Nutrition giant Glanbia posted stronger than expected half year results as it increased prices to cushion the impact of inflation.
The company said that in the absence of any further unanticipated major market disruption, it expects sustained revenue and earnings momentum for the rest of the year.
“We will continue to monitor inflationary trends into the second half of the year but are confident that further pricing action and operational efficiencies will deliver improving margins,” said Siobhán Talbot, group managing director.
Glanbia is concerned about the impact geopolitical uncertainties could have on business growth in addition to inflation. The Russian invasion of Ukraine in particular is creating significant inflationary impacts affecting both Glanbia’s operational costs and its consumers' finances.
The company said it is also looking closely at the escalating tensions in other key trading regions, especially between China and Taiwan, where it said any potential conflict, economic sanctions or trade rulings would impact the company’s growth objectives.
Glanbia posted revenues of almost €3bn, up from €2bn in the same period last year. Total Group profit after tax for continuing operations was over €121m, down €900,000 on 2021’s half year results.
Glanbia returned over €127m to shareholders during H1 via share buybacks. The company’s interim dividend increased by 10% to 12.93c per share.
“We continue to make progress on our strategic agenda and with the completion of the sale of the company’s minority interest in Glanbia Ireland, Glanbia plc continues to evolve as a focused, purpose led global nutrition company,” said Ms Talbot.
Glanbia is an Irish global nutrition group with operations in 32 countries. It has leading market positions in sports nutrition, cheese, dairy ingredients, speciality non-dairy ingredients and vitamin and mineral premixes.