Glanbia Reports a “Good Performance” Despite Revenues Falling in Quarter

28 Apr 2016 --- Glanbia has reported that group revenues fell 2.5 percent in the quarter, as sales were dented by falling milk prices. The Irish ingredients, nutrition and dairy company updated the market on its performance on the three months to April 2.

Glanbia’s shares were down 0.5 percent today, following the update.

Siobhan Talbot, group managing director, said that the company had “delivered a good performance” despite on-going problems in the dairy sector.

Talbot added: “Our growth platforms of Glanbia Performance Nutrition and Global Ingredients delivered volume growth in the first quarter.”

“Our on-going strategy of building a business to deliver better nutrition via consumer brands and high-quality ingredients has mitigated the impact of weak dairy markets.”

“The outlook for the remainder of 2016 is positive and we reiterate our full year guidance of adjusted earnings per share growth of 8% to 10% on a constant currency basis.”

Across its Global Ingredients business, revenue declined 5.2 percent. 

Volume growth was up 1.5 percent but this was offset by price declines in the dairy market. The volume growth was mainly driven by high-end whey ingredients sales due to investment in extra capacity.

Glanbia said it was continuing to work on reformulations and developing new products to cater to changing consumer tastes.

It said that it expects profits to be up across Global Ingredients year-on-year as its decision to add extra capacity to sell more high-end whey will offset the problems in the dairy market.

Across Dairy Ireland, the group said it had delivered a “satisfactory performance” but revenues were down 6.2 percent, which was driven by weather related volume declines.

Across Performance Nutrition, revenues were up 5.6 percent, with a strong performance in the US in the first quarter.

But overall volume growth was offset by challenges in certain markets outside of the US, such as the strong dollar and geo-political issues.

Glanbia affirmed its guidance for 2016 of between eight and ten percent growth in adjusted earnings per share at constant currency.

by John Reynolds