 2028.

Discover more on pages 32-39.

Source: Fitness Industry Trends & Statistics 2021 (strategicmarketresearch.com)

20 Glanbia plc | Annual Report and Financial Statements 2023

E X T E R N A L
R E C O G N I T I O N
B E N C H M A R K S

Delivering
better nutrition,
responsibly

Sustainability
Sustainability remains a top priority
for global consumers. An International
Data Corporation report published in
2023, showed that nearly 30% of food
and beverage producers said consumer
demand for eco-friendly products is driving
organisational change toward greater
sustainability. It is essential for today’s
conscientious consumers that the brands
and ingredients they support are making
decisions that are positively impacting the
environment today and for the future.

How we’re meeting this market need
Our People. Our Planet.
Our Performance

At Glanbia, we believe we have an obligation to protect the
planet for future generations. Our sustainability strategy focuses
on three pillars: our people, our planet, and our performance.
We recognise that food systems are deeply connected to the
planet’s resources, and companies like ours play a critical role
in protecting the environment. Glanbia has strict environmental
targets related to climate, water, waste and packaging.

To achieve our sustainability ambitions, we need to collaborate
with our existing and future partners. Together with our
stakeholders, we’re working to support a resilient food system.

We embed ethics into every business decision we make. We abide
by a clear code of conduct, built on our values, to drive better
performance in every corner of our organisation. This strong
business foundation, enables us to create products that uphold
the highest standards of quality, food safety and nutrition.

77%

of people are influenced by a company’s environmental record
when deciding whom to buy from.

Discover more on pages 46-71.

Source: PWC.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION
Our Business Model

Through the delivery of world-class brands and
capabilities, operational efficiency and disciplined
financial management, Glanbia creates value for
all its stakeholders.

Delivering
Better Nutrition
Our purpose to deliver Better Nutrition for every
step of life's journey connects us with the passion
our consumers and customers have for our sports
nutrition brands and nutritional ingredients.

Our core
activities
Adding value through customer-focused innovation
and collaboration is central to our philosophy.
It ensures that we can influence and drive market
trends rather than simply respond to them.

Our portfolio of brands and ingredients
GPN is home to the world's #1 sports nutrition brand with an
unrivalled product offering and key channel and category
leadership. As an ingredient supplier in the B2B arena, GN
stands for quality, integrity, innovation and sustainability.

Our markets
Glanbia’s brands and ingredients are positioned at the
centre of large and growing sports nutrition and ingredients
markets. Our portfolio of products meets key consumer needs
and enables people to achieve their healthy lifestyles goals.

Our culture and talent
• Committed, adaptive and resilient
• Passion for delivering better nutrition
• Curious and innovative
• Respectful and inclusive

Sourcing
We work with our suppliers to procure high quality raw materials
and services, with social impact and environmental sustainability
in mind.

Manufacturing
Our operational excellence enables us to manufacture branded
products and ingredients that meet the highest standards
of food safety and quality. All our facilities operate with full
regulatory compliance and good environmental stewardship.

Innovating
Using our deep understanding of nutritional trends and
behaviours we focus on driving sustainable innovation that
delivers innovative branded products and patented nutritional
ingredient solutions.

Marketing and brand building
We continually evolve our data analytical skills to understand
consumer’s attitudes and motivations. We invest in world-class
marketing tools to build GPN's brands and sustain our leadership
positions in GN.

Selling
In GPN our global sales teams use data, digital tools and
insights to extend our sales and channel reach and improve our
execution. In GN we work in collaboration with our customers to
deliver bespoke ingredient solutions that enable them to grow
their business.

22 Glanbia plc | Annual Report and Financial Statements 2023

How we
add value
The power of our brands and ingredients coupled
with our unrivalled expertise in protein have
made us the #1 sports nutrition company in the
world, #1 global supplier of whey protein isolate
and #2 global leader of custom premix solutions.

Our brands and ingredients
We actively manage our portfolio of brands and
nutritional ingredients to ensure we offer a broad range
of products across regions, categories and price points.

Discover more on pages 32-39.

Protein expertise and know-how
We have a deep understanding of protein and its
applications across nutritional sports brands and
ingredient solutions.

Discover more on pages 32-39.

Value for
stakeholders
The impact of our purpose is evidenced through the
delivery of sustainable growth and value creation for
all of society.

Consumers and customers
Optimum Nutrition enjoys strong brand loyalty as a $1bn brand
that continues to grow.
$1.1bn
ON brand revenue in 2023

People
We invest in our people and their careers, providing development
opportunities, competitive rewards and benefits.
$519.6m
Employee benefits for the wholly-owned Group in 2023

Capital management
Glanbia has a strong track record of efficient capital
allocation and reallocation to where we see opportunity
for growth.

Suppliers
We partner with suppliers to ensure long-term, mutually
beneficial relationships. We have an active programme in place
to risk assess our suppliers.

Discover more on page 44.

Global talent management
As a global business, excellence in human resources and
talent management is key to the Group’s future success
and this was a particular area of focus in 2023.

Discover more on pages 28-31.

Delivery of our Strategy

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Environment
We continue to focus on climate initiatives and have committed
to a 50% reduction in Scope 1 & 2 carbon emissions by 2030.
15.9%
Scope 1 & 2 carbon emissions reduction in 2023 versus 2022

Communities
We contributed and donated time and money to support causes
in our local communities.
$1.2m
Raised to support charitable donations in 2023

Investors
Our dividend policy has a targeted dividend payout ratio of 25%-
35%. In addition, shareholders were returned €100 million in 2023
under the share buyback programme.
€189.8m
Returned to shareholders via dividends and buybacks in FY 2023

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Key performance indicators

Financial KPIs

Revenue

$5.4bn

(2022: $5.9bn)
-8.7% constant currency
-8.7% reported currency

Revenue volume growth1

-0.5%

(2022: +0.5%)
GPN -0.3% (2022: -2.1%)

Like-for-like branded
revenue volume growth

NS -3.3% (2022: -3.5%)

Like-for-like revenue
volume growth

EBITA2

$424.0m

(2022: $365.7m)
+16.4% constant currency
+15.9% reported currency

Profit after tax

$344.5m

(2022: $270.6m)
Continuing operations $347.7m
Discontinued operations -$3.2m

Basic Earnings Per Share ($)
– continuing operations

130.41c

(2022: 76.55c)
+71.7% constant currency
+70.4% reported currency

Strategic relevance
Revenue growth is a key indicator of how the
Group is succeeding in developing through
investment in organic growth and the ongoing
acquisition programme.

In addition, there are a number of key
components of Group revenue (price, volume
and acquisitions) which are actively monitored
to provide greater insight into performance.

Performance
In 2023, revenue was $5.4 billion (2022: $5.9
billion), a decrease of 8.7% (on a reported and
constant currency (“cc”) basis) on 2022. Revenue
decline was driven by volume and pricing
declines of 0.5% and 7.7% respectively, as well as
M&A related reductions of 0.5% as the positive
impact of recent acquisitions was more than
offset by divestment activity. Volume decline was
largely driven by supply chain destocking, with
pricing decline primarily as a result of lower dairy
markets.

Strategic relevance
Revenue volume growth is an important metric
for the Group as it represents the underlying
growth in sales to customers excluding any
impact of price. Volume is further broken down
by the Business Units to understand the brand
growth within GPN and the components of
volume growth in NS within GN.

Performance
Overall volumes decreased by 0.5% in the year.
LFL branded volumes in GPN declined by 0.3%
and volume declined by 3.3% in NS, offset by
volume growth of 0.7% in the US Cheese business
within GN. Volume declines in GPN and NS were
in the context of significant pricing adjustments
in prior years in mitigation of record input cost
inflation.

Strategic relevance
Earnings Before Interest, Tax and Amortisation
(“EBITA”), pre-exceptional items, is the key
performance measure for the wholly-owned
segments of the Group. The exclusion of
amortisation aids comparability between our
segments.

EBITA margin is a key metric to ensure that
growth is being driven in a responsible manner
by maintaining margins within an acceptable
range. The strategy for the Group is to focus on
higher growth, higher margin products within
GPN and GN.

Strategic relevance
Profit after tax is the measure of the profit
generated by the Group for the year, post tax
and post exceptional items.

Strategic relevance
Basic Earnings Per Share (“EPS”) is an important
IFRS reporting metric and relates to EPS of the
Group post tax and post exceptional items.

Performance
EBITA was $424.0 million in 2023, an increase of
15.9% reported currency and up 16.4% cc. GPN’s
EBITA increased by 33.7% cc versus 2022, while
EBITA margins were up 300bps to 14.2%. GN
EBITA declined by 2.7% cc with EBITA margins up
50bps versus 2022 to 4.6%, comprising EBITA
margins in NS of 12.5% (2022: 11.4%) and US
Cheese of 1.6% (2022: 1.3%).

Performance
Profit after tax for 2023 was $344.5 million (2022:
$270.6 million), an increase of $73.9 million on prior
year. This comprises the profit generated from
continuing operations of $347.7 million and loss on
discontinued operations of $3.2 million, with
discontinued operations representing
exceptional costs associated with the 2022 Tirlán
(formerly Glanbia Ireland) divestment that have
now crystallised.

Performance
Basic EPS – continuing operations was 130.41
cent, a reported increase of 70.4% (+71.7% cc),
driven by increased profitability across the
Group. Discontinued operations, which relate to
the disposal of the Group’s interest in Tirlán
(formerly Glanbia Ireland) have been excluded on
the basis that they are now less relevant as a
benchmark for the ongoing Group business.

1. Performance condition of Glanbia’s Annual Incentive Scheme.
2. Both EBITA and OCF are presented on a pre-exceptional basis.
3. Performance condition of Glanbia’s Long-Term Incentive Plan.
4. GHG emissions reduction in Scope 1 and 2 in comparison to prior year result

(2022). Refer to page 55 for operational control GHG emissions breakdown
by Scope and performance since 2018 base year.

24 Glanbia plc | Annual Report and Financial Statements 2023

5. Results relate to sites under Glanbia’s operational control. Includes Group’s
wholly-owned operations and MWC-Southwest Holdings LLC joint venture
operations.

Adjusted Earnings Per Share
($) – continuing operations1,3

131.37c

(2022: 109.57c)
+20.5% constant currency
+19.9% reported currency

Return on Capital Employed –
continuing operations3

12.2%

(2022: 10.7%)

OCF conversion1,2

90.4%

(2022: 85.7%)

Strategic relevance
Adjusted EPS is an important measure of the
profitability of the Group as it represents the
underlying profit per equity share in issue.

Performance
Adjusted EPS (continuing operations) increased
19.9% reported (+20.5% cc) to 131.37 cent, due to
continued growth in profitability of the
wholly-owned business, net of reduced
profitability in joint ventures. Positive pricing in
response to inflationary pressures and the
ongoing benefit from transformation initiatives
contributed to this record performance.

Strategic relevance
Return on Capital Employed (“ROCE”) measures
the efficiency of the Group’s organic and
acquisition investment programme as well as
the utilisation of its assets.

Performance
ROCE from continuing operations increased by
150bps to 12.2% (2022: 10.7%). This increase was
primarily due to the continued growth in
profitability arising from the successful
execution of the Group’s strategy.

Strategic relevance
Operating Cash Flow (“OCF”) measures the cash
generated from operations before interest and
tax payments and before strategic capital
expenditure. OCF conversion is OCF as a
percentage of earnings before interest, tax,
depreciation and amortisation (“EBITDA”) and is
a measure of the Group’s ability to convert
trading profits to cash, which is then available
for strategic investments and dividend
payments.

Performance
OCF conversion was 90.4% in 2023 (2022: 85.7%)
compared to a target of 80%. OCF conversion
has increased since prior year due to increased
profitability across the Business Units,
combined with reduced investment in working
capital as pricing and inventory levels returned
to more normalised levels following a level of
significant inflation and supply chain disruption
throughout 2022.

Non-Financial Metrics (NFM)

Carbon emissions4

-15.9%

Objective
Decarbonise our operations and
dairy supply in line with the SBTi
commitment and future-proofing
of organisation and our value
chain.

Health and safety5

Improved Lost Time Case Rate
("LTC")

Objective
Maintain the highest possible
global safety standards using
sites with no LTC as a key
benchmark.

Employee engagement
score

Objective
Measure employee engagement
and listen to our team members
to understand where we have
opportunities to improve.

NFM Strategic relevance

Climate change is impacting all of society. At
Glanbia we are committed to doing our part by
focusing on our most material areas. Our
“Better Nutrition, Better World” sustainability
strategy prioritises energy efficiency and
renewable electricity procurement for our
operations.

NFM Strategic relevance

The health and safety of our employees is
inherent in our Glanbia values and is reflected in
our organisational goal of “Zero Harm”.
Proportion of sites meeting at least industry
standard safety performance based on NAIC
(“North American Industry Codes”) benchmark,
and reduced severity of injuries, by progression
of the Lost Time Incident Rate (“LTIR”) are
established global measures of safety
performance. Glanbia aspires to zero LTC and all
sites maintaining a minimum of industry
benchmark performance for lost time injuries.

Performance
In 2023 we reduced Scope 1 and 2 greenhouse
gas (“GHG”) emissions in our operations by
15.9% from the previous reporting year (2022).
Glanbia’s target is a SBTi validated target
aligned with a 1.5 degrees Celsius climate
scenario. This target is supported by a Board
approved decarbonisation plan for a 50%
reduction in operational Scope 1 and 2 GHG
emissions by 2030 from a 2018 base.

Performance
Overall a 5% improvement in the LTC rate in
2023 versus last year. Group LTIR was
0.43/200,000 hours, well below our NAIC food
industry benchmark of 1.20 (2023:1.20) 55% of
our sites were without a lost time case recorded
for a year or longer, 77% are better than the
NAIC industry LTC injury rate for their peers.
Sites below the NAIC performance maintain
robust improvement plans supported and
monitored by leadership.

NFM Strategic relevance

Employee engagement is a key enabler of
performance. At Glanbia we acknowledge that
people who are positively engaged, motivated
and supported perform to the best of their
ability, find a greater sense of meaning in what
they do and contribute positively to Glanbia’s
success.

Performance
In the 2023 ‘Your Voice’ survey, overall
engagement score was up 1 point with scores
increasing across most Business Units and
continued positive momentum on focus areas
e.g. around wellbeing, action taking, and
growth. We were pleased to see a 22
percentage point increase in participation to
80% reflecting employees trust and
engagement in finding a better way together.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONDelivering
Performance

Strong financial management is a key ethos
of the Group.

Glanbia has a long track record
leveraging our strong market
positions, driving innovation in our
sales and marketing processes
and executing strong operational
excellence. We will continue to
grow by leveraging these
strengths, driven by our agile
business model.

Discover more on page 22

26 Glanbia plc | Annual Report and Financial Statements 2023

Our core strategy is
focused on delivering
growth through our Better
Nutrition portfolio of
brands and ingredients,
which accounts for 90%
of Group EBITA.

Discover more on page 15.

We believe in doing good
things in the world – and
that helps us do well in
business. We earn
responsibly and put those
profits back into helping
people live full, healthy
lives.

Discover more on page 46.

We continue to refine
our operating model,
understanding and
responding to our customers
and consumers through
innovation and active
portfolio management.

Discover more on page 22.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONPeople

Our people
and culture are
vital to enable
growth

Sue Sweem
Chief Human
Resources Officer

“We’re committed to building an
inclusive culture that empowers our
people to grow and thrive at Glanbia.
Their pride in what they do, along
with their sense of purpose and
their commitment to our values,
are essential to our culture.”

28 Glanbia plc | Annual Report and Financial Statements 2023

Embedding transformation
to support performance
We believe in the power of our people
and our culture to drive performance.
This year, our people agenda focused
on the continued implementation of
Grow@Glanbia, our multi-year HR
transformation programme which is
designed to support a future-ready,
people-centred organisation and our
high-performance culture.

Our new HR operating model is helping
us to maximise the talent and diversity
of our workforce to unlock performance.
Our People Success Organisation
is operating through a centralised
team which supports employees and
managers in our major markets as well
as enabling our wider HR teams to focus
more strategically.

Supporting our people
to reach their potential
We know that Glanbia succeeds when
our people are supported to reach
their potential. Our talent development
strategy focuses on growing talent
from within our organisation, increasing
readiness for new opportunities and
building our leadership pipeline. We’re
committed to building critical capabilities
aligned to business priorities and current
and future needs.

Supporting our people’s career growth is
a priority. We are focused on embedding
our new career growth tools ‘MyLearning’
and ‘MyCareer’ to enable our people to
gain the skills, leadership capabilities and
career pathways to be future-ready.

Optimising and embedding these
new tools is having an impact, with
over 14,000 courses completed by our
employees. Of those taking courses,
60% of time spent is on learning
business skills (leadership, management,
communication) and 40% technology
skills (development and data science).

Overall, our learning platform was
accessed by more than 4,000 employees
during the year. This empowers
employees to continue to build skillsets
that will enable career growth and
progression.

At the leadership level, we offer a range
of best-in-class tailored programmes
aligned to our leadership capability
model. These include Leading the Future,
our executive leadership programme;
Leading to Accelerate for emerging
female leaders; and Leading the Glanbia

Way, our foundational programme that
introduces our leadership capability
model.

Engaged employees
and a strong culture
Employee engagement is a key enabler
of our performance, as our people deliver
our strategy. Glanbia’s ‘Your Voice’
employee survey conducted in 2023 had
an overall response rate of 80% and
showed overall employee engagement
levels increasing +1 to 72, with the most
significant score improvements seen for
our hourly employees (+3).

Engagement scores increased across
most areas of the business with positive
feedback on efforts to improve growth
opportunities for employees as well as
wellbeing initiatives. Our Inclusion Index
score was in line with last year. Areas of
opportunity for 2024 include improving
communications channels and cascade
through the organisation and building on
our existing wellbeing initiatives.

We continued to embed our Smart
Working Model which our employees
value highly and which we believe
helps to enhance Glanbia’s overall
attractiveness as an employer.

C A S E S T U D Y

Total Group employees in 2023

5,534

across 31 countries

GPN

2,040

2,814

Joint Venture

680

Gender representation in the
organisation

38%

62%

Engagement score

Agree with the statement
‘I feel proud to work at Glanbia’

Male

Female

Leading to Accelerate – supporting our emerging
female leaders

“An enriching experience
that has made a positive
impact on my personal
and professional growth”
Programme participant

Leading to Accelerate is a pilot
leadership development programme
for emerging female leaders across
Glanbia, whose mission is to grow,
connect and develop a diverse
network of female leaders.

and supportive space for emerging
female leaders to come together,
share experiences and uplift one
another. We plan to build on the
strong foundations of this pilot
programme for future initiatives.

This immersive and transformative
experience brought together female
leaders from across the organisation
for facilitated monthly education
sessions, supported by measurable
action assignments, group discussions
and executive coaching.

The learning outcomes from the
programme included increasing
leadership self-awareness,
developing personal leadership
narratives, learning and applying
the critical concepts of effective
leadership, as well as creating a safe

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONPeople continued

Strengthening our inclusive
workforce
Our Diversity, Equity & Inclusion (“DE&I”)
vision is to advance a culture where we
celebrate individuality, knowing that
together we are more. Nurturing an
inclusive and diverse culture supports our
performance.

Our goal is to achieve an equitable and
inclusive culture in the workplace, to
unlock the potential of diverse teams to
deliver high performance. We measure
our employees’ sense of belonging and
their sentiment around equal opportunity
in our annual ‘Your Voice’ survey.

We continued to make progress on our
DE&I journey in 2023 and our review
conducted during the year shows that we
are ahead of schedule on the execution
of our current strategy. Our focus for 2024
will be to reset our timeline and establish
new longer term ambitions.

Our network of Employee Resource
Groups (“ERGs”) – Glanbia Network of
Women; True Colours, our LGBTQIA+
group; and Mosaic, our multicultural group
– continued to scale, creating connected
communities of support, while helping the
business better understand our diverse
communities’ perspectives and concerns.
Our growing range of policies and
guidelines in areas including family leave,
primary caregiver support, adoptive

parents leave, support for employees
undertaking fertility treatments as well
as those who experience loss, is also
helping to foster an inclusive environment
that supports our employees.

We continue to focus on female
representation recording 40% female
participation in management in 2023, an
increase of 2% over 2022. We aspire to
achieve gender balance over time in our
management team and our continued
improvement of female representation at
this level demonstrates our commitment
and investment to ensure females can
thrive and advance at Glanbia.

Global employee base
In 2023, total Group employees, came
to 5,534 people based in 30 countries.
Glanbia Performance Nutrition had 2,040
employees while Glanbia Nutritionals
employed 2,814 people during the year.
Our joint venture had 680 employees in
2023.

Female participation
in management

40%

“Glanbia’s Family Leave Programme is a great initiative
that every employee can benefit from. The programme
gave us time to adjust to a new routine with our new
baby and time to adjust to having two kids. It was
important for me to have the time to bond with our
newborn.”

Zach Bonnell
Continuous Improvement Lead 948 Aurora

C A S E S T U D Y

Growing our employee resource groups

Glanbia’s Employee Resource Groups (“ERGs”) continued to flourish in 2023, ensuring that the voices of employees in under-
represented communities are heard across our organisation. Over 1,000 employees are now signed up to our three ERGs
with numbers growing consistently across our global locations in the US, EMEA, Asia and LATAM.

Our LGBTQIA+ group True Colours expanded in 2023, with the establishment of an international chapter. True Colours
focused on allyship and mental health as part of its programme, developing a visibility tool kit to show openness and support
to people in the community, as well as focusing on a broader education programme for employees.

Our multicultural group Mosaic aims to highlight the diverse perspective of our
employees from different racial, ethnic and cultural backgrounds. In 2023 Mosaic
also expanded, establishing a European chapter. Globally, Mosaic marked cultural
events including Diwali, Native American History Month and Hispanic Heritage.
Mosaic also delivered education and micro-learning opportunities for employees
on relevant topics year-round.

Our Network of Women (“NOW”) continued to focus on themes including
mentorship, career development, networking and women’s health topics, such as
breast cancer, menopause and mental health awareness. NOW also facilitated
listening and feedback sessions for employees to support the embedding of our
new family leave policies.

30 Glanbia plc | Annual Report and Financial Statements 2023

Pictured is Denis Vaughan (third from the right),
with members of Glanbia’s Executive Leadership,
receiving a values award for his work in setting up
the international chapter of True Colours in 2023
as well as his overall advocacy and leadership.

Health and Safety
Culture of safety
At Glanbia, employee health and safety
is an inherent part of our values and
commitments. We recognise that a
safe and healthy workplace is among
the basic principles and rights at work.
To achieve this we continually work to
the two core principles of “Zero Harm”
and “Business Excellence”. These
two principles are inextricably linked
with underlying management system
structures in place to support this
approach and mindset.

A strong health and safety culture
has been driven by management and
employees at all levels supported by our
“Zero Harm” mindset. All employees are
empowered to challenge unsafe work
conditions or practices. We support this by
having a safety committee across all our
operational sites which includes members
from all levels of the business.

Our management approach
Glanbia sites are operated under the
Glanbia Risk Management System
(“GRMS”). This occupational health and
safety management system allows a
unified approach to identify and mitigate
risks, and to engage our workforce
in continual improvement activities
and ensure the appropriate training
is provided and tailored to people’s
role. All sites are also subject to regular
health and safety audits by the relevant
government bodies, internal audit and
external assurance providers.

Using industry best practice, guidelines
and standards, the GRMS has been

developed as an approach to deliver zero
fatalities or life-changing/critical injuries
across the Group.

We proactively manage assessed gaps
and process improvements which are
a direct output from GRMS. We use our
Glanbia Performance System (“GPS”)
which is based on lean thinking principles
as a framework to implement these
improvements. This is Glanbia’s in-house
vehicle to drive continuous improvement
using industry best practices to achieve
business excellence. Health and safety is
one of the key pillars of our GPS structure.

Our progress and key initiatives
While we recognise that there is no
acceptable level of accident or injury,
we experienced no fatalities (2022:0) or
life changing/critical injuries (2022:0)
during the year. Our Lost Time Incident
Rate (“LTIR”) was 0.43 in line with last
years performance (0.45) which was a
historical low for the Group. We noted an
increase in the Group’s Total Recordable
Incident Rate (“TRIR”) from 1.22 in 2022
to 1.60 in 2023. This increase is explained
by the addition of acquisitions that were
integrated into Group reporting in 2023.

Our internal benchmarking has also
indicated an excellent performance in
reference to the NAIC (“North American
Industry Code”) Occupational Health
and Safety Performance. In 2023, 93%
of all manufacturing sites were at or
better than NAIC average performance
in total recordable incidences. In 2023,
five operational locations had zero injuries
occur and nine operational locations had
zero lost time injuries.

Furthermore, we have had zero lost
time incidences in all laboratories, R&D
centres, and administrative/corporate
offices globally.

C A S E S T U D Y

Central safety
dashboards

To support our central oversight
and drive process improvement,
safety dashboards were
developed for each operational
site. The dashboards contain
critical data including TRIR,
LTIR, Root Cause Analysis,
and injury classification. This
encourages sites to use the
data to prioritise improvement
areas to minimise repeat
occurrence of injury.

They are used as a
communication tool for sites
to update on performance
and compare performance
relative to their peers. It
allows management to view
consolidated data and trends
to identify where supplemental
programmes, training, capital
or resource could be applied to
reduce risk.

Health and Safety Benchmarking – Food manufacturing

Total Recordable Incident Rate (TRIR)1

Lost Time Incident Rate (LTIR)2

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

NAIC Average Food Manufacturing

2.3

1.22

1.60

2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

NAIC Average Food Manufacturing

0.69

0.45

0.43

2021

2022

2023

2021

2022

2023

Glanbia’s 2023 TRIR score was 1.60, slightly up from 1.22 in 2022 but still
substantially lower than the NAIC Food Manufacturing Average of 4.0.

Glanbia’s 2023 LTIR was 0.43, in line with last year (0.45). Glanbia's score
is significantly lower than the NAIC Food Manufacturing Average of 1.2.

1. TRIR is the number of recordable, work-related incidences per 200,000 hours worked.
2. LTIR is the number of lost time work related incidences per 200,000 hours worked.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONOperations review

Glanbia
Performance
Nutrition

Steve Yucknut
CEO Glanbia
Performance
Nutrition

Revenue

$1,795.6m

2022: $1,712.5m

EBITA (pre-exceptional)

$255.4m

2022: $191.9m

EBITA Margin

14.2%

2022: 11.2%

Glanbia
Performance
Nutrition*

GPN Performance Overview

$’m

Revenue

EBITA

EBITA margin

FY 2023

FY 2022

Change

Constant
Currency
Change

1,795.6

1,712.5

+4.9%

+4.8%

255.4

14.2%

191.9

+33.1%

+33.7%

11.2% +300bps

Commentary on percentage movements is on a constant currency basis throughout.

Performance highlights:

Like-for-like (“LFL”) branded revenue growth of +5.1%

with volume -0.3% and pricing +5.4%;

Optimum Nutrition (“ON”) brand delivered LFL revenue

growth of 17.0% with both volume and price growth;
EBITA margin of 14.2% (2022: 11.2%), an increase of

300bps.

32 Glanbia plc | Annual Report and Financial Statements 2023

* Glanbia Nutrition is the #1 sports nutrition
company in the world – Euromonitor.

and maximising the omnichannel
opportunity.

In 2023 GPN’s revenue increased by 4.8%
in 2023. This was driven by price increases
of 5.4% partly offset by a volume decline
of 0.6%. Pricing was positive following the
execution of price increases in 2022.

The price increases implemented
to offset inflation have largely been
maintained across the portfolio with
price elasticity within the performance
nutrition category better than expected.

The volume decline was largely
driven by the SlimFast brand, which
represents 9% of GPN’s revenue, with
the previously highlighted challenges in
the diet category impacting the brand’s
performance.

ON, which represents 62% of GPN’s
revenue, delivered both volume and price
growth in the period as the strength
of the brand continues to drive global
distribution and velocities, supported
by increased marketing activation and
brand investment.

GPN’s EBITA increased by 33.7% versus
prior year to $255.4 million and EBITA
margin increased by 300 basis points
to 14.2%. This was driven by continued
focus on revenue growth management
initiatives, operating efficiencies and
margin optimisation. The positive phasing
of input costs in the second half of 2023
supported both further brand investment
and margin improvement.

Who we are
Glanbia Performance Nutrition (“GPN”)
is the number one global sports nutrition
portfolio with a growing position in US
Lifestyle nutrition. Our mission is to
inspire people everywhere to achieve
their performance and healthy lifestyle
goals, and we achieve this through
education, advocacy, quality and
authenticity.

Our brands
Optimum Nutrition (“ON”) is the world’s
no. 1 sports nutrition brand. Our portfolio
also comprises: BSN, Isopure, Nutramino,
SlimFast, think!, Amazing Grass, Body &
Fit and LevlUp. Each brand has its own
brand essence and consumer appeal.

Our brands participate across a range
of formats such as powders, capsules
and tablets, drinks and bars and are sold
in a variety of channels such as online,
specialty and mass retail.

Innovation sits at the heart of our
business and we continuously develop
new products across our brands.

Financial performance 2023
In 2023 GPN made strong progress
against its strategic pillars delivering an
excellent performance.

Our strategic pillars focus on: capturing
the global potential of our $1 billion
ON brand; building a lifestyle nutrition
platform in North America; accelerating
growth in priority international markets;

C A S E S T U D Y

Isopure’s ‘purity’ driving strong growth in US and international markets

Isopure is one of GPN’s healthy lifestyle
brands which features a range of
products such as Zero and Low Carb
Protein Powder, Infusions Protein
Powder, Isopure RTD and Collagen.
Isopure aims for the highest standards
of protein made with the simplest of
ingredients – all without sacrificing
taste. Isopure can be found nationwide
in the U.S. in online and offline channels
and has an established presence
internationally in Mexico and India.

Isopure has enjoyed strong growth in
the US and overseas in recent years.
This accelerated performance has
been anchored by the brand’s purity
positioning which is appealing to an

increasingly broad group of consumers
who are looking for clean, high quality
protein rich nutritional supplements.

In 2022, the brand launched a new
campaign – ‘Add Less, Do More’ which
featured a new outdoor look and feel
which helped to differentiate the brand
within the protein powder category and
reinforce its purity positioning. Growth
in the US has been driven by broader
distribution in a range of channels
and increased investment behind
digital and social media driving higher
awareness and consideration, bringing
in new consumers to the brand and the
category.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONOperations review continued
Glanbia Performance Nutrition

Americas
GPN Americas grew LFL revenue by
0.9% in 2023, with strong growth in
the ON and Isopure brands offset by
anticipated declines in the SlimFast
brand. The ON brand continues to
strengthen its strong consumer
position and delivered US consumption
growth of 13.7%¹ in 2023, building on a
strong comparative period. This was
driven by strong growth in the club

and online channels and was supported
by the successful activation of the
‘More of You in You’ brand campaign.
Trends in the healthy lifestyle portfolio
remained robust, with US consumption
growth of 11.2%¹ across the think!, Isopure
and Amazing Grass brands. The strong
growth in the ON and Isopure brands
in the period was driven largely by
the powders format, which continues
to resonate as a value offering with
consumers.

International
GPN International, which represents 35%
of GPN global revenue portfolio, grew
LFL revenue by 12.8% in 2023. Growth
across the region was broad based and
driven by both volume and price growth
of the ON brand, which was supported
by increased brand investment and
expanded distribution.

1. Consumption growth is US measured in channels
and includes Online, FDMC (Food, Drug, Mass,
Club) and Specialty channels. Data compiled from
published external sources and Glanbia estimates for
the 52 week period to 31 December 2023.

GPN FY 2023 revenue overview
By region

By channel

By format

35%

65%

12%

21%

32%

35%

10%

11%

75%

Americas

International

LFL growth:

+1%

+13%

Online

FDMC

Distributor

Specialty

LFL growth:

+13%

+4%

-2%

-1%

Powders

RTE

RTD

Other

LFL growth:

+13%

-18%

-15%

+1%

C A S E S T U D Y

McLaren F 1 team – official partnership

Optimum Nutrition is the official sports
nutrition partner of the McLaren Formula
1 team, beginning February 2024.

In a long-term deal featuring exclusive
content, branding and merchandising,
ON will support the McLaren drivers
and the record breaking McLaren pit
crew in achieving new levels of human
performance in F1.

Formula 1 is one of the world’s fastest
growing spectator sports, attendance up
36% from 2019, digital audience growing
by 40% year-on-year, and reaching a
1.54bn TV audience annually. McLaren
is an iconic global brand with a long
standing reputation for performance,
with a strong digital following and
achieved 4th place in the 2023
constructors’ championship.

The McLaren pit crew hold the world
record fastest ever pit stop at 1.8 seconds.

C A S E S T U D Y

Strong growth in the UK market driven by brand activation and omnichannel distribution

In the UK, our second largest GPN
market outside of US, we have
continued to scale our presence as a
true omnichannel player within the
market. Our Sports Nutrition category
captaincy with key retail partners
has driven strong ON distribution
expansion in our offline channels while
we continue to drive growth in our online
channels through strong execution in
key marketplaces and via our owned

D2C platform. Innovation has continued
at pace with the launch of the new ON
Clear Protein 100% Plant Protein Isolate
and the revamped ON bar range.

The SlimFast brand performance
continues to be impacted by headwinds in
the overall diet category though we have
seen positive brand and consumer metrics
following the launch of the refreshed brand
campaign (Oomph for your Boomph).

34 Glanbia plc | Annual Report and Financial Statements 2023

Firmly established as the world’s # 1
Sports Nutrition brand, Optimum
Nutrition is the global leader in sports
nutrition through its uncompromising
commitment to quality, performance and
innovation across a wide portfolio of
products and formats. This includes
Optimum Nutrition Gold Standard Whey,
the world’s best-selling protein powder.

C A S E S T U D Y

Double-digit growth drives
Optimum Nutrition to over $1.1bn

Optimum Nutrition delivered revenue in excess of $1bn in
2023, the first sports nutrition brand to reach the milestone.
Growth has been driven by enhancing the brand’s
reputation among its core sports nutrition audience while at
the same time effectively recruiting consumers beyond that
core audience. Optimum Nutrition consumers are typically
highly engaged in the category, see sports nutrition as an
“essential” spend and shop in online and offline channels in
over 100 countries. Optimum Nutrition’s foundation is built
on a reputation for high quality, innovative products across
protein and energy using the very best ingredients and
manufacturing processes.

The Optimum Nutrition brand is brought to life through its
“More of You In You” communications platform which was
launched in 2022. More of You In You is executed in multiple
digital and social channels using brand created content
and the endorsement of elite athletes such as the American
Tennis player, Taylor Fritz; Indian Cricketer, Rishabh Pant;
Irish Rugby player, Hugo Keenan; and Ireland’s Gaelic
Players Association (“GPA”) as well as local partnerships.
The Optimum Nutrition range is constantly refreshed
through new products, flavours and pack sizes to help more
consumers engage with the brand.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONOperations review continued

Glanbia
Nutritionals

Brian Phelan
CEO Glanbia
Nutritionals

NS Performance highlights:

LFL revenue decline
of 12.3% with volumes
-3.3% and pricing
-9.0%.

EBITA margin of 12.5%,
an increase of 110 basis
points versus 2022.

Sequential volume

improvement as the
period progressed, with
positive volumes in Q3
and Q4.

Nutritional Solutions Revenue

US Cheese Revenue

$1,008.5m

2022: $ 1,186.8m

$2,621.3m

2022: $3,044.4m

GN divisional Performance Overview

FY 2023

FY 2022

$’m

Revenue

EBITA Margin % Revenue

EBITA Margin %

Nutritional Solutions
US Cheese

Total GN

1,008.5
2,621.3

3,629.8

126.2
42.4

168.6

12.5% 1,186.8
1.6% 3,044.4

4.6% 4,231.2

135.0
38.8

173.8

11.4%
1.3%

4.1%

Commentary on percentage movements is on a constant currency basis throughout.

Nutritional Solutions (NS)

$’m

Revenue
EBITA
EBITA margin

FY 2023

FY 2022

Change

Constant
Currency
Change

1,008.5
126.2
12.5%

-15.0% -14.9%
1,186.8
135.0
-6.2%
-6.5%
11.4% +110bps

36 Glanbia plc | Annual Report and Financial Statements 2023

Whey protein
isolate

Customised
premix

Who we are
Glanbia Nutritionals (“GN”) is a leading
innovation and solutions partner to the
global food and nutrition industry. GN
Nutritional Solutions (“NS”) is a global
provider of customised premix solutions,
proteins and flavours. GN US Cheese
together with our joint venture partner
is the leading supplier and marketer of
American-style cheddar cheese in the US.

What we do
GN NS is a global business delivering
a broad range of innovative ingredient
solutions that improve product
functionality and nutritional profile.
The business has a deep protein
expertise, a scaled position in custom
premix solutions and global flavours
expertise that enhance global solutions
capabilities. Through our innovative
ingredient solutions, we proudly solve
our customers’ product challenges
across the mainstream food and
beverage industry, health and fitness
industry, and specialised nutrition
sector. Our expertise, innovations and
custom formulations enable them to
outperform their competition. GN’s US
Cheese business together with its US
joint venture cheese and dairy operations
is a leading supplier and marketer of
American-style cheddar cheese, used
by leading retail brand owners and food
service organisations.

Financial performance 2023
GN NS revenue decreased by 14.9% in
2023. This was driven by a 3.3% decrease
in volume, 9.0% decrease in price and a
decrease of 2.6% driven by the net impact
of acquisitions and disposals. The volume
decline was driven largely by customer
supply chain rebalancing in the custom
premix solutions business in the first half
of the year, which sequentially improved
as the year progressed. Volumes in
the protein business were positive and
underpinned by good demand for
protein. The price decline was driven by
the decline in dairy market pricing, with
positive pricing in the custom premix
solutions business.

GN NS continues to support customers
across a broad range of categories,
ultimately seeking to address growing
consumer health and wellness trends.
While 2023 saw a period of customer
inventory rebalancing in the custom
premix business, the demand at a
consumer level remains fundamentally
unchanged.

GN NS EBITA was $126.2 million, a 6.2%
decline versus prior year, primarily as a
result of the volume decline in the first
half of 2023. EBITA margins increased by
110 basis points versus prior year to 12.5%
as a result of both operating efficiencies
and the mathematical impact of lower
dairy pricing.

Delivering against our strategy
GN NS has an ambitious growth strategy
leveraging its existing portfolio and
market leadership in whey protein isolate
and custom premix. NS will continue
to make selective complementary
acquisitions, which can build on existing
platforms as well as expand into adjacent
capabilities.

NS growth strategy
Build on core strength in custom premix
solutions
The custom premix business continues to
perform well and we remain ambitious
for growth.

Scale extensive protein capability
and deep expertise
As consumer habits continue to evolve
we are leveraging our core expertise
to innovate new protein solutions and
applications to address market needs.

Scale complementary technologies and
further M&A
As consumers expand their tastes, and
brand owners seek to offer increasingly
novel and tailored nutrition solutions,
NS will seek to identify growth areas in
adjacent solutions.

Nutritional
Solutions

Cheese

• Strong growth categories
• Track record of organic and acquisition
growth and strong return on capital
employed

• Strong market positions across key

platforms

• Global and regional customers
• Deep innovation expertise
• Flavour capabilities and solutions
• Supply chain leverage

• Stable earnings and cash flow and
strong return on capital employed

• #1supplier of American- style cheddar

cheese

• Deep customer relationships
• Operationally integrated with NS dairy

•

solutions
Innovative scale model – investment
through JV model

• Trusted joint venture partner

for the MWC and SWC joint venture
(MWC-Southwest Holdings, LLC)

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION
Operations review continued
Glanbia Nutritionals continued

C A S E S T U D Y

NS investment in Colostrum –
enriched nutraceuticals

Colostrum is considered a “superfood” due to its excellent
nutritional profile and bioactive compounds. It is used and widely
accepted in global markets for its immunity, cognitive, and gut
health properties, supported by numerous clinical studies. Dairy
colostrum is incredibly rich in desirable nutrients like proteins,
fats, minerals and immunoglobulins. It is processed and sold in
powder form for use in many products.

The market for immune and gut health products is robust and Glanbia Nutritionals
has strengthened its investment in this space to meet the demand with the 2023
addition of PanTheryx’s B2B colostrum business (under the APS and LaBelle
brands), joining the Sterling Technology colostrum business acquired in 2022.

C A S E S T U D Y

New extrusion line at
PacMoore to meet demand

Consumers continue to show strong interest in new product
formats to address their desire for convenient, great-
tasting, healthy snacks. Protein remains the most desired
macronutrient for these types of snacks, with extruded
protein snacks and cereals emerging as one of the fastest
growing categories.

The 2022 acquisition of PacMoore aligned with Glanbia Nutritionals’
healthy snacking expansion strategy gave Glanbia a unique position in the
marketplace by vertically integrating its dairy and plant-based protein
expertise with PacMoore’s extrusion expertise to deliver a complete protein
snacking solution to its customers. Glanbia’s range of extruded protein
crisps for inclusions and larger protein bites, loops, and curls for standalone
cereals and snacks is unparalleled in the market.

To manage the accelerating growth opportunity, Glanbia Nutritionals
invested in a second extrusion line at its PM facility in Mooreseville, Indiana,
USA that went live in Q4 2023. This line includes the latest extrusion
technology and increases Glanbia’s extrusion capacity to meet the growing
demand in the category. The addition of a second extrusion line will
strengthen Glanbia Nutritionals’ leading position in protein-based extruded
solutions.

38 Glanbia plc | Annual Report and Financial Statements 2023

Driving further
innovation

GN continues to invest in its innovation
capabilities across the organisation.
Our innovation hub situated near our
global headquarters in Kilkenny, Ireland,
works closely with customers, product
management, sales, and operations
teams to ensure we are focused our
customers’ innovation needs.

The state-of-the-art technology and
equipment at the Kilkenny research
facility supports the development and
creation of ingredient solutions for
bars, snacks, beverages, baked goods
and more for the European food and
drink industry. The innovation hub
also facilitates customer interactions
and meetings, supporting a rapid
development process and delivering
efficient prototyping and ultimately
offering a swift route to market for
brands creating new products. The new
research facility also helps deliver a
competitive advantage to our customers
in launching new products, aligned with
market trends and consumer demand.

We have also invested in our Singapore
innovation centre and satellite R&D
in China, with plans for a Japanese
innovation centre to serve the Aspac
region. Building out our R&D centres is
a fundamental element of GN’s global
investment strategy.

US Cheese

Our combined US Cheese business including our US JV cheese
and dairy operations make us the #1 supplier and marketer of
American-style cheddar cheese.

US Cheese revenue declined by 13.9% in 2023. This was driven by
a 0.7% increase in volume and a 14.6% decline in price, with the
pricing decline aligned to the lower year-on-year cheese market
pricing.

US Cheese EBITA increased by 9.6% to $42.4 million as a result of
strong operating efficiencies and some procurement benefits.
US Cheese operates a pass-through pricing model which broadly
protects earnings from changes in market pricing.

US Cheese

$’m

Revenue
EBITA
EBITA margin

2023

2022

Reported
Change

Constant
currency
Change

2,621.3
42.4
1.6%

3,044.4
38.8
1.3% +30bps

(13.9)% (13.9)%
+9.3% +9.6%

Joint Ventures
Focused on MWC-Southwest Holdings

The Group’s share of joint ventures’ profit after tax pre-
exceptional items decreased by $3.8 million to $12.5 million,
largely driven by the sale of its shareholdings in the Glanbia
Cheese Limited and Glanbia Cheese EU Limited (collectively
“Glanbia Cheese”) joint ventures on 28 April 2023.

On completion, the Group received initial proceeds of €178.9
million, which included repayment of shareholder loans. The
memorandum of understanding for the sale was signed on
14 February 2023 and the Group ceased to apply the equity
method of accounting for its interest in these joint ventures from
this date.

Joint Ventures (Glanbia share)

$’m – pre-exceptionals

2023

2022

Change

Share of joint ventures’ profit after tax

– continuing operations

12.5

16.3

(3.8)

Total

12.5

16.3

(3.8)

High Protein Cheddar

MWC – JV operation

Our health and wellness cheese platform provides
cheeses that deliver increased health benefits to
an already healthy snack. Key innovations include
varieties such as higher-protein cheddar, probiotic
cheddar and Vitamin D fortified cheeses.

