Glanbia boss commits to SlimFast brand despite declining volumes 

Shares jumped around 3% following interim results

SlimFast represents 11% of the company’s performance nutrition portfolio despite declining popularity. The latest fall follows a 17% drop in consumption in the 12 weeks to June 2022.

Outgoing managing director of nutrition giant Glanbia, Siobhán Talbot, suggested the company is still committed to its weight loss drinks brand SlimFast despite declining sales as new competitors enter the market.

Ms Talbot made her comments after Glanbia reported a 33% decline in consumption of the drinks in the US in the 12 weeks to mid-July as the company’s diet and weight management category is yet to recover post-pandemic.

“We tried a number of things and it hasn’t had the traction in truth that we might have thought, but we know there is a very strong core proposition with SlimFast that does what it says on the tin,” said Ms Talbot.

The brand, which falls under the Glanbia Performance Nutrition (GPN) division in the firm, is currently battling new competition in the weight loss market including the new Danish blockbuster weight loss drug Wegovy.

Volumes to stabilise

However, Ms Talbot said “there will always be a variety of options” for consumers looking for weight loss management products and that she expects the declining SlimFast volumes to stabilise in “2024 and beyond”.

The Kilkenny-headquartered firm purchased SlimFast from food-focused US private equity firm Kainos Capital in 2018 in a deal worth €302m. Ms Talbot said the brand provided “stellar growth” post-acquisition until the pandemic.

In a trading update, Glanbia posted revenue of $2.8bn (€2.5bn) for the first six months of the year, a fall from around $3bn in the same period a year earlier, driven by SlimFast volume declines.

SlimFast represents 11% of the company’s performance nutrition portfolio despite declining popularity. The latest fall follows a 17% drop in consumption in the 12 weeks to June 2022.

However, the company posted overall earnings of just under $200m, up 6%, driven by price increases across its performance nutrition arm which offset volume declines. Shares rose more than 3% following these interim results.

'Good performance'

“Our earnings momentum in the first half of 2023 was driven by a good performance in Glanbia Performance Nutrition as growth in revenue, earnings, and margin reflected a strong global performance for our flagship Optimum Nutrition brand,” said Ms Talbot.

She said the company is not imposing “big structural price increases this year”.

Meanwhile, Ms Talbot announced she will retire from her role as managing director of Glanbia after a decade at the helm.

The company announced Ms Talbot will be replaced by Hugh McGuire, the current CEO of the GPN division, who has been with the company for 20 years.

Mr McGuire will take up his new role as CEO of Glanbia and join the Glanbia board as executive director from January 1.

The announcement comes after Glanbia raised its earnings outlook for the rest of the year and forecast growth between 12% and 15%.

The group’s interim dividend climbed 10% to 14.22 cent per share, while the firm returned €64.5m to shareholders in the period through share buybacks.