Glanbia posts first quarter statement

Siobhán Talbot, Glanbia's group managing director

Global nutrition group, Glanbia, has posted an 8.4% increase in revenue for the three months to 30 March 2019, up 16.2% on the same period in 2018.

Siobhán Talbot, group managing director said: “Glanbia grew revenues by 8.4%, constant currency, in the first quarter of 2019 underpinned by growth in both Glanbia Nutritionals and Glanbia Performance Nutrition in the period. Glanbia Nutritionals was the main driver of revenue growth with a good performance in particular from the Nutritional Solutions business. Glanbia Performance Nutrition revenue growth in the first quarter was driven by a strong performance from the recently acquired SlimFast brand.

“Our strategy remains on track and we reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, in 2019, with growth to be delivered in the second half of the year.”

On the group board, Mary Minnick, Richard Laube and John Daly have been appointed as independent non-executive directors, while Dan O’Connor will take up the role of senior independent director.

In February 2019 Glanbia completed the acquisition of Watson, a US based non-dairy ingredient solutions business. Watson is now part of the Nutritional Solutions business within Glanbia Nutritionals.

Glanbia Performance Nutrition

Glanbia Performance Nutrition (GPN) delivered revenue growth of 4.9% in the first three months of 2019, compared to the prior year. This was driven by the SlimFast acquisition delivering 24.8% offset by a volume decline of 16.5% and a price decline of 3.4%.

The SlimFast acquisition is performing strongly with the integration of the business continuing as planned. Growth was driven by the core range and particularly strong consumer demand for recent innovations in the UK and US, in particular the Keto range.

GPN’s lifestyle and direct-to-consumer brands performed well in the period. Product innovation continued in the first quarter with good performances from recently launched products in weight management, energy and plant based formats.

The full year 2019 outlook for GPN showed consumption growth trends are expected to remain positive for the remainder of the year and this is expected to drive growth over the full year. Price increases will be implemented in the second half of the year and full year revenue growth is expected to be driven by a mix of volume and price increases.

Glanbia Nutritionals

Glanbia Nutritionals (GN) delivered strong revenue growth in the first three months of 2019, with an increase of 10.4% versus prior year. This was driven by a volume increase of 11.2%, offset by a price decline of 2.4% and the Watson acquisition delivering 1.6%.

Nutritional Solutions (NS), a provider of customised nutrient premixes, advanced-technology protein solutions, functional beverages and flavours showed an increased revenue of 22.1% in the period. This was driven by volume growth of 16.1%, a price increase of 0.7% and the Watson acquisition delivering 5.3%.

Volume growth was driven by a strong performance in value-added dairy solutions against a relatively weak first quarter in 2018. Non-dairy solutions also performed well with good volume growth in the Asian region in particular. Price increase was primarily driven by improved mix in dairy solutions.

US Cheese, a producer and marketer of American-style cheddar cheese in the US saw an increased revenue of 5.5% in the period. This was driven by volume growth of 9.1% primarily due to capacity expansion in the SwC JV plant completed in the prior year. Pricing decreased by 3.6% as a result of lower cheese markets year on year.

The full year 2019 outlook for GN has positive momentum continuing across the Nutritional Solutions business driven by strong underlying volume growth and expected positive pricing.

Revenues from Joint Ventures (JVs) increased by 14.9% in the first three months of 2019. This was driven by volume growth of 13.6%, mainly from Glanbia Ireland and the SwC JV, and a price increase of 1.3% as a result of improved year on year dairy markets.

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