MWC is one of the two plants within the MWC-
Southwest joint venture. Located in St. Johns,
Michigan, it was commissioned in 2020 and
processes 2.9 billion pounds of milk each year
producing in excess of 330 million pounds of
superior block cheese and 21 million pounds of
value-added whey protein powders.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONChief Financial Officer’s review

A year of strong
earnings growth
delivers a record
performance

Mark Garvey
Chief Financial Officer

“A combination of pricing actions,
operational efficiencies and portfolio
evolution allowed the Group to
successfully navigate volatile market
conditions and deliver another year of
record earnings – the highest in the
history of the Group.”

40 Glanbia plc | Annual Report and Financial Statements 2023

Adjusted EPS –
continuing operations ($)
131.37 cent

(2022: 109.57 cent)

+19.9% reported currency
+20.5% constant currency

EBITA (pre-exceptional)
$424.0m

(2022: $365.7m)

+15.9% reported currency
+16.4% constant currency

OCF conversion
90.4%

(2022: 85.7%)

OCF as % of EBITDA

ROCE – continuing operations
12.2%

(2022: 10.7%)

+150bps

Dividend payout ratio
29.2%

(2022: 31.0%)

Dividend per share as a % of adjusted EPS
(continuing and discontinued)

Profit after tax –
continuing operations
$347.7m

(2022: $210.3m)

+65.3% reported currency
+66.7% constant currency

Basic EPS –
continuing operations ($)
130.41 cent

(2022: 76.55 cent)

+70.4% reported currency
+71.7% constant currency

Following a very strong performance in 2022, positive momentum
continued into 2023 with another record year of earnings, the
highest in the history of the Group. A combination of pricing
actions, operational efficiencies and portfolio evolution enabled
the Group to successfully navigate volatile market conditions,
delivering this performance above the upper end of market
guidance, while continuing to evolve the Group’s strategic
agenda. Revenues decreased by 8.7% (constant and reported
currency) to $5.4 billion with EBITA (before exceptional gains)
of $424.0 million achieved, representing an increase of 16.4%
constant currency (reported 15.9%) over prior year. The Group
reported adjusted EPS of 131.37 cent (all continuing operations),
an increase of 20.5% constant currency (reported 19.9%) on
prior year. Basic EPS from continuing operations of 130.41 cent
was achieved (2022: 76.55 cent), an increase of 71.7% constant
currency (+70.4% reported).

The Group’s portfolio continued to evolve, completing the sale of
the Group’s holding in the Glanbia Cheese joint ventures to our
joint venture partner, Leprino Foods, in April 2023. The Group also
completed the exit of the Aseptic Solutions business, a small US
based bottling facility, concluding a process that commenced in
2022. During quarter four, the B2B bioactive ingredients business
of PanTheryx was acquired, further adding to the capacity and
capabilities of the Group.

2023 also marked the transition of presentation currency of
the Group from euro to US dollar, better reflecting the Group’s
core markets in light of recent portfolio changes. The change in
presentation currency reduces the impact of foreign exchange
volatility as the Group generates the majority of its revenues and
earnings, and has significant assets and liabilities denominated
in dollars.

Operating cash flow (“OCF”) was strong at $445.9 million
converting 90.4% of EBITDA into OCF, against a target of 80%
conversion. Free cash flow (“FCF”) for the year was $389.8 million.

Banking facilities were refinanced in late 2022, extending the
maturity of all near term Group facilities, with the earliest
becoming due for repayment in December 2027. When combined
with the Group’s ability to generate cash, this positions the Group
well with the capacity to finance future investments and progress
the strategic growth agenda.

Return on Capital Employed (“ROCE”) from continuing operations
increased by 150 basis points to 12.2% (2022: 10.7%), with the
consistent delivery of profits as the Group reshapes and
simplifies the portfolio, invests in profitable growth and continues
to drive margin improvement and strong operating returns.

Share buyback activity continued during 2023, returning
€100 million to shareholders in the year. With confidence
in the strong cash generation abilities of the organisation,
further buyback programmes will be considered in 2024 as an
effective mechanism to return value to shareholders, with an
additional buyback recently announced. In addition, the Board
is recommending a final dividend of 21.21 euro cent per share
representing a dividend payout of 29.2% of adjusted Earnings Per
Share in respect of 2023.

Finally, the Group continued to progress the ESG agenda during
2023 including the effective management of the evolving
regulatory environment globally. I was delighted to join the ESG
Committee in December 2023 and look forward to supporting
the organisation in delivering against our objectives in the future.

Looking ahead
In 2022, the Group’s three year ambitions (starting in 2023) were
outlined and after the first year, these ambitions remain firmly on
track. Management are confident that the strong performance
in 2023, coupled with a clear strategic direction, positions the
Group well to navigate a volatile environment, including rising
geopolitical tensions, the indirect impact of inflation and global
supply chain disruption, to further enable growth.

This growth journey will continue to be a blend of organic and
M&A activity as a strong financial position will enable the Group
to capitalise on these opportunities as they arise.

From 2024, the Group is adopting new commercial terms
associated with its US joint venture operations, changing the
recognition and presentation of revenues and cost of sales,
without any material impact on profits. In addition, the Group
will move to presentation of Earnings Before Interest, Tax,
Depreciation and Amortisation (“EBITDA”). These presentational
changes will continue the Group’s ambition to simplify reporting
to be more in line with its peers.

2023 Income Statement review
Revenue and EBITA
Revenue and EBITA are key performance indicators (“KPIs”) for
the Group. In particular the Group focuses on revenue, volumes
and EBITA margins to assess underlying performance. Details of
these KPIs are set out below.

$’m

Revenue
GPN
GN

2023

2022

Change

Constant
Currency
Change

1,795.6
3,629.8

1,712.5
4,231.2

4.9%
(14.2%)

4.8%
(14.2%)

Total Revenue

5,425.4

5,943.7

(8.7%)

EBITA (pre-exceptional)
GPN
GN

255.4
168.6

Total EBITA

424.0

191.9
173.8

365.7

33.1%
(3.0%)

15.9%

33.7%
(2.7%)

16.4%

EBITA margin (pre-exceptional)
GPN
GN

14.2%
4.6%

11.2% +300bps
+50bps
4.1%

Total EBITA margin

7.8%

6.2% +160bps

Revenue
Revenue decreased in 2023 by 8.7% versus prior year (constant
and reported currency basis) to $5.4 billion. Like-for-like (“LFL”)
wholly-owned revenue decreased by 8.2%, driven by volume and
pricing declines of 0.5% and 7.7% respectively. Detailed analysis
of revenue is set out below.

Glanbia Performance Nutrition

$1,712.5m

0.9m

$1,713.4m

(0.6%)

5.4%

$1,795.6m

$2,000m

$1,600m

$1,300m

$1,000m

$600m

$300m

$0m

FY22

FY22 CC

Volume

Price

FY23

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Chief Financial Officer’s review continued

(2.6%)

$1,008.5m

$’m – pre-exceptional

2023

2022

Change

Share of profits of joint
ventures

12.5

16.3

(3.8)

Net finance costs (pre-exceptional)

$’m

Finance income
Finance costs

Net finance costs

2023

9.8
(22.1)

(12.3)

2022

Change

1.9
(23.7)

(21.8)

7.9
1.6

9.5

Net finance costs (pre-exceptional) decreased by $9.5 million
to $12.3 million (2022: $21.8 million). The decrease was primarily
driven by a reduction in the Group’s average net financial
indebtedness during 2023 compared to 2022, as well as strong
returns on gross cash balances as variable interest rates rose
in the period. The Group’s average interest rate was 2.0% (2022:
2.3%). Glanbia operates a policy of fixing a significant amount of
its interest exposure, with 95% of projected 2024 debt currently
contracted at fixed rates.

Share of results of joint ventures (all continuing operations)

The Group’s share of results of joint ventures is stated after tax
and before exceptional items. The Group’s share of joint venture
profits from continuing operations decreased by $3.8 million to
$12.5 million (2022: $16.3 million), primarily as a result of disposals
in the year (see below), somewhat offset by an improvement in
the performance of the retained US joint venture operations.

Following the agreement reached to sell the Group’s share of its
investments in the Glanbia Cheese UK and Glanbia Cheese EU
joint venture operations on 14 February 2023, equity accounting
ceased to apply from this date and the investments were
considered held-for-sale. This sales transaction was completed
on 28 April 2023.

Income taxes
Exceptional tax credit

2023

44.7
1.8

2022

Change

27.1
6.0

17.6
(4.2)

Income taxes (pre-exceptional)
Effective tax rate

46.5
14.0%

33.1

13.4
12.5% +150bps

The 2023 pre-exceptional tax charge increased by $13.4 million to
$46.5 million (2022: $33.1 million). This represents an effective tax
rate, excluding joint ventures, of 14.0% (2022: 12.5%). The tax credit
related to exceptional items is $1.8 million (2022: credit of $6.0
million). The Group currently expects that its effective tax rate for
2024 will increase as a result of global tax legislation changes in
the jurisdictions in which the Group operates.

Glanbia Performance Nutrition (“GPN”) recorded a total revenue
increase of 4.8% constant currency (4.9% reported) in 2023
versus prior year. LFL branded revenue grew 5.1%, with strong
performance across US Sports Nutrition, Healthy Lifestyle and
International markets driven by solid underlying consumption
trends as well as the successful implementation of price
increases to mitigate cost inflation, offset by headwinds in the
weight management category. Overall, price increases of 5.4%
were achieved, volume declined 0.6%.

Glanbia Nutritionals
Glanbia Nutritionals (“GN”) revenues declined 14.2% (constant
and reported currency) in 2023, driven by volume declines of
0.4%, price decreases of 13.0% and M&A related reductions of
0.8% as the positive impact of recent acquisitions was more than
offset by divestment activity.

Nutritional Solutions

$1,186.8m

$1,250m

(1.3m)

$1,185.5m

(3.3%)

(9.0%)

$1,000m

$750m

$500m

$250m

$0m

FY22

FY22 CC

Volume

Price

Acquisitions

FY23

US Cheese

$3,044.4m

(0.0m)

$3,044.4m

0.7%

(14.6%)

$2,621.3m

$3,000m

$2,500m

$2,000m

$1,500m

$1,000m

$500m

$0m

Nutritional Solutions (“NS”) volumes decreased by 3.3%, with
a decline in premix volumes partially offset by positive dairy
volumes. NS pricing declined 9%, primarily due to lower whey
markets, partially offset by positive premix pricing. US Cheese
volumes were 0.7% higher than prior year, with negative pricing
of -14.6% due to market pricing dynamics.

EBITA (pre-exceptional)
EBITA before exceptional items increased 16.4% constant
currency (15.9% reported) to $424.0 million (2022: $365.7 million)
with strong EBITA delivery in GPN, with GN marginally down
primarily due to supply chain destocking. EBITA margin in FY
2023 was 7.8% compared to 6.2% in 2022, representing an
increase of 160 basis points.

GPN pre-exceptional EBITA increased by 33.7% constant
currency to $255.4 million (2022: $191.9 million), an increase of
33.1% on a reported basis. GPN pre-exceptional EBITA margin
at 14.2% for the year was 300 basis points higher than prior year
(2022: 11.2%).

GN pre-exceptional EBITA declined 2.7% constant currency
to $168.6 million (2022: $173.8 million), a decrease of 3.0% on a
reported basis. GN pre-exceptional EBITA margin was 4.6%, an
increase of 50 basis points from 2022 (2022: 4.1%).

42 Glanbia plc | Annual Report and Financial Statements 2023

FY22

FY22 CC

Volume

Price

FY23

$’m

Income taxes

Exceptional items

$’m – continuing operations

Net exceptional gain on disposal/exit of

operations (note 1)

Pension related costs (note 2)
Portfolio related reorganisation costs

(note 3)

Changes in fair value of contingent

consideration (note 4)

Non-core assets held-for-sale (note 5)

Total
Share of results of joint ventures (note 2)
Exceptional tax credit

Exceptional gain/(charge) – continuing

2023

56.3

(2.5)
(6.0)

47.8
-
1.8

2022

(1.8)
(3.1)

7.1

(46.1)

(43.9)
0.2
6.0

operations

49.6

(37.7)

$’m – discontinued operations

2023

2022

Exceptional (charge)/gain from

discontinued operations (note 6)

Total exceptional gain in the year

(3.2)

46.4

60.3

22.6

Details of the exceptional items are as follows:
1. Net exceptional gain on disposal/exit of operations primarily
relates to the net gains on disposal of the UK and EU Glanbia
Cheese joint venture operations and a small US bottling
facility (Aseptic Solutions) which was designated as held-for-
sale at 31 December 2022 (note 5 below). Both transactions
concluded during 2023 and the net gain represents the
difference between proceeds received net of costs associated
with the divestment and exit of these non-core businesses and
the carrying value of the investments.

2. Pension related costs relate to the restructure of legacy

defined benefit pension schemes associated with the Group
and joint ventures, which included initiating a process for the
ultimate buyout and wind up of these schemes and a further
simplification of schemes that remain. Costs incurred relate
to the estimated cost of the settlement loss as a result of
acquiring bulk purchase annuity policies to mirror and offset
movements in known liabilities of the schemes (“buy-in”
transaction), as well as related advisory and execution costs,
net of gains from risk reduction activities. The restructuring
effort involved the careful navigation of external market
factors, with final wind up of the schemes anticipated in 2024.

3. Portfolio related reorganisation costs relate to indirect one
off costs as a result of recent portfolio changes. Following
divestment decisions related to non-core businesses, the
Group launched a programme to realign Group-wide support
functions and optimise structures of the remaining portfolio,
to more efficiently support business operations and growth.
This strategic multi-year programme continues in 2024. Costs
incurred to date relate to advisory fees and people-related
costs.

4. Prior year changes in fair value of contingent consideration
relate to contingent payments associated with the 2021
LevlUp acquisition that reduced following an assessment of
conditions that gave rise to the additional payments.

5. Prior year non-core assets held-for-sale relate to fair value

adjustments to reduce the carrying value of certain assets to
recoverable value. The assets relate to the Aseptic Solutions
business which was successfully divested during 2023 (see
note 1 above).

6. Exceptional (charge)/gain from discontinued operations

relates to the divestment of Tirlán Limited (formerly known as
Glanbia Ireland DAC) (“Tirlán”). The prior year gain represents

the initial gain on disposal of the Group’s interest in this
entity. The current year charge relates to the crystallisation
of certain contingent costs associated with the divestment
transaction following the conclusion of negotiations
on separation of the common infrastructure of both
organisations.

Profit after tax

$’m

2023

2022

Change

Profit after tax – continuing

operations

347.7

210.3

137.4

(Loss)/profit after tax –

discontinued operations

Profit after tax for the year

(3.2)

344.5

60.3

270.6

(63.5)

73.9

Profit after tax for the year was $344.5 million compared to
$270.6 million in 2022, comprising continuing operations of
$347.7 million (2022: $210.3 million) and a loss on discontinued
operations of $3.2 million (2022: profit of $60.3 million).
Profit after tax from continuing operations comprises pre-
exceptional profit of $298.1 million (2022: $248.0 million) and net
exceptional gain of $49.6 million (2022: charge of $37.7 million).
The $50.1 million increase in pre-exceptional profit after tax
from continuing operations is driven by the continued growth
in profitability of wholly-owned businesses net of reduced
profitability of joint ventures following the disposal of the UK and
EU cheese joint venture operations in April 2023.

Profit after tax from discontinued operations relates to the
divestment of the Group’s interest in Tirlán which completed in
April 2022, with further costs associated with the transaction
crystallising in 2023.

Earnings Per Share

2023

2022

Reported
Change

Constant
Currency
Change

Basic EPS

129.21c

98.40c

31.3%

– continuing
– discontinued

130.41c
(1.20c)

76.55c
21.85c

70.4%
(105.5%)

71.7%
(105.3%)

Adjusted EPS
– continuing
– discontinued

131.37c
131.37c
nil

109.57c
109.57c
nil

19.9%
19.9%
nil

20.5%
20.5%
nil

Basic EPS increased by 31.3% reported versus prior year, driven
by a year-on-year increase in pre-exceptional profitability
and the exceptional one off gains arising on portfolio related
adjustments.

Adjusted EPS is a KPI of the Group, a key metric guided to the
market and a key element of Executive Director and senior
management remuneration. Adjusted EPS increased by
20.5% constant currency (19.9% reported) in the year, all from
continuing operations.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONChief Financial Officer’s review continued

Cash flow
The principal cash flow KPIs of the Group and Business Units
are Operating Cash Flow (“OCF”) and Free Cash Flow (“FCF”).
OCF represents EBITDA of the wholly-owned businesses net of
business-sustaining capital expenditure and working capital
movements, excluding exceptional cash flows. FCF is calculated
as the cash flow in the year before the following items: strategic
capital expenditure, equity dividends paid, expenditure on share
buyback, acquisition spend, proceeds received on disposal,
exceptional costs paid, loans/equity invested in joint ventures
and foreign exchange movements. These metrics are used
to monitor the cash conversion performance of the Group
and Business Units and identify available cash for strategic
investment. OCF conversion, which is OCF as a percentage
of EBITDA is a key element of Executive Director and senior
management remuneration. OCF and FCF for the Group are
outlined below, with further information included in the glossary
on pages 252 to 260.

$’m

EBITDA pre-exceptional
Movement in working capital (pre-

exceptional)

Business-sustaining capital expenditure

Operating cash flow
Net interest and tax paid
Dividends from joint ventures
Payment of lease liabilities
Other inflows/(outflows)

Free cash flow
Strategic capital expenditure
Dividends paid to Company shareholders
Share buyback (purchase of own shares)
Payment for acquisition of businesses/

subsidiaries

Exceptional costs paid
Proceeds from sale of property, plant and

equipment

Loans/investment in joint ventures
Proceeds on disposal of non-core

businesses

Net cash flow
Exchange translation
Cash/(debt) acquired on acquisition

Net debt movement
Opening net debt
Closing net debt

2023

493.4

(25.0)
(22.5)

445.9
(51.8)
32.0
(19.9)
(16.4)

389.8
(51.7)
(97.2)
(108.7)

(72.2)
(13.5)

–
67.8

132.0

246.3
(5.5)
0.5

241.3
(490.0)
(248.7)

2022

436.8

(42.1)
(20.4)

374.3
(85.7)
15.3
(17.4)
(3.5)

283.0
(52.1)
(88.9)
(182.8)

(60.3)
(22.4)

3.6
(19.2)

339.3

200.2
(8.6)
1.0

192.6
(682.6)
(490.0)

OCF was $445.9 million in the year (2022: $374.3 million) and
represents a strong cash conversion on EBITDA of 90.4%
(2022: 85.7%). The OCF conversion target for the year was 80%.
The increase in OCF since prior year was due primarily to the
increased profitability across the business, combined with a
reduced investment in working capital as pricing and inventory
volumes returned to more normalised levels following a level of
significant inflation and supply chain disruption throughout 2022.

FCF was $389.8 million versus $283.0 million in 2022, with the
movement since prior year primarily as a result of movements in
OCF (as outlined above), as well as reduction in net interest cost
and increased dividend returns from joint venture operations.

Capital allocated for the benefit of shareholders includes regular
dividend payments of $97.2 million (2022: $88.9 million) and the
execution of the share buyback programme of €100 million

44 Glanbia plc | Annual Report and Financial Statements 2023

(2022: €173.5 million). The Board continues to review buyback
programmes as part of the Group’s capital allocation strategy as
they provide an opportunity to allocate capital to the benefit of
shareholders.

Acquisition spend relates primarily to the acquisition of the
B2B bioactive ingredients business of PanTheryx, for an initial
consideration of $45.1 million and the final contingent payment
in respect of the 2022 Sterling Technology acquisition of $26.8
million. Divestment proceeds relate primarily to the disposal of
the Group’s interests in Glanbia Cheese UK and EU joint ventures
in April 2023.

Loans to/equity in joint ventures during 2023 includes the full
repayment of outstanding loans to Glanbia Cheese EU, in
advance of completing the disposal of the UK and EU cheese
businesses in April 2023.

Group financing

Financing Key Performance Indicators

2023

2022

Net debt ($’m)
Net debt: adjusted EBITDA
Adjusted EBIT: adjusted net finance
cost

248.7
0.5 times

490.0
1.13 times

38.1 times 17.0 times

The Group’s financial position continues to be strong. At year-
end 2023, net debt was $248.7 million (2022: $490.0 million), a
decrease of $241.3 million from prior year and the Group had
committed debt facilities of $1.3 billion (2022: $1.3 billion) with
a weighted average maturity of 4.7 years (2022: 5.8 years).
Glanbia’s ability to generate cash, as well as available debt
facilities ensures the Group has considerable capacity to finance
future investments. Net debt to adjusted EBITDA was 0.5 times
(2022: 1.13 times) and interest cover was 38.1 times (2022: 17.0
times), both metrics remaining well within financing covenants.

Use of capital
Capital expenditure
Cash outflow relating to capital expenditure in the year
amounted to $74.2 million (2022: $72.5 million), including $22.5
million of business-sustaining capital expenditure and $51.7
million of strategic capital expenditure. Key strategic projects
completed in 2023 include ongoing capacity enhancement,
business integrations and IT investments to drive further
efficiencies in operations.

Investments in Joint Ventures
During 2023, a further $3.5 million was advanced to the Glanbia
Cheese EU operations which were subsequently divested
along with the Glanbia Cheese UK operations. In advance of
the divestment of UK and EU joint venture operations, which
completed in April 2023, outstanding loans of $71.3 million were
repaid in full.

Return on Capital Employed

Return on Capital Employed:
– continuing operations
– discontinued operations

2023

12.2%
12.2%
–

2022

Change

10.7% +150bps
10.7% +150bps
–

–

ROCE increased in 2023 by 150 basis points to 12.2%. This increase
was primarily due to the continued growth in profitability of the
wholly-owned business, as well as the successful execution of
strategy through pricing and efficiency improvements to improve

margin and drive sustainable long term returns. Acquisitions
remain a key part of the growth strategy of the Group with
investments assessed against a target benchmark of 12% return
after tax by the end of year three.

Annual impairment testing
The Group monitors the performance of acquisitions on an
ongoing basis and completes annual impairment reviews in
respect of goodwill and intangible assets. No impairments
were identified from the 2023 review, nor did sensitivity analysis
identify any scenarios where a reasonably possible change in
assumptions would result in an impairment charge. Full details
of the annual impairment reviews are set out in Note 16 of the
financial statements.

For the purposes of impairment testing, assets are grouped at
the lowest level for which there are separately identifiable cash
inflows, in Cash Generating Units (“CGUs”), and these CGUs are
kept under review to ensure that they reflect any changes to the
interdependencies of cash flows within the Group.

Dividends
The Board is recommending a final dividend of 21.21 €cent per
share which brings the total dividend for the year to 35.43 €cent
per share, a 10% increase on the prior year. This total dividend
represents a return of €93.9 million to shareholders from 2023
earnings and a payout ratio of 29.2% of 2023 adjusted Earnings
Per Share which is in line with the Board’s target dividend payout
ratio of 25% to 35%. The final dividend will be paid on 3 May 2024
to shareholders on the share register on 22 March 2024.

Total Shareholder Returns
Total Shareholder Return (“TSR”) for Glanbia in 2023 was 28.04%.
The STOXX Europe 600 Food & Beverage Index (F&B Index), a
benchmark for the Group, decreased by 0.73% in 2023. The three-
year period 2021 to 2023 Glanbia TSR was +54.16% versus the F&B
Index which increased by 8.03%. The five-year Glanbia TSR to
2023 was +2.28% versus the F&B Index of +31.79%. Glanbia’s share
price at the end of the financial year was €14.91 compared to
€11.92 at the 2022 year-end, representing an increase of 25.1%.

Impact of new and amended accounting standards
Adoption of new standards and amendments to existing
standards during the year did not have a material impact on the
Group.

Pension
The Group’s net pension position under IAS 19 (revised)
‘Employee Benefits’, before deferred tax, improved by $5.5
million since 2022, resulting in a net pension asset of $7.2 million
at 30 December 2023 (2022: asset of $1.7 million). The defined
benefit pension position is calculated by discounting the
estimated future cash outflows using appropriate corporate
bond rates. During 2023, the Company progressed the
restructuring of UK pension schemes successfully completing
the “buy-out” of two legacy schemes and further reducing the
Group’s exposure to liabilities on these schemes. It is anticipated
that these UK schemes will ultimately be wound up in 2024.

Foreign exchange
Glanbia generates the majority of its earnings in US dollar
currency and has significant assets and liabilities denominated
in US dollars. As a result, from 2023 Glanbia changed the
currency in which it presents its financial results from euro to
US dollar to reduce (but not eliminate) the impact to reported
numbers arising from currency movements year-on-year

and on retranslation of non-monetary assets and liabilities
in the preparation of the consolidated financial statements.
Commentary continues to be provided on a constant currency
basis to provide a better reflection of the underlying operating
results in the year, removing the translational currency impact.
To arrive at the constant currency change, the average foreign
exchange rate for the current period is applied to the relevant
reported result from the same period in the prior year. Key non-
US dollar currencies for the Group over the period were euro and
pound sterling, for which average and year-end rates were as
follows:

Average

Year-end

2023

2022

2023

2022

1 US dollar

converted to euro

0.9247

0.9493

0.9050

0.9376

1 US dollar

converted to
pound sterling

0.8043

0.8095

0.7865

0.8315

Investor relations
Glanbia has a proactive approach to shareholder engagement
with the Annual General Meeting (“AGM”) being a key event
annually. In 2023, an in person AGM was held on 4 May at the
Lyrath Hotel in Kilkenny, Ireland. All details relating to the AGM
were published on the Company’s website: www.glanbia.com/
agm.

The Group Chairman consulted directly with a number of
shareholders during the year. In addition, the Chair of the
Remuneration Committee consulted with shareholders on
the Company’s Remuneration Policy. Feedback from these
engagements was shared with and discussed with the Board.

In 2023, Glanbia attended 11 international equities investor
conferences. In May 2023, the Group held an analyst event in
London, UK, providing a deep dive on the GPN business, its
strategy and key growth drivers.

In addition to full year and half year results, Glanbia publishes
interim management statements after the first and third
quarters to provide investors with a regular update on
performance and expectations throughout the year. All releases,
reports and presentations are made available immediately on
publication on the Group’s investor relations website.

Annual General Meeting (AGM)
Glanbia plc’s AGM will be held on Wednesday, 1 May 2024, at 11.00
a.m. in the Newpark Hotel, Kilkenny, R95 KP63, Ireland.

Mark Garvey
Chief Financial Officer

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION
Delivering
Impact

Together with our stakeholders, we’re working to
support a resilient food system and find solutions
to the world’s most urgent environmental
challenges. Our sustainability strategy focuses on
our people, our planet and our performance.

We recognise that food
systems are deeply
connected to the planet’s
resources, and companies
like ours play a critical role in
protecting the environment.

Discover more on pages
48-71

46 Glanbia plc | Annual Report and Financial Statements 2023

People
At Glanbia we want to
empower all our people to
perform at their best,
realise and expand their
potential and build
fulfilling careers.

Discover more on pages 28-31

Performance
Working together with our
stakeholders and focusing
on areas with the highest
impact, we strive to help
protect the environment
for generations to come.

Discover more on page 71

Planet
When it comes to climate
change, we have strict
environmental targets
related to climate, water,
packaging and waste.

Discover more on page
55-60

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability

Better Nutrition,
Better World

Section highlights:

Our 2023 GHG footprint in Scope 1 and 2 decreased

by 15.9% compared to 2022

Invested in an extensive Scope 3 project designed

to deliver a dairy decarbonisation roadmap

Achieved a 3.44% decrease in absolute freshwater
withdrawal and reduced freshwater use intensity
by 6% versus 2021 base year

Global packaging recyclability weights increased

from 62% in 2022 to 76% in 2023

“We recognise that food systems are
deeply connected to the planet’s
resources, and companies like ours
play a critical role in protecting the
environment.”

Hugh McGuire
CEO Glanbia

48 Glanbia plc | Annual Report and Financial Statements 2023

At Glanbia, we deliver better nutrition
for every step of life’s journey. Each
decision we make and action we take is
rooted in respect: respect for people in
communities near and far, respect for the
planet, respect for business ethics and
for performance.

Our purpose and products have real
meaning and impact in a world where
lifestyle diseases are the number one
killer worldwide, and where better
diets and active lifestyles are the most
important preventative measures. Better
Nutrition is at the core of what we do. In
Glanbia Performance Nutrition (“GPN”)
our products support consumers directly,
and in Glanbia Nutritionals (“GN”) our
functional ingredients and solutions
support the wider food industry and
customer base.

Delivering Better Nutrition is our
purpose. Our Environmental, Social and
Governance (“ESG”) focus is about how
we bring that to life. It is about delivering
better nutrition responsibly.

Driving action to achieve our
sustainability targets
Guided by our materiality assessments
on where to prioritise, we have developed
a robust and ambitious approach to
our ESG strategy. This strategy sets out
our targets and actions focused on our
People, Planet and Performance.

We advance with intent and contribute to
the delivery of global goals, such as the
United Nations Sustainable Development
Goals (“SDGs”) and the Paris Agreement.
Supported by expert external advisors
and aligned to the SDGs, we have taken
a rigorous approach to measuring our
impacts through data, baselining, and
risk assessments, setting a clear strategy
and aligning to science-based targets.

We recognise the importance of
transparent and consistent reporting to
ensure our stakeholders are informed and
to provide accountability for progress
made against our stated commitments.
This section of our Annual Report outlines
our performance for 2023, which includes
our annual Taskforce for Climate-related
Financial Disclosure (“TCFD”) disclosures.
For more information, see pages 64-70.

Our Annual Report is complemented by
a separate Sustainability Report aligned
with the Global Reporting Initiative (“GRI”)
standards and the Carbon Disclosure
Project (“CDP”) disclosures, providing
further detail on our performance to date.

Awareness and support for the delivery
of our ESG agenda is driven by the Board
and cascades through the Group. We
have linked our ambition to remuneration.
Senior management long-term incentives
are directly linked to the achievement
of our environmental sustainability
goals (see page 141-145 for more detail),
while actions on our social agenda are
reflected in senior management short-
term incentives, see page 137.

We strive to ensure our overall ESG
ambition and commitments are
integrated into our strategic planning
and risk management oversight. As
part of the Group Risk Management
Framework, we ensure ESG risks are
identified, evaluated and assessed.
Where deemed material, such risks are

monitored and reported upon, with the
appropriate mitigating actions feeding
into our strategy and operational
response.

During 2023, in recognition of the EU
Corporate Sustainability Reporting
Directive and associated mandatory
European Sustainability Reporting
Standards coming into effect over
the coming years, a number of steps
have been undertaken to ensure our
readiness, including the establishment of
a dedicated ESG Reporting and Systems
Steering Committee to oversee our
implementation plan, which comprises of
a multi-discipline senior leadership group
reflecting the wide-reaching nature of
these standards.

We have made good progress
against our stated targets across our
environmental pillars, refer to pages
55-60. In 2024 we will continue to drive
performance with delivery of our Scope 3
decarbonisation plan a key focus area.

Food safety and quality is a non-
negotiable for us as a Group, refer to
page 62 for details of our performance
highlights during 2023.

We are proud of the advancements made
to support and protect our people, see
pages 28-31 within the People section of
this report, for details on the progress
made against our stated Diversity, Equity
and Inclusion (“DE&I”) ambition and page
30 for a review of the 2023 Group Health
and Safety programme and results.

People. Planet. Performance.

Guided by our materiality assessment our ambition and strategy is focused around our most material ESG impacts. We recognise the
global impact our corporate actions have on the environment and society, and have mapped the SDGs that we are addressing as part
of our ESG framework.

People
including our Society

Planet

Performance

• Employee engagement

and development

• Employee health, safety and

wellbeing

• Diversity, equity and inclusion
• Responsible sourcing
• Food safety and quality
• Nutrition

Discover more on page 28-31,
61-63

• Climate change
• Water
• Waste
• Sustainable products and

packaging
• Biodiversity

• Economic contribution
• Business ethics
• Risk management
• Transparency and reporting

Discover more on page 54-60

Discover more on page 71

Refer to pages 50-51 for details on our stakeholder engagement process and outcomes, pages 52-53 for further details on how

Glanbia considers SDGs in the way we operate and page 54 on the process undertaken to identify our most material ESG topics.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued
Sustainability continued
Showing respect for all our stakeholders

Key Stakeholder
engagement in 2023

One of Glanbia’s core values is
‘Showing Respect’. Valuing all
our people, our producers and
our communities is at our core
and builds a better business. To
support this core value Glanbia
aims to create trusted relationships
through effective engagement
and to understand the needs of
all our stakeholders. The Board is
aware that the Group’s actions
and decisions impact all our
stakeholders, and it ensures that
there is regular dialogue taking
place with stakeholders, which is
carried out by those most relevant
to the stakeholder group or issue,
and discussed appropriately in the
boardroom.

Stakeholder group – why we engage

Key topics

How we engage

Outcomes

Employees
Regular and ongoing engagement with our employees is
leadership and
key to attracting, developing and retaining a talented,
education
dedicated and motivated workforce which ensures the
successful delivery of our strategy and achievement
of our purpose.

• Group strategic agenda/

priorities

• Safety and support at work
• Smart (flexible) working
• Diverse and inclusive workplaces
• Career development
• Reward framework

•

Implemented multi-year

• Connection to the Board

Employee attraction, retention and engagement

‘Grow@Glanbia’

programme, using

through a dedicated

Workforce Engagement

technology to enable

Director (Group

personalised employee

Chairman)

Our approach keeps us connected with our people. It helps attract, develop, retain

and motivate our workforce, sustaining our competitive advantage and long-

term success. It provides key insights into the effectiveness of employee-related

programmes and key focus areas. It also helps us strengthen our approach to

• Employee Resource

diversity, equity and inclusion across our businesses.

• Employee engagement score of 72 points (up 1 point since 2022).

• Employee survey scores increased across all Business Units on our key focus

areas of wellbeing and communication.

Customers and consumers
Strong engagement with our customers and consumers
enables us to operate a customer-centric business model
our consumers and
and act as our customers’ most valued partner, creating a
customers
world of sustainable nutrition.

Local communities
By fostering strong relationships with the communities in
which we operate, we can help support livelihoods and
create a better society while protecting the environment.

Shareholders
Active engagement with our shareholders ensures they
are aware of the Group’s business environment, strategy,
performance and sustainability commitments. The views
of our shareholders help to inform the strategic decision
making of the Board.

Insights on consumer trends

•
• Stable supply of high-quality
products and ingredients

• Food safety & quality
• Sustainable food with a lower
environmental footprint,
produced in a responsible way

• Economic development of the
communities in which we
operate

• ESG impact on local

communities

• Strategic agenda/priorities
• Governance performance
• Portfolio evolution through

organic growth, acquisitions
and divestments

• ESG agenda and priorities

• Responsible sourcing and use of

• Supplier surveys and

• Membership of industry

Partnering with our suppliers to make sustained positive impact in

Suppliers and business partners
By partnering and engaging with our suppliers, and
our value chain
establishing trusted business partnerships within our value
partners
our value chain
chain, we enable them to meet our high standards in food
partners
safety and quality, business ethics, labour, human rights
and the environment.

Government and non-governmental
organisations (NGOs)
Through active engagement with governments and NGOs
we can share valuable insights gained as a global nutrition
company on the strategic issues facing our industry, while
increasing our understanding of wider issues, enabling us
to add value to relevant policy and regulatory debates and
support industry initiatives.

raw materials

• Long-term, sustainable

partnerships

• Positive environmental and

social impact

• Ethical business conduct

• Regulation across all business

activities

• Reliable and complete
corporate reporting

• Contribution to local economy

and communities
• Climate change and

environmental preservation

• Responsible sourcing
• Human rights, diversity, equity

and inclusion

See more information
see pages 94-95

50 Glanbia plc | Annual Report and Financial Statements 2023

Read

Pages

28-29

Pages

32-39

development and

engagement

Groups

• Ongoing engagement

•

‘Speak Up’ and

through one-to-one

Whistleblowing

meetings, team meetings

procedures

and town halls

• Monitoring of actions to

• Engagement and regular

address topics raised by

pulse surveys

employees

• ESG impact materiality

assessment

development – key

packaging

account managers, R&D

• Customer surveys

insights and brand teams

• GPN sports nutrition

• Company websites and

school

social media

• ESG impact materiality

• Formal market research

assessment

• Exhibitions

• Customer relationship

• Product information on

Engaging with our consumers means we enable them to achieve their

lifestyle and nutrition goals. We bring strong market insights and

secure supply quality to our customers

• The ON brand is one of the world’s most awarded, most reviewed and most

nominated sport nutrition brands by consumers.

• ON is now a $1bn brand consistently recording strong Net Promotor Scores.

• Gold Standard Whey tub certified “Widely Recycled” by How2Recycle.

• GN is the ingredients partner of choice to some of the world’s leading brands.

• Supporting customer ESG ambition through the provision of transparent, product

specific data sharing.

• GPN sports nutrition

• Ongoing dialogue and

Strong and positive community relationships

school

funding of community

Engaging with our local communities during 2023 ensured that we increased our

Pages

63,95

• Employee volunteering

programme

and charitable

organisations

areas for value creation.

understanding of their needs and priorities, addressed any concerns and identified

• ESG impact materiality

assessment

• Capital Markets Day

• One-to-one meetings

Trust and engagement from the investor community

Page 94

•

Investor meetings and

and calls

conferences

• Climate Disclosure

• Regular externally

Project climate change

published performance

and water reporting

and strategy updates

• Key investor rating

• Perception survey

assessments

• Annual general meeting

• ESG impact materiality

Engagement with investors helps us to understand their expectations of our

strategic agenda, risk management, financial and ESG performance. During 2023,

investor focus continued around the Group’s strategic direction, performance,

emissions reduction and employee engagement.

assessment

associations

expert panels

assessment

• Contractual meetings

• Membership in industry

•

Information requests

• ESG impact materiality

We engage with suppliers to develop a responsible and sustainable supply chain

needed to deliver innovative and sustainable products. During 2023, we specifically

engaged with our suppliers to drive improvements across our sustainability priority

the value chain

areas.

audits

• Tenders

• E-tendering platforms

• Assessment and due

diligence

Pages

56,61,95

•

Industry associations

• One-to-one meetings

• Briefings and direct

• Participation in events

meetings

• ESG impact materiality

• Multistakeholder forums

assessment

Engagement with Government and NGOs

Page 95

Our engagement with local and national regulators, governments and industry

associations, ensures that we contribute to issues relevant to our activities, improve

our sustainability performance and compliance and progress projects for the

• Participating in relevant

calls for information

enhancement of society.

Through our memberships and partnerships with NGOs we continue to be involved

in developing industry best practices across a range of established sustainability

topics and collaborating on integrated solutions across the value chain.

• Group strategic agenda/

priorities

• Safety and support at work

• Smart (flexible) working

• Diverse and inclusive workplaces

Employees

Regular and ongoing engagement with our employees is

leadership and

key to attracting, developing and retaining a talented,

education

• Career development

• Reward framework

dedicated and motivated workforce which ensures the

successful delivery of our strategy and achievement

of our purpose.

Customers and consumers

Strong engagement with our customers and consumers

our consumers and

enables us to operate a customer-centric business model

and act as our customers’ most valued partner, creating a

customers

world of sustainable nutrition.

Local communities

By fostering strong relationships with the communities in

which we operate, we can help support livelihoods and

create a better society while protecting the environment.

Shareholders

Active engagement with our shareholders ensures they

are aware of the Group’s business environment, strategy,

performance and sustainability commitments. The views

of our shareholders help to inform the strategic decision

making of the Board.

Suppliers and business partners

By partnering and engaging with our suppliers, and

our value chain

partners

establishing trusted business partnerships within our value

our value chain

chain, we enable them to meet our high standards in food

partners

safety and quality, business ethics, labour, human rights

and the environment.

•

Insights on consumer trends

• Stable supply of high-quality

products and ingredients

• Food safety & quality

• Sustainable food with a lower

environmental footprint,

produced in a responsible way

• Economic development of the

communities in which we

operate

• ESG impact on local

communities

• Strategic agenda/priorities

• Governance performance

• Portfolio evolution through

organic growth, acquisitions

and divestments

• ESG agenda and priorities

• Responsible sourcing and use of

raw materials

• Long-term, sustainable

• Positive environmental and

partnerships

social impact

• Ethical business conduct

Government and non-governmental

organisations (NGOs)

Through active engagement with governments and NGOs

we can share valuable insights gained as a global nutrition

company on the strategic issues facing our industry, while

increasing our understanding of wider issues, enabling us

to add value to relevant policy and regulatory debates and

and inclusion

support industry initiatives.

• Regulation across all business

activities

• Reliable and complete

corporate reporting

• Contribution to local economy

and communities

• Climate change and

environmental preservation

• Responsible sourcing

• Human rights, diversity, equity

Stakeholder group – why we engage

Key topics

How we engage

Outcomes

•

Implemented multi-year
‘Grow@Glanbia’
programme, using
technology to enable
personalised employee
development and
engagement

• Ongoing engagement
through one-to-one
meetings, team meetings
and town halls

• Engagement and regular

pulse surveys

• Connection to the Board
through a dedicated
Workforce Engagement
Director (Group
Chairman)

• Employee Resource

•

Groups
‘Speak Up’ and
Whistleblowing
procedures

• Monitoring of actions to
address topics raised by
employees

• ESG impact materiality

assessment

• Customer relationship
development – key
account managers, R&D
insights and brand teams

• Product information on

packaging

• Customer surveys
• GPN sports nutrition

• Company websites and

school

social media

• ESG impact materiality

• Formal market research
• Exhibitions

assessment

• GPN sports nutrition

school

• Employee volunteering

programme

• Ongoing dialogue and
funding of community
and charitable
organisations

• ESG impact materiality

assessment

• Capital Markets Day
•

Investor meetings and
conferences

• Regular externally

published performance
and strategy updates

• Perception survey
• Annual general meeting

• One-to-one meetings

and calls

• Climate Disclosure

Project climate change
and water reporting

• Key investor rating

assessments

• ESG impact materiality

assessment

• Supplier surveys and

• Membership of industry

audits

• Contractual meetings
• Tenders
•
Information requests
• E-tendering platforms
• Assessment and due

diligence

associations

• Membership in industry

expert panels

• ESG impact materiality

assessment

Pages
28-29

Employee attraction, retention and engagement
Our approach keeps us connected with our people. It helps attract, develop, retain
and motivate our workforce, sustaining our competitive advantage and long-
term success. It provides key insights into the effectiveness of employee-related
programmes and key focus areas. It also helps us strengthen our approach to
diversity, equity and inclusion across our businesses.
• Employee engagement score of 72 points (up 1 point since 2022).
• Employee survey scores increased across all Business Units on our key focus

areas of wellbeing and communication.

Engaging with our consumers means we enable them to achieve their
lifestyle and nutrition goals. We bring strong market insights and
secure supply quality to our customers
• The ON brand is one of the world’s most awarded, most reviewed and most

Pages
32-39

nominated sport nutrition brands by consumers.

• ON is now a $1bn brand consistently recording strong Net Promotor Scores.
• Gold Standard Whey tub certified “Widely Recycled” by How2Recycle.
• GN is the ingredients partner of choice to some of the world’s leading brands.
• Supporting customer ESG ambition through the provision of transparent, product

specific data sharing.

Strong and positive community relationships
Engaging with our local communities during 2023 ensured that we increased our
understanding of their needs and priorities, addressed any concerns and identified
areas for value creation.

Pages
63,95

Trust and engagement from the investor community
Engagement with investors helps us to understand their expectations of our
strategic agenda, risk management, financial and ESG performance. During 2023,
investor focus continued around the Group’s strategic direction, performance,
emissions reduction and employee engagement.

Page 94

Partnering with our suppliers to make sustained positive impact in
the value chain
We engage with suppliers to develop a responsible and sustainable supply chain
needed to deliver innovative and sustainable products. During 2023, we specifically
engaged with our suppliers to drive improvements across our sustainability priority
areas.

Pages
56,61,95

Industry associations

•
• Briefings and direct

meetings

• Multistakeholder forums
• Participating in relevant
calls for information

• One-to-one meetings
• Participation in events
• ESG impact materiality

assessment

Engagement with Government and NGOs
Our engagement with local and national regulators, governments and industry
associations, ensures that we contribute to issues relevant to our activities, improve
our sustainability performance and compliance and progress projects for the
enhancement of society.

