Glanbia launches €50m share buyback programme amidst 'improving trends' in Q3

A price increase of 4.8%, offset by a volume decline of 1.7% drove revenues 

Siobhán Talbot, Group Managing Director Glanbia, said the third quarter saw trends in Glanbia Performance Nutrition improve “significantly." Picture Dylan Vaughan.

Irish nutrition group Glanbia has reported its wholly-owned revenues rose by 1% for the nine month period ending October 3, when compared to the same period last year.

When excluding the impact of an extra financial week in 2019 and the impact of foreign exchange, "like-for-like" wholly owned revenues were up 3.1%.

The drivers of this revenue increase was a price increase of 4.8%, offset by a volume decline of 1.7%.

Despite the challenges posed by Covid-19, the Kilkenny-based group said it's experiencing “improving trends," with strong cash flows fuelling a launch of a share buy-back programme of up to €50 million.

The group intends to acquire Glanbia shares on the open market and subsequently cancel them. It expects to commence the share repurchase programme next month.

Notwithstanding continued Covid-19 related uncertainty, Glanbia said it expects Glanbia Nutritionals and Joint Ventures to “continue to deliver a resilient earnings performance in addition to further sequential improvement in Glanbia Performance Nutrition.” 

Commenting on the interim trading statement, Siobhán Talbot, Group Managing Director Glanbia, said the third quarter saw trends in Glanbia Performance Nutrition improve “significantly” with an increase in revenues and margins versus the second quarter as markets gradually reopened and trading patterns improved.

“The Group has continued to focus on improving its financial position while maintaining investment in growth; with all key strategic projects on track and the acquisition of Foodarom closing in the third quarter,” she said.

“Operating cash flow has been strong and net debt versus the same period in the prior year has reduced by €188 million. We expect to continue to build momentum into Q4 and to exit the year well-positioned for 2021 growth.” 

Board changes

Glanbia also announced John Daly is to step down as Independent Non-Executive Director with effect from November 1, while Mary Minnick will step down as Independent Non-Executive Director with effect from December 31.

Jane Lodge and Roisin Brennan will join the Board as Independent Non-Executive Directors effective November 1 and January 1 respectively.

Jane Lodge is a former Senior Audit Partner of Deloitte, and currently a non-executive director of DCC plc, Costain Group Plc and Bakkavor Group plc. Roisin Brennan is former Chief Executive of IBI Corporate Finance Ltd and currently a Non-Executive Director of Ryanair Holdings plc, Hibernia REIT plc, Musgrave Group plc and Dell Bank International DAC.

Glanbia recently appointed Donard Gaynor as its new chairman, succeeding Martin Keane who is retiring from the Irish food multinational next year.