Glanbia shares climb 5% as food firm says earnings will rise strongly

Glanbia remains one of the most valuable Irish-owned multinationals, at a market value of €4.27bn. File Picture: Mark Stedman/RollingNews.ie

Shares in Glanbia climbed 5% to trade at recent highs as the food producer said it will likely deliver higher-than-expected sales through 2021 as global Covid restrictions start to lift.

In a trading update ahead o releasing first-half earnings in August, Glanbia said revenues rose 20% in the first six months of the year.

It said both its so-called Glanbia Performance Nutrition and Glanbia Nutritionals divisions - its main profit generators - had so far performed well.

Overall earnings for the full year will rise strongly compared with the worst of the Covid fallout in 2020, it said.

On the rise of global raw material prices, Glanbia said it was confident it would “navigate expected cost inflation headwinds” for the rest of the year.

The shares rose 5% on Thursday to trade in Dublin at around €14.60, which is close to recent multi-year highs for the stock.

Glanbia remains one of the most valuable Irish-owned multinationals, at a market value of €4.27bn.

The shares have recovered strongly from as low as €10.40 at the start of the year as Glanbia’s international food operations weathered the global Covid economic storm and restrictions.

Before the onset of the Covid crisis, the shares had been hit by doubts from investors over its strategy to buy consumer brands in the US.

Many of those doubts appear to be easing.

“Previously Glanbia guided full-year 2021 adjusted EPS (earnings per share) growth to be in the upper end of 6% to 12% on a constant currency basis versus prior year,” Glanbia said in the update.

“Glanbia now expects to deliver full-year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year,” it said.