Page 95

Through our memberships and partnerships with NGOs we continue to be involved
in developing industry best practices across a range of established sustainability
topics and collaborating on integrated solutions across the value chain.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued
Showing respect for all our stakeholders continued

Sustainable Development Goals

The 17 United Nations Sustainable Development Goals (“SDGs”) are a global call to action to address poverty, injustice, and inequality,
while tackling climate change. Our aim is for our business activities to create shared value that is both measurable and makes a
recognisable contribution to society. While all 17 SDGs are critical, as part of our sustainability strategy, we have identified six SDGs on
which we have the strongest impact through our business actions. These six SDGs and their impact are outlined below.

SDG 2: Zero hunger
We develop and deliver products with nutritional attributes.
We collaborate with organisations to help better meet society’s food challenges.

Target area:

Glanbia’s approach

2.1 End hunger and ensure access by all people

Relating to this target from the respect of access to safe, nutritious and sufficient food, we develop cost
effective nutrition solutions, which meet the highest food safety quality standards and are driven by our
‘Better Nutrition’ strategy.

2.2 End all forms of malnutrition

Our portfolio of ingredient solutions and brands support the creation of nutritious foods, beverages and
supplements that address the most common consumer health and lifestyle needs.

2.4 Sustainable food production systems

Working with our suppliers, we encourage adoption of sustainable practices that increase resilience,
productivity and help maintain ecosystems.

Impact examples

We recognise the importance of the highest food safety and quality standards with 100% of our manufacturing sites meeting or exceeding internationally
recognised third-party audit standards.
Our end consumer product portfolio comprises nine brands – Optimum Nutrition (“ON”), BSN, Isopure, Nutramino, SlimFast, think!, Amazing Grass, Body &
Fit and LevlUp, which support a range of nutritional and lifestyle needs. Our products are sold in more than 100 countries worldwide.
We partner with EcoVadis to risk assess our supplier base and highlight areas of focus from an environmental, social and governance risk perspective.

SDG 3: Good health and wellbeing
We take a scientific approach to nutrition, meeting nutritional needs across all stages of life and promoting active
and healthy lifestyles. Through our brands and products, we positively impact the health and wellbeing of millions
of people around the world.

Target area:

Glanbia’s approach

3.4 Reduce by one-third premature mortality from
non-communicable diseases (“NCDs”)

We work with our customers through science-based innovation to enhance the nutrition profile of consumer
products, we offer a range of branded consumer products that focus on delivering affordable solutions to
support lifestyle nutrition and motivations.

Impact examples

Within GN we have 15 innovation and collaboration centres across Europe, North America and ASPAC. Within Nutritional Solutions, one area of focus
has been on functional and nutritional proteins, by building scale in high dairy protein manufacturing through our dairy plant network, investing in
deep research in protein chemistry and applications through our innovation and collaboration centres and adding supporting technologies through
acquisitions including Sterling Technology and the bioactive ingredients business PanTheryx.

SDG 5: Gender equality
We continue to advocate against all discrimination including gender inequality. This is achieved through our internal
DE&I programmes, ethical business conduct practices, and fostering an inclusive and continuous learning culture.

Target area:

Glanbia’s approach

5.5 Ensure women’s full and effective participation
and equal opportunities for leadership at all levels of
decision-making in political, economic and public life

Developing a culture of continuous learning, new skills and strong leadership capabilities are core to our
people management approach. We recognise the benefit of a balanced and inclusive workforce and have
focused on education, training, and recruitment practices in this regard.

Impact examples

40% management roles held by women.
At year end 46% of Board of Director roles were occupied by women.
Establishment of employee resource groups including Glanbia Network Of Women (“NOW”), True Colours (our LGBTQIA+ group) and Mosaic (our multicultural
group) to provide a space to address workplace and career-related strategies through education, conversation, networking, mentorship and professional
development.

52 Glanbia plc | Annual Report and Financial Statements 2023

SDG 8: Decent work and economic growth
We see it as our responsibility to respect human rights both within our company and along our supply chain.
That is why we are dedicated to upholding appropriate and fair labour and social standards. We want to drive
sustainable economic growth through progressive resource efficiency.

Target area:

Glanbia’s approach

8.8 Protect labour rights and promote safe and
secure working environments for all workers

We actively take steps to protect labour rights and promote safe and secure working environments for all
workers, with special attention to vulnerable groups. Our Health and Safety management programme is the
bedrock to everything we do and is integrated into all our on-site processes. Within our value chain we are
committed to implementing effective due diligence measures to mitigate against forced labour, modern
slavery, and child labour.

Impact examples

Glanbia had zero fatalities or critical work related injuries during the year. We are focused on a ‘Zero Harm’ culture centred around employee engagement
and action. For example each site has a Site Safety Committee. These committees consist of a cross-functional group within manufacturing sites where
participants meet regularly to identify and mitigate risks.
All suppliers are subject to Glanbia’s Supplier Code of Conduct, which sets out minimum standards we expect from those who provide us with goods or
services including that all employees work within safe and humane conditions with the provision of effective training and personal protective equipment.

SDG 12: Responsible consumption and production
We use resources efficiently and reduce waste and emissions. We incorporate this approach in our product
development and in our manufacturing activities. We support our dairy suppliers to produce their milk
sustainably and efficiently.

Target area:

Glanbia’s approach

12.2 Achieve the sustainable management and
efficient use of natural resources

Our sustainability strategy is focused on reducing our impacts on the environment and society, through
efficient manufacturing processes and partnership with our suppliers. Our targets relating to energy, water,
waste and packaging use all support this objective and drives accountability.

Impact examples

For our overall impacts refer to Sustainability Report – page 55-60, which outlines our stated targets and performance to date for our most material
environment impact topics including: climate change; water; waste; and consumer packaging.

SDG 13: Climate action
We recognise how deeply connected food systems are to the planet’s resources. We have upgraded Scope
1 and 2 emissions reduction targets to meet a 1.5 degrees Celsius temperature pathway and mapped out a
decarbonisation plan to meet this ambition by 2030.

Target area:

Glanbia’s approach

13.2 Integrate climate change measures into national
policies, strategies and planning

In relation to our internal impact, we have increased our emissions reduction ambition to align with the
Paris Agreement with a focus on on-site energy efficiency and procurement of renewable electricity as core
components of this strategy. Our Scope 3 approach is focused on partnership and collaboration.

Impact examples

Reduced Scope 1 and 2 emissions by 9.1% since 2018 baseline, refer to page 55 for further details.
Through the funding of third-party engagements, building an economic model which can be adopted by our dairy suppliers to decarbonise their
operations which is also commercially viable and stands up to verification, refer to page 56 for further details.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued

Identifying our material impacts

Last year we updated our ESG impact
materiality assessment in line with
the GRI framework. To determine our
material topics, we followed a process
based on the standard ‘GRI 3: Material
Topics 2021’ which included a defined
process for identifying, assessing
and prioritising our greatest ESG
impacts, with a prescribed stakeholder
engagement process applied to each
step.

During the year, in the context of our
preparation for the upcoming mandatory
European Sustainability Reporting
Standards (“ESRSs”) we prepared a gap
assessment between the GRI materiality

approach and that prescribed by ESRS 2.
The ESRSs require a double materiality
approach to be applied, whereby
organisations consider both the
impact materiality assessment to our
stakeholders (as outlined below) and also
the potential financial impact of ESG
topics on us as an organisation. As part
of this gap assessment we held a cross
functional senior leadership workshop,
where the impact materiality assessment
was reviewed and consideration was
given to any material changes to our
stakeholder groups, our strategy,
operations, supplier, customer and
investor base. It was concluded there
were no material changes to the impact

materiality assessment carried out
under GRI. As part of this process we
refined our impact assessment listing
further, whereby we have incorporated
the animal welfare topic within business
ethics and trusted business partner
topics as part of responsible sourcing
to reflect the close alignment between
these topics. We will perform a review of
our materiality assessment to determine
if there are any material changes in
advance of ESRS reporting.

The table below shows the output of
our impact assessment review. The list
of material topics was reviewed and
approved by Glanbia’s Board of Directors.

Topic

Summary impact

Value chain mapping SDG reference Read more

1. Food safety & quality

Impact of our food safety and quality systems, ensuring nutritious
quality products are produced

Operations and
Downstream

2 3 12

Page 62

2. Employee health, safety

& wellbeing

Impact of our health, safety and wellbeing programmes protecting our
people in line with industry best practice

Operations

3 8 12

Pages 28-31

3. Climate change

Impact of global warming as a result of carbon emissions, and the
corresponding emission reduction initiatives within our operations and
value chain

Upstream and
Operations

3 12 13

Pages 55-56

4. Water

Impact of water use within our value chain and manufacturing sites and
related efficiency initiatives

Upstream and
Operations

12 13

Page 57

5. Responsible sourcing

Impact of Glanbia procurement controls and oversight within our value
chain

Upstream

6. DE&I

7. Waste

Impact of DE&I initiatives for Glanbia’s employees

Operations

Impact of waste generation within our manufacturing sites and related
resource efficiency initiatives

Operations

Page 61

Page 30

Page 58

8 12

5 8

3 8

12 13

8. Sustainable products

& packaging

Impact of innovative product and packaging design on resource
consumption and environmental impact

Operations and
Downstream

8 12 13

Page 59

9. Biodiversity

Impact of direct manufacturing activities and indirect impact through
our supply chain on biodiversity and ecosystems

Upstream and
Operations

12 13

Page 60

10. Economic contributions

Impact of Glanbia’s operations on the economy and government
through its economic activities and monetary contribution

Operations and
Downstream

11. Employee engagement

& development

Impact of employee programmes to support job satisfaction, a healthy
working culture and employee development

Operations

Pages 16-25

Pages 28-29

12. Nutrition

Impact of our nutritional products and solutions on our consumers and
our customers

Downstream

3 12

Page 63

13. Business ethics

Impact of strong governance and oversight, fair competitive practices,
underpinned by our Code of Conduct

Operations

Page 71

54 Glanbia plc | Annual Report and Financial Statements 2023

Planet

Climate – Scope 1 & 2 emissions

Target:

50%

absolute reduction in operations’ emissions
by 2030 vs 2018 baseline

100%

renewable electricity
procurement by 2028

Our commitment
Our GHG emissions reduction targets
validated by the Science Based
Targets initiative (“SBTi”) encompassed
reductions in Scope 1 and 2 emissions
under our operational control. In 2022, we
realigned our Scope 1 and 2 target to the
accelerated 1.5 degrees climate scenario
(“1.5DS”) pathway, in accordance with the
Paris Agreement.

2023 progress
In 2023, Glanbia continued working
towards Scope 1 and 2 decarbonisation
in accordance with our Board-approved
strategy. The company is currently on
track to deliver GHG emissions reduction
in line with our transition plan thanks
to the energy efficiency initiatives
and introduction of advanced energy
management systems in partnership with
EM3 at Glanbia sites in Michigan, New
Mexico and Idaho. We also expanded our
Renewable Electricity (“RE”) procurement

with GN’s New Mexico site and all GPN
sites becoming 100% RE since 2023
through purchasing certified Green-e
Renewable Energy Certificates (“RECs”).

Focus for 2024
In 2024, we will focus on our near-term
objective of reducing Scope 1 emissions
by 15,000 tonnes by 2025 through various
energy efficiency projects. From a Scope
2 perspective, sustainable execution of
our RE continues in 2024 to ensure we
are on track to meet our target of 100%
RE by 2028. Mitigating carbon emissions
will continue standing as a central
pillar of our corporate environmental
strategy. We also place emphasis on
evaluating the multifaceted climate-
related risks and opportunities, which are
comprehensively detailed in Glanbia’s
TCFD report (See pages 64-70).

2023 performance results
Energy efficiency at our production sites
and renewable energy sourcing is critical
to address Glanbia’s Scope 1 and 2
emissions. The proportion of renewables
in our electricity supply reached 63% in
2023 representing an 19% increase from
the preceding year.

Glanbia’s 2023 GHG footprint in Scope 1
and 2 decreased by 15.9% compared to
2022 as a result of energy management
system deployment and RE procurement.
This achievement represented a
9.1% reduction in the Company’s
operational emissions versus a 2018
base year, bringing Glanbia on track to
meet the 2030 decarbonisation plan
aligned with 1.5DS. The 2021-22 spike
in GHG emissions, which came from
commissioning a new-to-world dairy
processing facility in Michigan, was
levelled off by the end of 2023.

Glanbia Decarbonisation Plan 2030 for Scope 1 and 2, aligned with 1.5 degrees Celsius
SBTi target*

GHG Emissions in Operational Control,
2018 – 2023*

350,000

300,000

250,000

200,000

150,000

100,000

50,000

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

)
e
2
O
C
t
(
s
n
o
s
s
m
E

Scope 1

Scope 2

Rebaseline 1.5 degrees Celsius

2023

2022

2021

137,217

83,936

11,969

138,897

123,930

13,286

139,943

149,138

13,132

2020

104,802

119,206

15,659

2019

99,538

123,203

11,956

2018

113,864

129,485

10,174

Scope 1, MtCO2e
Scope 2, MtCO2e

Biogenic Emissions,
MtCO2e

* GHG emissions adjusted for divestments and projected footprint of the acquisitions contracted by Glanbia with the exception of the acquisition of the bioactive
ingredients business of PanTheryx completed in quarter four, 2023. Scope 2 GHG emissions were calculated using the market-based approach, accounting
for procured renewable electricity (including RECs), energy providers’ and Green-e® Residual Mix Emissions Rates where appropriate. 2022-2023 site-specific
averages were used to estimate energy consumption where factual data was incomplete.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Sustainability continued

Climate – Scope 3 dairy emissions

Target:

25%

reduction in dairy emissions intensity by 2030

Scope 3 project – core elements
and key focus areas

otprin ti n

o
F

ting

Econo

Scope 3
project
Core
elements

i
c

P r i m a ry data

Footprinting
• Delivered carbon baseline assessments of 5

representative farms in Idaho.

• Tailored decarbonisation road-maps for

each farm including financial and
environmental impacts.

• Aggregated recommendations for wider

milk pool.

Reporting
• Produced a Scope 3 emissions reduction

model for SBTi assurance.

• Advised on the implications SBTi guidance
for forest, land and agriculture sector
(“FLAG”) and non-FLAG, supported by a
complete value chain model.

• Developed a sample size assessment
protocol in line with GHG protocol.

1 Carbon insetting is the implementation of practices that reduce an organisation’s carbon

footprint outside of its direct operations but within its own supply chain.

Our commitment
Glanbia’s carbon emissions are woven
throughout our entire value chain, signifying
that emissions emanate not only from our
core operations but also stem from both
upstream and downstream activities that
collectively contribute to the environmental
footprint of our business. Approximately
90% of our emissions can be directly
attributed to the dairy production facet of
our supply chain, the decarbonisation of
which remains our primary focus. In 2023,
Glanbia started a new phase of climate
target-setting work to develop a plan for
aligning with the recently published SBTi
Forest, Land and Agriculture (“FLAG”)
guidance. This work will result in upgraded
targets for Scope 3 that will be presented to
the Board and submitted for SBTi validation
by the end of 2024.

US Dairy production is well placed to
deliver low carbon products, with the
Innovation Center for US Dairy’s Net
Zero Initiative providing a roadmap
supported by significant investments
in research. The Inflation Reduction Act
is incentivising action and supporting
technology implementation. For dairy
supply this is evidenced by the US
Department of Agriculture programmes

in recent years and, in particular, the
Regional Conservation Partnership
Program (“RCPP”) in 2023 where Glanbia
is participating in a supply chain project
aimed at reducing on-farm emissions in
Idaho.

2023 progress
In 2023, working with industry experts, we
invested in an extensive Scope 3 project.
This was designed to deliver a dairy
decarbonisation roadmap based on the
identification of commercially viable
interventions and revenue streams.

In the context of a rapid evolution of
farm emissions reduction technologies,
incentives, carbon market credits and
finance opportunities, to ensure dairy
farmers are presented with the clearest
analysis on the options and cost benefits
of technology adoption. This also
included engaging with a number of
supply chain partners, and factored in
their own carbon accounting expertise
in developing a strategy for supply chain
carbon insetting partnerships.

The project is informed by robust
primary data and supported by industry
recognised standards and protocols.

56 Glanbia plc | Annual Report and Financial Statements 2023

Economic impact
• Developed an economic ESG impact model
assessing viability and cost effectiveness of
GHG interventions on dairy farms.

• Determined a carbon “insetting”1 strategy
for claiming reductions within the dairy
supply chain.

Primary data
•

Idaho: focus on robust primary data sets.
Completed GHG footprints using the
National Dairy Farmers Assuring
Responsible Management (“FARM”)
Environmental Stewardship (“ES”) programme.

• Joint Venture Engagement: sharing

experience and best practice as well as data
from our milk pools.

• GPN Supply: requested the emissions data
from each material dairy ingredient supplier,
supporting the understanding of current state
emissions, related low carbon opportunities
contributing to our SBTi target achievement.

C A S E S T U D Y

Dairy industry partnership
to reduce GHG emissions
on Idaho dairy farms

In 2023, the US Department of
Agriculture awarded funding to a
Newtrient led project proposal aimed
at reducing dairy methane emissions
in Idaho. Glanbia Nutritionals is a
partner in the project.

With $3.1m in Regional Conservation
Partnership Programme (“RCPP”)
funding and $1.6m in partner
contributions from McDonald’s,
Schreiber Foods, Glanbia Nutritionals
and Athian, the project seeks to
reduce methane emissions targeting
manure management and feed
management practices on Idaho
dairy farms, with the ambition of
reducing 37,500 tonnes of carbon
dioxide equivalent.

This project is proof of concept of
how dairy farmers, co-operatives
and companies can work together to
reduce the environmental footprint
of dairy.

Water

Target:

10%

reduce freshwater use by 10% by
2025 versus 2021 baseline

3.44%

reduction in
freshwater use in 2023
vs 2021 base year

Glanbia is dedicated to water
conservation across all our facilities in
line with the Board-endorsed ambition of
lowering freshwater use by 10% by 2025
from a 2021 baseline, which equates to
over 500 million litres annually.

In 2023, Glanbia achieved a 3.44%
decrease in absolute freshwater
withdrawal, and reduced freshwater use
intensity by 6% compared to a 2021 base
year. This improvement resulted from
water efficiency initiatives, including
polished water reuse and further
optimisation of the clean-in-place (“CIP”)
activities. Our practice of recovering
water from milk by separating it from solid
constituents and putting it into circular
processes continues to enable freshwater
preservation in our dairy operations.

Thanks to milk water polishing, 5,514 mL
of retrieved water was used in our dairy
processing operations in 2023, preventing
an equivalent volume of freshwater
withdrawals throughout the year.

Glanbia is closely monitoring water
stress levels in the locations of primary
importance for our operations and supply

chain sustainability. In 2023, GN’s bottling
facility in Corona, California, was divested.
Therefore, Glanbia’s list of high water stress
areas previously identified using the World
Resources Institute (“WRI”) Aqueduct tool
was reduced to one site in Clovis, New
Mexico. Our Southwest Cheese facility
in New Mexico consistently drives effort
for milk water recovery and has the best
polished water to freshwater ratio among
all Glanbia sites.

In 2024, we will refresh WRI Aqueduct
water stress assessments for all Glanbia
production facilities, re-examining
high stress locations and also bringing
medium-high stress areas into focus. As a
part of our target setting process, Glanbia
will review and evaluate the new paper
from Science-Based Targets Network’s
Freshwater Hub, outlining the concept and
principles of corporate water stewardship
and science-based targets for freshwater.

Working on defining our ambition for
the time period beyond 2025, we are
committed to using the most advanced
frameworks, guidance, and tools for
water impact assessment, management,
and disclosure.

2023 Water use and discharge,
mL

9,255

5,277

5,514

Freshwater

Polished Milk
Water

Water Discharge

2021-2023 Freshwater
Withdrawal*, mL

5,500

5,400

5,300

5,200

5,100

5,000

5,465

5,310

5,277

2021

2022

2023

* Water metrics were calculated on a Like-for
-Like (LFL) basis accounting for Glanbia
divestments and acquisitions with the
exception of the acquisition of the bioactive
ingredients business of PanTheryx completed
in quarter four, 2023. 2022-23 site-specific
averages were used to estimate water use
where factual data was incomplete.

C A S E S T U D Y

Water conservation in action

At Glanbia we have a strong track
record of water conservation.

Our relentless focus on water use
efficiency continued in 2023 with our
award winning Michigan site reducing
water use consumption by 10.42% from
a 2021 baseline.

Since 2022 the site has invested in
projects that will deliver an estimated
saving of nearly 530,000 litres of
water per day focusing on water silo
modifications, wastewater treatment
plant routing improvements, and
improved polished water utilisation for
cleaning.

The reductions, effected across several
focus areas, were informed by water
metering improvements that deliver
actionable insights to our operations’
leadership teams.

In 2024 we will continue to seek
improvements, driven by data and
leveraging learnings across operation
sites as we close in on our 2025 target of
10% reduction.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued

Waste

Target:

100%

Glanbia sites achieving TRUE
Zero Waste certification by 2025

50%

reduction in food
waste by 2030 vs 2021
baseline

2023 Food waste recovery 1,2 (%)

Our actions and impact
As part of our circularity strategy,
Glanbia is committed to getting all
production sites certified in accordance
with TRUE Zero Waste standard by
2025. In 2023, our True Champions team
worked hard to create roadmaps for all
manufacturing facilities and achieve
certification for our first pilot sites.

As a result, a piloting GN site, Sioux Falls,
was granted a gold level certification
under TRUE Zero Waste initiative in 2023.
Four other sites, representing both GN
and GPN Business Units, started their
submission process and look forward to
getting certified in early 2024.

In 2024, our team will continue working
towards reducing waste generation,

maximising diversion from landfill and
incineration, and implementing TRUE
requirements at all sites.

2023 Waste diverted from
landfill and incineration1 (%)

98%

97%

88%

54%

GPN

GN Dairy

GN Specialty

Glanbia
Total

Other <1%

Anaerobic Digestion 1%

Recycling 2%

Animal Feed 97%

1 Waste metrics were calculated accounting
for Glanbia divestments and acquisitions
with the exception of the Foodarom Bremen
site and the bioactive ingredients business
of PanTheryx. 2022-23 site-specific averages
were used to estimate waste generation and
disposal where factual data was incomplete.
In 2023, we changed our methodology for
calculating food waste in accordance with
TRUE Zero Waste Guidance to account for
liquid food waste. As the majority of liquid
food waste is converted into animal feed, this
correction resulted in a significant increase of
animal feed recovery in 2023.

C A S E S T U D Y

Glanbia’s site portfolio receives TRUE certification

flow across to other facilities as they
continue their journey to become
certified.

Our ambition to achieve TRUE Zero
Waste certification across all our sites
by 2025 requires a strong collective
effort across the business, and our
people are rising to the challenge.

In 2023, 21 Glanbia employees
across different functions including
Environmental Health & Safety,
Plant Management, Engineering and
Procurement completed training and
passed the exam to become certified
TRUE Advisors. These agents for
positive change will champion the
TRUE certification process and deliver
training across our operations sites to
galvanise action behind our efforts.

with the requirements prescribed in
the TRUE rating system. This is an
important milestone in our journey as it
will simplify and streamline the process
for submitting the information and data
required for certification at each site
(project).

There are four levels of TRUE
certification: Certified (31-37 Points),
Silver (38-45 Points), Gold (46-63 Points)
and Platinum (64-81 Points).

In December GN, Sioux Falls became
the first Glanbia site to be awarded
TRUE Certification and was awarded
the gold level with 55 points awarded.

In November the Glanbia’s site portfolio
received TRUE Portfolio Certification
which is official recognition from
the Green Business Certification Inc.
(“GBCi”) that the portfolio complies

This is a significant milestone for
delivering our waste management
ambition and commitment. The process
and behavioural changes identified
and implemented in Sioux Falls will

58 Glanbia plc | Annual Report and Financial Statements 2023

Consumer packaging

Target:

100%

recyclable, reusable or compostable consumer
packaging by 2030

Our actions and impact
GPN with the support of a dedicated
sustainable packaging working group
made strong progress towards its
packaging recyclability goals achieving
76% global recyclability, by weight, and
is on track to meet the longer term 2030
target of 100% of consumer packaging
recyclable, reusable, or compostable.

Consumer packaging remains a
primary focus for GPN as it represents
approximately 11% of our associated
carbon footprint. GPN distributes
packaged sports, weight management,
and lifestyle nutrition products to
consumers globally which makes
packaging sustainability a dynamic
process as relevant policy and
environmental programmes across all
markets vary. To aid in guidance, GPN
continues building partnerships with
widely recognised organisations in
each market to help guide design and
consumer labelling.

Our Optimum Nutrition portfolio, is
transitioning to widely recyclable
packaging with on-pack How2Recycle®
instructions that empower consumers to
make eco-conscious disposal choices in
the US and Canadian markets. The UK
market will experience complementary
consumer labelling through partnership
with On-Pack Recycling Label (“OPRL”)
that helps further simplify the recycling
process for consumers. Additional
partnerships are being evaluated
throughout the globe in all major markets.
The collaboration with these organisations
helps ensure packaging circularity,
eco-friendly designs, and a continued
reduction of impact on the environment.

Globally the team was successful
in implementing various packaging
projects that will reduce virgin plastic
consumption by 20 metric tonnes and
paper usage by 50 metric tonnes. At the
end of 2023 Optimum Nutrition launched
a trial refillable bag programme on
the Optimum Nutrition website for its 2
Pound Whey Gold Standard protein in

select markets. This new format targets
consumers reuse of previously purchased
containers and scoops. This new offering
yields an 85% reduction in virgin plastic
and convenient delivery via Optimum
Nutrition ’s direct-to-consumer sales
channel. The sustainable packaging
working group continues evaluating
materials and designs to ensure
progression towards our ambitions while
balancing and achieving alignment
between purchasing, operations,
marketing, and environmental teams.
The group has a continued focus on
the development of food grade bags,
recyclable wrappers, and evaluation of
post-consumer recycled (“PCR”) content
in each major market

GPN packaging recyclability
rates (% by weight)

Target recyclability rate:

2025
Target: 83%

2030
Target: 100%

2023
Actual: 76%

C A S E S T U D Y

Optimum Nutrition and How2Recycle®

In 2023, GPN partnered with
How2Recycle®, a leading organisation
based in the US and Canada dedicated
to simplifying the recycling process.
How2Recycle® promotes a standardised
labelling system that enables brands to
clearly communicate proper disposal
methods; ultimately enhancing the
validity, completeness, and providing
transparency of recyclability claims.
How2Recycle® standards for recyclability
consider factors such as applicable law,
consumer access to collections, materials
used, sortation capabilities, reprocessing,
and overall environmental impact. During
2023, GPN was assigned on-pack label
designation – ‘Widely Recyclable’ – for
Optimum Nutrition powder products and
drinks, SlimFast ready to drink products,

Isopure powders and an additional range
of products are under evaluation.

Working with How2Recycle®, GPN
focused on our flagship Optimum
Nutrition product, 100% Gold Standard
Whey. Although the current black
plastic tub is recyclable, an in-house
cross-functional technical team further
enhanced the recyclability of the iconic
packaging through colourant and label
substrate changes. These changes
will improve the circularity of plastics
used in the packaging and led to the
‘Widely Recycled’ designation. The
How2Recycle® label helps consumers
to contribute to the recycling process
effectively by providing easy to follow
instructions on proper disposal.

GPN will continue to work with
How2Recycle®’s standards for US
and Canadian produced products to
verify that our packaging is recyclable.
This partnership is the first of many
packaging initiatives that supports our
journey towards our 2030 goal: 100%
of our packaging being Recyclable,
Reusable, or Compostable.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued

Biodiversity

In 2023, our focus was on assessing our value chain and related biodiversity impact to
better understand where to best focus our efforts. We will build on this work in 2024
aligning with the Taskforce for Nature-related Financial Disclosures recommendations
and criteria to support our evaluation

Our actions and impact
Biodiversity has emerged as a critical
consideration in Glanbia’s sustainability
agenda, with the 2022 Living Planet
Index emphasising the alarming decline
in global wildlife populations. Glanbia
recognises the pressing need to address
biodiversity risks and impacts within its
value chain. This commitment aligns
with broader sustainability initiatives,
emphasising the interconnectedness
of environmental challenges and
the company’s role in safeguarding
biodiversity. Given the heavy reliance
of agriculture and food processing on
ecosystem services, the preservation
of biodiversity is not just a responsible
business practice but a strategic
necessity. As a member of The Carbon
Disclosure Project (“CDP”), Glanbia
welcomes CDP alignment with The
Taskforce on Nature-related Financial

Disclosures (“TNFD”) and will be using
TNFD recommendations and criteria
for further evaluation and subsequent
strategy development.

In 2023, Glanbia initiated a project to
assess the company’s activities and parts
of the value chain that might have links to
significant biodiversity impacts. Given the
nature of our products and the presence
of agricultural supply, our efforts were
focused on identifying purchasing
categories and specific agricultural
commodities within them that would
be material from a nature-related risks
and impacts perspective. This work
included our sports nutrition and cheese
and nutritional solutions businesses. As
a result of this value chain analysis, we
identified high-priority areas where we
will focus our future research and efforts,
which include sustainable sourcing of raw

materials and ingredients such as cocoa,
vanilla, soy, palm oil, caffeine, dairy
products, and timber-based packaging.

Focus for 2024
In 2024, Glanbia will continue its value
chain analysis to add more granularity
to the data we have on each of the
above categories, and start developing
a roadmap to ensure responsible supply
chains for each of them. We will also
evaluate potential partnerships and
certification options that would positively
complement our efforts. Glanbia is
committing to aligning its practices with
evolving global benchmarks, ensuring
a robust and adaptive approach to
biodiversity conservation. We will report
on our progress in the next Annual Report
and through the CDP platform.

Summary of key environmental impact metrics performance

Impact Area

Scope 1

Scope 2

Scope 1 & 2

Renewable electricity

Total electricity

Total energy consumed

Energy intensity

Total renewable energy

Freshwater withdrawals

Freshwater intensity

L/Kg produced

Freshwater intensity in high risk areas

L/Kg produced

Waste diversion rate from landfill and
incineration

GPN consumer packaging –
recyclability rate

Units

MtCO2e

MtCO2e
MtCO2e
%

MwH

2023

137,217

83,936

221,153

63%

2022

138,8972,3

123,9302,3

262,8272,3

44%2

344,913

345,1122,3

1,149,609

1,164,9632,3

KwH/Kg produced

0.76

0.772

MwH

283,852

228,1352

5,277

3.48

1.97

97%2

76%

5,3102

3.522

1.822

96%2,4

62%

Change vs base year1

Base Year Value

21%

-35%

-9%

25%

26%

24%

-8%

76%

-3%

-6%

13%

17%

14%5

113,864

129,485

243,349

38%

272,757

925,886

0.83

160,858

5,465

3.70

1.74

80%

n/a5

1. Base year: GHG Emissions and Energy and Electricity metrics – 2018 base year; Waste and Freshwater metrics – 2021 base year.
2. The 2022 reported number has been restated to reflect acquisitions and divestment.
3.

In 2021, a new-to-world dairy processing facility was commissioned in Michigan, resulting in an absolute Scope 1 and 2 GHG emissions increase. Emissions in 2022
increased relative to the 2018 baseline due to the addition of this Michigan site.
In 2023, we changed our methodology for calculating food waste in accordance with TRUE Zero Waste Guidance to account for liquid food waste. The prior year
number was also adjusted to reflect this change in methodology, refer to page 58 for further details.

5. Recyclability percentage result represents the total weight of recyclable consumer packaging over the total weight of consumer packaging purchased in the year.

60 Glanbia plc | Annual Report and Financial Statements 2023

Society

See People section (pages 28-31) to learn more

Responsible sourcing

Our ambition is to hold EcoVadis scorecard for all ‘high’ and ‘medium-high’ risk suppliers
that Glanbia has an ongoing trading relationship with

Glanbia’s procurement teams are
dedicated to partnering with key
stakeholders to support the delivery
of Group and Business Unit ESG
strategies and commitments. This
involves driving greater awareness
across our procurement teams of
responsible sourcing practices; and
partnering with suppliers who can
make a positive contribution towards
Glanbia’s sustainability commitments;
applying responsible sourcing criteria
to our supplier selection decisions and
incorporating responsible sourcing
principles into our Global Procurement
Policy; requiring:

• all suppliers to agree to comply with
laws and regulations of the countries
in which they operate;

• all suppliers to agree to comply with
all human rights, labour, food safety,
environment and health and safety
regulations;

• suppliers, as requested, to engage
with Glanbia’s selected partner
EcoVadis for assessment (or equivalent
assessment as deemed appropriate)
in line with Glanbia’s Responsible
Procurement Programme; and

• suppliers to comply with necessary

corrective actions that arise as a result
of the above assessment.

Glanbia purchases only from approved
suppliers. Buying from the right suppliers
is critical to ensuring Glanbia receives
high quality goods and services at the
right price and time while mitigating risk
to the organisation.

Our Group-wide Responsible
Procurement Programme sets out our
supplier selection criteria and integrates
sustainability into our procurement
processes, procedures and systems.
We focus on ensuring and re-enforcing
compliance with all applicable laws

on anti-slavery and human trafficking,
requiring our suppliers to confirm
acceptance and conformance with the
relevant Glanbia policies.

For further information refer to Glanbia’s
annual statement on Modern Slavery and
Human Trafficking located on our website
www.glanbia.com.

Glanbia partners with EcoVadis – a
global trusted provider of business
sustainability ratings. In 2023, we
continued to complete a risk assessment
of our supply base assessing ESG and
procurements risks.

The results of this risk assessment enable
us to prioritise the suppliers that require
a more in-depth assessment using
the EcoVadis platform (referred to as
scorecards).

Our approach is to focus on all ‘high’ and
‘medium-high’ risk suppliers that Glanbia
has an ongoing trading relationship with.
This equates to 50% of Glanbia’s total
spend (both direct and indirect). To-
date, across all risk categories, Glanbia
has EcoVadis scorecards for 54% of
all its spend, with a further 6% being
onboarded. The target set for 2023 was
50% of total spend.

C A S E S T U D Y

Supplier risk assessment

Glanbia trades with in excess of
6,000 suppliers globally. One of the
challenges that Glanbia faced was
to identify where the sustainability
risks were in its supply chain.

Using the EcoVadis IQ module to assess
risk based on the supplier’s industry
and countries of operations has helped
Glanbia risk categorise its suppliers.

Glanbia has focused on the high and
medium-high risk suppliers.

Our aim was to gain a more insightful
view of the supplier sustainability
credentials, by inviting them to
participate in the EcoVadis process
and to obtain their own scorecard.
EcoVadis assesses sustainability
management systems (policy,

actions and results) on four themes
(environment, labour and human
rights, ethics, and sustainable
procurement).

This identifies their sustainability risks
and strengths and helps us to focus
on where to improve. It also enables
Glanbia to collaborate with suppliers
on the sustainability risks that are
important to both of us.

Overall 75% of Glanbia’s suppliers are
assessed as performing well on the
EcoVadis scorecard methodology
with 55% of suppliers classified
as ‘Good’, while just over 20% are
classified as ‘Advanced’. This leaves
approximately 25% of our suppliers
where further engagement and
collaboration is required.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued
Society continued

Food safety and quality

Target:

100%

of sites to maintain a globally recognised third-
party certificate for food safety and quality

Food safety and quality is a non-
negotiable at Glanbia and we consider
it as an inherent part of our values and
commitments to our customers and
consumers. The importance of food
safety and quality is further reflected in
our impact materiality assessment (see
page 54).

To meet this commitment, Glanbia has built
a comprehensive food safety and quality
programme, referred to as Glanbia Quality
System (“GQS”). This programme ensures
governance and compliance to the highest
standards of food safety and quality so that
we are able to meet our obligations and keep
the trust of our customers and consumers.
The GQS has a hierarchical structure, based
on principles, policies and standards. There
are seven GQS principles, organised along
the value chain, which is purposely built
to be dynamic and bring improvements
with advancement of scientific knowledge,
product portfolio and annual review by the
Quality Leadership Team.

Governance and
external certification
A key feature of the GQS is a built-in
check and balance programme to verify
and validate that all of the elements of
our GQS are working as designed and
meeting our expectations. This is achieved
by a combination of self–assessment,
internal audits and external review. Each
of our manufacturing sites are audited
on an annual basis with internationally
recognised audit schemes such as
Global Food Safety Initiative (“GFSI”) and
National Sanitation Foundation (“NSF”). All
Glanbia sites have maintained compliant
or above audit scores.

Compliance
We monitor compliance within our
programme through key performance
indicators (“KPIs”) at Business Unit and
Group level. KPIs are reviewed by Glanbia
Leadership at ESG and Audit Board
Committees level on a regular basis to
ensure all programmes are operating as
designed and that the results are in line
with standards and targets set.

FY 2023 GQS KPIs included:
•

100% of sites certified to an external food
safety certification (i.e. GFSI, NSF);

• Number of major findings from External
Food Safety Certification audits: Zero;
and

• 95% of sites at or better than the GQS

benchmark.

Marketing and labelling
Product quality and safety is supported
by effective marketing and labelling. We
provide our customers and consumers
with accurate and adequate information
across a range of product categories. For
our GN business-to-business customers, we
provide details of the products purchased
to ensure they have the appropriate
information to manage and communicate
effectively to their stakeholders and
feed into their own internal processes
and standards. For our GPN consumer
facing business, we have a dedicated
management system and associated
processes to ensure our products are
marketed and labelled accurately in line
with regulatory requirements.

C A S E S T U D Y

Farm to fork – global expertise in dairy proteins

Glanbia is a unique organisation with both ingredient and branded businesses flourishing
under one umbrella in a global footprint. This unique structure has allowed us to build key
technical expertise with respect to dairy and dairy proteins for our customers and end
consumers. The Group has evolved from co-operative dairy roots to become a leader
in better nutrition and a trusted innovation partner for the global food industry. The
bedrock of this evolution is our best-in-class food safety and quality programmes.

The 7 Principles of the GQS

Value Chain

Lead

Plan

Design

Source

Make

Deliver

Glanbia Quality System (GQS)

Learn

62 Glanbia plc | Annual Report and Financial Statements 2023

Nutrition and Community impacts

Nutrition and Community impacts: In 2023, we sought to define our nutrition promise
as well as the impacts of our nutritional products on our consumers and customer.
We also focused on the social and economic impact we have on our communities globally.
In 2024 we will continue to develop a programme of activities to build on this progress.

Our nutrition promise
We create products and
solutions to help our customers
and consumers to achieve their
health and nutrition goals.

Glanbia exists to deliver better nutrition
for every step of life’s journey. For us,
better nutrition is about running our
business in a way that’s better not just for
our consumers, but for our communities,
our planet, and for wider society.

As part of our purpose, we are committed
to ensuring that the brands, ingredients
and solutions we provide are contributing
to good nutritional outcomes in the world,
including being responsible about our
overall portfolio, the health and nutrition
profile of our products, how our ingredients
and solutions are used, and our marketing.

In 2023, we sought to define our nutrition
promise as well as the impacts of our
nutritional products on our consumers
and customers. We will continue to
develop this programme of activity in
2024, with the intent to develop focus
areas and corresponding goals and
targets around our nutrition portfolio.

Better for communities
We aim to strengthen the communities
in which we live and work by providing
safe and inclusive workplaces; by building
sustainable supply chains; and by
delivering programmes to support health
and wellbeing in our local communities.

In 2023, we reviewed our community
impacts. Reflecting on our purpose of
delivering better nutrition, we recognise
and define our communities as those

encompassing the geographic areas in
which we operate, source raw materials,
and provide employment.

Our commitment to better people, planet
and performance focuses on the wellbeing
and prosperity of the communities directly
affected by our activities within our
operational regions, supply chains, and
employment areas. In 2024, we will develop
criteria to define ‘Better for Communities’
work that aligns with our purpose and we
will establish a longer-term strategy for
community impact.

Giving back to our communities
In 2023, we continued to take action to
create a positive social and economic
impact on our communities globally.

In its 30th year, GN’s Annual Charity
Challenge raised $208,500 for local
organisations in the Magic Valley region,
ranging from food banks, senior centres,
critical services and mental health
services to community resource centres.
The initiative has raised a total $3 million
dollars for non-profit organisations in the
region since its inception.

GPN sponsored the Northern Illinois
Food Bank Fight Hunger race, which
saw runners and walkers come together
to raise awareness and fundraise for
this worthy non-profit. Northern Illinois
Food Bank was able to help provide
over $2 million worth of groceries to
its neighbours with dignity, equity and
convenience because of the event.

In Ireland, we continued our partnership
with Breast Cancer Ireland in 2023,
sponsoring the Great Pink Run which raised
€530,000 for its pioneering research into
innovative treatments for breast cancer.

C A S E S T U D Y

Combatting
food
insecurity in
Chicago

Bigger Table is a non-profit
organisation which brings
together the food and
beverage industry to address
hunger, unemployment,
and inclusive economic
development in Chicagoland.
It explores industry-based
approaches to addressing
growing food insecurity.
Through donated ingredients
and expertise, Bigger Table has
donated nearly three million
servings of food to Chicagoland
food banks since 2020.

In 2023, building on our
existing partnership, Glanbia
Nutritionals partnered with
Bigger Table and donated
whey protein to create a
nutritious protein smoothie
mix. This resulted in 450,000
servings being produced and
distributed through partner
organisations looking to reduce
food insecurity in the region.
Without Bigger Table, none of
these donated food products
would exist and, in many cases,
the ingredients would have
become food waste. Bigger
Table’s mission aligns closely
with Glanbia’s purpose of
delivering better nutrition for
every step of life’s journey. We
look forward to continuing our
partnership with Bigger Table.

Some of the thousands of
participants taking part in Breast
Cancer Ireland’s Great Pink Run.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONSustainability continued
Task Force on Climate-related Financial Disclosures Report

Task Force on Climate-related
Financial Disclosures Report

Glanbia recognises that measuring, managing and reporting environmental impact is not only
important for the planet and communities in which we work, it is essential for the future growth
of our business.

We have identified and assessed our
climate-related risks and opportunities
and continue to monitor and embed the
identified impacts within our governance,
operations and strategic model and risk
management system.

Glanbia has complied with all of the
requirements of LR 9.8.6R by including
climate-related financial disclosures
in this section (and in the information

available at the locations referenced
therein) consistent with the Task Force
on Climate-related Financial Disclosures
(“TCFD”) recommendations.

Glanbia plc has authority to introduce
and implement operating policies in
accordance with our sustainability
strategy.

This statement pertains to the parts of
the business over which Glanbia has
operational control. This includes the
Group’s wholly-owned operations as
well as the MWC-Southwest Holdings
LLC joint venture operations where

The below table summarises where
we have addressed the four areas of
TCFD focus, with the 11 associated
recommended disclosures, detailed
throughout the annual report.

Governance

Disclose the organisation’s governance around climate-related risks and opportunities

Board’s oversight of climate-related
risks and opportunities

Risk management section; Audit Committee Report; ESG Committee Report; Corporate
Governance Report

Management’s role

Strategy

Chief Executive Officer’s review; Risk management section; ESG Committee Report

72-75, 111-112,
117-120, 101

14, 73, 117-120

Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and
financial planning where material

Risks and opportunities over the short, medium, and
long-term

TCFD Report

Impact on business, strategy and
financial planning

Resilience of strategy considering
different climate-related scenarios

Risk Management

TCFD Report, Sustainability section; ESG Committee Report

TCFD Report

65-69

65, 70, 55-60,
117-118

67-70

Disclose how the organisation identifies, assesses, and manages climate-related risks and opportunities

Climate-related risks and opportunities identification
and assessment

TCFD Report, Risk management section; Audit Committee Report; ESG Committee Report 65-67, 72-79,

110-112, 120

Climate-related risk and opportunities management

TCFD Report; Risk management section; Audit Committee Report; ESG Committee Report 67-70, 74, 120

Integration of processes into overall
risk management

Metrics and Targets

Risk management section; Audit Committee Report; ESG Committee Report

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities

Metrics used to assess risks and opportunities in line
with strategy and risk management process

Sustainability section

Sustainability section; Key Performance Indicators

74-79, 111-114,
119-120

55-60

55-56, 25

Sustainability section; Remuneration Committee Report

55-60,140-145

Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (“GHG”) emissions and the related
risks

Targets to manage risks, opportunities, and
performance against targets

64 Glanbia plc | Annual Report and Financial Statements 2023

Our approach
Climate-related risks and opportunities
are assessed and managed as a
fundamental part of our governance and
business management processes. Central
to our response has been the building
of our sustainability strategy including
setting Scope 1, 2 and 3 carbon emission
reduction targets and building robust
roadmaps for their delivery. Refer to the
Sustainability section 53-58 for details on
this strategy and performance to date.

