Glanbia says it is well-positioned for the future despite earnings decline

Wed, 12 Aug, 2020 - 07:45

Alan Healy

Irish nutrition group Glanbia said it delivered a resilient operating performance but recorded a sharp decline in earnings due to the impact of Covid-19.

Earnings for the first half of the year before interest, tax and amortisation (Ebita) were €85m, down 24.% but the group did record a growth in revenues by 2.3%.

Glanbia Nutritionals delivered earnings in line with 2019 as key end-market demand was sustained throughout the first half of this year.

Siobhán Talbot, Group Managing Director, said Glanbia Performance Nutrition was impacted by Covid-19, with international market disruption and challenges in North America. "As a result, adjusted earnings per share declined in the period by 17.2% on a constant currency basis," she said.

The board of the Kilkenny-headquartered group is recommending an interim dividend of 10.68 cent per share which is in line with the prior year interim dividend.

Glanbia withdrew its 2020 full-year financial guidance in April due to the uncertainty of duration and impact of the pandemic. Those conditions are still in place and the 2020 full-year financial guidance remains withdrawn.

Despite the current challenges she said Glanbia spoke optimistically about the future. "Our compelling belief is that consumers increasing focus on health and wellbeing, as well as greater importance on trust and quality, positions Glanbia well for the future, given our core purpose of the delivery of better nutrition via our brands and ingredient solutions."

"While the short term outlook remains uncertain, the Board is confident that Glanbia has the portfolio, the consumer insight and the operational expertise to succeed in this new environment.”

Along with the half-year results, Glanbia announced they have acquired Canadian specialist flavours firm Foodarom for $60 million.

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