Glanbia revenue falls as volume decline offsets rising prices 

Despite a 3.5% increase in pricing, revenue for the first quarter fell by 2.4%

Siobhán Talbot, Group Managing Director of Glanbia

Glanbia revenue fell by 2.4% in the first three months of 2023 despite a hike in pricing, with a volume decline of 6.2% largely impacting the nutrition company's performance.

Following the completion of the sale of its shareholdings in Glanbia Cheese, a mozzarella maker in Europe, in which it received €178.9m, the company said the net impact of its acquisitions and disposals delivered growth of 0.3%.

Glanbia's Performance Nutrition (GPN) department saw a volume decline of 9.2%, which was largely offset by a 14.2% increase in pricing, with like-for-like branded revenue growing by 5% in Q1. The division also saw significant growth in US consumption, up more than 36%, with full-year margins expected to grow between 12.5% and 13.5%.

Across its Nutritional Solutions, like-for-like revenue fell notably by 16.4%, largely driven by a 17.4% in volumes, with a marginal 1% rise in pricing.

Attributing its significant volume decline to customer supply chain rebalancing, Glanbia said this was expected to "normalise during the second half of the year."

"Overall, the first quarter has progressed largely as expected for the Group and we are pleased to be upgrading our full-year guidance for growth in adjusted EPS to 7% to 11%, constant currency," said Group Managing Director, Siobhan Talbot.

Following the company's portfolio evolution, Ms Talbot added the company has "increased and extended the share buyback programme announced on 1 March, from €50m to €100m."

"While elements of the global environment remain challenging, the strength of our platforms in better nutrition, supported by the combination of pricing actions taken, operational efficiencies and reduced input costs in the second half of the year gives us continued confidence that we will deliver strong full-year Group EBITA growth, which will be largely driven by GPN.”

Meanwhile, the company's Nutritional Services expects a decline in like-for-like revenue, driven by lower dairy market pricing and a marginal volume decline, with earnings before interest, tax, depreciation and amortisation to grow between 12% and 13%.