In the ESG Committee Report on page
120 we describe the Board’s oversight of
climate-related risks and opportunities
and the role of management in assessing
these. In the Risk Management Report on
page 74, we explain how climate-related
risk is integrated into the risk processes
that operate throughout the Group.
Included on page 66 in the ‘Assessing
climate-related risk’ section we describe
our assessment of the physical and
transitional impacts of climate change on
the Group’s operations in terms of both
risks and opportunities. On pages 67-69
we describe the potential impacts of such
risks and opportunities under different
scenarios, and on page 70 we outline
the resilience and associated actions to
mitigate against the risks identified and
capitalise on the opportunities.

Focus on climate impact
Glanbia’s vision is to be ‘one of the world’s
top performing nutrition companies

Risk Assessment

TCFD Category Risk Area(s)

trusted to enrich lives every day’. Our
business strategy is focused on delivering
this ambition, with the integration of our
sustainability strategy and associated
commitments, a key lever to accelerate
performance within the markets in
which we operate. We keep our climate
commitments under ongoing review,
aligning with a science-based approach
and focusing on delivery of our stated
Scope 1 and 2 transition plan. We are
focused on:
• stated commitments to drive
operational efficiency, reduce
our impact and grow financial
performance to ensure we remain a
sustainable enterprise.

• the ability to innovate and collaborate
with our customers and anticipate and
monitor consumer market trends to
create sustainable products that meet
the required nutritional needs.

We recognise the impact that climate
change can play in influencing the
delivery of our business strategy. This is
dependent on the global actions and the
associated impacts observed, including
social economic impacts as the globe
transitions to a low carbon economy, with
physical risks accelerating where global
temperatures continue to increase. We
continue to assess the potential climate-
related risks and opportunities for our
business, ensuring that we maintain a
focus on reducing our emissions while
adapting to these changing external

conditions. We also recognise the
interrelated risks to natural resources
that are critical to our ingredients and the
importance of supply chain partnerships
to deliver scalable solutions.

Identifying and reviewing climate-related
risks and opportunities
Glanbia, in conjunction with independent
external experts and through executive-
led workshops, assessed the impact of
climate change on the Group to identify
the most relevant climate-related risks and
opportunities. The risks are incorporated
into the Group Sustainability Risk Register
and are updated and reviewed periodically
throughout the year, assessing impact
scale, likelihood and velocity in conjunction
with our internal subject matter experts.
Mitigation measures are considered
as part of this process to evaluate the
potential residual risk. The evaluation forms
part of the wider Group Risk Management
Framework, with noted threshold
deviations including an expanded time
horizon view on velocity to account for the
more gradual nature of physical climate-
related risks. Refer to page 74.

As part of this process we assess our
business readiness to respond to such
risks and review our mitigation measures
and strategic plans in place to support
our resilience assessment. Refer to page
70 for details on our key resilience factors
and page 67 for details on the potential
opportunity impacts we are monitoring.

Glanbia Response

Time Horizon

Medium

Business Readiness
Assessment

Further Information/
Relevant Metric

In Plan

55-56, 66

Transition

Market

Changing customer/consumer behaviour
impact

Reputation

Shifting customer requirements not met

Medium

In Plan

Policy

Direct/indirect cost of regulation on
operational inputs

Short – Medium Monitored

Technology

Investment in operational decarbonisation

Short – Medium In Plan

Physical Risks Chronic

Impact of water stress on key operational sites Medium

In Plan

Impact of weather pattern variability on dairy
supply and dependent inputs

Long

Monitored

55-56, 66

55, 59, 66

55, 66

57, 66

56, 66

Acute

Impact of extreme weather on dairy supply

Long

Monitored

56, 66

Time horizon
Short: Up to three years. Aligned with our Group strategy cycle
where we develop detailed financial projections and use them to
manage performance.
Medium: From three to 10 years. Nearer term to primarily
capture transition risks and opportunities, embedded with our
sustainability strategy.
Long: Beyond 10 years. Greatest level of uncertainty associated
with these climate-related risks and opportunities, primarily
linked to the physical risks identified.

Business readiness
In plan: Related response to risk has been built into Glanbia’s
sustainability strategic plan, with a view to operationalise based
on output of relevant scoping and feasibility assessments.
Monitored: Recognition that associated risks may require action
but currently based on level of uncertainty being monitored with
a view to incorporating into our strategic plan where appropriate.

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Assessing climate-related risks
and opportunities
To further enhance our understanding
of the potential impact of increasing
temperatures on our business, operations
and strategy we carried out scenario
analysis drawing on climate science and
scenario data. We assessed in greater
detail the potential impact that scenarios
relating to our identified climate-related
risks and opportunities could have.

A detailed modelling approach was
used to quantify the potential financial
implications of the identified climate-
related risks and opportunities on
Glanbia’s operations and wider value
chain. Transition risks and opportunities
were modelled in line with a 2030
timeframe, while physical risks were
modelled until 2050, due to their longer-
term impact. The output of this analysis
provides an assessment of the nature and
potential scale of Glanbia’s most relevant
climate-related risks and opportunities.
This assessment outlines any potential
risk hotspots; challenges our business
readiness to respond to these risks;
identifies how we can capitalise on
potential opportunities; and reviews
current strategy and business continuity
plans against a set of defined scenarios.
Refer to scenario analysis section on
pages 67-69 for details on the scenario
approach adopted and the assessed
potential impact.

Transition risk
Glanbia understands that transitioning
to a lower carbon economy will entail
extensive market, policy, and technology
changes. Depending on the nature, speed
and focus of these changes, transition
risks may pose varying levels of financial
and reputational risk to organisations.

Market
In a Glanbia context this risk relates
to changing customer and consumer
preferences and consumption patterns,
with a reduction in dairy consumption.
We closely monitor this risk through
our own market insights team and
direct engagement with our customers
including via questionnaire and data
requests and directly through our
commercial management team. Our
dedicated market insight team use
demographic analysis and market insight
tools to track end-consumer sentiment
and emerging trends toward dairy, which
feeds into our overall product strategy
and research and development pipeline.
We monitor global and regional dairy
market performance directly through our
dairy economics and procurement teams

with insights from our memberships of
dairy industry associations, including
the US Dairy Export Council and the
International Dairy Foods Association.

Reputation
We recognise that climate change also
represents a potentially significant
reputational risk for us. Glanbia works
with the world’s leading food and
beverage brands, who have made their
own commitments on climate change to
deliver solutions. They increasingly seek
out partners that are aligned with their
own objectives and who can support
them in achieving their targets. Failure
to take adequate action on climate
change could mean a loss of reputation
and damage to commercial and other
important stakeholder relationships.

Policy
The risk of current and emerging
regulation is a key climate consideration
for which Glanbia is closely monitoring
the potential impacts. This includes
regulations and policies which have a
direct impact on us such as carbon taxes
as well as those that indirectly impact us
through our supply chain, particularly in
the carbon intense dairy supply chain.

Glanbia will be subject to the EU
Corporate Sustainability Reporting
Directive, which introduces mandatory
sustainability reporting requirements,
including a dedicated standard relating
to climate change. We note that for
many of our key strategic customers,
as a component of their value chain,
they will require more information from
us to fulfil their regulatory reporting
and external commitments also. We
have prioritised ingredient and product
footprinting, working with third-party
experts to ensure robust data sets which
are feeding into a Group-wide data and
system architecture project to support
the upcoming regulatory and commercial
reporting requirements.

Technology
Our assessment of technology risk
focuses on the required investment to
fulfil our stated Scope 1 and 2 emission
reduction targets. We have integrated
these requirements into our business
strategy and also include consideration
of impacts to our sustainability strategy
within our capital expenditure and
acquisition due diligence procedures.
As a result we have not included this risk
area within our scenario modelling, but
rather classify the actions associated
with this risk area as a key mitigant to the
market and policy risks identified.

66 Glanbia plc | Annual Report and Financial Statements 2023

Physical risk
As part of our physical risk assessment
process, we considered a range of physical
risks which could potentially impact our
operations and supply chain. These risks
included drought, water stress, coastal
flood, cyclone, extreme heat and wildfire.
We reviewed both potential chronic and
acute type risks as part of this exercise.

In conjunction with third-party experts
and using supporting external models and
analysis, we evaluated the risk exposure
to these specific climate hazards. Through
this exercise, a small number of locations
within the North America region (relating
to our main manufacturing and dairy
supply chain) were prioritised and the
likely physical risks assessed for more
detailed review. Following this review it
was concluded that in the medium to
longer term, in the event the world does
not take action, it is likely that increased
temperatures will lead to water scarcity in
two locations, with the Corona, California
site divested during the year, leaving
one site (Clovis, New Mexico). This site is
already identified as a high water stress
area using the World Resources Institute
Aqueduct tool and as a result water
scarcity risks are integrated into the
existing continuity plan, with a focused
water management programme in place.

Increased temperatures are estimated
to negatively impact our dairy supply
base when considering scenarios
such as reduced dairy productivity,
increasing input costs such as feed due
to deteriorating growing conditions or
reduced milk yields due to extreme heat
conditions. We will adapt our assessments
as scientific knowledge advances and
enhance our internal expertise by utilising
national data sources. Refer to page 56
which outlines the measures in place
internally to monitor our dairy supply
chain and the partnership approach
adopted to ensure the long-term security
and viability of the dairy sector.

Opportunity
While climate change poses a potential risk
to the sector in which we operate, we also
see opportunities with immediate impacts
such as driving operational efficiencies,
waste reduction and efficient resource use
to longer term commercial opportunities.
A qualitative assessment of these potential
opportunities and associated impacts is
included on the next page. These include
supporting our customers in meeting their
emission reduction commitments as part
of their value chain, or accessing new
revenue streams by investing in low carbon
market opportunities.

Opportunity impacts

Impact of resource usage efficiency on operating costs

Time
Horizon
Short –
Medium

Potential impact
A key lever in the achievement of our 2030 Scope 1 and 2 targets is an ongoing focus on energy efficiency through use
of energy management systems, targeted upgrades in our plant equipment and transitioning from fossil based energy
to renewable alternatives. Given energy price volatility, this increase in efficiency provides a potential opportunity for
reduced energy costs and lower emissions, which helps reduce our exposure to carbon pricing.

Impact of low carbon market opportunities on revenue growth, including those from the delivery of lower carbon products through
fulfilling our sustainability commitments and partnership

Time
Horizon
Short –
Medium

Potential impact
Comprehensive Scope 3 roadmaps to deliver on our science-based target decarbonisation commitments, together with
detailed primary data associated with our value chain, position us to partner with our customers to deliver low carbon
products, potentially expand our customer reach and increase associated sales. Our detailed product carbon footprinting
work will deliver assurance to our supply chain partners on the robustness and traceability of our Scope 3 data. In 2023, we
partnered with McDonald’s and Schreiber Foods in a Newtrient led US Department of Agriculture Regional Conservation
Partnership Programme (“RCPP”) project proposal that provides proof of concept for on-farm emission reductions that
make economic sense to our farmer suppliers and deliver certified carbon reductions within our dairy supply chain (carbon
insetting). Our carbon footprinting work is also assessing non-dairy ingredients emission profiles to support our customer
base on their emissions reductions.

Impact of new income streams by access to low carbon markets

Time
Horizon
Medium –
Long

Potential impact
Access to additional income streams through low carbon markets. For example the maximisation of biogas return from
anaerobic digesters at Glanbia’s sites as a renewable source of energy and in reducing methane emissions from Glanbia’s
operations. Glanbia is seeing the impacts of the Inflation Reduction Act funding delivering tax credit incentives for low
carbon energy generation. Our energy teams are assessing opportunities on an ongoing basis as vendors present solutions
supported by Inflation Reduction Act investments. In this transition phase, these potential strategic investments and
opportunities are dependent on feasibility studies of technological, operational and commercial suitability for Glanbia and
are under consideration as part of our medium to longer term strategy, with a similar estimated time horizon impact.

Scenario analysis
We have examined our business under a range of scenarios, modelling different climate pathways to test the nature and magnitude of
potential climate-related risks and opportunities. A bespoke model was created for each risk and opportunity, incorporating relevant
economic factors such as price and demand, and applying two climate scenarios: current policies and a stress scenario.

It should be noted that there are many varying factors affecting how climate change may impact the world, as a result it is difficult to
quantify the timing and impact of climate-related risks and opportunities on our business, therefore scenario analysis is not a forecast
and the output from our analysis should be viewed accordingly.

Early policy action: Transition risk scenario

Physical risks

Transition risks

Stress scenario: Ambitious low-carbon transition where a
coordinated action is taken within society to reduce carbon emissions.
The analysis prioritised scenarios aligned with a Net Zero or 1.5°C
target, while well-below 2°C or 2°C aligned scenarios were used when
scenario data around more ambitious pathways were not available.

Time Horizon Considered – Up to 2030

Limited policy action: Physical risk scenario

Stress scenario: Limited action taken to reduce global emissions.
Based on high-emissions scenarios associated with significant
increases in temperatures, aligned with the Shared Socio-economic
Pathway SSP5-8.5.

Time Horizon Considered – Up to 2050

Current policy action: Business as usual scenario

Current policies: Relate to the Network for Greening the Financial
System (“NGFS”) scenario projections, where the world does not take
any further action than what has been already stated and planned for
implementation.

Physical risks will be the least
extreme under this scenario.

Under this scenario we will
experience high transition
risks unless mitigated.

Physical risks will be the most
extreme under this scenario.

Limited transition risks
expected due to a lack of
policy changes and regulation.

Physical risks will become
more prevalent over time as
temperatures increase due to a
lack of policy intervention and
action to reduce global warming.

Moderate transition risks
based on existing policy
and regulations in place.

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Scenario model details

Transition risk

Impact assessment

Dairy market decline: End-users and consumers decreasing dairy
consumption in favour of non-dairy alternatives to decrease their
carbon footprint, and Glanbia’s customers, who have science-
based targets in place, opting for alternative suppliers if Glanbia
does not decrease emissions in line with our science-based target
commitments. As one of the key cross-cutting mitigation measures,
the cost of implementing Glanbia’s science-based target was
modelled as part of this risk area.

Potential impact: revenue growth
TCFD category: market, reputation

In both a current policy and stress scenario the impact is
estimated to be low based on the assumption that Glanbia
delivers upon its stated reduction commitments which meet
customer and consumer requirements.

We further corroborate this conclusion with ongoing market
insights and trend analysis that is overseen by our dedicated
market insights team, augmented by expert analysis from
our industry associations (US Dairy Export Council and the
International Dairy Foods Association), which shows a robust
market for our existing product offerings.

Climate regulation on dairy: Impact of stricter regulation of
on-farm emissions increasing the cost of milk. It is expected that
agriculture, as one of the key sources of global emissions, will face
stricter regulation. This will particularly concern methane and
nitrous oxide emissions. The scenario model assumes that the US
government will follow a strategy to align decarbonisation levels to
limit global temperature rise to 1.5 degrees Celsius. The cost implied
for dairy farmers to decarbonise in line with new regulation is based
on a marginal abatement cost estimate, looking at productivity
improvements, and technologies such as feed additives and
anaerobic digesters.

Potential impact: operating costs
TCFD category: policy

Increasing energy prices: Energy prices (natural gas, biogas, and
electricity) are impacted by regulatory and market changes. The
model evaluated the impact of changes in energy prices applied
to current energy spend. It was assumed that Glanbia’s energy
consumption does not change from current levels.

Potential impact: operating costs
TCFD category: policy

We acknowledge that consumer trends may evolve over time,
and recognise this as a market opportunity. Refer to ‘low carbon
markets’ for further details on the next page.

Under the current policy scenario there is no expected impact
as the underlying assumption is that no additional regulations
other than those stated or planned will occur. While under the
stress scenario the impact is estimated to be low in the context of
successfully meeting our Scope 3 commitments. Furthermore, the
current US approach sees significant incentivisation for on-farm
decarbonisation funded through the Inflation Reduction Act.

The assessed impact under both climate scenarios modelled is
expected to be low when key mitigation measures are considered
including the efficient management of our energy use through
installed energy management systems within our largest sites
and the implementation of our Scope 1 and 2 transition plan. Our
energy providers, given state specific emissions ambitions and
fuelled by federal incentives, are regularly providing renewable
energy supply opportunities at our major sites.

Sustainable trends in packaging: The expected increase in demand
for sustainable packaging alternatives (secondary plastics) and the
associated increased costs associated with these alternatives. This
model incorporates a 35% increase in costs and assumes quantity
consumption remains at current levels, with GPN as a consumer
facing business most significantly impacted.

The assessed impact under both climate scenarios modelled
is expected to be low, with potential price increases modelled
having a low impact on cost per unit of product. This risk is further
mitigated through measures including packaging redesign,
pilot refill programmes and dedicated procurement focus on
packaging supply.

Potential impact: operating costs
TCFD category: policy

Direct and indirect carbon taxes: Indirect increase in the costs of
fuel due to the removal of fossil fuel subsidies and a direct increase
due to the implementation of carbon taxes. It was assumed
Glanbia’s fuel usage remained at current levels.

Potential impact: operating costs
TCFD category: policy

Under the current policy scenario there is no expected impact
as the underlying assumption is that no additional regulations
other than those stated or planned will occur, while under the
stress scenario the impact is estimated to be low in the context
of improving resource efficiency at a distribution level through
our fleet management system and the ability to pass the cost
through.

68 Glanbia plc | Annual Report and Financial Statements 2023

Transition opportunity

Impact assessment

Low carbon markets: This scenario recognises the development
and growth of carbon credits and clean energy markets. Both
opportunities are of high relevance to Glanbia as they can be
generated through the use of anaerobic digesters which some
Glanbia sites are currently using.

Maximising the return of biogas from our on-site operations in
conjunction with reducing our emissions in line with our Scope 1
and 2 roadmaps, optimising energy efficiency informed by energy
management systems contribute to low carbon opportunities
within the value chain.

Potential impact: revenue growth
TCFD category: market, reputation

We consider that a market for low carbon and carbon certified
ingredient and consumer end products will likely develop over the
medium to long-term. We are seeing customers assessing their
supply chain and proposing partnerships for carbon reduction.

The evolution of this market represents an opportunity to
continue to invest on-site, to reduce carbon emission footprint
and create additional revenue streams, while delivering an
improved product/ingredient carbon footprint.

Physical risk

Impact assessment

Effect of temperature increases (both acute and chronic) on key
aspects of Glanbia’s dairy supply chain: Three separate models
were constructed to evaluate the impact of increased temperatures
on our dairy supply chain.

Under both climate scenarios the impact is expected to have a
longer term impact horizon beyond 2030, with quantification of
such impacts challenging given the level of inherent uncertainty
associated with future global warming.

In the short to medium term Glanbia is protected against milk
supply shortages, and associated price increases due to milk
supply agreements, joint venture business model structures
in place and the milk and cheese market conditions in which
Glanbia operate. However, Glanbia acknowledges the existence
of tipping points in the longer term that may occur in the event
prolonged physical impacts emerge which make dairy production
unviable at farm level which impact milk supply and cost.

We analyse comprehensive dairy production data in our supply
chain on an ongoing basis and leverage US Department of
Agriculture datasets to track productivity and trends.

The sites identified from this analysis are already within the
Group’s priority locations for water risk with efforts already
underway to manage water use at these sites.

The following areas were considered:
• dairy productivity (chronic);
• milk yields (acute); and
• crop yields – a key input into animal feed (chronic).

These models considered the potential impact of such conditions
on dairy suppliers margins and or the price of milk as an input cost,
potentially resulting in an increased product cost to recoup via the
market or through required production efficiencies to maintain
product margins.

Potential impact: operating costs
TCFD category: chronic and acute

Water scarcity: Increasing water scarcity in certain regions caused
by droughts, increased temperatures, heatwaves, and increasing
demand for water will affect the water availability in most US
states. Modelled using the WRI Aqueduct to project water stress
levels we calculated the change in water scarcity until 2050 for
Glanbia’s top seven manufacturing sites (covering about 94% of
total water consumption) for each scenario. The increase in water
scarcity in the regions where Glanbia’s manufacturing sites are
located could lead to a cumulative increase in Glanbia’s operational
costs for the current policies and stress scenarios respectively until
2050.

Potential impact: operating costs
TCFD category: acute

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Future focus
Glanbia recognises the importance
of evaluating the impact of climate
change on our business and strategy. Our
disclosures in this regard are intended to
assist our stakeholders in understanding
the potential impacts and opportunities
of climate change on our business over
the short, medium and long-term. We
acknowledge in the context of an evolving
regulatory reporting environment,
and with improving scientific climate
resources there will be a need for further
analysis and detailed disclosures to
support our stakeholders in this regard.

We as a nutrition business recognise the
deep and intricate connections between
food systems and the planet’s health,
as well as the impact of a changing
climate for the future. We are focused
on managing our impacts within our
own operations, in particular relating to
our Scope 1 and 2 emission targets by
meeting key elements of our transition
plan; to progressively shift towards
100% renewable energy procurement
(Scope 2) by 2030 and reduce on-site
emissions (Scope 1) through operational
efficiencies and capital investment. Refer
to pages 55-56 for more information
on the Group’s targets and progress
to-date, and page 65 which outlines how
these metrics form part of our strategic
response to the risks identified.

We acknowledge the material impact
of our Scope 3 emissions and have a
roadmap in place with our key dairy
supply stakeholders, which will deliver a
detailed transition plan to meeting our
Scope 3 commitments. Refer to page 56.
This plan will be presented to the Board in
2024, with our performance against this
plan reported externally.

The impact of climate change on
our financial statements
We considered the potential impacts of
climate change risks when preparing our
Consolidated Financial Statements and
have determined that there is no material
impact on the financial reporting
judgements and estimates and as a
result there is no impact on the valuations
of the Group’s assets and liabilities from
these risks as at 30 December 2023. Refer
to pages 186 and 215 within the financial
statements for further details.

Resilience and associated
strategic actions
We continue to monitor the resilience of
the organisation with due regard for the
climate-related risks and opportunities
that the business faces. Under current
policies and a transition scenario,
Glanbia is sufficiently protected against
climate-related risks that may impact the
value chain, due to its market position,
business partnerships, contractual
relationships, as well as existing and
planned mitigation actions.

Sustainability strategy
Alignment with, and delivery of, science-
based targets across Scope 1, 2, and 3 is
considered a key mitigant against the
impact of the transition risks identified,
including risks associated with potential
dairy market decline and changing
consumer preferences.

For the risks that have a direct
operational cost impact such as direct
and indirect carbon taxes, increasing
energy prices and sustainable trends in
packaging, we demonstrate resilience
through improving resource efficiency at
the production and distribution level, cost
pass-through and fulfilment of our stated
packaging commitments.

Emission impact and associated
technology requirements will continue
to be an important consideration for
the Group in delivering on our strategy,
as reflected in the Group capital
investment policy evaluation criteria of
any new acquisition or strategic capital
investment.

Innovation and market
Glanbia’s growth is built on integrating
innovative business models and expertise
into our strategy. We pride ourselves in
our agility to meet the varied nutritional
requirements and needs of our customers
and consumers. We recognise the
commercial value in aligning with a low
carbon transition. We hold a strong brand
portfolio with a loyal customer base,
offering a range of ingredient choices.

Our market insight teams anticipate and
monitor ever-changing market trends,
through the development of new branded
products and ingredients. For example,
in response to these trends we have
developed and hold a range of non-dairy
protein alternatives including within
our leading consumer brand Optimum
Nutrition, ‘Gold Standard 100% Plant’ and
our Amazing Grass product range.

Further down the value chain, our
geographical footprint, diverse customer
base and range of channels and products
helps to reduce the risk associated
with any specific category or market
segment and provides an opportunity
for innovation across multiple end-use
markets.

Physical risk insights
Our physical risk assessment has
provided valuable insight into the longer-
term risks across our operations and
supply chain. It has sign-posted areas for
further analysis and monitoring.
Immediate steps taken as a result of this
analysis include integration of specific
climate-related risks within business
continuity planning for higher risk sites
and reviewing public policy for areas
where a broader response is needed with
a particular focus on water stress areas.
Refer to page 57.

We acknowledge that long-term shifts
in climate patterns and increased
occurrence of extreme weather events
may have a significant impact on the
dairy supply chain. This requires close
monitoring to ensure existing mitigation
factors remain viable, and that our
strategic and operational plans remain
alert to the challenges associated with
such risks.

Dairy partnership
Our dedicated milk procurement and
dairy economics teams support our dairy
suppliers, and closely monitor production
levels, supplier trends etc. We take a
partnership approach with our dairy
suppliers to improve and build resilience.
Refer to page 56.

Responsible sourcing
For all raw materials, our global
procurement and responsible sourcing
commitments are important to help
manage potential future risks to
availability of key commodities as
regional climatic impacts take effect.
This includes analysis of single source
suppliers, risk profiling of sourcing regions
and use of third-party risk analysis such
as EcoVadis to support our assessment.

70 Glanbia plc | Annual Report and Financial Statements 2023

Performance

To embed our approach, Glanbia’s
Better Nutrition, Better World strategy
is embedded from the Board to the ESG
Committee and is integrated via the
Group Operating Executive and ESG
Centre of Excellence into all aspects of
the business through specialists and
cross-functional teams and workstreams.
This approach provides oversight, and
balances the focus on programme
delivery, required due diligence
procedures and increased reporting and
disclosure obligations.

See more on pages 116-120.

At Glanbia, we are committed to
conducting business in the right way,
complying with the law and working
responsibly. Glanbia has made our core
governance policies publicly available
including our Code of Conduct, Supplier
Code of Conduct and Anti-bribery
and Corruption policy, Human Rights
and Speak Up policies. We support the
integration of these policies through
appropriate training programmes
including a Group-wide Code of Conduct
training module. The Group has a zero-
tolerance approach to bribery or any
form of corrupt practices and actively
encourages all workers and third parties
to speak up through our dedicated

whistleblowing line if they have any
concerns.

See more on page 113.

Glanbia complies with the European
Union (Disclosure of Non-Financial and
Diversity information by certain large
undertakings and groups) Regulations
2017. The table below is designed to
help stakeholders navigate to the
relevant sections in this Annual Report
to understand the Group’s approach
to these non-financial risks. Many
of our policies can be viewed on
www.glanbia.com.

Reporting
requirement

Policies and standards which
govern our approach

Risk management and
additional information

Environmental matters

• Environmental policy
• Supply chain and responsible sourcing and on-farm

sustainability

• Animal welfare policy

Employee matters

Social matters

Human rights

• Culture and engagement
• Group code of conduct
• Whistleblowing policy
• Diversity, equity and inclusion policy
• Health and safety policy

• Education initiatives
• Community support
• Food safety and quality policy

• Anti-slavery and human trafficking statement
• Supplier code of conduct
• Human rights policy

• Environment section – pages 55-60
• Responsible sourcing – pages 56 and 61
• ESG Committee report – pages 116-120
• Task Force on Climate-related Financial Disclosures (TCFD)

Report – pages 64-70

• Risk management – pages 72-85

• Employee engagement survey – pages 28-29 and 50-51
• Whistleblowing and fraud – page 113
• UK Corporate Governance Code – pages 89 and 108
• Diversity, equity and inclusion – page 30
• Health and safety – page 31

• GPN sports nutrition school – page 51
• Community and charity support – page 63
• Food safety and quality – page 62

• See page 61 and 113 and our policies can be viewed on www.
glanbia.com/about/corporate-governance/our-policies

Anti-bribery and corruption • Group code of conduct

• Anti-bribery and corruption policy

• See page 113 and our policies can be viewed on www.

glanbia.com/about/corporate-governance/our-policies

Description of principal risks and impact of business activity

• Principal risks and uncertainties – pages 76-83

Description of the business model

Non-financial key performance indicators (KPIs)

• Business model – pages 22-23

• Key performance indicators – page 25

Consolidated disclosures pursuant to Article 8 Taxonomy Regulation

Following consideration of the ‘EU Taxonomy Compass’, and detailed review of the economic activities’ descriptions and NACE code definitions as referenced
within it, the Group concludes that our core economic activities of food processing and manufacturing are not included within the six environmental objectives of
the EU Taxonomy and consequently are Taxonomy non-eligible.

Refer to pages 155-165 for Glanbia’s consolidated disclosure in accordance with the EU Taxonomy Regulation.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONRisk management

Continuous monitoring of risk to
achieve our strategic objectives

Managing our risks
Geopolitical risks, such as the war in
Ukraine, escalating tensions in the Middle
East, relations between the US and
China, and their related macroeconomic
impacts, continue to remain some of the
biggest threats to the Group achieving
its strategic objectives. While overall
the Group navigated the evolving
risk environment well in 2023 with no
material negative impacts to the Group’s
performance; as 2024 progresses,
the Group will need to remain alert
to changes in risks that may impact
the delivery of the Group’s strategic
objectives.

The effects of the primary geopolitical
and macroeconomic conditions on
the business are explained in various
sections of the Strategic Report and

consequently, the narrative included
in the Chief Executive Officer’s Review,
Chief Financial Officer’s Review and
Operations Review should be read in
conjunction with the below disclosures
to provide an overall understanding of
the risks, economic uncertainties and
challenges which will continue in 2024.

Assessment of the effectiveness of risk
management and internal controls
The Audit Committee on behalf of
the Board, has responsibility for
monitoring the Group’s systems of risk
management and internal control.
The risk management framework, as
outlined below, was reviewed by the
Audit Committee to consider the breadth
and depth of information (financial,
operational and compliance) provided
to the Committee through direct

presentations from senior executives
and functional heads, risk management
report submissions and Committee
updates received from the internal
and external auditors. No instances of
significant control failings or weaknesses
have been identified as part of this
review.

Risk management framework
Our risk management framework is
designed to ensure that risk management
is embedded into our culture, policies and
practices. There is input across all levels
of the business to enable the Group to
remain responsive to the ever-changing
operating environment. An overview
of the Group’s risk management and
internal control framework is outlined in
the diagram below.

Top
Down
Risk

Board underpinned by:

Our Purpose

Our Values

Our Code

Our Strategic Priorities

Grow the core

Optimise
our business

Disciplined
capital
allocation

Oversight
Identification
Assessment
Mitigation

Including the
identification
and mitigation of
emerging risks

Governance supported through:

Audit
Committee

ESG
Committee

Group
Operating
Executive

Group Internal
Audit

Oversight
Identification
Assessment
Mitigation

At Business
Unit and Group
functional level

Including the
identification
and mitigation
of emerging
risks

Senior Leadership Team driven by:

Risk
awareness

Risk
ownership

Risk
monitoring

Risk
reporting

Bottom
Up
Risk

72 Glanbia plc | Annual Report and Financial Statements 2023

Risk oversight
Board of Directors
The Board has overall responsibility for determining the nature and extent of the significant risks it is willing to take in achieving
the Group’s strategic objectives. The Board has an overarching Group risk appetite statement in place and applies a balanced
approach to risk, embracing risk in areas in which management has the appropriate skills, knowledge and experience to take
advantage of the opportunities presented, whilst limiting risk in other areas.

As part of the annual Group strategy process, the Board conducted a detailed assessment of the impact of the Group’s principal
and emerging risks, together with the methods employed to manage these risks. The Board and management use the same
process to assess and manage risks within our joint venture operations as it does for the wholly-owned areas of the Group. In 2023,
we held board positions in all such entities.

The Board conducted a formal half-year and full-year review of the risk register summary reports prepared by Group Internal
Audit to ensure that the Group’s principal risks and uncertainties, as outlined on pages 76 to 83, effectively describe the nature and
extent of the Group’s principal risks. The Board is satisfied that its risk management systems and internal control processes are
effective and will further enhance monitoring controls in 2024 with more frequent risk dashboard reporting.

Audit Committee
The Audit Committee on behalf of the Board, has
responsibility for monitoring the Group’s systems of risk
management and internal control including the review
of their effectiveness. In 2023, the Committee received
updates from senior executives and detailed presentations
from Group functional leads including IT, Treasury, Legal,
ESG, Financial Reporting and Taxation. These presentations
typically provide the Committee with the opportunity to
review the Group’s risk appetite statements in relation to
the principal and emerging risks being examined.

Environmental, Social and Governance (“ESG”) Committee
The ESG Committee supports the Group’s ongoing
commitment to environmental, corporate social
responsibility and governance matters. The Committee
is responsible for monitoring and reviewing current and
emerging ESG trends, relevant international standards and
legislative requirements and identifying potential impacts
to the Group. In January 2024, the Audit Committee and
ESG Committee held a joint information session with
regard to ESG related matters to facilitate risk awareness
regarding the upcoming ESG reporting obligations.

Group Operating Executive
The Group Operating Executive forum as outlined in the Corporate Governance Report on pages 100 to 101 also acts as the Group
Risk Committee and supports the Audit Committee in the risk management process through the ongoing monitoring of the risk
environment and the effectiveness of the controls in place.

Risk reporting
Group Internal Audit (“GIA”)
GIA assists in the process by preparing regular Group
summary risk management reports based on information
submitted by management throughout the year. These
reports include:
• An analysis of key Group risks in terms of impact

(assessed over the following 12 months within defined
monetary terms), likelihood of occurrence (using defined
probabilities of occurrence) and velocity (speed at which
the impact of the risk could materialise). The climate
related deviations are outlined on page 74;

• A summary of the key movements in the identified risks,
with a particular focus on highlighting new or emerging
risks;

• A summary of management action plans (“MAPs”) to
manage potential significant risk exposures; and

• An overview of organisational, business and emerging

risks.

The Audit Committee and Board perform bi-annual reviews
of these reports, with interim updates received from
management as required.

Group Senior Leadership Team (“SLT”)
The identification of risk is based on a Group-wide
approach. The management team of each business
segment and the Group functional leads are required to
maintain and submit a risk register. The register ensures
consistency of approach in the reporting of risks in
accordance with Group defined guidelines.

The quality and consistency of SLT risk reporting is
supported by a number of other monitoring and reporting
processes including:
• Group strategy process and Board review of financial
and operational performance, including detailed
finance, capex planning and expenditure reviews;
• KPI tracking of health and safety and environmental

reporting within the Group’s environmental
management system;

• Bi-annual control self-assessment and management

representation letter processes;

• Post-acquisition completion and capex project reviews;
• Risk-focused Group Internal Audit plan; and
• The externally assessed Glanbia Risk Management
System (“GRMS”) reviews, which assess operational
risks across the Group and the internal Glanbia Quality
System reviews.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONRisk management continued

Identifying and assessing
climate risk
The identification, assessment and
management of climate-related
risks follow the Group’s existing risk
management framework, however, the
time horizons have been extended to
allow for the longer-term impacts of
climate change. This work has been
supported by third-party experts and
executive-led workshops, which has
helped to define a focused set of risks for
detailed analysis, as outlined on page 65
of the TCFD Report.

Managing climate risk
As outlined on the previous page, the
Audit Committee is responsible for
providing structured and systematic
oversight of the Group’s risk
management and internal controls,
while the ESG Committee supports the
Group’s ongoing commitment to our ESG
strategy, including our environmental
strategy. For further details on our
approach to managing climate change
and the related risks and opportunities,
refer to pages 64-70.

The Group considers insights obtained
through our reporting on TCFD
climate-related risks and opportunities
identification, prioritisation process
(likelihood and velocity) and financial
quantification assessment (materiality),
post the consideration of available
mitigation measures. Key outputs of
this process are summarised within
the TCFD Report on pages 64-70,
and assessed through the Group risk
register process. The register includes
the estimated likelihood, velocity and
financial materiality of the climate-
related risks and opportunities assessed,
which is a key component of our risk
management framework and also
documents the identified Group-wide
controls and actions to mitigate against
the respective risks to evaluate the
potential residual impact encompassing
both transition and physical risks. These
risks are consolidated as one principal
risk ’Climate Change’.

Climate-related risks and
opportunities
The processes for identifying, assessing
and managing climate-related risks are
incorporated within our risk management
framework. As part of this framework,
we have a clear approach for defining
risk appetite and guidance to support
the assessment of materiality. The
Group’s risk appetite is agreed annually
with the Board and regularly monitored
to ensure climate-related risks remain

within the Group’s risk appetite without
unduly impacting the ongoing success
of our business. The management of
these climate-related risks is undertaken
within the function where the risk may
occur, for example, raw material risks
are primarily managed by procurement.
Actions taken are monitored to retain
climate risks within the agreed risk
appetite for the Group with the CEO for
GN having executive responsibility for
climate change mitigation measures. He
is supported in this work by the Group
Operating Executive as outlined on page
119.

TCFD reporting
In line with the recommendations of
the TCFD reporting requirements, the
Group has considered climate-related
impacts within the organisation under
the pillars of Governance, Strategy, Risk
Management and Metrics and Targets as
outlined on pages 64 to 70.

As detailed in our 2022 Annual Report,
the Group engaged the Carbon Trust, an
independent sustainability consultant,
to conduct a comprehensive climate
change risk assessment of the parts
of the business over which Glanbia
has operational control. The identified
climate-related risks and opportunities
were prioritised by their likelihood,
velocity and estimated financial
materiality (prior to the consideration of
any mitigation measures). This allowed
us to better understand the potential
impacts from physical climate change
risks and opportunities associated
with the transition to a decarbonised
economy.

Further analysis was carried out to
assess, in greater detail, the potential
impact that Glanbia’s top climate-
related risks and opportunities could
have on our business, operations and
strategy, drawing on climate science
and scenario data. Two scenarios were
considered for each risk and opportunity;
a current policy scenario and a
stress scenario. The material risk and
opportunity themes that were reviewed
as part of assessing the potential impact
of climate change, along with the
expected timelines are outlined on pages
67-69 of the TCFD Report.

In line with the Group’s risk management
framework, the risk and opportunity
themes were assessed for likelihood,
velocity and materiality (impact). The
methodology applied to climate risk
themes differed from the standard
framework definitions as follows:

74 Glanbia plc | Annual Report and Financial Statements 2023

• Velocity: To reflect the nature of
climate change, the time horizon
applied to velocity was short term up
to 3 years, medium term from 3 to 10
years and long term beyond 10 years
as opposed to the Group approved
thresholds which assess velocity as
very rapid if the impact of the risk is
felt within 1 month, rapid if within 1
quarter and slow if it extends beyond
1 quarter.

• Likelihood: Under the assessment,
this is based upon the certainty of
outcome across the different climate
scenarios analysed. Where there is
a highly consistent outcome under
all scenarios, the relevant risk or
opportunity is categorised with a
higher likelihood and conversely, where
the outcome is only expected under
stress scenarios the risk or opportunity
is categorised with a lower likelihood.
The standard Group approach to
likelihood is measured as a percentage
of possible occurrence over a three-
year period in line with the Group’s
strategic plan.

The Directors consider these deviations
from the standard risk framework to
be appropriate given the nature of the
specific risk. The controls for this principal
risk are aligned with our strategy and
regulatory framework requirements. They
include controls relating to governance,
leadership and climate adaptation.

Climate change risks are also considered
when assessing other principal risks
including, but not limited to: Economic
and Industry; Market Disruption and
Acquisition/Integration. For example,
this includes involving the relevant
internal functional experts when making
acquisition or capital investment
decisions or impairment review decisions
where required.

The Group concluded that climate
change is not expected to have a
material impact on the viability of the
Group in the short term and summarised
the material climate risk themes
which will require close monitoring
going forward as outlined on pages
64 to 70. Glanbia also has a continuing
engagement with the Carbon Trust
who provide technical expertise on the
Group’s carbon footprint mapping, and
identification of key carbon reduction
projects. The Group plans to continue this
work and has committed to building on
the progress achieved in 2023 in relation
to our climate impact.

Strategic/External

Technological

Operational/Regulatory

Financial

Mainly external risks associated
with our operating environment

The systems we use to drive the
business and the data they hold

The people and processes we
use to power our business model

Our financial status
and internal controls

 Geopolitical
 Economic and industry
 Market disruption
 Customer concentration
 Climate change

 Digital transformation
 Cyber security and data

protection

 Talent management
 Health and safety
 Supply chain
 Product safety
and compliance

 Acquisition/Integration

 Taxation
changes

Risk trend

 Increasing

 Stable

 Decreasing

Risk categories
Our approach recognises the external
risks associated with our operating
environment, which are typically
considered and managed through our
strategic processes, and the primarily
internal risks associated with our people,
processes and systems which are
managed through our internal controls.
Emerging risks with the potential to
impact our longer-term success are
also considered to ensure that we plan
appropriately to respond to them over
time. No new emerging principal risks
were identified in 2023.

Identifying our principal risks
and uncertainties
The Directors have carried out a robust
assessment of the Group’s principal risks,
including those that may threaten our
business model, future performance,
solvency or liquidity and reputation. Key
risks are identified based on the likelihood
of occurrence, potential impact and
velocity on the Group using the process
outlined on pages 72 to 75.

Risks are reported on a residual risk
basis and represent a snapshot of the
Group’s principal risk profile. This is not
an exhaustive list of all the risks faced by
the Group, there may be other risks and
uncertainties that are not yet considered
material or not yet known to us. This list
will change if these risks assume greater
importance in the future. Likewise, some
of the current risks will drop off the key
risks schedule as management actions
are implemented or changes in the
operating environment occur.

The Board also fully recognises that
many risks do not exist in isolation and
that one or more risks may crystallise at
the same time which could increase the
impact to the Group. The interactions

and relationship between such risks are
discussed and considered by the Board
throughout the year. Risk benchmarking
is completed, which includes a review of
external risk publications and emerging
risk trends against the Group’s risk
landscape. In 2023, discussions included
a consideration of the consequences
of geopolitical tensions, persistent
inflationary, energy rate and interest
rate pressures, cybersecurity threats and
climate change risks.

Principal risks and uncertainties
Changes to risks during the year
The Directors have considered the
Group’s principal risks and uncertainties
and have determined that the risks and
uncertainties reported in Glanbia plc’s
2022 Annual Report remain relevant
with one revision. The principal risk
Economic, Industry and Political risk,
reported in 2022, has been split into two
principal risks with the political narrative
now captured within a new Geopolitical
principal risk and the Economic and
industry risk remaining as a standalone
risk.

Some fluctuations in risk trends did arise
in 2023 including:
• Geopolitical risk: As geopolitical

tensions escalated and became more
widespread globally, the Directors have
determined that this risk area now
warrants a standalone principal risk.
The market consequences of the war in
Ukraine and tensions in the Middle East
continue to create volatility. The Board
is also closely monitoring tensions
in key trading regions, particularly
between China and Taiwan, where any
potential conflict, economic sanctions
or trade rulings would impact Glanbia’s
growth objectives. The upcoming
US presidential election also has
the potential to create short-term
uncertainty.

• Economic and industry: the

macroeconomic environment
continues to show volatility with
recessionary conditions which
impacted some countries in 2023
looking set to continue in 2024.
• Market disruption risk continues to
trend upwards. Adverse changes
in economic conditions, persistent
inflation, energy and interest rate
pressures have continued to increase
the cost of living and could result in
reduced consumer spending which
may disrupt demand and further
increase operational and financial
costs.

• Climate change risk continues to

trend upwards due to the evolving
climate landscape, expected future
developments in ESG regulations,
the increasing stakeholder reporting
expectations and the other climate
change risks disclosed in the TCFD
Metrics and Targets disclosures on
page 64.

• Cyber security and data protection
risk continues to trend upwards due
to rapidly accelerating technological
changes in areas such as artificial
intelligence (“AI”) and growing global
cybersecurity control threats.

• Supply chain and Talent management
risks have stabilised as supply chain
risk mitigation measures have been
successfully deployed, and labour
market conditions continue to
normalise.

• The remaining principal risks continue

to trend as stable due to the mitigation
activities in place by the Group as
outlined on pages 76 to 83.

The Group actively manages these and
all other risks, inclusive of emerging risks,
through its risk management and internal
control processes.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONPrincipal risks and uncertainties

Link to strategic priorities (see pages 15 to 18)

Grow the core

Optimise our business

Disciplined capital allocation

Risk trend

 Increasing

 Stable



Decreasing

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Strategic/External
Geopolitical 
Geopolitical events and developments
may have the potential to create global
or regional instability that could impact
on our growth objectives.

Political instability, civil disturbance,
conflicts, trade tensions and
regulatory changes may negatively
impact performance. Geopolitical
tensions in the regions where
we operate may pose potential
challenges that could adversely
affect our pursuit of growth
objectives.

The Board conducts a thorough assessment of geopolitical risks,
particularly in the regions where we operate, and regularly updates
risk profiles to stay informed about changing dynamics.

The Group’s strategy is aimed at spreading our business activities
across diverse regions to reduce dependency on any single
geopolitical area, minimising the impact of localised disruptions.

