Glanbia shares surge nearly 8% following growth in protein powder brand 

Glanbia group managing director Siobhan Talbot. Glanbia revenues jumped to €5.6bn, up more than 21% on a constant currency basis compared to 2021. Picture: Dylan Vaughan

Food giant Glanbia is considering expanding its business in several markets this year despite ongoing headwinds, following high demand for its protein powders brand.

Growing popularity around Optimum Nutrition led it to become a star performing brand for Glanbia last year as it generated around $1bn (€937m) in sales and US consumption grew by 31%, Glanbia results showed.

Shares in Glanbia surged almost 8% on Wednesday afternoon after the company posted its "highest ever annual earnings" following price increases of 16.4% last year across products in its Glanbia Performance Nutrition division, despite volume declines of 3% driven mainly by lack of demand for its SlimFast drinks.

Glanbia revenues jumped to €5.6bn, up more than 21% on a constant currency basis compared to 2021, and its profit after tax reached €257m compared to €167m in the same period.

“There may be some tactical pricing that we’ll have to do in some other geographies and honestly we’ll see how it all plays out through the rest of the year,” said Glanbia group managing director Siobhan Talbot.

Ms Talbot said the UK is among the markets on her radar to expand in, despite its ongoing volatile economic environment.

“We have a very good business in the UK and we’ll always be very mindful of the competitive position but optimistic about what we can do in that market. We can continue to grow,” she said.

Global portfolio

She added that having a global portfolio can bring momentum to the organisation and absorb shocks in other regions.

“Internationally, our focus is on Optimum Nutrition,” said Ms Talbot.

Glanbia returned €173m to shareholders in the year through share buybacks. It announced a further €50m share buyback programme, reflecting its “strong cash flow and financial position”.

The company’s board is recommending a final dividend of 19.28 cent per share which brings the total dividend for the year to 32.21 cent per share, a 10% increase on the prior year. The final dividend will be paid on May 5.

Meanwhile, Glanbia announced Leprino Foods will acquire full ownership of Glanbia Cheese, a leading mozzarella maker in Europe.

It is expected that Glanbia will receive more than €160m for the sale of its stake in its cheese business, with the possibility of an additional €25m over the next three years, dependent on business performance.