The Board and Group Operating Executive are kept informed about
geopolitical risks through regular Group risk and business segment
operational updates.

Economic and industry

Our performance is influenced by
global economic conditions, consumer
confidence and the stability of the
markets in which we operate.

Deterioration in economic growth or
consumer confidence, or significant
currency movements may impact
performance and the achievement
of growth targets.

The Board regularly assesses key market trends, the current
economic environment and the related implications on Group
performance and strategic objectives.

The Group’s strategy is aimed at the continued expansion of the
Group’s geographic reach, focusing on key customer relationships
and investment in new product development which helps to protect
the Group from significant economic fluctuations and material
rapid changes in the external environment.

Market disruption 
Inflationary pressures may create further
headwinds for the business.

Increasing competition across certain
channels through high promotional
activity, competitor product innovation
and channel shifts provide an ongoing
challenge.

Continued inflationary pressures
above expectations may disrupt
demand due to consumer price
elasticity.

Failing to recognise or obtain
accurate and relevant competitive
and environmental intelligence may
result in the adoption of incorrect
business strategies.

Significant actions to mitigate cost inflation were implemented
across a range of initiatives including pricing, revenue growth
management and efficiency programmes.

The GPN team continues to enhance in-house capabilities to
assess market trends, ensuring improved accuracy and relevance
of data for the Board and management’s decision making.

GN has focused on differentiating its capabilities from competitors
through innovation to enable it to become the preferred partner of
choice for nutritional and functional solutions in both the dairy and
non-dairy segments.

The Group allocates resources to research and development for
value-added, customer-specific solutions and invests in necessary
promotional activities, where required.

Customer concentration

The Group benefits from close
commercial relationships with a number
of key customers and adverse changes
could materially impact the Group.

The loss of, or material disruption
with, one or more of these
customers, or a significant
deterioration in commercial terms,
could have a material impact on
Group profitability.

Pricing risks associated with the
growth of the online channel could
impact the Group.

The Group has strong relationships with key customers
through superior customer service, quality assurance and cost
competitiveness. Continued focus remains on new customer and
channel development opportunities.

Consistent and effective implementation of the GN commercial
team’s ‘one face to the customer’ approach.

The Board regularly reviews its exposure, including credit exposure,
to individual customers and considers the impact of acquisitions
where relevant.

The Board considers various geopolitical scenarios and their potential

The Group will continue to monitor geopolitical tensions closely where any

impact on the business as part of strategy discussions. This enables the

potential conflict, economic sanctions or trade rulings may impact the

Board to develop proactive strategies and responses to different situations.

growth objectives of the Group.

Management aims to stay abreast of and comply with international and

The Group will continue to monitor the upcoming US presidential election,

local regulations, maintaining relationships with local and international

should it cause short-term uncertainty and/or instability to the markets

stakeholders and consulting with external advisors, where appropriate, to

where we operate.

stay informed about political developments and foster cooperation.

Potential geopolitical impacts will continue to be assessed as part of the

Senior leaders from our core segments updated the Board/Audit Committee

Group’s strategic discussions and capital allocation decisions, particularly in

on segment performance during 2023. This included consideration of

relation to acquisition activity and strategic capital expenditure.

geopolitical impacts, where appropriate.

The macroeconomic environment continued to be uncertain as some

markets entered recession in 2023. There is continuing pressure from

The macroeconomic environment remains uncertain prompting continuing

review throughout 2024. The Group will proactively review and implement

high interest rates, monetary tightening by central banks and currency

mitigating actions to address challenges such as cost inflation and the

fluctuations, which the Group continues to navigate and mitigate where

impact of high living costs, ensuring a responsive and adaptive approach as

possible.

needed.

Increased promotional activity and the careful management of price

increases were required to address inflationary challenges and other

macroeconomic factors. To date, customer demand has sustained these

price increases.

The impact of any potential future price increases will continue to be

assessed for elasticity effects.

Our strategic portfolio review continued in 2023 resulting in divestment

While energy prices have shown signs of stabilising, food prices remain

decisions around non-core assets as outlined in the Chief Financial Officer’s

elevated and further shocks from geopolitical tensions may contribute to

review on pages 40 to 45.

The impact of increasing inflationary pressures and supply chain volatility

have been mitigated by price increases and this balance will continue to be

closely monitored in 2024.

Marketing spend has continually focused on the areas/brands where

recovery momentum is strong.

further inflationary pressures. The Group will continue to monitor this and

any other adverse changes in economic conditions, such as the heightened

cost of living and increased interest rates that could result in reduced

consumer spending and a slowdown in consumer demand.

The Group will continue to invest in developing in-house capabilities to

assess trends in key market areas ensuring accurate and relevant data is

available to management teams to support decision making.

Continued assessment of the impacts of channel shifts by consumers and

The Group will continue to review new customer and channel development

the financial strength of our customer base, particularly our US customers

opportunities.

which represent the majority of Group Revenue.

Dedicated consumer insights and analytics teams in place who continue to

capacity expansions and product supply opportunities, particularly with our

build out our monitoring and consumer intelligence capabilities.

core GN customers.

Management continued to monitor credit exposures in 2023 as customers

The impact of pricing increases associated with the heightened cost of

maneuvered high energy costs and interest rates, post the recovery from the

inflation will be closely monitored.

The Group will continue to build key customer partnerships through strategic

pandemic.

76 Glanbia plc | Annual Report and Financial Statements 2023

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Strategic/External

Geopolitical 

Geopolitical events and developments

may have the potential to create global

or regional instability that could impact

on our growth objectives.

Political instability, civil disturbance,

The Board conducts a thorough assessment of geopolitical risks,

conflicts, trade tensions and

particularly in the regions where we operate, and regularly updates

regulatory changes may negatively

risk profiles to stay informed about changing dynamics.

impact performance. Geopolitical

tensions in the regions where

we operate may pose potential

challenges that could adversely

affect our pursuit of growth

objectives.

The Group’s strategy is aimed at spreading our business activities

across diverse regions to reduce dependency on any single

geopolitical area, minimising the impact of localised disruptions.

The Board and Group Operating Executive are kept informed about

geopolitical risks through regular Group risk and business segment

operational updates.

Economic and industry

Deterioration in economic growth or

The Board regularly assesses key market trends, the current

consumer confidence, or significant

economic environment and the related implications on Group

currency movements may impact

performance and strategic objectives.



Our performance is influenced by

global economic conditions, consumer

confidence and the stability of the

markets in which we operate.

performance and the achievement

of growth targets.

The Group’s strategy is aimed at the continued expansion of the

Group’s geographic reach, focusing on key customer relationships

and investment in new product development which helps to protect

the Group from significant economic fluctuations and material

rapid changes in the external environment.

Market disruption 

Inflationary pressures may create further

headwinds for the business.

Increasing competition across certain

channels through high promotional

activity, competitor product innovation

and channel shifts provide an ongoing

challenge.

Continued inflationary pressures

above expectations may disrupt

demand due to consumer price

elasticity.

Significant actions to mitigate cost inflation were implemented

across a range of initiatives including pricing, revenue growth

management and efficiency programmes.

The GPN team continues to enhance in-house capabilities to

Failing to recognise or obtain

assess market trends, ensuring improved accuracy and relevance

accurate and relevant competitive

of data for the Board and management’s decision making.

and environmental intelligence may

result in the adoption of incorrect

business strategies.

GN has focused on differentiating its capabilities from competitors

through innovation to enable it to become the preferred partner of

choice for nutritional and functional solutions in both the dairy and

non-dairy segments.

The Group allocates resources to research and development for

value-added, customer-specific solutions and invests in necessary

promotional activities, where required.

Customer concentration



The Group benefits from close

commercial relationships with a number

of key customers and adverse changes

could materially impact the Group.

The loss of, or material disruption

The Group has strong relationships with key customers

with, one or more of these

customers, or a significant

through superior customer service, quality assurance and cost

competitiveness. Continued focus remains on new customer and

deterioration in commercial terms,

channel development opportunities.

could have a material impact on

Group profitability.

Pricing risks associated with the

growth of the online channel could

impact the Group.

Consistent and effective implementation of the GN commercial

team’s ‘one face to the customer’ approach.

The Board regularly reviews its exposure, including credit exposure,

to individual customers and considers the impact of acquisitions

where relevant.

The Board considers various geopolitical scenarios and their potential
impact on the business as part of strategy discussions. This enables the
Board to develop proactive strategies and responses to different situations.

The Group will continue to monitor geopolitical tensions closely where any
potential conflict, economic sanctions or trade rulings may impact the
growth objectives of the Group.

Management aims to stay abreast of and comply with international and
local regulations, maintaining relationships with local and international
stakeholders and consulting with external advisors, where appropriate, to
stay informed about political developments and foster cooperation.

Senior leaders from our core segments updated the Board/Audit Committee
on segment performance during 2023. This included consideration of
geopolitical impacts, where appropriate.

The Group will continue to monitor the upcoming US presidential election,
should it cause short-term uncertainty and/or instability to the markets
where we operate.

Potential geopolitical impacts will continue to be assessed as part of the
Group’s strategic discussions and capital allocation decisions, particularly in
relation to acquisition activity and strategic capital expenditure.

The macroeconomic environment continued to be uncertain as some
markets entered recession in 2023. There is continuing pressure from
high interest rates, monetary tightening by central banks and currency
fluctuations, which the Group continues to navigate and mitigate where
possible.

Increased promotional activity and the careful management of price
increases were required to address inflationary challenges and other
macroeconomic factors. To date, customer demand has sustained these
price increases.

The macroeconomic environment remains uncertain prompting continuing
review throughout 2024. The Group will proactively review and implement
mitigating actions to address challenges such as cost inflation and the
impact of high living costs, ensuring a responsive and adaptive approach as
needed.

The impact of any potential future price increases will continue to be
assessed for elasticity effects.

Our strategic portfolio review continued in 2023 resulting in divestment
decisions around non-core assets as outlined in the Chief Financial Officer’s
review on pages 40 to 45.

The impact of increasing inflationary pressures and supply chain volatility
have been mitigated by price increases and this balance will continue to be
closely monitored in 2024.

Marketing spend has continually focused on the areas/brands where
recovery momentum is strong.

While energy prices have shown signs of stabilising, food prices remain
elevated and further shocks from geopolitical tensions may contribute to
further inflationary pressures. The Group will continue to monitor this and
any other adverse changes in economic conditions, such as the heightened
cost of living and increased interest rates that could result in reduced
consumer spending and a slowdown in consumer demand.

The Group will continue to invest in developing in-house capabilities to
assess trends in key market areas ensuring accurate and relevant data is
available to management teams to support decision making.

Continued assessment of the impacts of channel shifts by consumers and
the financial strength of our customer base, particularly our US customers
which represent the majority of Group Revenue.

Dedicated consumer insights and analytics teams in place who continue to
build out our monitoring and consumer intelligence capabilities.

The Group will continue to review new customer and channel development
opportunities.

The Group will continue to build key customer partnerships through strategic
capacity expansions and product supply opportunities, particularly with our
core GN customers.

Management continued to monitor credit exposures in 2023 as customers
maneuvered high energy costs and interest rates, post the recovery from the
pandemic.

The impact of pricing increases associated with the heightened cost of
inflation will be closely monitored.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Principal risks and uncertainties continued

Link to strategic priorities (see pages 15 to 18)

Grow the core

Optimise our business

Disciplined capital allocation

Risk trend

 Increasing

 Stable



Decreasing

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Strategic/External continued
Climate change 
Failing to have an appropriate business
model in place to react to the climate-
related risks and opportunities and to
achieve the Group’s commitment to
protecting the environment through
responsible stewardship.

The risk of non-compliance with
regulations.

Changes in government policy,
regulation, technologies and
weather conditions, may impact
the Group or influence consumer
preferences.

Failure to comply with
environmental incident reporting
regulations may cause reputational
damage.

Technological

Digital transformation

The risk of the Group implementing an
ineffective digital strategy.

A failure to adopt new technologies
and/or potential negative
consequences associated with
integrating digital technologies
within the business may impact our
targeted growth.

Cyber security and data
protection 
The Group is dependent on robust IT
systems and infrastructure for most of
our principal business processes which
may be impacted by the significant
growth of cyber threats.

An adverse event could result
in significant financial loss or
reputational damage due to the
potential loss of, or unauthorised
access to sensitive financial,
personal and commercial
information. This includes the
Group’s intellectual property (“IP”) or
that of our customers.

An adverse event could also result
in significant negative impacts to
our operational capabilities through
ransomware or denial of service
attacks.

Financial and reputational loss may
also occur through targeted attacks
such as phishing or impersonation
frauds.

78 Glanbia plc | Annual Report and Financial Statements 2023

An ESG Board subcommittee is in place and a member of the
Group Operating Executive has responsibility for overseeing
the delivery of the Group’s agenda on environmental, social and
governance topics.

The Board recognises the scientific consensus that action is
required to address the impact of greenhouse gas emissions on
rising global temperatures and has ensured that:

• A Board approved strategy is in place to accelerate our climate

change commitments, targeting decarbonisation in our
operations and supply chain and addressing our most material
sustainability impact areas.

• The Group-wide sustainability programme focuses on building
a strong culture, systems and governance model to oversee
progress and to ensure compliance with environmental incident
reporting regulations.

• Clearly defined Board approved KPIs and targets are in place as

outlined on pages 126 to 149.

• The Group’s Capital Investment Policy incorporates

environmental considerations into the existing due diligence
process.

The Group has taken a rigorous approach to measuring climate risk
impact through data, baselining and risk assessment supported
by external experts and aligned to emission reduction targets
validated by the Science Based Targets initiative (“SBTi”).

Each core business function has a three-year digital roadmap that
is reviewed and updated annually.

Dedicated project teams put in place for material transformation
projects with appropriate user acceptance testing completed prior
to go-live.

All enterprise systems are deployed using a centrally managed
model to ensure architecture alignment and effective process
governance.

Executive commitment to ensure the full benefits of the Group’s
digital capabilities are maximised to increase our speed to market,
reduce costs and improve customer experience.

A dedicated Group IT Security team is in place to manage IT risks.

Cyber security and anti-fraud control reviews were conducted against the

Continue progress on the effective integration of our IT systems and related

Policies in place regarding the protection of both business
and personal information, as well as the use of IT systems and
applications by our employees with oversight by the Group Data
Protection Committee.

Systems in place, including ongoing audit activities, to monitor
compliance with relevant privacy laws and regulations.

The Group maintains a cyber insurance policy and there were no
material information or cybersecurity breaches noted over the last
three years resulting in an insurance claim.

Continued investment in cyber-crime prevention and information
security programme. Regular security scanning across eCommerce
sites with penetration testing completed on new sites.

Regular Group IT Board and Audit Committee updates on the
Group IT strategy and key Group IT risks.

Building on the ESG training provided to the Board in 2022, further external

The Group will continue to update the data systems and processes to meet

ESG training was provided to both the Audit and ESG Committees in

the CSRD disclosure and evolving ESG legislative requirements.

January 2024. This training focused on Glanbia’s current and upcoming

reporting obligations, market insight benchmarking and the responsibilities

of the Audit Committee and the Board in relation to the EU Corporate

Sustainability Reporting Directive (“CSRD”) reporting.

The Board will be heavily focused on the delivery of the Group’s Scope 3

strategy and the continuing commitment to its key targeted reductions

in areas such as carbon, water, waste and packaging. Progress in the

development of Glanbia’s approach to nature and the ongoing work to

FY 2023 ESG reporting built on the processes and structures established in

enable enhanced supply chain transparency will also continue to be closely

2022 including the issuance of the first Glanbia GRI report in 2023. For more

examined.

information on other developments and progress made on the environment

topic, please refer to the Sustainability Report on pages 48 to 63.

The Group is committed to supporting our customers’ ESG ambitions,

particularly in the provision of sustainability data in relation to carbon, and

Strong performance was noted against all of the Group’s 2023 ESG target

assurances on ingredient sourcing risks to meet their own public facing

areas with continued progress taking place in the development of the

targets.

Group’s Scope 3 strategy. In 2023, 63% (2022: 45%) of our electricity usage

was by way of renewable electricity, see page 55 for more information.

The Audit and ESG Committees will continue to focus on monitoring

the effectiveness of the environment metrics and regulatory disclosure

In preparation for the CSRD requirements, the Group also conducted a

requirements to ensure progress is being maintained in line with

Double Materiality assessment in conjunction with our external advisors. This

expectations. Regular updates will continue to be provided to the Board

is designed to determine what disclosures are relevant under the mandatory

to ensure climate-related impacts are understood and embedded in the

sustainability standards, required under CSRD, with no new ESG topic noted

Group’s governance, operational and strategic model.

as a result of this exercise.

The Group has deployed leading ERP technologies which support the

With the latest ERP technology now in place, management will focus our

automation of our key business processes. The Group successfully upgraded

digitisation programme on continuing to enhance the Group’s supply

its ERP system to SAP’s latest technology and associated hardware,

chain, customer engagement, manufacturing, operations, finance, and HR

which brings enhanced machine learning and artificial intelligence (“AI”)

systems.

capabilities to the Group.

Fraud and cyber security exercises completed with vulnerability scans

Operative Executive to ensure that the Group’s global support functions are

implemented across all eCommerce sites.

structured to efficiently deliver high value business services.

Continued to integrate our ERP system into acquisitions as part of the IT

Continue to progress the Tirlán (formerly Glanbia Ireland) and Leprino

roadmap.

A reassessment of the optimal manner in which to leverage the D2C platform

across GPN was performed during the year. This will help enable resources to

Continue to assess the potential benefits and risks associated with emerging

be applied to the opportunities best matching the brand strategy.

AI capabilities as part of cyber risk considerations.

segregation and separation of IT infrastructure and applications from the

Group in line with the transition agreements.

A Chief Digital & Transformation Officer has been appointed to the Group

US Department of Commerce and National Institute of Standards and

Group monitoring controls within our recent acquisitions.

Technology Cybersecurity Framework to continue to gain comfort over

the effectiveness of the Group’s ransomware prevention, detection and

response plans.

The cross-functional teams involved will continue to ensure our IP is

protected through appropriate IT security measures, patent applications

and related control procedures. Continue to roll out our multi-factor

Additional ransomware detection capability rolled out to SAP/mission

authentication to all employees.

critical services. The Group ransomware response policy, playbook, roles

and responsibilities were updated and a ransomware simulation workshop

was completed with a subcommittee of the Board, members of the Group

Operating Executive and relevant Group functional leads in October 2023.

Ongoing cybersecurity awareness will continue to be actively promoted

through regular IT awareness communications, information security training

and other initiatives to keep employees updated on new and emerging IT

threats. This will continue in 2024 with follow up workshops and awareness

Rolled out phishing simulations across the Group, implemented a new

sessions with the leadership team and Board representatives.

firewall configuration management service and introduced a new multi-

factor authentication solution for employee remote access.

Continue to execute fraud and cyber security reviews and vulnerability scans

across all eCommerce sites.

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Strategic/External continued

Climate change 

Failing to have an appropriate business

model in place to react to the climate-

related risks and opportunities and to

achieve the Group’s commitment to

protecting the environment through

responsible stewardship.

The risk of non-compliance with

regulations.

Changes in government policy,

regulation, technologies and

weather conditions, may impact

the Group or influence consumer

preferences.

Failure to comply with

An ESG Board subcommittee is in place and a member of the

Group Operating Executive has responsibility for overseeing

the delivery of the Group’s agenda on environmental, social and

governance topics.

The Board recognises the scientific consensus that action is

required to address the impact of greenhouse gas emissions on

environmental incident reporting

rising global temperatures and has ensured that:

regulations may cause reputational

damage.

• A Board approved strategy is in place to accelerate our climate

change commitments, targeting decarbonisation in our

operations and supply chain and addressing our most material

sustainability impact areas.

• The Group-wide sustainability programme focuses on building

a strong culture, systems and governance model to oversee

progress and to ensure compliance with environmental incident

reporting regulations.

• Clearly defined Board approved KPIs and targets are in place as

outlined on pages 126 to 149.

• The Group’s Capital Investment Policy incorporates

environmental considerations into the existing due diligence

process.

The Group has taken a rigorous approach to measuring climate risk

impact through data, baselining and risk assessment supported

by external experts and aligned to emission reduction targets

validated by the Science Based Targets initiative (“SBTi”).

is reviewed and updated annually.

Dedicated project teams put in place for material transformation

projects with appropriate user acceptance testing completed prior

to go-live.

governance.

All enterprise systems are deployed using a centrally managed

model to ensure architecture alignment and effective process

Executive commitment to ensure the full benefits of the Group’s

digital capabilities are maximised to increase our speed to market,

reduce costs and improve customer experience.

A dedicated Group IT Security team is in place to manage IT risks.

Policies in place regarding the protection of both business

and personal information, as well as the use of IT systems and

applications by our employees with oversight by the Group Data

Protection Committee.

Systems in place, including ongoing audit activities, to monitor

compliance with relevant privacy laws and regulations.

The Group maintains a cyber insurance policy and there were no

material information or cybersecurity breaches noted over the last

three years resulting in an insurance claim.

Continued investment in cyber-crime prevention and information

security programme. Regular security scanning across eCommerce

sites with penetration testing completed on new sites.

Regular Group IT Board and Audit Committee updates on the

Group IT strategy and key Group IT risks.

Technological

Digital transformation



The risk of the Group implementing an

ineffective digital strategy.

and/or potential negative

consequences associated with

integrating digital technologies

within the business may impact our

targeted growth.

A failure to adopt new technologies

Each core business function has a three-year digital roadmap that

Cyber security and data

protection 

The Group is dependent on robust IT

systems and infrastructure for most of

our principal business processes which

may be impacted by the significant

growth of cyber threats.

An adverse event could result

in significant financial loss or

reputational damage due to the

potential loss of, or unauthorised

access to sensitive financial,

personal and commercial

information. This includes the

Group’s intellectual property (“IP”) or

that of our customers.

An adverse event could also result

in significant negative impacts to

our operational capabilities through

ransomware or denial of service

attacks.

frauds.

Financial and reputational loss may

also occur through targeted attacks

such as phishing or impersonation

Building on the ESG training provided to the Board in 2022, further external
ESG training was provided to both the Audit and ESG Committees in
January 2024. This training focused on Glanbia’s current and upcoming
reporting obligations, market insight benchmarking and the responsibilities
of the Audit Committee and the Board in relation to the EU Corporate
Sustainability Reporting Directive (“CSRD”) reporting.

FY 2023 ESG reporting built on the processes and structures established in
2022 including the issuance of the first Glanbia GRI report in 2023. For more
information on other developments and progress made on the environment
topic, please refer to the Sustainability Report on pages 48 to 63.

Strong performance was noted against all of the Group’s 2023 ESG target
areas with continued progress taking place in the development of the
Group’s Scope 3 strategy. In 2023, 63% (2022: 45%) of our electricity usage
was by way of renewable electricity, see page 55 for more information.

In preparation for the CSRD requirements, the Group also conducted a
Double Materiality assessment in conjunction with our external advisors. This
is designed to determine what disclosures are relevant under the mandatory
sustainability standards, required under CSRD, with no new ESG topic noted
as a result of this exercise.

The Group will continue to update the data systems and processes to meet
the CSRD disclosure and evolving ESG legislative requirements.

The Board will be heavily focused on the delivery of the Group’s Scope 3
strategy and the continuing commitment to its key targeted reductions
in areas such as carbon, water, waste and packaging. Progress in the
development of Glanbia’s approach to nature and the ongoing work to
enable enhanced supply chain transparency will also continue to be closely
examined.

The Group is committed to supporting our customers’ ESG ambitions,
particularly in the provision of sustainability data in relation to carbon, and
assurances on ingredient sourcing risks to meet their own public facing
targets.

The Audit and ESG Committees will continue to focus on monitoring
the effectiveness of the environment metrics and regulatory disclosure
requirements to ensure progress is being maintained in line with
expectations. Regular updates will continue to be provided to the Board
to ensure climate-related impacts are understood and embedded in the
Group’s governance, operational and strategic model.

The Group has deployed leading ERP technologies which support the
automation of our key business processes. The Group successfully upgraded
its ERP system to SAP’s latest technology and associated hardware,
which brings enhanced machine learning and artificial intelligence (“AI”)
capabilities to the Group.

Fraud and cyber security exercises completed with vulnerability scans
implemented across all eCommerce sites.

Continued to integrate our ERP system into acquisitions as part of the IT
roadmap.

A reassessment of the optimal manner in which to leverage the D2C platform
across GPN was performed during the year. This will help enable resources to
be applied to the opportunities best matching the brand strategy.

With the latest ERP technology now in place, management will focus our
digitisation programme on continuing to enhance the Group’s supply
chain, customer engagement, manufacturing, operations, finance, and HR
systems.

A Chief Digital & Transformation Officer has been appointed to the Group
Operative Executive to ensure that the Group’s global support functions are
structured to efficiently deliver high value business services.

Continue to progress the Tirlán (formerly Glanbia Ireland) and Leprino
segregation and separation of IT infrastructure and applications from the
Group in line with the transition agreements.

Continue to assess the potential benefits and risks associated with emerging
AI capabilities as part of cyber risk considerations.

Cyber security and anti-fraud control reviews were conducted against the
US Department of Commerce and National Institute of Standards and
Technology Cybersecurity Framework to continue to gain comfort over
the effectiveness of the Group’s ransomware prevention, detection and
response plans.

Additional ransomware detection capability rolled out to SAP/mission
critical services. The Group ransomware response policy, playbook, roles
and responsibilities were updated and a ransomware simulation workshop
was completed with a subcommittee of the Board, members of the Group
Operating Executive and relevant Group functional leads in October 2023.

Rolled out phishing simulations across the Group, implemented a new
firewall configuration management service and introduced a new multi-
factor authentication solution for employee remote access.

Continue progress on the effective integration of our IT systems and related
Group monitoring controls within our recent acquisitions.

The cross-functional teams involved will continue to ensure our IP is
protected through appropriate IT security measures, patent applications
and related control procedures. Continue to roll out our multi-factor
authentication to all employees.

Ongoing cybersecurity awareness will continue to be actively promoted
through regular IT awareness communications, information security training
and other initiatives to keep employees updated on new and emerging IT
threats. This will continue in 2024 with follow up workshops and awareness
sessions with the leadership team and Board representatives.

Continue to execute fraud and cyber security reviews and vulnerability scans
across all eCommerce sites.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Principal risks and uncertainties continued

Link to strategic priorities (see pages 15 to 18)

Grow the core

Optimise our business

Disciplined capital allocation

Risk trend

 Increasing

 Stable



Decreasing

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Operational/Regulatory
Talent management 
The ability to attract, develop, engage
and retain appropriately qualified talent
is critical if the Group is to continue to
compete effectively.

Failure to retain, attract and/or
develop key talent, particularly
in emerging areas of talent need,
will impact our ability to deliver
sustainable value for all our
stakeholders.

Health and safety 
The risk of non-compliance with health
and safety and/or building regulations
resulting in injuries or a loss of capacity
or closure at a major site.

Health and safety risks to our people
and the wider public.

Reputational damage, regulatory
penalties and an inability to service
customer requirements due to
capacity restrictions or plant
closure.

The Group’s purpose, vision and values are embedded across all
levels of the Group through defined training programmes.

A remuneration policy is in place with clear links to our strategic
objectives. This policy includes a balanced approach to short and
long-term incentives and is aimed at mitigating weak performance
in any one year and utilising appropriate retention tools for key
individuals.

Strong recruitment processes, effective human resources policies
and procedures, robust succession management planning and
talent management initiatives are in place.

Global centres of excellence are in place for a number of functions
including talent acquisition, learning & development and total
reward.

Our smart working hybrid model continues to operate effectively
across the Group.

An ESG Board subcommittee is in place and a member of the
Group Operating Executive is responsible for overseeing health and
safety related performance.

The Group Operating Executive monitor the progress of our key
health and safety, food safety and quality and environmental
objectives. This review is focused on the effectiveness of the
framework, adherence to Group policies and objectives and timely
implementation of corrective actions.

All sites are subject to regular health and safety audits by the
relevant government bodies and external assurance providers.

The Group monitors overall safety and loss prevention performance
through the independently assessed GRMS programme. This
enables a unified approach to identifying, mitigating, and
engaging the workforce in continual improvement activities, while
allowing tailored training based on people’s roles.

Dedicated health and safety officers are in place across core
segments.

Supply chain 
The risk that ongoing geopolitical
tensions, evolving on-farm environmental
requirements and/or heightened inflation
create significant headwinds for the
business resulting in prolonged supply
chain disruptions.

Product safety and
compliance 
A breakdown in control processes may
result in contamination of products
leading to a breach of existing food
safety legislation and potential consumer
or employee illness.

A significant geopolitical or
pandemic event could result
in supply chain constraints,
inflationary impacts and/
or negative impacts on our
international sales channels.

Milk availability and pricing can vary
from quarter-to-quarter
and year-to-year with resulting
impacts on production levels and
input costs. This can be exacerbated
by greater-than-expected
inflationary impact.

Appropriate short-term safety stocks are in place for our core raw
materials and detailed monitoring of raw material delay risks is in
place with alternative sources of supply identified if required.

Management aim to achieve a broad geographic spread for our
supplier base and other functional ingredient options.

Dairy activities in our joint venture operations include established,
robust business models to manage this risk.

Our milk and procurement strategy teams work proactively
with the US patron supplier base to ensure the business remains
competitive in its supplier offerings to underpin long-term
sustainable supply including the provision of non-pricing value-
added initiatives.

Reputational damage, regulatory
penalties or restrictions, product
recall costs, compensation
payments, lost revenues and
reduced growth potential.

The sudden introduction of more
stringent regulations such as
additional labelling requirements
may also cause operational
difficulties.

The global reporting tool and core Glanbia Quality Standards
(“GQS”) programme continues to be in place.

Considerable focus is placed on ensuring suitably qualified and
experienced staff are employed within the Group.

New regulatory requirements and emerging issues are captured
with appropriate team training provided where necessary. A
global Quality and Food Safety regulatory review was completed
to identify and address any opportunities for improvement in this
area.

Management ensure that appropriate product liability insurance is
maintained.

80 Glanbia plc | Annual Report and Financial Statements 2023

Continued the implementation of Grow@Glanbia, the Group’s multi-year

Continuing the successful execution of our people strategy which aims

HR transformation programme designed to support a future-ready, people

to sustain a high-performing, values driven and respectful culture with a

centred organisation and high-performance culture.

diversity and inclusion focus.

The People Success Organisation is now operating through a centralised

DE&I targets are included in senior leader incentives. To assist target delivery,

team which supports employees and managers in our major markets and

the Group is formally measuring female management representation with

enables our wider HR teams to focus more strategically.

Effective management focus ensured the impacts of a competitive labour

particular focus on hiring and retention. Through engagement surveys,

employee attitudes toward DE&I measures will continue to be monitored.

market were carefully navigated.

Monitoring the evolving talent retention risks driven by inflationary pressures

Continued investment in building an actively inclusive culture, growing

gender and racial representation and creating more equitable work

practices and benefits.

The Group offers a range of best-in-class tailored programmes which

include Leading the Future, Leading to Accelerate for emerging female

leaders, and Leading the Glanbia Way that are all aligned to our leadership

capability model.

and remote working options.

Continuing to focus on the protection of our employees by engaging in

wellbeing and employee communication programmes to support the

Group’s smart working hybrid models.

Continued progress in our mission towards ‘Zero Harm’ and other health and

The Group HR and operational teams will continue to ensure ongoing

safety initiatives during the year as outlined on page 31. Glanbia had zero

surveillance and support across the Group to maintain business continuity

fatalities or critical work related injuries during the year.

and employee engagement and welfare programmes including:

Continued close monitoring of our accident rates with a clear focus on

• Sustaining operations in line with local geographical restrictions.

driving effective root cause analysis across the Group. Risk assessment

methods and leading indicators (“near miss” reporting) in place to help drive

sustainable improvement at site level.

Standardised Group Health and Safety, and Quality and Food Safety KPIs in

place aligned to industry benchmarks.

Automated Health and Safety KPI reporting is now circulated to the Group

Operating Executives and relevant VP roles.

• Ensuring clearly communicated site health and safety policies and

procedures are in place.

• Monitoring evolving regulations and working to ensure compliance with

the ESRS Health and Safety reporting requirements.

•

Implementing the Group’s health and safety policies and procedures in

all new acquisitions will continue to be a core focus.

Implementing effective corrective actions to address any improvement

opportunities identified.

Significant management effort continued to be deployed to prevent supply

The impact of price increases across our brand portfolio, which may disrupt

Constant review of future supply, demand and expected pricing of raw

materials through building relationships with suppliers. The Group’s

drive revenue growth.

whey price volatility exposures stabilised with strategic pricing initiatives

Ongoing engagement with our supply base to ensure sustainability of supply

undertaken by management.

at a level of pricing that is both commercial and competitive.

New commercial terms associated with our US joint venture were agreed as

Continuing to monitor the potential impacts of geopolitical tensions, the ESG

demand due to price elasticity, will continue to be monitored. Any potential

price increases will be managed against the Group’s ambition to continue to

chain disruptions.

outlined on page 97.

regulatory landscape and heightened inflation, particularly in relation to the

import of key raw materials and/or negative impacts on our international

sales channels. Effective action will be taken where required.

Robust quality and auditing standards continue to be maintained with

Maintaining standards as we integrate new acquisitions and optimise

routine ESG and Audit Committee reporting. A new Food Safety Auditing

our supply chain globally by encompassing a mix of owned and contract

programme was rolled out in 2023 to supplement existing programmes.

manufacturer facilities.

Invested significant management time in ensuring effective oversight of

The Food Safety Auditing programme will continue to be embedded in 2024

third-party manufacturing qualifications and ongoing compliance with

where audit follow-ups will be a key focus.

Glanbia’s food safety performance standards.

Ensuring all sites achieve or maintain a globally recognised food safety

Critical incident trends continue to be closely monitored to ensure effective

certification in 2024.

root cause analysis and implementation of appropriate corrective and

preventive actions from previous incidents.

Working to continuously improve our operations, particularly in the servicing

of higher risk product sectors, while reducing our environmental impacts in a

Each of our manufacturing sites are audited on an annual basis with

cost effective and sustainable manner.

internationally recognised audit schemes such as GFSI and NSF. All Glanbia

sites have maintained compliant or above audit scores.

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Operational/Regulatory

Talent management 

The ability to attract, develop, engage

and retain appropriately qualified talent

is critical if the Group is to continue to

compete effectively.

Failure to retain, attract and/or

develop key talent, particularly

in emerging areas of talent need,

will impact our ability to deliver

sustainable value for all our

stakeholders.

The Group’s purpose, vision and values are embedded across all

levels of the Group through defined training programmes.

A remuneration policy is in place with clear links to our strategic

objectives. This policy includes a balanced approach to short and

long-term incentives and is aimed at mitigating weak performance

in any one year and utilising appropriate retention tools for key

individuals.

Strong recruitment processes, effective human resources policies

and procedures, robust succession management planning and

talent management initiatives are in place.

Global centres of excellence are in place for a number of functions

including talent acquisition, learning & development and total

reward.

across the Group.

Our smart working hybrid model continues to operate effectively

implementation of corrective actions.

All sites are subject to regular health and safety audits by the

relevant government bodies and external assurance providers.

The Group monitors overall safety and loss prevention performance

through the independently assessed GRMS programme. This

enables a unified approach to identifying, mitigating, and

engaging the workforce in continual improvement activities, while

allowing tailored training based on people’s roles.

Dedicated health and safety officers are in place across core

segments.

Health and safety 

The risk of non-compliance with health

and safety and/or building regulations

resulting in injuries or a loss of capacity

or closure at a major site.

Health and safety risks to our people

An ESG Board subcommittee is in place and a member of the

and the wider public.

Group Operating Executive is responsible for overseeing health and

Reputational damage, regulatory

safety related performance.

penalties and an inability to service

The Group Operating Executive monitor the progress of our key

customer requirements due to

capacity restrictions or plant

health and safety, food safety and quality and environmental

objectives. This review is focused on the effectiveness of the

closure.

framework, adherence to Group policies and objectives and timely

Supply chain 

The risk that ongoing geopolitical

tensions, evolving on-farm environmental

requirements and/or heightened inflation

create significant headwinds for the

business resulting in prolonged supply

chain disruptions.

Product safety and

compliance 

A breakdown in control processes may

result in contamination of products

leading to a breach of existing food

safety legislation and potential consumer

or employee illness.

A significant geopolitical or

pandemic event could result

in supply chain constraints,

inflationary impacts and/

or negative impacts on our

international sales channels.

Milk availability and pricing can vary

from quarter-to-quarter

and year-to-year with resulting

impacts on production levels and

input costs. This can be exacerbated

by greater-than-expected

inflationary impact.

Appropriate short-term safety stocks are in place for our core raw

materials and detailed monitoring of raw material delay risks is in

place with alternative sources of supply identified if required.

Management aim to achieve a broad geographic spread for our

supplier base and other functional ingredient options.

Dairy activities in our joint venture operations include established,

robust business models to manage this risk.

Our milk and procurement strategy teams work proactively

with the US patron supplier base to ensure the business remains

competitive in its supplier offerings to underpin long-term

sustainable supply including the provision of non-pricing value-

added initiatives.

Reputational damage, regulatory

The global reporting tool and core Glanbia Quality Standards

penalties or restrictions, product

(“GQS”) programme continues to be in place.

recall costs, compensation

payments, lost revenues and

reduced growth potential.

The sudden introduction of more

stringent regulations such as

additional labelling requirements

may also cause operational

difficulties.

Considerable focus is placed on ensuring suitably qualified and

experienced staff are employed within the Group.

New regulatory requirements and emerging issues are captured

with appropriate team training provided where necessary. A

global Quality and Food Safety regulatory review was completed

to identify and address any opportunities for improvement in this

Management ensure that appropriate product liability insurance is

area.

maintained.

Continued the implementation of Grow@Glanbia, the Group’s multi-year
HR transformation programme designed to support a future-ready, people
centred organisation and high-performance culture.

Continuing the successful execution of our people strategy which aims
to sustain a high-performing, values driven and respectful culture with a
diversity and inclusion focus.

The People Success Organisation is now operating through a centralised
team which supports employees and managers in our major markets and
enables our wider HR teams to focus more strategically.

Effective management focus ensured the impacts of a competitive labour
market were carefully navigated.

Continued investment in building an actively inclusive culture, growing
gender and racial representation and creating more equitable work
practices and benefits.

The Group offers a range of best-in-class tailored programmes which
include Leading the Future, Leading to Accelerate for emerging female
leaders, and Leading the Glanbia Way that are all aligned to our leadership
capability model.

DE&I targets are included in senior leader incentives. To assist target delivery,
the Group is formally measuring female management representation with
particular focus on hiring and retention. Through engagement surveys,
employee attitudes toward DE&I measures will continue to be monitored.

Monitoring the evolving talent retention risks driven by inflationary pressures
and remote working options.

Continuing to focus on the protection of our employees by engaging in
wellbeing and employee communication programmes to support the
Group’s smart working hybrid models.

Continued progress in our mission towards ‘Zero Harm’ and other health and
safety initiatives during the year as outlined on page 31. Glanbia had zero
fatalities or critical work related injuries during the year.

The Group HR and operational teams will continue to ensure ongoing
surveillance and support across the Group to maintain business continuity
and employee engagement and welfare programmes including:

Continued close monitoring of our accident rates with a clear focus on
driving effective root cause analysis across the Group. Risk assessment
methods and leading indicators (“near miss” reporting) in place to help drive
sustainable improvement at site level.

Standardised Group Health and Safety, and Quality and Food Safety KPIs in
place aligned to industry benchmarks.

Automated Health and Safety KPI reporting is now circulated to the Group
Operating Executives and relevant VP roles.

• Sustaining operations in line with local geographical restrictions.

• Ensuring clearly communicated site health and safety policies and

procedures are in place.

• Monitoring evolving regulations and working to ensure compliance with

the ESRS Health and Safety reporting requirements.

•

Implementing the Group’s health and safety policies and procedures in
all new acquisitions will continue to be a core focus.

Implementing effective corrective actions to address any improvement
opportunities identified.

Significant management effort continued to be deployed to prevent supply
chain disruptions.

Constant review of future supply, demand and expected pricing of raw
materials through building relationships with suppliers. The Group’s
whey price volatility exposures stabilised with strategic pricing initiatives
undertaken by management.

New commercial terms associated with our US joint venture were agreed as
outlined on page 97.

The impact of price increases across our brand portfolio, which may disrupt
demand due to price elasticity, will continue to be monitored. Any potential
price increases will be managed against the Group’s ambition to continue to
drive revenue growth.

Ongoing engagement with our supply base to ensure sustainability of supply
at a level of pricing that is both commercial and competitive.

Continuing to monitor the potential impacts of geopolitical tensions, the ESG
regulatory landscape and heightened inflation, particularly in relation to the
import of key raw materials and/or negative impacts on our international
sales channels. Effective action will be taken where required.

Robust quality and auditing standards continue to be maintained with
routine ESG and Audit Committee reporting. A new Food Safety Auditing
programme was rolled out in 2023 to supplement existing programmes.

Maintaining standards as we integrate new acquisitions and optimise
our supply chain globally by encompassing a mix of owned and contract
manufacturer facilities.

Invested significant management time in ensuring effective oversight of
third-party manufacturing qualifications and ongoing compliance with
Glanbia’s food safety performance standards.

Critical incident trends continue to be closely monitored to ensure effective
root cause analysis and implementation of appropriate corrective and
preventive actions from previous incidents.

Each of our manufacturing sites are audited on an annual basis with
internationally recognised audit schemes such as GFSI and NSF. All Glanbia
sites have maintained compliant or above audit scores.

The Food Safety Auditing programme will continue to be embedded in 2024
where audit follow-ups will be a key focus.

Ensuring all sites achieve or maintain a globally recognised food safety
certification in 2024.

Working to continuously improve our operations, particularly in the servicing
of higher risk product sectors, while reducing our environmental impacts in a
cost effective and sustainable manner.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Principal risks and uncertainties continued

Link to strategic priorities (see pages 15 to 18)

Grow the core

Optimise our business

Disciplined capital allocation

Risk trend

 Increasing

 Stable



Decreasing

Risk

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Operational/Regulatory continued

Acquisition/Integration

The anticipated benefits of acquisitions
may not be achieved if the Group fails to
conduct effective due diligence, complete
the transaction or properly integrate the
acquired businesses.

Below expected performance of
the acquired business and the
diversion of management attention
to integration efforts could result in
significant value destruction.

The Board approves the business case and funding requirements
for all significant investments and has acquisition integration
processes in place to monitor the performance of acquired
businesses.

The Chief Corporate Development Officer and the Development
Committee are in place to oversee acquisition and divestiture
related activity.

Acquired entity management teams are typically strengthened
by the transfer of experienced Glanbia managers, which assists in
increasing the efficiency of integration efforts.

Mandatory post-acquisition completion and significant capital
expenditure project reviews are conducted, with regular Audit
Committee updates.

The Group completed the sale of its shareholdings in its Glanbia Cheese

The Board will continue to review the Group’s overall portfolio as part

Limited and Glanbia Cheese EU Limited (collectively “Glanbia Cheese”)

of its strategic review processes and will evaluate potential acquisition

mozzarella joint ventures to its joint venture partner Leprino Foods Company

opportunities to broaden the portfolio in this context that will drive growth

in April 2023.

and assist the Group in achieving its ambition.

The Group also completed the divestment of Aseptic Solutions, a small US

Acquisition integration and post-acquisition review processes will continue

bottling facility, in March 2023.

the strategic review performed.

Both of the disposed businesses were deemed non-core assets arising from

The Group completed the acquisition of the B2B bioactive ingredients

business of PanTheryx in quarter four 2023 for an initial consideration of $45.1

million.

The Audit Committee assessed the impairment review of goodwill and

intangibles, including an assessment of the current global economic

environment, as outlined on page 114 with no issues noted.

to be monitored through Board and/or Audit Committee reviews. The

continuing rollout of the Group ERP system, SAP, across all new acquisitions

is seen by the Board as a key enabler in ensuring an effective and consistent

control environment is maintained across the Group.

The Audit Committee will continue to review the impairment testing

methodology, inputs, assumptions, sensitivity analysis and results of any

material businesses performing below expectations.

Financial
Taxation changes 
The Group’s tax strategy may be
impacted by legislative changes to local
or international tax rules.

The Group may be exposed to
increased tax liabilities.

The Group employs a team of tax professionals to support it in
ensuring compliance with legislative requirements globally.

We constructively engage with tax authorities where appropriate
and we engage advisors to clarify tax legislation to ensure that we
achieve compliance with relevant tax law across the jurisdictions in
which we operate.

The Audit Committee is routinely updated on the outcome of tax
authority reviews. No material issues arose in any such reviews in
recent years.

The Audit Committee received a detailed management presentation

Management will continue to monitor developments in international

on our tax structures and controls, the status of tax audits, the ongoing

tax legislation, with a focus on maintaining the Group’s compliance with

management of our current operations, overview of the global tax

environment and evolving tax legislation.

legislative requirements, including the new requirements following the

introduction of the Pillar Two model rules in Ireland and other jurisdictions

Based on legislation in effect at 30 December 2023 and current financial

where the Group has operations.

projections, the Group does not expect to pay a material top-up tax with

The Group will continue to engage external tax advisors where required to

respect to its 2024 financial year (the year ending 4 January 2025). The Group

clarify tax legislation to ensure that we achieve compliance with relevant

is continuing to assess the impact of the Pillar II income taxes legislation on

tax laws across the jurisdictions in which we operate. Proactive engagement

its future financial performance.

with tax authorities, when appropriate, will also continue.

82 Glanbia plc | Annual Report and Financial Statements 2023

Risk



Operational/Regulatory continued

Acquisition/Integration

The anticipated benefits of acquisitions

may not be achieved if the Group fails to

conduct effective due diligence, complete

the transaction or properly integrate the

acquired businesses.

Financial

Taxation changes 

The Group’s tax strategy may be

impacted by legislative changes to local

or international tax rules.

Potential impact

Mitigation

Developments in 2023

2024 focus areas

Below expected performance of

the acquired business and the

The Board approves the business case and funding requirements

for all significant investments and has acquisition integration

diversion of management attention

processes in place to monitor the performance of acquired

to integration efforts could result in

businesses.

significant value destruction.

The Chief Corporate Development Officer and the Development

Committee are in place to oversee acquisition and divestiture

related activity.

Acquired entity management teams are typically strengthened

by the transfer of experienced Glanbia managers, which assists in

increasing the efficiency of integration efforts.

Mandatory post-acquisition completion and significant capital

expenditure project reviews are conducted, with regular Audit

Committee updates.

The Group completed the sale of its shareholdings in its Glanbia Cheese
Limited and Glanbia Cheese EU Limited (collectively “Glanbia Cheese”)
mozzarella joint ventures to its joint venture partner Leprino Foods Company
in April 2023.

The Board will continue to review the Group’s overall portfolio as part
of its strategic review processes and will evaluate potential acquisition
opportunities to broaden the portfolio in this context that will drive growth
and assist the Group in achieving its ambition.

The Group also completed the divestment of Aseptic Solutions, a small US
bottling facility, in March 2023.

Both of the disposed businesses were deemed non-core assets arising from
the strategic review performed.

The Group completed the acquisition of the B2B bioactive ingredients
business of PanTheryx in quarter four 2023 for an initial consideration of $45.1
million.

The Audit Committee assessed the impairment review of goodwill and
intangibles, including an assessment of the current global economic
environment, as outlined on page 114 with no issues noted.

Acquisition integration and post-acquisition review processes will continue
to be monitored through Board and/or Audit Committee reviews. The
continuing rollout of the Group ERP system, SAP, across all new acquisitions
is seen by the Board as a key enabler in ensuring an effective and consistent
control environment is maintained across the Group.

The Audit Committee will continue to review the impairment testing
methodology, inputs, assumptions, sensitivity analysis and results of any
material businesses performing below expectations.

The Group may be exposed to

The Group employs a team of tax professionals to support it in

increased tax liabilities.

ensuring compliance with legislative requirements globally.

We constructively engage with tax authorities where appropriate

and we engage advisors to clarify tax legislation to ensure that we

achieve compliance with relevant tax law across the jurisdictions in

which we operate.

recent years.

The Audit Committee is routinely updated on the outcome of tax

authority reviews. No material issues arose in any such reviews in

The Audit Committee received a detailed management presentation
on our tax structures and controls, the status of tax audits, the ongoing
management of our current operations, overview of the global tax
environment and evolving tax legislation.

Based on legislation in effect at 30 December 2023 and current financial
projections, the Group does not expect to pay a material top-up tax with
respect to its 2024 financial year (the year ending 4 January 2025). The Group
is continuing to assess the impact of the Pillar II income taxes legislation on
its future financial performance.

Management will continue to monitor developments in international
tax legislation, with a focus on maintaining the Group’s compliance with
legislative requirements, including the new requirements following the
introduction of the Pillar Two model rules in Ireland and other jurisdictions
where the Group has operations.

The Group will continue to engage external tax advisors where required to
clarify tax legislation to ensure that we achieve compliance with relevant
tax laws across the jurisdictions in which we operate. Proactive engagement
with tax authorities, when appropriate, will also continue.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Risk management continued

Going concern
Glanbia’s business activities, together
with the main factors likely to affect its
future development and performance,
are described in the Strategic Report on
pages 1 to 85. After due consideration
and review, the Directors have a
reasonable expectation that the Group
has adequate resources to continue in
operational existence for a period of at
least 12 months from the date of approval
of the Financial Statements.

The Group therefore continues to adopt
the going concern basis of accounting
in preparing its Financial Statements. In
reaching this conclusion the Directors
have given due regard to:
• Available cash resources, cash

generation from operations, liquidity,
borrowing facilities and related
covenant requirements which taken
together, provide confidence that
Glanbia will be able to meet its
obligations as they fall due. Further
information on the Group’s bank
facilities is provided in Note 25 to the
Financial Statements and outlined in
the Chief Financial Officer’s review on
pages 40 to 45;

• Glanbia’s financial risk management
policies as described in Note 30 to
the Financial Statements, the nature
of its business activities and the
factors likely to impact our operating
performance and future growth; and

• The general macroeconomic

environment including inflation, high
interest rates and the cost-of-living
crisis exacerbated by the ongoing
war in Ukraine, geopolitical tensions,
climate change, the recoverability of
trade receivables, inventory and other
assets.

Long-term viability statement
Assessment of prospects
In accordance with the Code and Listing
Rule 6.1.82 (3) of Euronext Dublin Listing
Rules, the Directors have assessed the
viability of the Group and its ability to
meet its liabilities as they fall due over
a period extending to 2026. This period
was chosen as it is aligned to the Group’s
budget and strategy plans as approved
at the Board’s strategy review session
in December 2023. The Board considers
this the most appropriate period to
assess the Group’s prospects taking into
account its current financial position,
the Group’s strategy and business model
and the potential impact arising from the
principal risks and uncertainties. Factors
considered in assessing long-term
prospects include:

(a) The Group’s current position
• A team of talented and committed
people, focused on the delivery of
Group targets in line with the Group’s
purpose, vision and values.

• Strong market positions in the wholly-
owned segments GPN and GN and a
robust joint venture business model in
place.

• Global nutrition market trends remain
positive and underpin the execution of
the Group’s strategic ambition.

• Key long-term customer relationships,

brands with strong equity and
leadership positions in ingredients.

• Recent acquisition of the B2B bioactive
ingredients business of PanTheryx,
which is highly complementary to
the capabilities in GN Nutritional
Solutions.

• Completion of a €100 million share

buyback programme. Share buyback
programmes support the Board’s
confidence in the strength of the
Group’s financial position.

• Net debt at year end decreased by
$241.3 million versus the prior year,
primarily due to the strong cash
generation of the Group, and the net
impact of M&A activity and returns to
shareholders. The net debt to adjusted
EBITDA ratio remained low at 0.5
times with continuing strong cash
generation.

See the Chief Financial Officer’s review

on pages 40 to 45 for more detail.

• New commercial terms associated

with our US joint venture were agreed
effective January 2024, whereby
Glanbia will recognise commissions
earned on the sale of joint venture
products. Under previous commercial
terms, Glanbia recorded the gross
value of revenues and corresponding
cost of sales on joint venture products
sold. The change in commercial terms
will only impact the recognition and
presentation of revenues and cost of
sales from 2024 onwards, and will not
have any material impact on profit.
• Clear focus on and prioritisation of the
development of a diverse and talented
team which remains central to our
strategy as outlined in the People
section on pages 28 to 31.

• The Group continues to invest for

growth, with all key strategic capital
expenditure projects on track and the
acquisition of the bioactive ingredients
business of PanTheryx completed in
quarter four 2023.

• Customer demand has sustained in

GPN following the 2022 price increases
to continue mitigation of input cost
inflation.

• Solid progress against the stated

environmental, social and governance
objectives as outlined in the ESG
Committee report on pages 116 to 120.
• Ambition to grow through both organic
investment and acquisition activity
within a framework of clear capital
allocation priorities.

(b) The Group’s strategy and business
model
• The Group continues to evolve as a

See the Group’s business model on pages

22 to 23 and strategy on pages 15 to 18
for more detail.

focused, purpose-led global nutrition
company via its two growth platforms,
GPN and GN, and through its strategic
joint venture.

• The strategic agenda progressed with
the completion of the sale of Glanbia
Cheese Limited and Glanbia Cheese
EU Limited (collectively “Glanbia
Cheese”) mozzarella joint ventures
to the Group’s joint venture partner
Leprino Foods Company and the
divestment of Aseptic Solutions, a
small non-core US bottling facility.
• Clearly articulated business model
with well-defined Group growth
targets focused on building GPN
top line growth and driving earnings
to 2026 from GPN and Nutritional
Solutions (“NS”).

• Change in the Group’s presentation
currency from euro to US dollar to
reduce the potential impact of foreign
exchange volatility in future reported
earnings. This came into effect from
1 January 2023.

(c) Principal risks related to the Group’s
business
See pages 76 to 83 for a detailed
description of each of the Group’s
principal risks, including climate change
risk, related mitigation measures and
2024 focus areas.

Assessment of viability
The Directors’ assessment of the Group’s
viability has been made with reference to
the 2023 performance, the principal risks
and uncertainties including emerging
risks facing the Group and how these
are managed within the Board’s risk
appetite as detailed on pages 75 to
83. The Directors carried out a robust
assessment of the consolidated financial
forecast for the current year and
financial projections for future years
to 2026 during its strategy and budget
review session in December 2023 with
due consideration to the actual and
potential consequences of the ongoing
war in Ukraine, geopolitical tensions,

84 Glanbia plc | Annual Report and Financial Statements 2023

Conclusions
Having considered these elements and
the volatile global political landscape,
the Board assessed the prospects and
viability of the Group in accordance with
the UK Corporate Governance Code
requirements.

The Board has a reasonable expectation
that the Group will be able to continue
in operation and meet its liabilities
as they fall due over the period of the
assessment. The Board does not expect
any reasonably anticipated geopolitical
tensions, the ongoing war in Ukraine,
Middle East tensions, climate change
impacts or general macroeconomic
condition to impact the Group’s long-
term viability or ability to continue as a
going concern. The Board, in considering
its dividend policy for the years to
2026, believes it will have sufficient
distributable reserves to pay dividends.
The Board assesses the Group’s key
financial metrics, liquidity position and
projected cash flows before declaring
interim and proposing final dividend.

climate change risks and the general
macroeconomic environment particularly
with respect to the significant
judgements and estimates made in the
application of its accounting policies.
The Board reviewed the assessment
of the Group’s prospects made by
management, including:

• The development of a rigorous

planning process, the outputs of which
are comprised of a strategic plan, a
consolidated financial forecast for the
current year and financial projections
for future years covering the period of
the plan;

• A comprehensive review of the

strategic plan as part of its annual
strategy review, with regular
monitoring of the achievement of
strategic objectives taking place at
each Board meeting;

• Assumptions are developed at both
Group and Business Unit levels and
are subject to detailed examination,
challenge and sensitivity analysis by
management and the Directors;
• A consideration of how the impact
of one or more of the principal risks
and uncertainties, outlined on pages
76 to 83, could materially impact the
Group’s performance, solvency or
liquidity; and

• The impact of climate change on the
Financial Statements as outlined in
Note 2. The assessment concluded
that climate change is not expected to
have a material impact on the viability
of the Group in the short term. The
material climate risk themes which will
require close monitoring in the medium
and long term are summarised on
page 65.

These considerations include external
factors such as the impacts of the high
levels of inflation and interest rates;
lower economic growth and geopolitical
tension, particularly in our key areas
of operation; currency exchange rate
movements, principally the USD/
euro and USD/sterling rate; increased
regulations; and internal factors such as
the strategic plan under-delivering; the
loss of a key production site; or a major
food safety or health and safety related
event. These considerations also took into
account additional mitigating measures
available to the Group, including the
ability to reduce capital expenditure and
the potential availability of additional
debt facilities. The Board is satisfied that
sufficient financial headroom exists to
address the potential negative impacts
arising from the events considered.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report
Introduction from the Group Chairman

Robust and
resilient
governance

Donard Gaynor
Group Chairman

“Maintaining and promoting the
highest standard of corporate
governance is essential to supporting
the delivery of our strategy.”

86 Glanbia plc | Annual Report and Financial Statements 2023

Dear Shareholder,
On behalf of the Board, it is my pleasure
to present the Corporate Governance
Report for the year ended 30 December
2023. We have continued to deliver
sustained growth and the Group
maintains focus on continuing to deliver
on and exceed our targets. Maintaining
and promoting high standards of
corporate governance is essential to
supporting the delivery of this strategy.
It is also a vital element of an effective
board, whose primary role is to deliver
robust corporate governance.

A performance driven, purpose-
led global nutrition company
We are driven by healthier lifestyles and
our purpose is to deliver better nutrition
for every step of life’s journey. We aim to
do this through focused, scalable growth
and continue to progress our strategic
agenda presented at our Capital Markets
Day in November 2022.

Leadership succession
Hugh McGuire was appointed
Chief Executive Officer of Glanbia,
Executive Director and member of the
Development Committee, effective
1 January 2024. The Board and
Nomination and Governance Committee
diligently planned for Siobhán Talbot’s
succession, and we are delighted to have
appointed a leader of Hugh’s calibre to
the role. Full biographical details for Hugh
McGuire can be found on page 88.

Board refreshment
Glanbia recognises the importance of
continued Board refreshment and the
benefit of appointing Directors with
varied perspectives and experience.
Gabriella Parisse was appointed as an
Independent Non-Executive Director and
member of the Development Committee
effective 1 June 2023, increasing female
Board membership to 46%. This follows
the reduction in the representation of
Tirlán Co-operative Society Limited (the
“Society”) on the Board to three on 4 May
2023, when both Patsy Ahern and John
Murphy retired from the Board. I thank
Patsy Ahern and John Murphy sincerely
for their service and commitment to
the Board during their tenure. Full
biographical details for Gabriella can be
found on page 91.

On 30 December 2023, Róisín Brennan
succeeded Dan O’Connor as Senior
Independent Director. I’d like to thank Dan
for his significant contribution during his
time as Senior Independent Director.

Sustainability
Sustainability remains a key focus for
the Group and we continued to prioritise
significant sustainability projects in 2023.
We are committed to delivering better
nutrition in a sustainable manner and
to our ambitious Environmental Social
and Governance (“ESG”) goals. Our ESG
strategy is grounded on clear science-
based targets and we are proud to have
recently committed to the UN 2030 Agenda
for Sustainable Development. We are also
proud to report that our first ESG targets set
in 2021 under the 2018 Long Term Incentive
Plan were met in full.

The Group is committed to transparent
reporting of our environmental and
social impact and were pleased to have
published our first Global Reporting
Initiative (“GRI”) sustainability report in
May 2023, in accordance with the GRI
standards.

Further details on our sustainability
strategy can be found on pages 46 to 71.

Stakeholder engagement
Stakeholder engagement, and
understanding the views of our
stakeholders, is a core part of my role
as Group Chairman. During 2023,
representatives of the Group held
meetings with shareholders and attended
a number of investor conferences in
the UK, Europe and the USA. Meetings
were held face-to-face where possible
and included an investor event in
London. Additionally, the Remuneration
Committee completed a shareholder
consultation process as part of the review
of the remuneration policy (for the period
2024 to 2026) and engaged with proxy
advisors and their feedback is reflected
in the remuneration policy which was
approved by the Board on 21 February
2024 and will be put to shareholders for
their consideration at the 2024 AGM of
the Company. These meetings provided
a valuable opportunity to outline the
Board’s priorities and perspectives
on certain matters and to ascertain
shareholders’ views on a wide range
of topics such as Board composition,
succession planning, our strategy, capital
allocation policies and our approach to
sustainability and remuneration.

committed to building a safe, inclusive
and diverse organisation. The Board
received a number of updates during
2023 on how the Group’s culture and
values are embedded and the Board is
committed to fostering a supportive,
inclusive and diverse culture to create
a safe space for employees to be
themselves at work. ‘Together We Are
More’ is part of Glanbia’s Diversity,
Equality and Inclusion (“DE&I”) vision
that the business truly stands by. The
more included we feel, the more we can
achieve together.

We have a robust DE&I policy with a
framework for Employee Resource Groups
(“ERGs”) to ensure that all employees can
network, bring their true selves to work
and thrive. Our ERGs play a valuable
role in providing a vehicle for Glanbia to
listen to employee voices and to address
the needs and barriers their members
may face. This year our ERGs for female,
multicultural and LGBTQIA+ employees
increased in members, furthered
their agendas and hosted a number
of inspirational speakers who bravely
shared their stories, created awareness of
barriers and educated many on how to be
better allies to our colleagues.

For more on our culture and values see

pages 28 to 31 and 95, and for DE&I
policies see page 30.

Employee engagement
Employee engagement is key to a strong
internal culture. I am delighted to say that
in 2023 we resumed in-person employee
roadshows, bringing our leaders to meet
thousands of employees at townhall-
style meetings and giving us the
opportunity to reconnect and exchange
ideas with our people.

In 2023, Glanbia conducted an employee
engagement survey which highlighted an
overall good performance and identified
certain opportunities for improvement.
80% of the Group’s employees
participated in the survey which was
very encouraging. We’re listening to our
people and acting on their feedback.
Key areas of focus that our employees
are interested in are wellbeing,
communication and belonging.

joined the Group Operating Executive.
There were a number of changes in
the Committees during 2023, which
are discussed in more detail in the
Nomination and Governance Committee
Report on pages 121 to 125.

Board review
In 2023, the performance review of the
Board, its Committees and individual
Directors was externally facilitated by
Board Excellence. The outcome of this
review was positive. Further information
on the external Board review process and
results can be found on page 105.

Looking ahead
As a Board, we have a busy year ahead with
a number of governance priorities. We take
our legal and regulatory obligations seriously
and seek to demonstrate this through
consistent adherence to our obligations and
by reviewing and updating our governance
processes to reflect the latest developments
in best practice corporate governance and
to ensure continued compliance with the UK
Corporate Governance Code (the “Code”)
and the Irish Corporate Governance Annex
(the “Irish Annex”) (together the “Codes”).
The information contained in this report and
the Corporate Governance Statement has
been set out in a way to enable the reader
to evaluate how the principles in the Codes
have been applied.

We are currently planning our 2024 Annual
General Meeting (“AGM”) which will be held
on 1 May 2024 at 11.00 a.m. at The Newpark
Hotel, Castlecomer Road, Kilkenny, R95
KP63, Ireland. I encourage all shareholders
to either attend the AGM personally or use
their proxy vote in respect of the resolutions
to be considered. This will enable us to
obtain a better understanding of your
views. I also welcome questions from
shareholders either via our website www.
glanbia.com, by e-mail at groupsecretary@
glanbia.ie or in person at the AGM.

I would like to express my sincere thanks
to the Board, and on behalf of the
Board to our employees, colleagues
and partners worldwide, without whose
commitment and talents we could not
continue to deliver the high standard of
excellence for which Glanbia is known.

Further details on how we engage with our
stakeholders are set out on pages 50 to 51.

For more on our employee engagement

see pages 28 to 31.

Culture
The success of Glanbia derives from
the efforts, expertise and collaboration
of the people who work for the Group.
The Board and senior management are

Management and Committee
changes
Steve Yucknut succeeded Hugh McGuire
as CEO of Glanbia Performance Nutrition,
effective 1 January 2024 and has also

Donard Gaynor
Group Chairman

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCurrent Board of Directors and Senior Management
Group Chairman, Executive Directors and Secretary

Leading by
example

Date of appointment

Board tenure / Tenure

Skills and expertise

Experience

Donard Gaynor
Group Chairman and
Non-Executive Director

12 March 2013

Ten full years

Hugh McGuire
Chief Executive Officer
and Executive Director

Mark Garvey
Chief Financial Officer
and Executive Director

1 January 2024

12 November 2013

Five full years (over each of his
terms)

Ten full years

Extensive knowledge of the food
and beverage industry with
significant commercial acumen
and deep insight into international
business.

Extensive strategic, corporate
development and acquisition
experience. Strong leadership
qualities acquired from a successful
career within Glanbia plc.

Strong background in finance and
global executive management and
extensive experience in the food and
beverage industry.

Donard Gaynor was appointed
Group Chairman on 8 October
2020. Donard Gaynor retired in
December 2012 as Senior Vice
President of Strategy and Corporate
Development of Beam, Inc., the
premium spirits company previously
listed on the New York Stock
Exchange. A Fellow of Chartered
Accountants Ireland and the
American Institute of Certified
Public Accountants, he joined
Beam, Inc. in 2003 as Senior Vice
President and Managing Director –
International. Prior to this, he served
in a variety of senior executive
leadership roles with The Seagram
Spirits & Wine Group in New York
and was also Audit Client Services
Partner with the New York office
of PwC.

Hugh McGuire was appointed as
Chief Executive Officer on 1 January
2024. Hugh joined Glanbia in 2003
and previously held a range of senior
leadership roles across the Group.
He served as Chief Executive Officer
of Glanbia’s Performance Nutrition
business (“GPN”) from 2008 to 2023
where he led a period of substantial
growth in the business. He has been
a member of the Group Operating
Executive since 2013 and previously
served on the Board from June
2013 to April 2019. Prior to joining
Glanbia, he worked with McKinsey
& Company, Nestle and Leaf. Hugh
graduated with an M.Sc. in Food
Science from University College
Dublin and has a Diploma in
Accounting and Finance from the
Association of Chartered Certified
Accountants Ireland.

Mark Garvey was appointed
as Chief Financial Officer on
12 November 2013. Prior to joining
Glanbia he held the position of
Executive Vice President and Chief
Financial Officer with Sara Lee
Corporation, a leading global food
and beverage company. Mark also
held a number of senior finance
roles in the Sara Lee Corporation
in the US and Europe and prior
to that he worked with Arthur
Andersen in Ireland and the US. A
Fellow of Chartered Accountants
Ireland and the American Institute
of Certified Public Accountants,
Mark graduated from University
College Dublin with a Bachelor of
Commerce degree and Diploma in
Professional Accounting and has an
Executive MBA from Northwestern
University, Illinois, USA.

Key external appointments

None.

Director of ClonBio Group Limited

None.

Committee memberships

NGC

ESG

Key

Audit
Committee

Development
Committee

NGC

Nomination and
Governance
Committee

ESG

Environmental Social and
Governance Committee

Remuneration
Committee

Chair

88 Glanbia plc | Annual Report and Financial Statements 2023

Liam Hennigan
Group Secretary and Head of
Investor Relations

4 April 2022

One full year

In-depth knowledge of the
consumer goods sector, strategy,
finance, restructuring, mergers,
acquisitions, capital markets and
communications.

Liam Hennigan was appointed
Group Secretary and Head of
Investor Relations on 4 April 2022,
having previously held the position
of Group Director of Strategic
Planning and Investor Relations.
Liam joined the Group in 2014 as
Head of Investor Relations and later
took on added responsibility for
Strategic Planning. Liam previously
worked as a Corporate Finance
Director with PwC and prior to that
at Diageo plc where he worked in
brand innovation and marketing
procurement. Liam has lived and
worked extensively in the UK, USA,
Spain and Ireland. He holds a
degree in Food Technology from
University College Cork, as well as
an MBA from IE Business School,
Spain and a diploma in Accounting
from the Association of Chartered
Certified Accountants.

None.

UK Corporate Governance Code and Irish
Corporate Governance Annex Statement of
Compliance (the “Codes”)
The Board continues to be committed
to maintaining the highest standards of
corporate governance. This Corporate
Governance Statement describes how
throughout the financial year ended
30 December 2023, Glanbia applied the
principles of the Codes, and complied
with the provisions of the Codes with
the exception of the following explained
occurrences of non-compliance. The UK
Corporate Governance Code recognises
that an alternative to following a provision
may be justified in particular circumstances
where good governance is still achieved.
The rationale for these departures is
explained below.

Provision 11
(Composition of the Board of Directors)
Provision 11 provides that at least half the
Board, excluding the Chair, should be non-
executive directors whom the Board considers
to be independent. The Board is comprised
of 13 members: the Group Chairman, two
Executive Directors and ten Non-Executive
Directors including three representatives
nominated by the Society, with the
Independent Non-Executive Directors making
up 50% of the Board excluding the Group
Chairman. The current Board composition
reflects the relationship of the Company
with the Society which is documented in
the amended and restated Relationship
Agreement dated 5 May 2021 between Glanbia
plc and the Society.

Provision 12 (Appointment of Senior
Independent Director)
Dan O’Connor served as Senior Independent
Director from 1 May 2019 to 30 December
2023, having been appointed as an
Independent Non-Executive Director on
1 December 2014. While Mr O’Connor’s
tenure on the Board exceeded nine years on
1 December 2023, the Board is satisfied that
he demonstrated independence of character
and judgement for the entirety of his term as
Senior Independent Director.

Róisín Brennan, who was appointed as an
Independent Non-Executive Director on
1 January 2021, succeeded Dan O’Connor
as Senior Independent Director on
30 December 2023.

Provision 17 (Composition of the
Nomination & Governance Committee)
Provision 17 provides that a majority of
members of the Nomination and Governance
Committee (the “Committee”) should be
Independent Non-Executive Directors.
Membership of the Committee comprises

the Group Chairman, Róisín Brennan and
Dan O’Connor. While Mr O’Connor’s tenure
on the Board exceeded nine years on
1 December 2023, the Board believes that it
is appropriate for him to remain a member
of the Committee and Board until the 2025
AGM to facilitate ongoing Board succession
planning. The Board is satisfied that he
continues to demonstrate independence of
character and judgement and is free from
any business or other relationship that could
affect his judgement. The Board will review
the composition of the Committee during
2024 in order to comply with Provision 17.

Provision 19 (Chairman tenure)
In accordance with the Relationship
Agreement between Glanbia plc and the
Society, Donard Gaynor, (at the time an
Independent Non-Executive Director),
was appointed as the first Independent
of the Society Group Chairman of the
Company on 8 October 2020, having been
appointed to the Board on 12 March 2013.
In 2021, the Board unanimously agreed
that he will continue as Group Chairman
until his successor is appointed in 2025 to
facilitate ongoing effective Board renewal.
The Board believes that the extension of
the Group Chairman’s tenure for a limited
period beyond nine years is warranted in this
instance to facilitate effective succession
planning and the development of a diverse
Board. The Group Chairman’s performance
is evaluated annually and the Board is
satisfied that he continues to demonstrate
independence of character and judgement
and is free from any business or other
relationship that could affect his judgement.

Provision 38 (Pension contributions)
During 2023 we reviewed our workforce
pension arrangements so that our Executive
Directors would be aligned to the workforce
rate in Ireland. From 1 January 2023, the
pension contribution for the Group Managing
Director and Chief Financial Officer was
reduced from 26.5% and 25% of salary
respectively to 12% for both. As part of our
commitment to supporting the financial
wellbeing of our employees, the Group has
enhanced, effective 30 December 2023,
its employer contribution to our Defined
Contribution Scheme (the “DC Scheme”). DC
Scheme members can choose to participate
and Glanbia will match their contributions up
to a maximum of 12% in line with the Executive
Directors. Further details can be found in the
Remuneration Committee Report.

A description of how we have applied the
principles and detailed provisions of the Codes
is set out in this Corporate Governance report.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCurrent Board of Directors and Senior Management continued
Senior Independent Director, Non-Executive Directors

Róisín Brennan
Senior Independent Director and
Non-Executive Director

Paul Duffy
Non-Executive Director

Ilona Haaijer
Non-Executive Director

Jane Lodge

Non-Executive Director

Dan O’Connor

Non-Executive Director

Gabriella Parisse

Non-Executive Director

Kimberly Underhill

Non-Executive Director

Date of appointment

1 January 2021

Board tenure

Three full years

1 March 2021

Three full years

1 August 2022

One full year

1 November 2020

1 December 2014

1 June 2023

1 August 2022

Three full years

Nine full years

Less than one full year

One full year

Skills and expertise

Experience

Extensive strategic and financial
advisory experience across many
sectors including food and fast
moving consumer goods (“FMCG”).

Experienced Chairman and Chief
Executive Officer with extensive
knowledge of the consumer and
beverage industry with significant
strategic and brand experience.

Róisín Brennan is a former Chief
Executive of IBI Corporate Finance
Ltd and has over 20 years of
investment banking experience,
particularly advising public
companies in Ireland. She brings
strong strategic and financial
advisory experience across many
sectors including food and FMCG
to the Board. Róisín is currently a
Non-Executive Director of Ryanair
Holdings plc, Musgrave Group plc
and Dell Bank International DAC.
Formerly, she was a Non-Executive
Director of DCC plc from 2005 until
2016 and is also a former Non-
Executive Director of Hibernia REIT
plc, Wireless Group plc, Coillte DAC
and The Irish Takeover Panel. A
Fellow of Chartered Accountants
Ireland, Róisín graduated from
University College Dublin, Ireland
with a Bachelor of Civil Law degree.

Paul Duffy is a former Chairman
and CEO of Pernod Ricard North
America, a global leader in the
Wine and Spirits industry. During
his 25 year career with Pernod
Ricard, Paul held a number of senior
management positions including
Chairman and CEO roles at Pernod
Ricard UK, The Absolut Company
(Sweden) and Irish Distillers. He
served on the Pernod Ricard
worldwide management executive
committee. Paul is currently a
director of W.A. Baxter & Sons, a
United Kingdom Food Group and is
a former director of Corby Spirit and
Wine Limited, a leading Canadian
marketer and distributor of spirits
and wines listed on the Toronto
Stock Exchange. Paul is a Fellow
of Chartered Accountants Ireland
and is a graduate of Trinity College
Dublin, Ireland.

Extensive and significant
leadership experience of strategic
development, change management,
mergers and acquisitions and
leading complex, global businesses
in the food ingredients and
consumer sectors.

Ilona Haaijer is a former President
and CEO of DSM Food Specialties,
President of DSM Personal Care
and also previously served as CEO
of Bugaboo International, CEO
of Philips AVENT, Vice President
Corporate Strategy of Royal Philips
Electronics, and as a Consultant
at The Boston Consulting Group.
Ilona brings significant international
experience of food ingredient and
consumer oriented businesses
and is currently a Non-Executive
Director of Corbion N.V., an
Amsterdam based Euronext listed
food and bio-technology company.
Formerly, she was a Non-Executive
Director of RPC Group plc and Royal
Boskalis Westminster N.V.. Ilona
graduated from the University of
Groningen, Netherlands with an MA
in Business Economics.

In-depth knowledge of international

Strong, strategic leadership

business, management, corporate

transactions, corporate governance

and reporting gained from a

successful career with Deloitte.

acquired from 30 years

international and financial

services sector experience.

Significant experience in consumer

brand development, the food

ingredients industry, innovation

and strategic leadership of

multinational businesses.

Jane Lodge is a former Senior Audit

Dan O’Connor is currently Chairman

Gabriella is currently the President

Kimberly Underhill is a former Group

of Activate Capital Limited and

a Director of Oriel Windfarm

Limited. He is former Chairman

of International Personal Finance

plc and a former Non-Executive

and CEO of Velcro Companies

and has more than 35 years

of international experience in

consumer goods and business to

President, Consumer Business

North America of Kimberly-Clark.

During her 33 year career with

Kimberly-Clark, she held roles

business industries. Gabriella joined

within research and engineering,

Director of CRH plc. Dan is a former

Velcro Companies in October 2018

operations and marketing. Kimberly

Partner of Deloitte with extensive

knowledge and experience of

international businesses in a wide

range of sectors. Jane served on

the Deloitte UK Board of Partners

and was the UK Manufacturing

Industry Lead Partner. She is

currently a Non-Executive Director

of TI Fluid Systems plc, FirstGroup

plc and Bakkavor Group plc. She is

a former Non-Executive Director

of Devro plc, Sirius Minerals plc,

Costain Group plc and DCC plc. A

Fellow of the Institute of Chartered

Accountants in England and Wales,

Jane graduated from University of

President and Chief Executive

Officer of GE Consumer Finance

Europe and a former Senior Vice-

President of GE. He was Executive

Chairman of Allied Irish Banks plc

from 2009 until 2010. A Fellow of

Chartered Accountants Ireland. Dan

graduated from University College

Dublin, Ireland with a Bachelor of

Commerce degree and Diploma in

Birmingham, United Kingdom with a

Professional Accounting.

BSc in Geology.

as Chief Marketing Officer and

President of the Consumer division,

and prior to her appointment

as CEO in 2021 served as Chief

Growth Officer. Prior to Velcro

Companies, Gabriella served on

the Executive Committee of Tate &

Lyle plc, a global food ingredients

business, as President of Innovation

and Commercial Development,

reporting to the CEO. Previously,

Gabriella spent 26 years with

Johnson & Johnson in a variety

of global senior leadership roles.

Gabriella graduated from the

University of Rome, Italy with a

Masters Degree in Statistics and

Demographic Sciences.

Extensive and significant leadership

experience in US and international

consumer products businesses,

with particular strength in product

development, marketing, portfolio

management, brand-building,

strategic planning and international

business development.

served as Global President,

Kimberly-Clark Professional

and as President, Consumer

Europe. Kimberly is currently a

Non-Executive Director of Foot

Locker Inc., the global sportswear

and footwear retailer listed on

the New York Stock Exchange.

She also serves on the Board of

Trustees of Theda Care Regional

Medical Centre and is a Director

of The Menasha Corporation (a

privately held company that is

a packaging manufacturer and

provider of supply chain solutions).

Formerly, Kimberly chaired the

Network of Executive Women

and was a Director of the Food

Marketing Institute. Kimberly

graduated from Milwaukee School

of Engineering with a MSc in

Engineering Management, and

Purdue University, USA with a BSc in

Chemical Engineering.

Key external appointments

Committee memberships

Non-Executive Director of Ryanair
Holdings plc, Musgrave Group plc
and Dell Bank International DAC.

Non-Executive Director of W.A.
Baxter & Sons and Chairman of Irish
Children’s Museum CLG

Non-Executive Director of
Corbion N.V and Muziekgebouw
Eindhoven (Eindhoven Concert Hall).

Non-Executive Director of TI Fluid

Systems plc, FirstGroup plc and

Bakkavor Group plc.

Chairman of Activate Capital

Limited and Director of Oriel

Windfarm Limited.

President & CEO of Velcro

Companies.

Non-Executive Director of Foot

Locker Inc., and a Director of The

Menasha Corporation.

NGC

ESG

NGC

ESG

90 Glanbia plc | Annual Report and Financial Statements 2023

Róisín Brennan

Paul Duffy

Ilona Haaijer

Senior Independent Director and

Non-Executive Director

Jane Lodge
Non-Executive Director

Dan O’Connor
Non-Executive Director

Gabriella Parisse
Non-Executive Director

Kimberly Underhill
Non-Executive Director

Date of appointment

1 January 2021

Board tenure

Three full years

1 March 2021

Three full years

1 August 2022

One full year

1 November 2020

1 December 2014

1 June 2023

1 August 2022

Three full years

Nine full years

Less than one full year

One full year

Skills and expertise

Experience

Róisín Brennan is a former Chief

Executive of IBI Corporate Finance

Ltd and has over 20 years of

investment banking experience,

particularly advising public

companies in Ireland. She brings

strong strategic and financial

advisory experience across many

sectors including food and FMCG

to the Board. Róisín is currently a

Non-Executive Director of Ryanair

Holdings plc, Musgrave Group plc

and Dell Bank International DAC.

Formerly, she was a Non-Executive

Director of DCC plc from 2005 until

2016 and is also a former Non-

Executive Director of Hibernia REIT

plc, Wireless Group plc, Coillte DAC

and The Irish Takeover Panel. A

Fellow of Chartered Accountants

Ireland, Róisín graduated from

University College Dublin, Ireland

with a Bachelor of Civil Law degree.

Paul Duffy is a former Chairman

and CEO of Pernod Ricard North

America, a global leader in the

Wine and Spirits industry. During

his 25 year career with Pernod

Ricard, Paul held a number of senior

management positions including

Chairman and CEO roles at Pernod

Ricard UK, The Absolut Company

(Sweden) and Irish Distillers. He

served on the Pernod Ricard

worldwide management executive

committee. Paul is currently a

director of W.A. Baxter & Sons, a

United Kingdom Food Group and is

a former director of Corby Spirit and

Wine Limited, a leading Canadian

marketer and distributor of spirits

and wines listed on the Toronto

Stock Exchange. Paul is a Fellow

of Chartered Accountants Ireland

and is a graduate of Trinity College

Dublin, Ireland.

Extensive and significant

leadership experience of strategic

development, change management,

mergers and acquisitions and

leading complex, global businesses

in the food ingredients and

consumer sectors.

Ilona Haaijer is a former President

and CEO of DSM Food Specialties,

President of DSM Personal Care

and also previously served as CEO

of Bugaboo International, CEO

of Philips AVENT, Vice President

Corporate Strategy of Royal Philips

Electronics, and as a Consultant

at The Boston Consulting Group.

Ilona brings significant international

experience of food ingredient and

consumer oriented businesses

and is currently a Non-Executive

Director of Corbion N.V., an

Amsterdam based Euronext listed

food and bio-technology company.

Formerly, she was a Non-Executive

Director of RPC Group plc and Royal

Boskalis Westminster N.V.. Ilona

graduated from the University of

Groningen, Netherlands with an MA

in Business Economics.

Extensive strategic and financial

advisory experience across many

sectors including food and fast

moving consumer goods (“FMCG”).

Experienced Chairman and Chief

Executive Officer with extensive

knowledge of the consumer and

beverage industry with significant

strategic and brand experience.

In-depth knowledge of international
business, management, corporate
transactions, corporate governance
and reporting gained from a
successful career with Deloitte.

Strong, strategic leadership
acquired from 30 years
international and financial
services sector experience.

Significant experience in consumer
brand development, the food
ingredients industry, innovation
and strategic leadership of
multinational businesses.

Jane Lodge is a former Senior Audit
Partner of Deloitte with extensive
knowledge and experience of
international businesses in a wide
range of sectors. Jane served on
the Deloitte UK Board of Partners
and was the UK Manufacturing
Industry Lead Partner. She is
currently a Non-Executive Director
of TI Fluid Systems plc, FirstGroup
plc and Bakkavor Group plc. She is
a former Non-Executive Director
of Devro plc, Sirius Minerals plc,
Costain Group plc and DCC plc. A
Fellow of the Institute of Chartered
Accountants in England and Wales,
Jane graduated from University of
Birmingham, United Kingdom with a
BSc in Geology.

Dan O’Connor is currently Chairman
of Activate Capital Limited and
a Director of Oriel Windfarm
Limited. He is former Chairman
of International Personal Finance
plc and a former Non-Executive
Director of CRH plc. Dan is a former
President and Chief Executive
Officer of GE Consumer Finance
Europe and a former Senior Vice-
President of GE. He was Executive
Chairman of Allied Irish Banks plc
from 2009 until 2010. A Fellow of
Chartered Accountants Ireland. Dan
graduated from University College
Dublin, Ireland with a Bachelor of
Commerce degree and Diploma in
Professional Accounting.

Gabriella is currently the President
and CEO of Velcro Companies
and has more than 35 years
of international experience in
consumer goods and business to
business industries. Gabriella joined
Velcro Companies in October 2018
as Chief Marketing Officer and
President of the Consumer division,
and prior to her appointment
as CEO in 2021 served as Chief
Growth Officer. Prior to Velcro
Companies, Gabriella served on
the Executive Committee of Tate &
Lyle plc, a global food ingredients
business, as President of Innovation
and Commercial Development,
reporting to the CEO. Previously,
Gabriella spent 26 years with
Johnson & Johnson in a variety
of global senior leadership roles.
Gabriella graduated from the
University of Rome, Italy with a
Masters Degree in Statistics and
Demographic Sciences.

Extensive and significant leadership
experience in US and international
consumer products businesses,
with particular strength in product
development, marketing, portfolio
management, brand-building,
strategic planning and international
business development.

Kimberly Underhill is a former Group
President, Consumer Business
North America of Kimberly-Clark.
During her 33 year career with
Kimberly-Clark, she held roles
within research and engineering,
operations and marketing. Kimberly
served as Global President,
Kimberly-Clark Professional
and as President, Consumer
Europe. Kimberly is currently a
Non-Executive Director of Foot
Locker Inc., the global sportswear
and footwear retailer listed on
the New York Stock Exchange.
She also serves on the Board of
Trustees of Theda Care Regional
Medical Centre and is a Director
of The Menasha Corporation (a
privately held company that is
a packaging manufacturer and
provider of supply chain solutions).
Formerly, Kimberly chaired the
Network of Executive Women
and was a Director of the Food
Marketing Institute. Kimberly
graduated from Milwaukee School
of Engineering with a MSc in
Engineering Management, and
Purdue University, USA with a BSc in
Chemical Engineering.

Key external appointments

Committee memberships

Non-Executive Director of Ryanair

Holdings plc, Musgrave Group plc

and Dell Bank International DAC.

Non-Executive Director of W.A.

Non-Executive Director of

Baxter & Sons and Chairman of Irish

Corbion N.V and Muziekgebouw

Children’s Museum CLG

Eindhoven (Eindhoven Concert Hall).

Non-Executive Director of TI Fluid
Systems plc, FirstGroup plc and
Bakkavor Group plc.

Chairman of Activate Capital
Limited and Director of Oriel
Windfarm Limited.

President & CEO of Velcro
Companies.

Non-Executive Director of Foot
Locker Inc., and a Director of The
Menasha Corporation.

NGC

ESG

NGC

ESG

Key

Audit
Committee

Development
Committee

NGC

Nomination and
Governance
Committee

ESG

Environmental Social and
Governance Committee

Remuneration
Committee

Chair

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION

Board of Directors and Senior Management continued
Non-Executive Directors nominated by the Society

Brendan Hayes
Non-Executive Director nominated
by the Society

John G Murphy
Non-Executive Director nominated
by the Society

Patrick Murphy
Non-Executive Director nominated
by the Society

Date of appointment

2 June 2017

29 June 2010

Board tenure / Tenure

11 full years (over each of his terms)

13 full years

26 May 2011

12 full years

Skills and expertise

Experience

Extensive knowledge of the global
food and beverage industry
and significant experience in
the governance and strategic
management of a global business
gained from his tenure on the
boards of Tirlán Co-operative
Society Limited and Glanbia plc.

Brendan Hayes farms at Ballyquinn,
Carrick-on-Suir, Co. Waterford,
Ireland and previously served
four full years on the Board. He
was appointed Vice-Chairman
of Tirlán Co-operative Society
Limited on 8 October 2020. Brendan
has completed the Diploma in
Corporate Direction in University
College Cork, Ireland.

John G Murphy farms at
Ballinacoola, Craanford, Gorey,
Co. Wexford, Ireland. John served
as Group Vice-Chairman between
2 June 2017 and 8 October 2020.
John was appointed Chairman
of Tirlán Co-operative Society
Limited on 8 October 2020. John
has completed the University
College Cork Diploma in Corporate
Direction.

Patrick Murphy farms at
Smithstown, Maddoxtown, Co.
Kilkenny, Ireland. Patrick served
as Group Vice-Chairman until
8 October 2020 having served as
Vice-Chairman for over five years
over two separate terms. He is Vice-
Chairman of Tirlán Co-operative
Society Limited. Patrick is a Director
of Farmer Business Developments
plc, FBD Holdings plc and FBD
Insurance plc.

Key external appointments

Vice-Chairman of Tirlán
Co-operative Society Limited.

Chairman of Tirlán Co-operative
Society Limited.

Vice-Chairman of Tirlán
Co-operative Society Limited,
Director of Farmer Business
Developments plc and Non-
Executive Director of FBD Holdings
plc and FBD Insurance plc.

Committee memberships

ESG

92 Glanbia plc | Annual Report and Financial Statements 2023

Senior management, Group Operating Executive

Brendan Hayes

John G Murphy

Patrick Murphy

Non-Executive Director nominated

Date of appointment

by the Society

2 June 2017

by the Society

29 June 2010

Board tenure / Tenure

11 full years (over each of his terms)

13 full years

by the Society

26 May 2011

12 full years

Ian Doyle
Chief Corporate Development
Officer

4 January 2022

Two full years

Brian Phelan
CEO Glanbia Nutritionals

Sue Sweem
Chief Human Resources Officer

Steve Yucknut
CEO Glanbia Performance Nutrition

1 January 2004

1 December 2021

1 January 2024

Twenty full years

Two full years

Less than one year

Skills and expertise

Extensive knowledge of the global

Experience

Brendan Hayes farms at Ballyquinn,

John G Murphy farms at

food and beverage industry

and significant experience in

the governance and strategic

food and beverage industry

and significant experience in

the governance and strategic

food and beverage industry

and significant experience in

the governance and strategic

management of a global business

gained from his tenure on the

boards of Tirlán Co-operative

Society Limited and Glanbia plc.

gained from his tenure on the

boards of Tirlán Co-operative

Society Limited and Glanbia plc.

gained from his tenure on the

boards of Tirlán Co-operative

Society Limited and Glanbia plc.

Carrick-on-Suir, Co. Waterford,

Ireland and previously served

four full years on the Board. He

was appointed Vice-Chairman

of Tirlán Co-operative Society

Limited on 8 October 2020. Brendan

has completed the Diploma in

Corporate Direction in University

College Cork, Ireland.

Ballinacoola, Craanford, Gorey,

Co. Wexford, Ireland. John served

as Group Vice-Chairman between

2 June 2017 and 8 October 2020.

John was appointed Chairman

of Tirlán Co-operative Society

Limited on 8 October 2020. John

has completed the University

Direction.

Patrick Murphy farms at

Smithstown, Maddoxtown, Co.

Kilkenny, Ireland. Patrick served

as Group Vice-Chairman until

8 October 2020 having served as

Vice-Chairman for over five years

over two separate terms. He is Vice-

Chairman of Tirlán Co-operative

Society Limited. Patrick is a Director

plc, FBD Holdings plc and FBD

Insurance plc.

College Cork Diploma in Corporate

of Farmer Business Developments

A deep knowledge of international
corporate finance with extensive
experience negotiating and
structuring complex acquisitions,
divestitures, investments and
partnerships.

Experienced chief executive officer
who has extensive strategic,
commercial and corporate
development experience. Strong
leadership qualities acquired from
a successful career within Glanbia.

A deep knowledge of global
human resources management
with expertise in organisation
development shaping the culture
and capabilities of the business,
and supporting the integration of
acquisitions.

Strong leadership qualities with
particular experience in business
transformation, operations, mergers
and acquisitions and performance
improvement. Extensive tenure in
the food and beverage industry.

Ian Doyle is Chief Corporate
Development Officer and is
responsible for the development
and implementation of our ESG
strategy and for identifying
partnership, acquisition and new
business opportunities globally.
Prior to joining Glanbia, he was
Managing Director in the North
American Consumer Retail
Group of Nomura Securities with
responsibility for food and beverage
companies. Previously Ian was
based in London and was part
of Lehman Brothers’ European
investment banking business. He
holds a degree in Business Studies
and German from Trinity College
Dublin, Ireland.

Brian Phelan was appointed as CEO
of Glanbia Nutritionals on 1 June
2013 and served as a Director of
the Company between January
2013 and April 2019. Brian was
previously Group Human Resources
& Operations Development Director
from 2004 to 2012. Since joining
the Group in 1993, he has held a
number of senior management
positions. Prior to this, he worked
with KPMG. He graduated from
University College Cork, Ireland
with a Bachelor of Commerce
degree and is a Fellow of Chartered
Accountants Ireland.

Sue Sweem is Chief Human
Resources Officer and has
responsibility for the strategic
leadership of Group Human
Resources within Glanbia.
Previously, she was Chief People
Officer for GPN from 2015 to 2021
and held other HR positions in GPN
since joining in 2012. Prior to joining
Glanbia, Sue was a HR Director at
Walgreens and gained international
experience while serving as Head of
HR in the US for AkzoNobel, a global
company based in The Netherlands.
Sue holds a PhD in Organization
Development from Benedictine
University, a Masters degree in HR
& Industrial Relations from Loyola
University and a BS in Sociology
from Iowa State University, USA.

Steve was appointed CEO of
Glanbia Performance Nutrition on
1 January 2024 having previously
held the position of President,
GPN Americas. Steve joined the
Group in 2015 as Chief Operating
Officer of GPN and in 2019 took on
the added responsibility of Chief
Transformation Officer of GPN.
Prior to joining Glanbia, Steve spent
more than 25 years with Kraft
Foods, holding a number of senior
management positions across a
range of markets and businesses,
in the areas of product supply,
R&D and sustainability. He holds a
Masters degree in Manufacturing
from DePaul University, USA.

Key external appointments

Vice-Chairman of Tirlán

Co-operative Society Limited.

Society Limited.

Chairman of Tirlán Co-operative

Vice-Chairman of Tirlán

Co-operative Society Limited,

Director of Farmer Business

Developments plc and Non-

Executive Director of FBD Holdings

plc and FBD Insurance plc.

Committee memberships

ESG

None.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Board Leadership and Company Purpose

The Board has an ongoing focus on stakeholder engagement to ensure we build a culture that
fosters engagement and enables us to develop successful relationships with our stakeholders.
As outlined on pages 50 and 51, stakeholder engagement occurs at all levels of the organisation
and we work collaboratively with our customers, suppliers, shareholders and the communities
in which we operate.

Employee engagement
Meaningful engagement with our employees is key to attracting,
developing and retaining a talented, dedicated and motivated
workforce which ensures the successful delivery of our strategy
and achievement of our purpose. The Workforce Engagement
Director, Group Chairman Donard Gaynor provides regular
feedback to the Board on employee engagement activities during
the year. The global survey of employees known as ‘Your Voice’ is
carried out annually and its findings are reviewed by the Board.

A key focus in 2023 was the development of a wellbeing strategy
for our employees. A series of initiatives were launched and
activities hosted to promote and prioritise positive physical and
mental employee wellbeing. We have made hybrid working an
integral part of our culture and our blended work model supports
productivity and employee wellbeing. During the year, the Board
also received regular updates on the health, safety and wellbeing
of employees. Furthermore, the Workforce Engagement Director
held a number of in-person meetings with a broad cross-section
of employees across Ireland and the US.

For more information see pages 28 to 31.

Customers and consumers
Maintaining a broad portfolio of consumer brands and
nutritional ingredients is key for our customers and consumers.
The Board regularly reviews both innovation and inorganic
opportunities to enhance the Group’s portfolio and to ensure that
it has sufficient depth in its portfolio to meet consumer demand.
The Board is also constantly exploring new ways to meet
consumers’ and customers’ needs by listening to consumers’
needs and collaborating with our customers. Furthermore, we
consider customer and consumer engagement matters as part
of the overall Group sustainability strategy. We also assess
recommendations in respect of our brands’ positioning and
focuses on household penetration, net promoter scores and
consumption rates.

In terms of the Group’s investment in Research & Development
activities, the Board, together with management, ensures
focus is given to those projects that can best meet customers’
needs and thereby enable the Group to achieve its purpose
and strategic objectives in relation to revenue growth, margin
expansion, return on investment and enabling the delivery of
Better Nutrition in a more environmentally sustainable manner.

For more information see pages 32 to 39.

Shareholder engagement
Effective communications with shareholders is a key priority and
the Group devotes considerable time and resources each year
to shareholder engagement. The Group Chairman, together
with the Senior Leadership Team and Investor Relations team
maintain active engagement and dialogue with the investment
community and our shareholders to discuss key issues including
strategy, sustainability capital allocation, remuneration
and governance. There was regular dialogue with individual
shareholders and the investment community during 2023 and
ongoing engagement with shareholders both at in person
and virtual investor conferences and roadshows, as and when
necessary, as well as at the time of the release of the annual
report and financial results. Details on the issues covered in those
meetings and the views of shareholders are circulated to the
Board regularly.

A brief outline of the nature of the activities undertaken by our
Investor Relations team in 2023 is set out below.

2023 Shareholder engagement
First Quarter 2023
• Released the Full Year Results, along with accompanying

•

presentation, webcast and conference call.
Investor roadshows were held following the release of formal
announcements.

• Media Briefings and interviews were provided on various

•

issues.
Industry Conferences: attended key sector and investor
conferences affording members of the senior management
team the opportunity to engage with key investors and analysts.

Second Quarter 2023
• Released the Interim Management Statement, along with
accompanying presentation, webcast and conference call.

• 2023 Annual General meeting.
•

Investor presentation made available on the Group’s website
and an analyst event held in London.

• The Group Chairman completed a number of shareholder

engagements.

Third Quarter 2023
• Released the Half Year Results, along with accompanying

•

presentation, webcast and conference call.
Investor roadshows were held following the release of formal
announcements.

Fourth Quarter 2023
• Released the Interim Management Statement along with

accompanying presentation, webcast and conference call.
• Completed a shareholder consultation on proposed changes to
the Group’s Remuneration Policy. This consultation was led by
the Chair of the Remuneration Committee with feedback shared
by the Remuneration Committee members and the Board.
• Attended a number of investor conferences to engage with

shareholders.

For more information see pages 50 to 51.

94 Glanbia plc | Annual Report and Financial Statements 2023

Local communities
Our vision is to have a positive social and economic impact
on our communities, by promoting health and wellbeing
while protecting the environment. The Board considers the
maintenance of close and supportive relationships with the
communities in which Glanbia operates to be of particular
importance to the Group. We aim to create long-term value
for the communities in which we live, work, source and sell.
By ensuring we empower people, increase their access to
opportunities and champion inclusion and diversity, we can help
build thriving communities and strengthen our business. The
Board considers local community engagements as part of the
overall Group sustainability strategy. We support and receive
updates on Glanbia’s involvement in local communities and
charitable partnerships.

For more information see pages 50 and 51.

Suppliers and business partners
As a Group, we are committed to excellence in food safety
and quality and adhere to international standards at our
manufacturing sites. We take environmental stewardship
seriously, supporting our suppliers and safeguarding animal
welfare and life on land. The Board, together with management,
ensure that the organisation works with suppliers who provide
raw materials to the required safety and quality standards,
produced on a sustainable basis and with the proper regard
for the fair treatment of workers across the supply chain. Our
suppliers must be compliant with the regulations and social
customs of the countries in which they operate. The Board
receives updates on the operation of the Group procurement
function and supply chain priorities and initiatives, and we
continuously engage with dairy producers as part of the review
of our joint venture operations.

Purpose, values and culture
Purpose
We have a clear purpose to deliver better nutrition for
every step of life’s journey. Our purpose communicates the
Group’s strategic direction and intentions to our employees
and wider stakeholders.

Our values
Glanbia has a very distinct set of values which articulate the
qualities we embody and our underlying approach to doing
business. Our values, which are at the heart of our business
and culture, are embedded in our operational practices
through the policies approved by the Board and the direct
oversight and involvement of the Executive Directors.
Glanbia’s values of: Customers’ champion; Performance
matters; Find a better way; Winning together; and Showing
Respect are the code by which the Group operates both
internally and externally.

Our culture
Our business spans several continents, but our culture is
universal. Our culture has developed from our values and is
a key strength of our business. Fuelled by a positive growth
mindset, Glanbia leaders inspire and empower others to
maximise their performance and potential. The Board
reinforces our culture and values through its decisions,
strategy and conduct. The Board monitors the Group’s
culture through several cultural indicators such as:
• management’s attitude to risk;
• health and safety data; and
• compliance with the Group’s policies and procedures:

– key performance indicators, including staff retention;
– messages received via the Group’s whistleblowing

For more information see pages 50 and 51.

‘Speak-Up’ system;

Government and non-governmental organisations
(NGOs)
As a Board we are cognisant of the regulatory environment
in which we operate. The Board engages indirectly with
government, regulators, NGOs and policy makers through
regular reports from the Senior Leadership Team and
management. In particular, the Board has received regular
briefings during the year on the macroeconomic environment,
world events and emerging geopolitical trends. Management
also provided the Board with an analysis of potential
developments in regulation and tax policies.

For more information see pages 50 and 51.

– promptness of payments to suppliers;
– independent assurance is sought via the internal audit

function and other outsourced advisers; and

– employee surveys.

A key consideration during our recruitment process is
a potential candidate’s ‘fit’ with our culture and values.
We reinforce our culture and values during our induction
programme, town halls, and monitor our employees’ ‘fit’
through performance appraisals. Our senior management
teams undertake training to ensure they are supporting
their teams and encouraging the behaviours which align
with our culture. In addition, the Board receives regular
updates from the Chief Executive Officer and Chief Human
Resources Officer on the health, safety and wellbeing of
employees.

For more information see pages 28 to 31.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Board Leadership and Company Purpose continued

Q&A with Donard Gaynor,
Group Chairman and
Director of Workforce Engagement

We’re listening
to our employees

Donard Gaynor
Group Chairman

Q
What is your main focus as the Board’s
Workforce Engagement Director?

Q
Why are employee engagement
sessions important to you?

As part of this role, I engage directly with employees from
across the Group. This allows me to get a better insight and
understanding of the views of our employees and any concerns
they may have. I ensure our employees views can be considered
in Board discussions and decision making. I also regularly meet
with Sue Sweem, the Group’s Chief Human Resources Officer, to
understand the key issues affecting our employees. In 2023, the
Group was delighted to launch a Group-wide human resources
information system which will assist with providing an improved
employee information experience.

Employee
survey(s)

Celebrate
Wins

Analyse data
and share
results

Implement
Change(s)

Action
Planning

96 Glanbia plc | Annual Report and Financial Statements 2023

I really value meeting employees from different levels, functions
and regions of the organisation. The sessions are open and
constructive and allow me to explore trends in the survey results
and share this information with the Board. It is wonderful to see
our employees demonstrate passion and pride in the Company,
its brands and our collaborative culture. Our employees are key
to the Group’s success and it is important to me to meet face-to-
face in a space where they can share their insights.

Q
What are some of the key themes from
the 2023 “Your Voice” survey results?

Participation in the survey increased significantly in 2023 with a
response rate of 80% which speaks to increased engagement
within the organisation. Our employee engagement levels have
continued to grow year-on-year, and we believe the reasons
for these improvements have been the two-way dialogue and
listening strategy we have employed. In particular, we welcomed
increased engagement from our hourly workforce and received
positive feedback around changes that are happening around
wellbeing, hybrid working and parental leave. Our people
continue to be interested in developments around career
progression and continued learning which is very positive.

Q
What is your focus for 2024?

I hope to continue the two-way direct dialogue through my
engagement sessions to ensure we are listening to our employees
and that their views are communicated to the Board. I will also
continue to focus on wellbeing and employee communications
to support our hybrid working model. This is key to the successful
execution of our people strategy which aims to maintain a high-
performing, values-driven and respectful culture.

For more information see page 94.

2023 Board highlights
The Board is responsible for promoting the long-term sustainable success of the Group to generate value for its stakeholders and
contribute to the wider society. The Board recognises that the alignment of the Group’s purpose, strategy and culture is a cornerstone of
its leadership role and critical to our success.

The following pages provide an overview of a range of matters that the Board considered at its meetings. These are non-exhaustive and
detail the breadth of oversight provided by the Board in order to discharge responsible leadership. The Board considerations in relation
to stakeholder engagement can be found on pages 50 to 51 and page 94.

Key Board Considerations

Strategy and performance• The Board had a strong focus on shareholder value creation and returns.
• The Board continues to perform its duties and functions with the Group’s
purpose of delivering ‘Better Nutrition’ front and centre of its decision
making.
In May 2023 the Board approved the raising of full year guidance to
between 7% and 11% adjusted EPS growth constant currency, which was
increased to between 12% and 15% adjusted EPS growth constant
currency in August 2023 and to between 17% and 20% adjusted EPS
growth constant currency in November 2023.
In October 2023, the Board received detailed strategic updates from
senior management.

•

Further details are available

on pages 15 to 21.

Presentation currency
change

M&A activity

• The Board focused on feedback from its shareholders on strategy and

performance throughout the year.

• The Group’s reporting currency was changed from euro to US dollar in

2023 to better align with the Group’s core markets and to reflect the fact
that a significant majority of the group’s revenues are generated in US
dollar.

• The Board approved and completed the acquisition of the B2B bioactive
ingredients business of PanTheryx, in quarter four, 2023. The acquisition
complements Glanbia Nutritionals’ dairy activities and is a natural
progression for the Group within this category.

• The Development Committee continues to monitor the M&A market and

regularly updates the Board on potential acquisition opportunities.

Change in US joint venture
commercial arrangements
and change to EBITDA

Disposal of interest in
Cheese joint venture

•

Following an announcement on 16 August 2023, the Group has amended

the commercial arrangements associated with its US joint venture.
Under the new commercial terms, the Group will recognise commissions
earned on the sale of joint venture products. Under previous
commercial terms, the Group recorded the gross value of revenues and
corresponding cost of sales on joint venture products sold. The change
in commercial terms will impact the recognition and presentation of
revenues and cost of sales from 2024 onwards only.

In April 2023, as part of the Group’s ongoing focus on optimising its
portfolio, the Board oversaw the sale of the Company’s shareholdings in
its Glanbia Cheese Limited and Glanbia Cheese EU Limited (collectively
“Glanbia Cheese”) mozzarella joint ventures to Leprino Foods Company,
its joint venture partner in these businesses.

Transition following
disposal of Glanbia plc’s
40% interest in Tirlán

Share buyback
programmes

• The Board continued to oversee a period of transition following the sale
of the Company’s minority interest in Tirlán, which completed in April
2022. The Group continues to provide certain business supports to Tirlán
for a defined period.

• The Board continues to evolve the Group’s structure and growth strategy

following the disposal and other portfolio changes.

•

In March 2023, the Group commenced a share buyback programme of
€50 million, which was subsequently extended by a further €50 million in
May 2023. The buyback programme completed on 15 September 2023.
Between 1 March 2023 and 15 September 2023, Glanbia deployed €100
million, repurchasing 7,215,827 ordinary shares on Euronext Dublin at an
average price of €13.86 per share.

Further details are available

on page 185.

Further details are available

on page 41.

Further details are available

on page 41.

Further details are available

on page 41.

Further details are available

on pages 43 and 79.

Further details are available

in Note 22 to the Financial
Statements.

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Board Leadership and Company Purpose continued

Key Board Considerations

Group sustainability
strategy

• The Board oversaw the publication of the Company’s first GRI Report, in
accordance with the GRI standards. The report outlines the progress we
are making and sets out our future commitments and action plans.
• The Board approved that the Group become signatories to the UN
Global Compact. This requires a voluntary pledge by member
companies to operate responsibly in alignment with universal
sustainability principles.

Diversity, equity and
inclusion (“DE&I”)

• The Board is dedicated to meeting its diversity targets for Board

members and senior leadership roles.

• The Board focused on equipping talent acquisition with the resources to

attract and source under-represented talent and educate hiring
managers on inclusive hiring practices.

• The Board rolled out a revised Code of Conduct training for employees.
• The Board placed an increased emphasis on employee engagement,

awareness and impact.

Capital investment

• Glanbia’s total investment in capital expenditure (tangible and intangible

Site visits

Cybercrime prevention
and security programme

Dividend payments

assets) was $74.2 million (2022: $72.5 million). Strategic investment
totalled $51.7 million. Key strategic projects included IT investments,
business integrations and ongoing capacity enhancement to drive
further efficiencies in operations and new process technologies in
Glanbia Nutritionals, nutritional solutions business. The Board is focused
on cash generation, disciplined financial management, accretive M&A
and balancing investment and return of capital to shareholders.

•

It has been the Board’s practice to hold a number of site visits at some of
our key locations each year in order to provide Directors with the
opportunity to meet local teams, see operations on the ground and have
presentations on current operations, projects and future plans.
In June 2023 the Board met in Illinois, US which provided an opportunity
to meet with local leadership, develop a deeper understanding of the
Group’s customers and the US market. The Board also visited the Group’s
PacMoore ingredients site which was acquired in 2021.

• A subcommittee of the Board conducted a review of the Group’s IT
organisation and services, cyber security and anti-fraud controls.
• This included a review of the protocols the Group would follow in the
event of an attack, based on a protect, detect, respond and recover
model.

• Management response simulation testing was performed to assess the

completeness of protocols and internal capabilities.

• Email phishing simulation exercises were conducted with the wider

workforce to raise awareness in this area.

• The Board is recommending a final dividend of 21.21 €cent per share (FY
2022: 19.28 €cent per share) which brings the total dividend for the year
to 35.43 €cent per share, representing an increase of 10% for the prior
year. The final dividend will be paid on 3 May 2024 to shareholders on the
register of members as at 22 March 2024. This reflects our continued
strong performance and our commitment to a progressive dividend
policy.

Further details are available

on pages 49 to 71.

Further details are available

on pages 28 to 31.

Further details are available

on page 44.

Further details are available

on page 103.

Further details are available

on pages 78 and 79.

Further details are available

on page 45.

CEO succession

• The Nomination and Governance Committee, together with the support
of the Board, oversaw the selection process for the Group’s new CEO,
Hugh McGuire, supported by an independent executive search firm.

Further details are available

on page 123.

Board renewal

• Gabriella Parisse was appointed as an Independent Non-Executive

Director on 1 June 2023.

• Patsy Ahern and John Murphy retired from the Board on 4 May 2023.
• Róisín Brennan was appointed Senior Independent Director, effective

30 December 2023.

• Dan O’Connor replaced Donard Gaynor as Chair of the ESG Committee

on 30 December 2023.

• Mark Garvey replaced Siobhan Talbot on the ESG Committee on

30 December 2023.

Board biographical details
are available on pages 88 to
92.

98 Glanbia plc | Annual Report and Financial Statements 2023

Key Board Considerations

Governance

• The Board received recommendations from committees on key policies

and matters reviewed in depth by committees for Board decision.

Directors’ Remuneration
Policy 2024-2026

• During 2023 the Remuneration Committee completed a review of the

Directors’ Remuneration Policy. This will be put to shareholders for their
consideration at the 2024 Annual General Meeting of the Company.

Employee benefits

• The Group introduced enhanced leave policies to support and prioritise

External Board review

the wellbeing of our employees.

• The Group reviewed its employee pension arrangements and increased

its employer contribution to its Defined Contribution Scheme. This allows
scheme members to make enhanced contributions which will be
matched by Glanbia up to a maximum of 12% of salary.

• The Board engaged Board Excellence to conduct a comprehensive and
externally facilitated review in 2023, in line with our agreed triennial
cycle. The review was interview based and included observation of
meetings.

Further details are available

on pages 86 to 108.

Further details are available

on pages 130 to 136.

Further details are available

on pages 28 to 30.

Further details are available

on page 105.

Meeting attendance for the Board and Committees established under the UK Corporate Governance Code

Director

D Gaynor

S Talbot1

P Ahern2

R Brennan

P Duffy

M Garvey

I Haaijer

B Hayes

J Lodge

JG Murphy

J Murphy2

P Murphy

D O’Connor

G Parisse3

K Underhill

Years on
the Board

Scheduled Board
Meetings

Audit
Committee

Nomination and
Governance
Committee

less than 1

8/8

2/2

8/8

2/2

8/8

5/5

8/8

5/5

Remuneration
Committee

12/12

11/12

S Talbot retired from the Board on 31 December 2023

1
2 P Ahern and J Murphy retired from the Board on 4 May 2023
3 G Parisse was appointed to the Board on 1 June 2023

Glanbia plc | Annual Report and Financial Statements 2023

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Corporate governance framework

A description of the Governance Framework as at 30 December 2023 is set out below.

Board of Directors
The Board is collectively responsible for establishing the Group’s purpose, values and strategy, promoting its culture, overseeing its
conduct and affairs, and for ensuring that the Group provides its stakeholders with a balanced assessment of the Group’s position
and prospects. It discharges some of its responsibilities directly and others through its Committee framework, the Group Operating
Executive and Group Senior Leadership Team.

Audit
Committee
Key activities: review of
Annual Report and Financial
Statements and statutory
Auditor’s independence and
fees, internal controls, risk
management systems, post-
acquisition reviews and the
effectiveness of the Group
Internal Audit and Group
Finance functions.

Board

Nomination and
Governance Committee
Key activities: making
recommendations on
appointments to the
Board (including the
Group Chairman), senior
management succession
planning, review of the
independence and time
commitment of Non-
Executive Directors and
keeping under review
corporate governance
developments to ensure
Group governance practices
remain in line with best
practice.

ESG
Committee
Key activities: oversight of
the Group’s ESG programme
and sustainability strategy,
monitors and reviews
Diversity, Equity and
Inclusion policy and strategy,
monitoring progress against
key performance indicators
and external ESG index
results, overseeing progress
on ESG commitments and
targets and monitoring and
reviewing the Group’s quality,
health and safety (“QHS”)
performance to support
continuous improvement and
transparency regarding the
Group’s QHS performance.

Development
Committee
Key activities: assist the
Board in assessing new
corporate development
opportunities.

Remuneration
Committee
Key activities: review of
Executive Directors’ salaries
and benefits, approval of
annual incentive targets,
long-term incentive share
awards, review of Non-
Executive Directors’ fees and
compliance with the relevant
codes.

Group Management

CEO

Group Operating Executive
This group is comprised of the two Executive Directors, the CEO of
GPN, the CEO of GN, the Chief Human Resources Officer and the Chief
Corporate Development Officer. Key activities: monitoring performance
and making strategic recommendations to the Board.

Group Senior Leadership Team
This team includes the Group Operating Executive and the Group’s senior
business and functional leaders. Key activities: to create alignment and
drive delivery of the Group’s business plans.

The Disclosure Committee is in place to oversee the timely and accurate disclosure of all information required to be so disclosed by the Company to meet
the legal and regulatory obligations required by its stock exchange listings. It also continues to assist in the design, implementation and periodic evaluation
of disclosure controls and procedures. The current Disclosure Committee comprises of the Chief Executive Officer, the Chief Financial Officer, the Group
Secretary and Head of Investor Relations and the Group Financial Controller.

The following are the key matters reserved for the Board:
• Approval of the Group’s strategic plan, oversight of the Group’s
operations and review of performance in light of the Group’s
strategy, objectives, business plans and budgets, ensuring that
any necessary corrective/transformative action is taken;

• Ultimate oversight of risk, including determining the Group’s risk

profile and risk appetite;

for shareholders to assess the Group’s position, performance,
business model and strategy;

• Assessment of the Group’s viability and ability to continue as a

going concern;

• Capital expenditure, including annual approval of capital

expenditure budgets and any material changes to them in line
with the Group-wide policy on capital expenditure;

• Review the performance of the Group in light of its strategic aims,
business plans and budgets and ensuring that any necessary
corrective action is taken, if required;

• Dividend policy, including annual review of the dividend policy and
declaration of the interim dividend and recommendation of the
final dividend;

• Approval of acquisitions, disposals, share buybacks and other

• Review of the Group’s overall corporate governance

transactions outside delegated limits;

arrangements;

• Financial reporting and controls, including approval of the Half
Year Results, Interim Management Statements and Full Year
Results, approval of the Annual Report and Financial Statements,
approval of any significant changes in accounting policies or
practices and ensuring maintenance of appropriate internal
control and risk management systems;
• Appointment and removal of Directors;
• Ensuring the Annual Report and Financial Statements present

a fair, balanced and understandable assessment of the Group’s
position and prospects and provides the information necessary

• Considering the views of shareholders and ensuring a satisfactory
dialogue with shareholders based on the mutual understanding of
objectives;

• Formal review of the performance of the Board, its Committees

and individual Directors;

• Shareholder documentation, including approval of resolutions and
corresponding documentation to be put to the shareholders and
approval of all press releases concerning matters decided by the
Board; and

• Key business policies.

100 Glanbia plc | Annual Report and Financial Statements 2023

Experience and skills of the Non-Executive Directors

Food and
beverage
industry

Leadership
and
management

Finance

Strategic
planning

Brand
experience

Change
management

Corporate
transactions

Corporate
governance

International
business
development

ESG

Donard Gaynor

Róisín Brennan

Paul Duffy

Ilona Haaijer

Brendan Hayes

Jane Lodge

John G Murphy

Patrick Murphy

Dan O’Connor

Gabriella Parisse

Kimberly Underhill

Division of Responsibilities
Board responsibilities
To ensure that the Group operates efficiently and effectively, the Directors, the Group Secretary and Head of Investor Relations and the
Group Operating Executive have clearly defined responsibilities which are set out below.

Group Chairman
• Leads the Board, sets the agenda and promotes a culture of

Non-Executive Directors
• Provide independent insight and support to the Group

open debate between Executive and Non-Executive Directors
and promotes the highest standards of corporate governance.

Chairman in instilling the appropriate culture, values and
behaviours in the Group.

• Regularly meets with the Chief Executive Officer and other

senior management to stay informed.

• Ensures effective communication with our stakeholders.

Chief Executive Officer
• Develops and implements strategy and chairs the Group

Operating Executive.

• Leads the Group through the Group Operating Executive.
•

Instils purpose, vision and value standards throughout the
organisation.

Senior Independent Director
• Provides a sounding board to the Group Chairman and

appraises his performance.

• Acts as intermediary for other Directors, if needed.
•

Is available to respond to shareholder concerns when contact
through the normal channels is inappropriate.

Chief Financial Officer
• Manages the effectiveness and profitability of the Group
including financial and operational risk management.
• Develops appropriate capital and corporate structures to

ensure the Group’s strategy is met.

Group Operating Executive
• With the Chief Executive Officer, develops and executes the

Group’s strategy in line with the policies and objectives agreed
by the Board.

• Manages operational effectiveness and profitability of the

Group.

• Operates as the Group Risk Committee and Group Investment

Committee.

• Contribute to developing strategy.
• Scrutinise and constructively challenge the performance of the
business, management and individual Executive Directors.
• Monitor the integrity of financial information and ensures
that there are robust financial controls and systems of risk
management.

• Determine and agree the framework and policy for executive

remuneration.

• Oversee Director succession planning.

Group Secretary and Head of Investor Relations
• Monitors the Group’s compliance with legal, regulatory,

governance, ethics, policy and procedural matters.
• Ensures the Group is appropriately and strategically

•

positioned with analysts, investors, and all stakeholders.
In conjunction with the Group Chairman, ensures that the
Directors receive timely and clear information so that the
Directors are equipped for robust debate and informed
decision making.

• Supports the Group Chairman by organising induction and

training programmes for Directors.

• Provides support and guidance to the Board and the Group
Chairman, and acts as an intermediary for Non-Executive
Directors.

• Responsibility for all results publications and investor

engagement.

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STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Composition, succession and review

Composition, succession and review
The Board has a clear governance framework with defined
responsibilities and accountabilities which ensures that policies
and procedures set at Board level are effectively communicated
across the whole Group. The Board has established certain
principal Committees to assist it in fulfilling its oversight
responsibilities, providing detailed focus on particular areas
as set out in the respective Committee Reports that follow.
The Committees focus on their areas of expertise enabling the
Board to focus on strategy, performance, leadership and people,
governance and risk, and stakeholder engagement, thereby
making the best use of the Board’s time together as a whole. The
Committee Chairs report to the full Board at each Board meeting
following their sessions, ensuring a good communication flow
while retaining the ability to escalate matters to the full Board’s
agenda if appropriate.

Information for the Board
The Group Chairman, with the assistance of the Chief Executive
Officer and the Group Secretary and Head of Investor Relations,
is responsible for ensuring that Directors are supplied with
information in a timely manner and of an appropriate quality
that enables them to discharge their duties. Board papers
are published typically seven days prior to each meeting to
ensure the Board has sufficient time to read the papers and
presentations and be prepared in advance of the meeting. In
the normal course of business, such information is provided
by the Chief Executive Officer in a regular report to the Board
that includes information on operational matters, strategic
developments, financial performance relative to the business
plan, business development, corporate responsibility and
investor relations. The Board meets sufficiently frequently to
discharge its duties, and holds additional unscheduled meetings
when required, for example to discuss a strategic growth
opportunity if it arises or deal with a specific matter of business.

Each scheduled Board meeting follows a carefully tailored
agenda agreed in advance by the Group Chairman, the Chief
Executive Officer and the Group Secretary and Head of Investor
Relations. At each scheduled Board meeting, the Chief Executive
Officer, the Chief Financial Officer and CEOs of the Group’s
two global growth platforms, GPN and GN, provide detailed
operational and financial updates. Depending on the nature of
the agenda item to be considered, other Senior Executives are
invited to make presentations or participate in Board discussions
to ensure that Board decisions are supported by a full analysis.

Throughout the year the Chairs of the Audit, ESG, Nomination
and Governance, Remuneration and Development Committees
updated the Board on the proceedings of their meetings,
including the key discussion points and any particular areas of
concern. All Directors have access to the advice and services
of the Group Secretary and Head of Investor Relations, who is
responsible for advising the Board on all governance matters.
The Directors also have access to independent professional
advice, if required, provided by the Group. This is coordinated
through the Group Secretary and Head of Investor Relations.

Board and Committee meetings are held in person, usually
in Kilkenny or Dublin, with the option for Directors to attend
remotely if necessary. In the event that a Director is unable to
attend a meeting, they are given an opportunity to make their
views known to the Chair or the Chief Executive Officer prior to
the meeting.

102 Glanbia plc | Annual Report and Financial Statements 2023

Board structure
The Board, who come from diverse backgrounds, ranging from
corporate finance, accountancy and banking to industry (food
and beverage, fast moving consumer goods and production),
currently comprises 13 Directors: two Executive Directors, the
Group Chairman and 10 Non-Executive Directors of whom three
are currently nominated by the Society. On 23 February 2021,
the Society and the Board agreed a number of changes which
impacted the composition and size of the Board between 2021
to 2023 and which resulted in a gradual reduction in the number
of Directors nominated by the Society from five in 2022 to three
in 2023. The Board reduced in size from 14 members in 2022 to
13 members in 2023. Two Directors nominated by the Society
retired at the 2023 AGM and an additional Independent Non-
Executive Director was appointed in 2023, bringing the number
of Independent Non-Executive Directors on the Board, excluding
the Group Chairman, at the end of the year, to 6 of 12 (50% of the
Board).

Appointments to the Board: policy, diversity and
succession planning
Having regard to the right of the Society to nominate Directors
to the Board, the Nomination and Governance Committee
keeps the Board’s balance of skills, knowledge, experience
and the tenure of Directors under continuous review. During
2018, the Board approved a Board Diversity Policy which
recognises the benefits of diversity. This was updated in early
2022 to reflect that the Group has agreed that as new Director
appointments are made, the target is that a minimum of 50% of
the Independent (of the “Society”) Non-Executive Directors will
be female. The Group progressed this in 2023 with its most recent
Independent Non-Executive Director appointed being female.
As at 30 December 2023, females represented over 60% of the
Independent (of the “Society”) Non-Executive Directors and 46%
of the full Board. As at the date of this report, females represent
over 60% of the Independent (of the “Society”) Non-Executive
Directors and 38% of the full Board.

In respect of succession planning and maintaining the skill set of
the Board, there is an established procedure for the appointment
of new Directors and Senior Executives. The Nomination and
Governance Committee considers the set of skills and experience
required as well as the Company’s targets on Board diversity.
External search agencies are engaged to assist where appropriate.
The Company also has a formal policy with respect to the
appointment of new Independent Non-Executive Directors (other
than those nominated by the Society). Further information on
appointments to the Board and succession planning can be found
on pages 121 to 125.

Induction
The Company puts full, formal and tailored induction
programmes in place for all of its new Directors. While Directors’
backgrounds and experience are taken into account, the
induction programme is aimed to be a broad introduction to the
Group’s businesses and its areas of significant risk. Directors
receive comprehensive briefing documents on the Group, its
operations and their duties as a Director and are also given
presentations by senior management. In addition, they are
encouraged to visit sites and meet with local management.
Induction programmes are usually completed within the first six
months of a Director’s appointment and the Group Secretary
and Head of Investor Relations provides assistance and support
throughout the induction process. The programmes are reviewed
regularly to consider Directors’ feedback and are continually
updated in line with best practice.

Gabriella Parisse joined the Board on 1 June 2023 and received
an extensive and thorough induction involving one-to-one
meetings with the Group Chairman, the then Group Managing
Director, the Chief Financial Officer and other members of senior
management from various Group functions including Group
Finance, Group Treasury, Group Tax, Group HR and Group IT.

In June 2023, Gabriella met with each member of the Group
Operating Executive team as part of her induction process and
visited a number of the Group’s manufacturing plants in the US and
met with US based senior leaders within GPN and GN.

Board development
The Group Chairman regularly encourages the Non-Executive
Directors to update their skills, expertise and knowledge
of the Group in order to carry out their responsibilities to a
high standard. This is achieved by regular presentations at
Board meetings from senior management on matters of
significance. During the year the Board and Committees received
presentations from the Group Chairman, the Executive Directors,
the Chairs of each of the Committees, the CEOs of both GPN
and GN and heads of the various Business Units and corporate
functions. In 2023, the Board undertook updated training on the
Market Abuse Regulation and participated in cyber security
training, delivered by an external agency with significant
experience in the area.

In addition to the induction programme that all Directors
undertake on joining the Board, an ongoing programme of
Director development has been established. For example, it is the
practice of the Board to visit key Business Unit locations each year
to provide Directors with the opportunity to meet local teams,
see operations on the ground and have presentations on current
operations, projects, future plans and strategy. Opportunities to
visit our operations globally and learn more about the business
continues to be very important and valuable for the Board, and for
new Board members in particular, as they provide our Directors
with the opportunity to understand operations, performance
and challenges in a regional context. Board members also get
the opportunity to meet with local employees in different roles
at different levels of seniority and from varying backgrounds. In
2023, the Board met with leadership teams from the GPN and GN
segments and visited key channels of GPN. The Board also toured
a GN production facility in the US in June 2023.

This aspect of Board visits provides real insight into the culture
and operation of the business. These visits also afford Directors
the opportunity to meet face-to-face with regional management
and employees and develop deeper insights into the quality of
our current senior management and the potential for succession.
It also helps the Directors to actively embed the values of Glanbia
across the Group’s key locations.

“My induction to the Glanbia
Board has been comprehensive
and informative.”

Gabriella Parisse
Non-Executive Director

Governance in action
New Director Induction
Gabriella Parisse was appointed to the Board on 1 June
2023. Following her appointment, Gabriella underwent
a formal induction programme which was tailored to
her individual requirements and included the below
induction activities.

Induction activities
• Provision of a detailed information pack including
key corporate governance policies, Board papers,
financial and strategic documents and information
on Directors’ duties, responsibilities and regulatory
obligations.

• Meetings with all members of the Group Operating

Executive.

• Meetings with the Group Chairman, the Senior
Independent Director and the Chairs of the
Remuneration Committee and the Audit
Committee.

• Meetings with functional leaders on matters such
as Board and corporate governance, corporate
development, internal audit, strategy, investor
relations, human resources and sustainability.

• Meetings with business leaders of Glanbia

Performance Nutrition and Glanbia Nutritionals to
obtain an overview of each business.

• Site visits to see first-hand the Group’s operations

while engaging with employees and senior
management.

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STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Composition, succession and review continued

The Group Secretary and Head of Investor Relations in
conjunction with Glanbia’s advisers, monitor legal and
governance developments and Directors are regularly
provided with updates on corporate governance, legislative
and regulatory issues, and an annual update is circulated and
presented to the Nomination and Governance Committee. As
part of their annual performance review, Directors are given the
opportunity to discuss their own training and development needs
and our Directors can avail of external courses.

Board review
A key component of good governance and board effectiveness
is an annual review to ensure that the Board, its Committees
and Board members are continuing to operate and perform
effectively. The Group has established a formal process for the
annual review of the performance of the Board and its principal
Committees, including a triennial external review. The external
review supplements our existing internal Board performance
review processes.

This year, our Board review was an external one in line with our
agreed three-year cycle. An external professional reviewer,
Board Excellence, was engaged, following a competitive tender
process, to facilitate the external reviews of the Board and its
Committees. The purpose of the external review was to provide
the Board with greater insights into its performance and to
identify potential opportunities to improve performance and
effectiveness. Board Excellence had no connection with the
Group or any of the Directors.

Review process
The process that was followed for the 2023 review and the
conclusions of the review are set out on the opposite page.

Relationship with the Society and independence
Avonmore Foods plc and Waterford Foods plc merged in 1997
to form Glanbia plc, the Company. At the same time, their
respective major shareholders also merged to form the Society.
The Society held a substantial shareholding (over 30%) in the
Company until 13 September 2022 when their holding was
reduced below 30%. In accordance with Listing Rule 6.1.7 of
Euronext Dublin/Listing Rule 6.5.4R of the United Kingdom
Financial Conduct Authority (“FCA”), the Company and the
Society entered into a relationship agreement in 2014 clarifying
the right of the Society to nominate Directors to the Board of the
Company and the intention of the Company and the Society to
comply with the independence provisions/undertakings set out
in Listing Rule 2.2.15 of Euronext Dublin and 6.5.4R of the FCA (the
“Independence Provisions”). When the Society’s holding in the
Company fell below 30% on 13 September 2022, the Relationship
Agreement terminated in part but the provision providing for
the right of the Society to appoint Non-Executive Directors
remained. The Group continues on an interim basis to provide
certain corporate, shared services, IT and Group purchasing
services to Tirlán to allow for the complexity of separating shared
support environments.

The Board and the Nomination and Governance Committee is
of the view that all Non-Executive Directors demonstrate the
essential characteristics of independence and bring independent
challenge and deliberations to the Board. Notwithstanding
this, the Non-Executive Directors nominated by the Society are
not counted by the Board as being independent solely for the
purposes of the Codes. An explanation of the basis for this belief
is set out in the Nomination and Governance Committee Report
on page 125.

The Group has robust procedures in relation to conflicts of
interest. Directors, upon their appointment are advised of their
duty to declare their conflicts and are requested to declare their
general interest in any entity in which they are to be regarded as
interested in any contract which may, after their appointment, be
made with that entity.

104 Glanbia plc | Annual Report and Financial Statements 2023

Board review in practice
Seven step Board review model

Scope

The Group Chairman, Group
Secretary and Head of Investor
Relations and Deputy Group
Secretary met with Board
Excellence to agree the scope
and process of the review.

Questionnaire

Each Board member and key
contributors to the Board and
Committees completed a detailed
online confidential questionnaire
produced by Board Excellence.

Review

Board Excellence conducted
a detailed review of the Board
and Committee materials and
key governance policies and
procedures.

Analysis

Questionnaire responses were
collated and analysed by Board
Excellence. All responses were
anonymised.

Observation

Board Excellence observed an
in-person Board meeting and
Committee meetings.

Interview

Board Excellence held individual
meetings with each Director, the
Group Secretary and Head of
Investor Relations and a number
of other senior leaders.

Report

The final review report and
presentation was shared with the
Board. The report contained a
number of recommendations for
consideration by the Board.

Findings
The review identified that the overall standards of corporate
governance and stewardship at Glanbia are exemplary. It
highlighted numerous aspects where the Board is working
well, in particular, the effectiveness of the chairmanship of
both the Board and the Committees, the commitment of all
Directors to their responsibilities, the structure and depth
of financial performance reporting and the importance
given to particular aspects of risk management and cyber
security.

The review indicated that the Board is engaged, committed
and effective in discharging its responsibilities with a
collegiate and transparent culture and noted the positives
from the strength of diversity on the Board. Relations with
senior management allow for constructive robust challenge
and meaningful debate on key issues. The Group Chairman
plans to build in further opportunities to capture Board
feedback throughout the year in 2024.

A review of the performance and effectiveness of each
of the Board’s Committees was also undertaken as part
of the external review, covering their terms of reference,
composition, procedures, contribution and effectiveness.
All Committees enjoy a broad representation of members
from across the Board, deal with appropriate matters of
relevance and substantially ease the burden of specific
matters or areas on the Board as a whole.

The review process is also an opportunity for further
evolution and development of the Board by building on the
positive areas and focusing on the key recommendations
to drive sustained improvement in the Board effectiveness,
governance and performance. Following the presentation
of the evaluation report, the Board agreed to address the
following findings:

– improved strategy collaboration and oversight between
the Group Operating Executive and the Board;

– continued focus on Board succession planning and talent
development; and

– further refinement of Board materials.

In 2024, an internal review facilitated by the Group
Chairman will be conducted, focusing on progress against
the key objectives highlighted by the external review.

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Composition, succession and review continued

Individual Directors’ review
Executive Directors’ variable pay is tied to their personal
contribution to organisational effectiveness and as such both
the Chief Executive Officer and the Chief Financial Officer are
subject to rigorous review each year. The Chief Executive Officer
sets the strategic performance objectives for the Chief Financial
Officer and the Chief Executive Officer’s strategic objectives are
set by the Group Chairman in conjunction with the Remuneration
Committee. All strategic objectives are then agreed with
the Remuneration Committee which monitors the Executive
Directors’ progress throughout the year. More details can be
found in the Remuneration Committee report.

The performance of the Group Chairman is reviewed internally
each year by the Board (in the absence of the Group Chairman),
led by the Senior Independent Director. In 2023 the Board
conducted a review of the Chairman’s performance and noted
that the Group Chairman is very committed to his role and
is always available to Directors and stakeholders. The Board
acknowledged the Group Chairman’s understanding of the
Group and his ambition to drive the business forward.

Subject to the right of the Society to nominate Non-Executive
Directors, the Non-Executive Directors are appointed for
an initial three-year term unless otherwise terminated

earlier by and at the discretion of either party upon written
notice. Continuation of their appointment(s) is contingent on
satisfactory performance and election or re-election at each
AGM. Additionally, all new Independent Non-Executive Directors,
and any re-appointments, will be subject to a rigorous review by
the Nomination and Governance Committee after each three-
year term and annually after six years.

Election or re-election of Directors
In accordance with the Code, all of the Directors are subject to
annual re-election by shareholders. Accordingly, each of the
Directors will seek election or re-election at the 2024 AGM.

The Group Chairman has confirmed that each of the Directors
who are seeking election or re-election continue to be effective
members of the Board and demonstrate their commitment
to their responsibilities. The Directors bring extensive senior
leadership experience, strategic commercial business acumen,
wide ranging operational experience and strong understanding
of global capital markets and major transactions. The Board
believes that the considerable and wide-ranging experience
and perspective of the Directors will continue to be invaluable
to the Company and its long-term sustainable success and
recommends their election or re-election.

Diversity representation as at 30 December 2023
The following tables set out the information required to be disclosed under Provision 23 of the Code and UK Listing Rule 9.8.6R(10) as set
out in Annex 2 to UK LR 9, as at 30 December 2023. For the purposes of these tables, executive management is as defined in the Listing
Rules, being the executive committee or the most senior executive or managerial management body below the Board (or where there
is no such formal committee or body, the most senior level of managers reporting to the Chief Executive Officer, including the company
secretary but excluding administrative and support staff). For Glanbia, this is the Group Operating Executive and the Group Secretary
and Head of Investor Relations. Collection of data was done on the basis of self-reporting from each Board member and member of
executive management.

In accordance with the Relationship Agreement, the Society nominates 3 of the Company’s thirteen Board members. The current
percentage of women on the Board (excluding the Directors nominated by the Society) is 50% (60% as at 30 December 2023).

Gender identity

Men

Women

Not specified/prefer not to say

Ethnic background

White British or other White
(including minority-white groups)

Mixed/Multiple Ethnic Groups

Asian/Asian British

Black/African/Caribbean/Black British

Other ethnic group, including Arab

Not specified/prefer not to say

106 Glanbia plc | Annual Report and Financial Statements 2023

Number of
board members

Percentage of
the board

Number of
senior positions
on the board
(CEO, CFO, SID
and Chair)

Number in
executive
management

Percentage
of executive
management

–

54%

46%

–

71%

29%

–

Number of
board members

Percentage of
the board

Number of
senior positions
on the board
(CEO, CFO, SID
and Chair)

Number in
executive
management

Percentage
of executive
management

–

100%

–

100%

–

Audit, risk and internal control and remuneration

Audit, risk and internal control
Risk management and internal control
Effective risk management underpins our operating, financial
and governance activities. The Board continues to place
particular emphasis on monitoring both principal and emerging
risks and regularly monitors the risk management framework
to ensure risks are being appropriately mitigated and new risks
identified.

While the Board has ultimate responsibility for determining the
Group’s risk profile and risk appetite, the Board has delegated
responsibility for reviewing the design and implementation of
the Group’s risk management and internal control systems to the
Audit Committee.

These systems are designed to manage, rather than eliminate,
the risk of failure to achieve business objectives and provide
reasonable, but not absolute, assurance against material
misstatement or loss. During the year, the Board considered the
Group’s key risk reports and received updates from the Chair of
the Audit Committee on the programme of risk presentations
from key risk managers across the Group. This work provided a
comprehensive insight into how key risk exposures are managed
and better informs the Board in its evaluation of progress against
strategic objectives of the business.

The Board and management are satisfied that appropriate
risk management and internal control systems are in place
throughout the Group. The Risk Management Report is contained
on pages 72 to 85.

Going concern
Glanbia’s business activities, together with the main factors likely
to affect its future development and performance, are described
in the Strategic Report on pages 1 to 85.

After due consideration and review, the Directors have a
reasonable expectation that the Group has adequate resources
to continue in operational existence for a period of at least 12
months from the date of approval of the Financial Statements.
The Group therefore continues to adopt the going concern basis
in preparing its Financial Statements. The full Going Concern
Statement is contained on page 84.

Long-term viability statement
In accordance with the Code and Listing Rule 6.1.82(3) of Euronext
Dublin Listing Rules, the Directors have assessed the viability
of the Group and its ability to meet its liabilities as they fall due
over a period extending to 2026, taking into account the Group’s
current financial position, the Group’s strategy and business
model and the potential impact arising from the principal risks
and uncertainties. The factors considered in assessing the long-
term prospects are detailed on pages 84 to 85.

Having considered these factors, the Board assessed the
prospects and viability of the Group in accordance with the Code
requirements. The Board has a reasonable expectation that the
Group will be able to continue in operation and meet its liabilities
as they fall due over the period of the assessment. The full
viability statement is contained on pages 84 to 85.

Fair, balanced and understandable
The Directors have concluded that the Annual Report and
Financial Statements, taken as a whole is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Group and the Company position,

performance, business model and strategy. This evaluation was
supported by the Audit Committee as outlined in its Report on
pages 111 to 112.

Adequate accounting records
The Directors are responsible for keeping adequate accounting
records that are sufficient to correctly record and explain the
transactions of the Company or enable, at any time, the assets,
liabilities, financial position and profit or loss of the Company
to be determined with reasonable accuracy, enable the
Directors to ensure that the Financial Statements comply with
the Companies Act 2014, and, as regards the Group Financial
Statements, Article 4 of the IAS Regulation, enable those
Financial Statements to be audited. The Directors, through
the use of appropriate procedures and systems, have also
ensured that measures are in place to secure compliance with
the Company’s and the Group’s obligation to keep adequate
accounting records. These accounting records are kept at
Glanbia House, Kilkenny, R95 E866, Ireland, the registered office
of the Company.

Accountability and audit
Directors’ responsibilities for preparing the Financial Statements
for the Company and the Group are detailed on pages 166.

The Independent Auditor’s Report details the respective
responsibilities of Directors and the statutory auditor.

Statutory Auditor
The statutory auditor, Deloitte Ireland LLP, continues in office
in accordance with section 383(2) of the Companies Act 2014.
Deloitte (who was succeeded by Deloitte Ireland LLP) was
originally appointed on 27 April 2016.

Disclosure of information to statutory auditor
In accordance with the provisions of section 330 of the
Companies Act 2014, each of the persons who are Directors of
the Company at the date of approval of this Report confirms
that:
• so far as the Director is aware, there is no relevant audit

information (as defined in the Companies Act 2014) of which
the statutory auditor is unaware; and

• the Director has taken all the steps that he/she ought to have
taken as a Director to make himself/herself aware of any
relevant audit information (as defined) and to ensure that the
statutory auditor is aware of such information.

Remuneration
The Remuneration Committee’s agenda continued to apply
focus to the key matters of Group and individual Executive
Director performance and the consideration of appropriate
targets for 2024 and beyond. Our aim is to ensure that our
remuneration policies and practices remain competitive within
our industry to attract, retain and motivate high quality and
committed people who are critical to the future development
and growth of the Group.

Details of 2024–2026 Remuneration Policy and the work of the

Remuneration Committee can be obtained in the Remuneration
Report.

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STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONCorporate Governance Report continued
Audit, risk and internal control and remuneration continued

UK Corporate Governance Code

Board Leadership and Company Purpose
Division of Responsibilities
Composition Succession and Review
Audit Risk and Internal Controls
Remuneration

Irish Corporate Governance Annex

Board Composition
Board Appointments
Board Review
Board Election or Re-election
Audit Committee
Remuneration

Section 1373 Companies Act 2014

Applicable Codes
Departures from the Codes
Risk Management and Internal Control
Takeover Regulations
Shareholder Information
Board and Committees

pages

88-100
101
102-106
107, 109-115
126-149

pages

102-106
102-106
105
106, 150
109-115
126-149

pages

89
89
72-85, 112-113
150-151
261-264
86-149

Compliance statements
Directors’ compliance statement
It is the policy of the Company to comply with its relevant
obligations (as defined in the Companies Act 2014). The Directors
have drawn up a compliance policy statement as defined in
section 225(3)(a) of the Companies Act 2014. Arrangements
and structures have been put in place that are, in the Directors’
opinion, designed to secure a material compliance with the
Company’s relevant obligations. These arrangements and
structures were reviewed by the Company during the financial
year. As required by section 225(2) of the Companies Act
2014, the Directors acknowledge that they are responsible for
the Company’s compliance with the relevant obligations. In
discharging their responsibilities under section 225, the Directors
relied on the advice of third parties whom the Directors believe
have the requisite knowledge and experience to advise the
Company on compliance with its relevant obligations.

Corporate governance statement
During 2023 the Group was subject to the Codes. Our Corporate
Governance Statement can be found on page 89.

The Financial Reporting Council (“FRC”) is responsible for the
publication and periodic review of the Code, which can be found
on the FRC website: www.frc.org.uk

Euronext Dublin is responsible for the publication and periodic
review of the ISE Annex, which can be found on the Euronext
website: www.euronext.com

Our approach to corporate governance and how we apply the
principles of the Codes is set out in this Corporate Governance
Report, the Board and senior management section, the non-
Financial Reporting Statement, Task Force on Climate-Related
Financial Disclosures Report and the Risk Management
Report (all of which are deemed to be incorporated in
this Corporate Governance Report). The Reports from the
Chairs of the Audit, ESG, Nomination and Governance and
Remuneration Committees highlight the key areas of focus for,
and the background to, the principal decisions taken by those
Committees, which form an integral part of our governance
structure. A fair, balanced and understandable assessment of
the Group’s position and prospects is set out in the Strategic
Report on pages 1 to 85. The Strategic Report also includes
other important information relating to Governance including
our approach to People, Sustainability and Stakeholders. Other
Statutory Information contains certain other information
required to be incorporated into this Corporate Governance
Statement. All of these statements are deemed to be
incorporated in the Corporate Governance Statement.

108 Glanbia plc | Annual Report and Financial Statements 2023

Audit Committee Report

Maintaining effective
control oversight

Paul Duffy
Audit Committee Chair

Committee members and Committee tenure

P Duffy (Chair)

J Lodge

I Haaijer

K Underhill

Appointed to
the Committee

Number of full
years on the
Committee

17 Jun 21

20 Jan 21

17 Aug 22

See pages 90-91 for more information on current Audit Committee members.

Allocation of time

Financial and corporate governance activities

Statutory Auditor

Risk management and internal controls

Internal Audit

Other

Terms of reference
The full terms of reference of the Audit
Committee can be found on the Group’s
website: www.glanbia.com or can be
obtained from the Group Secretary and
Head of Investor Relations.

Key responsibilities

Protecting the interests of shareholders
by monitoring the integrity of corporate
and financial reporting, internal control,
risk management and audit quality.

Reviewing and reporting to the Board the
significant financial reporting issues and
judgements made in preparing the
Group’s Financial Statements, interim
reports, and related formal statements.

Reviewing the appropriateness and
consistency of the accounting policies
applied in preparing the Group’s
Financial Statements.

Advising the Board whether the Annual
Report and Financial Statements, is fair,
balanced and understandable and
provides the information for shareholders
to assess the Group’s position and
performance, business model and
strategy.

Assisting the Board in its responsibilities
in monitoring and reviewing the
effectiveness of the Group’s systems of
risk management and internal control
and assessing the emerging and principal
risks facing the Group.

Reviewing reports from specialist
functions to identify issues that may have
a material impact to the Group.

Monitoring key initiatives aimed at
enhancing the Group’s IT and cyber
security capabilities and actively
engaging in the refinement of the Group’s
ESG disclosure requirements.

Advising the Board of any material
uncertainties that may impact the
Group’s ability to continue as a going
concern and the appropriateness of the
Group’s long-term viability statement.

Overseeing the statutory auditor
relationship in line with the Group Auditor
Relationship and Independence Policy.

Approving the statutory auditor’s terms
of engagement and remuneration.

Making recommendations to the Board in
relation to the appointment, re-
appointment and removal of the Group’s
statutory auditor.

Monitoring the operation and reviewing
the effectiveness of the Internal Audit
function.

Assessing the Group’s procedures for
fraud prevention and detection and
supporting the Board in assessing the
Group’s whistleblowing arrangements.

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Audit Committee Report continued

Dear shareholder,
As Chair of the Audit Committee, I am
pleased to present the Committee’s
report for the year ended 30 December
2023. This report provides an overview
of the Committee’s principal activities
during the year, its role in ensuring
the integrity of the Group’s published
financial information and an outline of
the Committee’s priorities for the year
ahead.

Responsibilities
The Audit Committee is responsible for
monitoring the integrity of the Group’s
Financial Statements and for assisting
the Board in determining that the Annual
Report and Financial Statements,
taken as a whole, is fair, balanced
and understandable and provides the
information necessary for shareholders
to assess the Group’s position and
performance, business model and
strategy. The work performed in this
regard and our engagement with the
statutory auditor is detailed on pages 111
to 115.

The Audit Committee also supports
the Board in monitoring and reviewing
the effectiveness of the Group’s risk
management and internal control
systems and for ensuring a robust
assessment of the emerging and principal
risks facing the Company is performed.
The Audit Committee, together with the
Board, are closely monitoring the key risks
that could materially and adversely affect
the Group’s ability to achieve its strategic
objectives, particularly those whose
probability of occurrence and extent of
impact are elevated by the consequences
of the ongoing macroeconomic
uncertainty and escalating geopolitical
tensions.

During the year, the Group has identified
and assessed our climate-related
risks and opportunities and continue
to monitor and embed the identified
impacts within our governance,
operations and strategic model and
risk management system. The progress
and approach taken is consistent with
the recommendations of the TCFD
and the UK FCA’s Listing Rule 9.8.6R
requirements. These are discussed in
detail in the TCFD Report on pages
64 to 70. The Audit Committee has
also assessed with management the
impact of climate-related matters on
the Group’s Financial Statements (see
Note 2). The Audit Committee actively
oversees the regulatory environment to
ensure the Group provides stakeholders
with consistent, comparable and reliable

information on ESG matters. The Audit
Committee continues to monitor the
Group’s preparation to comply with the
upcoming mandatory ESRSs applicable
to Glanbia.

Engagement
In fulfilling its key oversight
responsibilities, the Audit Committee
engaged regularly with management,
Group Internal Audit (“GIA”) and the
statutory auditor to ensure timely and
accurate information was consistently
provided to the Audit Committee. Our
engagement with the GIA function and
the statutory auditor is detailed on pages
113 and 115 together with an explanation
of how the Audit Committee has reviewed
and monitored the independence,
objectivity and effectiveness of the
external audit and the appropriateness
of the provision of non-audit services to
the Group in line with the Group Auditor
Relationship and Independence Policy.

The Audit Committee is satisfied, based
on the evidence obtained throughout
the external audit process, including its
review of the key audit risk areas, and the
work undertaken by the statutory auditor
to address those risks, that a robust,
effective and efficient process is evident
across the Group.

Audit tender
While the Committee is satisfied that
the current statutory auditor is both
independent and objective, regulations
require the mandatory rotation of the
auditors of public interest entities (“PIEs”)
at least every 10 years. Deloitte Ireland
LLP will reach this 10 year limit in April
2026. As such, the Audit Committee
considers that it is appropriate to initiate
a tender process in 2024 in order to
prepare for an appropriate transition.

Priorities for 2024
The Audit Committee’s key priorities for
2024 include:
• ensuring the Group’s Financial
Statements are accurate and
reflect the balanced and consistent
application of financial and non-
financial reporting requirements;

• providing independent challenge and
oversight of areas of key judgement or
estimation;

• maintaining focus on impairment testing
methodology, inputs, assumptions,
sensitivity analysis and results;
• monitoring the progress made

by management on the planned
implementation of a new financial
consolidation technology in 2024
which will be completed in 2025;

110 Glanbia plc | Annual Report and Financial Statements 2023

• overseeing the processes in place

to ensure effective oversight of ESG
activities and other non-financial
disclosures;

• monitoring the Group’s principal risks
and uncertainties including potential
negative ripple effects of continued
economic uncertainty exacerbated by
the escalating geopolitical tensions,
rapidly accelerating technological
changes, and possible slowdown in
consumer demand;

• receiving direct presentations from

management to ensure that effective
risk management processes are
implemented to address key risk
areas in a manner consistent with the
Group’s risk appetite;

• overseeing the audit tender process;
• considering the impacts of the recently

revised UK Corporate Governance
Code and its potential impact on
Glanbia processes and internal
controls;

• maintaining oversight on the

challenges posed by geopolitical
tensions and impending election
cycles and their potential impact on
our business, principal risks, cash flow,
accounting disclosures and financial
controls; and

• ensuring that robust due diligence is
performed, acquisition integration is
closely monitored and post completion
reviews are conducted for all material
investments.

Review of Audit Committee performance
The Audit Committee assessed its
performance covering its terms of
reference, composition, procedures,
contribution, and effectiveness. As a
result of that assessment, the Board
and Audit Committee are satisfied that
the Audit Committee is functioning
effectively and continues to meet the
requirements of its terms of reference.
This view was supported by the external
review of the Board and its Committees.

On behalf of the Audit Committee

Paul Duffy
Audit Committee Chair

Governance
Committee membership
The Audit Committee was in place
throughout 2023. At present, the
Audit Committee is comprised of four
Independent Non-Executive Directors,
Paul Duffy (Chair of the Audit Committee),
Jane Lodge, Ilona Haaijer and Kimberly
Underhill. Two members constitute a
quorum. The Group Secretary and Head
of Investor Relations acts as secretary to
the Audit Committee.

Membership is reviewed annually by the
Chair of the Audit Committee and the
Group Chairman who recommend new
appointments to the Nomination and
Governance Committee for consideration
and onward recommendation to the Board.

The Board is satisfied that the Audit
Committee, as a whole, meets the
requirements for recent and relevant
financial experience, as set out in the
UK Corporate Governance Code 2018.
The Board is also satisfied that the Audit
Committee, as a whole, has competence
relevant to the sector in which the Group
operates including a wide range of skills,
expertise and experience in financial
and commercial matters arising from
the senior positions they hold or held in
other organisations as set out in their
biographical details on pages 90 and 91.

Given the evolving ESG regulatory
environment, an ESG training session was
delivered to the members of the Audit
and ESG Committees in January 2024
focused on ESG reporting obligations
and Committee responsibilities under the
current and future regulatory landscape.

Meetings
The Audit Committee meet with the
statutory auditor, without other executive
management being present, on an
annual basis to discuss any issues which
may have arisen in the year under review.
This meeting was held in February
2024 to review the findings from the
audit of the 2023 Financial Statements.
The Group Head of Internal Audit also
has direct access to the Chair of the
Audit Committee. After each Audit
Committee meeting, the Chair of the
Audit Committee reports to the Board on
the key issues which have been discussed.
The allocation of time across each of the
key Audit Committee activities is set out
on page 109.

The Audit Committee met eight times
during the year ended 30 December
2023. The Chief Executive Officer, Chief
Financial Officer, Group Secretary

and Head of Investor Relations, Group
Head of Internal Audit, Group Financial
Controller and representatives of the
statutory auditor are invited to attend
all meetings of the Audit Committee.
Where required other key executives or
members of the senior management
team are invited to attend meetings
and individuals with specialist technical
knowledge when required to provide a
deeper insight on agenda items related
to the Group’s principal risks. Training
was also delivered to the Committee
members focused on ensuring the
effective operation of the Audit
Committee in line with its duties from a
statutory basis as well as the Irish and UK
listing requirements.

Audit Committee key activities
Financial reporting and significant
financial judgements
As part of the Audit Committee’s
role, the Committee reviewed the
Interim Management Statements,
the Interim and Annual Consolidated
Financial Statements and all formal
announcements relating to these
statements before submitting them to
the Board with a recommendation to
approve. These reviews were focused on
but not limited to:
• the appropriateness and consistency
of application of accounting policies,
practices and proposed disclosures;
• compliance with financial reporting

standards and corporate governance
requirements including compliance
with climate-related disclosures;
• reviewing the application of the

transition from a euro presentation of
consolidated financial statements to a
US dollar presentation in 2023; and
• significant areas in which estimation
or judgement had been applied in
the preparation of the Financial
Statements.

The GIA team contribute to the assurance
process by reviewing compliance with
internal control processes including the
review of the Group’s internal financial
controls. The statutory auditor presents
its findings to the shareholders as the
owners of the business, and its report can
be found on pages 169 to 179.

As outlined in our accounting policies
on page 187, the Group has adopted an
income statement format that seeks
to highlight significant items within the
Group results for the year (“exceptional
items”). Judgement is applied by the
Directors in assessing the particular
items which by virtue of their scale and
nature should be disclosed in the Income

Statement and Financial Statement
notes as exceptional items. Several
significant items have been highlighted
as exceptional items in both 2022
and 2023 and the Audit Committee is
satisfied that this is appropriate and
consistent with the Group’s policy in
this area. The table on page 114 sets out
the 2023 significant financial reporting
judgements and disclosures and how
the Audit Committee addressed these
matters.

The Audit Committee considered the
Directors’ Responsibility Statement
and the Group’s principal risks and
uncertainties within the 2023 Annual
Report and Financial Statements and the
half-year results and were satisfied with
the adequacy of the disclosures.

Geopolitical risk
The Audit Committee has supported
the Board in closely monitoring the
risks associated with the escalating
geopolitical tensions particularly the
ongoing war in Ukraine, the conflict in the
Middle East and tensions between China
and Taiwan where any potential conflict,
economic sanctions or trade rulings
could impact the growth objectives
of the Group. To date, there has been
no material impact to the Financial
Statements arising from these conflicts,
however this is being maintained under
review as the year progresses. The Audit
Committee together with the Board
are also monitoring the impending
elections in the US and our other core
international locations that could bring
short-term uncertainty and instability
in the markets in which we operate.
The impact of the above on the Group’s
principal risks is discussed in the Risk
Management Report and principal risks
and uncertainties on pages 72 to 83.

Fair, balanced and understandable
At the request of the Board, the Audit
Committee reviewed the contents of the
Annual Report and Financial Statements
to ensure that when taken as a whole, it is
fair, balanced and understandable, and
provides the information necessary for
shareholders to assess the company’s
position, performance, business
model and strategy. In satisfying this
responsibility the Audit Committee
considered the following:
• the documented process and timelines

for the coordination, preparation
and review of the Annual Report and
Financial Statements;

• a dedicated project manager was in

place to drive adherence to deadlines,
reporting standards and consistency

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STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONAudit Committee Report continued

and this is aligned with the external
audit process undertaken by Deloitte
Ireland LLP;

• the senior finance management and
executive team review and approval
procedures;

• the key process milestones, to ensure
the draft Annual Report and Financial
Statements were available to the
Audit Committee in sufficient time
to facilitate adequate review and
effective challenge at the meeting;
• management presented a detailed
report to the Audit Committee
outlining the process by which they
assessed the narrative, financial
sections and disclosures of the
2023 Annual Report to ensure that
the criteria of fair, balanced and
understandable has been achieved;
• together with the ESG Committee,
disclosures on ESG related matters
including the TCFD report and other
climate disclosures were discussed in
detail; and

• the effectiveness of the key features of

internal control.

Having considered the above, in
conjunction with the regular updates
the Audit Committee receives from
management and the reports received
from the statutory auditor, Deloitte
Ireland LLP, the Committee confirmed
to the Board that the Annual Report and
Financial Statements, taken as a whole,
is fair, balanced and understandable and
provides the information necessary for
shareholders to assess the Group and
the Company position, performance,
business model and strategy.

Going Concern and Viability Statements
The Audit Committee reviewed the draft
Going Concern and Viability Statements
prior to recommending them for approval
by the Board. These statements are
included in the Risk Management report
on pages 84 and 85. This review included
assessing the effectiveness of the process
undertaken by the Directors to evaluate
going concern, including the impacts
of the current environment of economic
uncertainty and any significant impacts of
climate risks, and the analysis supporting
the Going Concern Statement and
disclosures in the Financial Statements.
The Audit Committee and the Board
consider it appropriate to adopt the going
concern basis of accounting with no
material uncertainties as to the Group’s
ability to continue to do so.
The Audit Committee also reviewed the
Long-term Viability Statement which is
supported by the work conducted in the
strategy and budget review in December

2023 and the Board’s ongoing review
of monthly and year-to-date business
performance versus budget and forecast.
Further detail is provided within the
Viability Statement on pages 84 and 85.

Directors’ Compliance Statement
The Audit Committee considered the
requirements of the Irish Companies
Act 2014 in relation to the Directors’
Compliance Statement and received a
report from senior management on the
review undertaken during the financial
year of the compliance structures and
arrangements in place to ensure the
Company’s material compliance with its
relevant obligations. On the basis of this
review, the Audit Committee confirmed
to the Board that it is satisfied that
appropriate steps have been undertaken
to ensure that the Company is in material
compliance with its relevant obligations.

Risk management and internal control
systems
The Audit Committee receives regular
Group key risk summary reports,
prepared by the Internal Audit team,
tracking residual key risk exposures which
allows the Audit Committee to assess
the appropriateness of management’s
action plans to ensure the Board’s risk
appetite is not exceeded and to remain
alert to emerging risks as they are
identified through the review process.
The Risk Management Report on pages
72 to 85 sets out the detailed steps in the
process and the Group’s principal risks.
The Audit Committee’s risk management
focus during 2023 included:
• reviewing and approving the

assessment of the principal risks and
uncertainties that could impact the
achievement of the Group’s strategic
objectives as outlined on pages 76 to
83;

• reviewing the disclosures in relation to
the scenario analysis that was carried
out for each of the material climate-
related risks and opportunities as
outlined in the TCFD and the progress
that the Group is making on TCFD
recommendations which are disclosed
in detail on pages 64 to 70;

• reviewing Group Finance papers
which considered the impact of
climate change on the Group Financial
Statements which includes details of
the TCFD requirements, as outlined on
pages 64 to 70 and accounting policy
Note 2 to the Financial Statements.
During the year, Group Finance and
the statutory auditors provided the
Audit Committee with regular updates
on the evolving legislative and external
reporting requirements including
double-materiality and climate-
related risk disclosures;
• reviewing and assessing

management’s transition from a euro
presentation of consolidated financial
statements to a US dollar presentation
in 2023 as outlined in the Chief
Financial Officer’s review on pages
40 to 45 and Note 2 to the Financial
Statements;

• receiving a presentation from the

Group Treasury team on the current
Group financing position following the
completion of the 2022 re-financing
exercises and the broader Group
Treasury risks;

• a consideration of the detailed

Business Unit performance updates
on Group investments and the
impairment review methodology and
outcomes outlined in Note 16;

• receiving updates from management

and the external auditors on
developments with regard to the
recently published revised UK
Corporate Governance Code;

• continued focus on developing a

• receiving updates from the Group

detailed understanding of the risks
within each of the core functions, our
improvement opportunities and areas
of emerging risk exacerbated by the
escalating geopolitical tensions and
macroeconomic uncertainty;

Head of Internal Audit outlining areas
of non-compliance with Group policies
and control deficiencies identified
during the year, fraud investigation
reports and management actions to
address the weaknesses noted;

• receiving risk presentations from a

• assessing the Group’s risk

number of Group functional leads, in
particular Group IT on the progress
of the Group’s IT strategy and its
response to cyber security risks. Cyber
security remains a major focus for
the Audit Committee given the ever-
increasing risks in this area at a global
level. The Audit Committee received
updates on information security
matters from Group IT. The Chair of the
Audit Committee updated the Board
on the IT discussions on each occasion;

management and internal control
systems in line with the Financial
Reporting Council guidance on risk
management and internal control; and

• reviewing reports from the statutory

auditor in respect of significant
financial accounting and reporting
issues, key matters arising from
the statutory audit together with
management’s plans in place
to address any internal control
weaknesses noted.

112 Glanbia plc | Annual Report and Financial Statements 2023

is available on the Company’s website
www.glanbia.com and on our Group
intranet. The Audit Committee receives
bi-annual updates from the Group
Secretary and Head of Investor Relations
providing an overview of how concerns
raised are categorised, investigated,
monitored and reported, together with
a review of the main themes, issues and
resolution actions arising. The Group’s
Speak Up Policy is regularly updated
to reflect evolving regulatory and best
practice requirements.

The Group’s Anti-Bribery & Corruption
Policy, Group Code of Conduct, Supplier
Code of Conduct, Slavery and Human
Trafficking Statement, Group Human
Rights Policy, Group Animal Welfare
Policy and Anti-Money Laundering &
Counter Terrorist Financing Policy seek
to further strengthen the Group’s fraud
prevention procedures. A training module
to support the Supplier Code of Conduct
was launched in 2023, together with
the continued roll out of the Group’s
Code of Conduct training to employees
on a phased basis. Management also
provided externally facilitated training
on the Group’s Anti-Money Laundering &
Counter Terrorist Financing Policy to the
relevant internal teams during the year.

Management, with the support of
GIA, have formalised and enhanced
the existing fraud risk management
policies and processes, to help ensure a
robust fraud prevention programme is
implemented across the Group. A fraud
risk assessment was completed in 2023
and approved by the Audit Committee
and Board.

The Audit Committee concluded, and
confirmed to the Board, that it was
satisfied that the Group’s whistleblowing
and other fraud prevention and detection
procedures, including the GIA function’s
activities, are adequate and allow for
the proportionate and independent
investigation of such matters and
appropriate follow up action.

The Audit Committee, having assessed
the above information, is satisfied that
the Group’s systems of internal control
and risk management are operating
effectively and has reported that opinion
to the Board who has conducted its own
review and is also satisfied that these
systems are operating effectively.

Internal audit
To fulfil its responsibilities for monitoring
and reviewing the operation and
effectiveness of the GIA function, the
Audit Committee:
• approved the GIA Charter and annual
risk-based work plan including any
amendments to ensure the plan
remains dynamic to address business
challenges, changes to current and
emerging areas of key Group risks and
the changing business environment;
• ensured that it is adequately resourced
with a strong mix of skills and expertise
capable of conducting effective
internal audits, IT audits and special
investigations;

• satisfied itself that the GIA function
is appropriately resourced and
where additional skills or expertise
are required, the Group Head of
Internal Audit makes the necessary
arrangements to complement the in-
house team;

• reviewed the team’s use of technology

including the audit management
system and data analytics tools,
processes, techniques and plans to
ensure the effectiveness of internal
audit processes and oversight of risks;

• received regular reports from the

Group Head of Internal Audit covering
team development, progress against
the audit plan, amendments required
and best practice risk management
procedures. This included receiving
updates on the activities performed
in line with the quality assurance
and improvement programme policy
(“QAIP”) that is designed to ensure that
GIA performs its work in accordance
with its Charter, which is consistent
with the Institute of Internal Auditors
(“IIA”) International Standards for
the Professional Practice of Internal
Auditing, Definition of Internal Auditing
and Code of Ethics; and

• received an update on the results of
GIA’s internal quality assessment,
prepared as part of the QAIP, which
confirmed that the GIA function
continues to be in general compliance
with the IIA Standards with no material
issues identified. The next external
quality assessment of the GIA function
is not due until 2027, as per the IIA
standards.

GIA refreshed the combined assurance
mapping exercise that was completed in
February 2023 to identify any changes
in potential assurance gaps and avoid
duplication of assurance effort. The
output of the exercise was presented
to the Audit Committee and while it did
not identify any significant improvement
opportunities, it provided greater detail
to allow the Audit Committee to further
progress the Group’s overall assurance
model. GIA also maintained its focus
on principal risks, which included cyber
threat and information security, legal
and regulatory compliance, ESG data
reporting and technology failure.
Audit results are reported to the Audit
Committee to allow the Committee to
have an integrated view on the way risks
are managed.

Management is responsible for ensuring
issues raised by GIA are addressed
within the agreed timeframe, and the
Audit Committee reviews the status of
actions periodically throughout the year
to ensure they are completed on a timely
basis.

The Group Head of Internal Audit
routinely meets with the Chair of the
Audit Committee, to review the meeting
agendas, draft papers and to ensure
that the overall Audit Committee work
plan remains aligned to the current and
emerging areas of key Group risk. Where
required, the relevant Board or Audit
Committee agendas are amended to
include items that require more detailed
consideration, typically by a direct
presentation to the Audit Committee or
Board by the relevant Business Unit or
functional lead.

On the basis of the above, the Audit
Committee concluded that the GIA
function was performing well and is
satisfied that the quality, experience and
expertise of the function is appropriate
for the Group. The Audit Committee
continues to encourage effective
coordination among the internal
assurance providers, external and
internal audit teams to maximise the
benefits from coordinated activities and
ensures that this is in place.

Whistleblowing and fraud
The Board has delegated responsibility
to the Audit Committee for ensuring
that the Group maintains suitable
arrangements for its employees to raise
concerns, in confidence, about possible
wrongdoing in financial reporting and
other matters. These arrangements are
outlined in our Code of Conduct which

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2023 significant financial reporting judgements and disclosures
The areas considered and the actions taken by the Audit Committee in relation to the 2023 Annual Report are outlined in the table
below. For each area, following its enquiries, the Audit Committee was satisfied with the key assumptions made, the accounting
treatment applied and the disclosures in the Financial Statements.

Key financial judgement and disclosures

How the Audit Committee addressed these matters

Impairment review of goodwill and
intangibles
Judgement decisions largely relate
to the assumptions used to assess
the value-in-use of the CGUs
being tested. These assumptions
typically include short and long-
term business and macroeconomic
projections, cash flow forecasts
and associated discount rates.

• Management provided the Audit Committee with detailed reports to support the recoverable
value of the balances included in Note 16 to the Financial Statements including an overview of
the weighted average cost of capital methodology applied and an analysis of the level of
headroom between the carrying value of the asset and the value-in-use;

• The Audit Committee considered the Group’s cash generating units (“CGUs”) and is satisfied

that the updated CGUs reflect the interdependencies of cash inflows within the Group and how
management monitors operations;

• The Audit Committee reviewed and discussed the reports with management and challenged the
application of management’s methodology, the appropriateness of the assumptions made for
future cash flows, discount rates, terminal values and growth rates, and the achievability of the
business plans with consideration of different scenarios;

• The Audit Committee considered the updates made to assumptions and Financial Statement
disclosures as a result of management’s assessment of the impact of macroeconomic factors
and climate related matters on forecasted business performance and cash flows as disclosed in
Note 16 to the Financial Statements, and the extent of sensitivity disclosures provided;
• The Audit Committee considered the potential impacts of relevant geopolitical tensions,

macroeconomic uncertainty, and climate change on the Group’s businesses and valuation
assumptions; and

• The Audit Committee considered the output from the sensitivity analysis performed at 2023
year-end, and in particular, noted that based on the conclusions of the impairment process
completed, no impairment was identified.

Exceptional items
Judgement decisions relate to the
assessment of the items identified
as being exceptional in nature
and the appropriateness of the
presentation in the Financial
Statements.

• The Audit Committee reviewed the nature of the exceptional items identified and the effectiveness
of the process that requires all exceptional items to be pre-approved. After a detailed review and
consideration of the disclosures, the Audit Committee is satisfied that the treatment is in line with
the Group policy, consistently applied across years and appropriately presented in the Financial
Statements with sufficient detail to allow users of the Financial Statements to understand the
nature and extent of the exceptional items and how they arose. Further details on the exceptional
items identified in 2023 are included in Note 6 to the Financial Statements.

Revenue recognition
Revenue is a risk given the inherent
complexity of IFRS 15 accounting
requirements, the nature of some
customer relationships and the
adjustments recorded to ensure
the basis of year-end rebate
provisions are appropriate.

• Within the GPN segment, revenue is recognised net of rebate, discount, deduction and

allowance claims where the amounts payable can vary depending on the arrangements made
with individual customers and the volume of trade entered into;

• Key areas of focus and challenge from the Audit Committee were in relation to the period-end
close process and the basis of any significant year-end rebate provisions to ensure they were
adequate and appropriate; and

• The Audit Committee considered in detail the changes to the commercial arrangements
associated with the Group’s remaining joint venture partner that will result in a change in
revenue recognition in 2024.

Uncertain tax provisions
Significant judgement is applied
in assessing current and deferred
tax exposures in relation to
the interpretation of local and
international tax laws, tax rates
and treaties relating to the Group’s
uncertain tax provisions.

• The Audit Committee received a presentation from the Chief Financial Officer and the Group

Head of Tax on various tax matters including tax structures and controls, the ongoing
management of the Group’s system of operation, evolving tax legislation and the status or
outcome of any tax authority reviews conducted during the financial period;

• The Audit Committee considered the impact of the Group financing arrangements and the

Group’s compliance with the legislative requirements in this area;

• The Audit Committee received an analysis of movements in the uncertain tax provisions during

the year, reviewed the key judgements in relation to the calculation of the uncertain tax
provisions, the external professional advice obtained to support the provisions and the Financial
Statements disclosure requirements in the current year, including the disclosure of the Group’s
impact assessment of Pillar II; and

• The Audit Committee challenged management on the key judgements and estimates

underpinning both the provisions and disclosures adopted for the most significant components
of the taxation liabilities and the underlying assumptions for the recognition of deferred tax
assets, principally the availability of future taxable profits and the utilisation period.

114 Glanbia plc | Annual Report and Financial Statements 2023

In summary, the Audit Committee
confirms that the policy continues to be
effectively implemented.

Effectiveness
The Chief Financial Officer confirmed
that the feedback from the Group and
subsidiary finance executives, who had
the most interaction with Deloitte Ireland
LLP in 2023, remained consistently
positive.

Overall, the Audit Committee remains
satisfied with the effectiveness of the
statutory auditor based on:
•

its own interactions with Deloitte
Ireland LLP during Audit Committee
meetings. Deloitte Ireland LLP
attended all the Audit Committee
meetings in 2023 and to date in 2024;
• the quality of planning, delivery and

execution of the audit;

• effectiveness of communications

between management and the audit
team;

• the quality of the reports and

presentations received;

• the robustness of the challenge

provided, particularly in relation to
judgemental and complex areas as
well as demonstrating professional
scepticism and independence;

• their technical insight; and
• their demonstration of a clear

understanding of the Group’s business
and its key risks.

The Audit Committee’s conclusion that
the external audit process was effective
was conveyed to the Board.

Review of statutory auditor
The Audit Committee oversees the
relationship with the statutory auditor,
including ensuring that the statutory
audit contract is put out to tender at
least every 10 years. Deloitte (who were
succeeded by Deloitte Ireland LLP) were
appointed as the Group’s statutory
auditor on 27 April 2016 following a formal
tender process in 2015. It is anticipated
that the next audit tender process will
commence in 2024 to help facilitate an
appropriate transition commencing in
2025.

The Audit Committee reviewed the
approach and scope of the annual audit
work to be undertaken by the statutory
auditor, which included planned levels
of materiality, significant risks and
key audit matters, the audit of the
Group’s core financial IT systems, fraud
responsibilities and representations, the
proposed audit fee and the approval of
the terms of engagement for the audit.
The Committee also considered the level
of supervision and review by the Group
audit team in all component audits.

The Audit Committee received a number
of updates from Deloitte Ireland LLP
with regard to the evolving regulatory
requirements for ESG reporting and the
recent corporate governance updates
including:
• ESG’s current landscape and future
developments and the importance
of achieving an appropriate balance
between the climate-related
disclosures in the management
commentary and the disclosures in the
financial statements;

• Accounting and Regulatory

updates (e.g., IAASA, FRC and IFRS
technical updates) and commentary
including the investor and regulator
expectations of corporate reporting;
• Update on International Tax Reform -

Pillar II; and

• the revised UK Corporate Governance

Code.

Independence and objectivity of the
statutory Auditor
To ensure the independence and
objectivity of the statutory auditor, the
Audit Committee:
• maintains and regularly reviews the
Group’s Auditor Relationship and
Independence Policy;

• considers the performance of the

statutory auditor each year;

• monitors the nature and extent of
services provided by the statutory
auditor through an annual review of
fees paid for audit and non-audit work;

• reviews audit partner rotation

requirements and assesses their
independence on an ongoing basis.
In line with regulatory requirements
for listed companies, the statutory
auditor is required to rotate the audit
partner responsible for the Group
audit every five years. The current
audit engagement partner, Emer
O’Shaughnessy was appointed as lead
engagement partner for the Group in
2021;

• considers the results of IAASA’s 2022
Quality Assurance review of Deloitte
Ireland LLP; and

• requests the statutory auditor to

formally confirm in writing that they
are in compliance with relevant ethical
and professional guidance and that,
in their professional judgement, they
are independent from the Group. This
confirmation process also provides
examples of safeguards that may,
either individually or in combination,
reduce any independence threat to an
acceptable level.

Non-audit services
The Glanbia Auditor Relationship and
Independence Policy includes a clearly
defined pre-approval process, subject
to defined monetary thresholds, for
audit and other services, including a
requirement for the business to submit a
formal template setting out the details
of the services requested, the likely fee
level, the rationale for requiring the work
to be carried out by Deloitte Ireland LLP
rather than another service provider and
confirmation that the service requested
is not a prohibited service. The provision
of all non-audit services which are not
prohibited and approved in line with
our policy must be ratified by the Audit
Committee at the following meeting of
the Audit Committee, who also ensures
that the total fees for non-audit services
will not exceed the defined thresholds
and that the defined authorisation
process is followed.

Fees paid to Deloitte Ireland LLP for
audit-related and non-audit related
services are analysed in Note 5 to
the Financial Statements. The Audit
Committee is pleased that this policy
continues to be effectively implemented.

The Audit Committee confirms that the
non-audit related services provided are
considerably below the regulatory cap
on fees for permitted non-audit services
of 70% of average audit fees over a three
year period and were provided with
appropriate safeguards in place.

Glanbia plc | Annual Report and Financial Statements 2023

115

STRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATIONTerms of reference
The full terms of reference of the
Environmental, Social and Governance
(“ESG”) Committee can be found on the
Group’s website: www.glanbia.com or can
be obtained from the Group Secretary
and Head of Investor Relations.

Key responsibilities

Assisting the Board in defining and
regularly reviewing the strategy of the
Group relating to ESG matters and in
setting relevant key performance
indicators.

Developing and reviewing regularly the
policies, programmes, codes of practices,
targets and initiatives of the Group
relating to ESG matters, ensuring they
remain effective and up to date and
consistent with good industry practice.

Providing oversight of the Group’s
management of ESG matters and
compliance with relevant legal and
regulatory requirements, including
applicable rules and principles of
corporate governance, and recognised
international standards.

Reviewing and supporting progress made
against the Group’s core ESG strategies
including: Environmental Sustainability;
Health and Safety; Food Safety and
Quality; and Diversity, Equity and
Inclusion (“DE&I”).

Reviewing the quality and integrity of
internal and external reporting of ESG
matters and performance to ensure that
the Group provides appropriate
information, complies with reporting
obligations and meets international
reporting standards and is transparent
regarding its ESG related policies with the
investment community.

Reporting on these matters to the Board
and, where appropriate, making
recommendations to the Board.

Reporting as required to the shareholders
of the Company on the activities and
remit of the ESG Committee.

Environmental, Social and
Governance Committee Report

Embedding
sustainability across
our organisation

Dan O’Connor
Environmental, Social and Governance Committee Chair

Committee members and Committee tenure

D O’Connor (Chair)1

D Gaynor1

I Haaijer

J Murphy

S Talbot2

M Garvey2

Appointed to
the Committee

Number of full
years on the
Committee

1 Sep 22

17 Jun 21

1 Sep 22

17 Jun 21

30 Dec 23

Other annual reports

2024 Report ↗ 2023 Report ↗ 2022 Report ↗ 2021 Report ↗ 2020 Report ↗

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