Glanbia upgrades earnings outlook but lean SlimFast sales weigh on growth

Glanbia has previously moved away from its dairy business after it sold its Glanbia Cheese joint ventures at the end of last April.

Nutrition giant Glanbia upgraded its earnings guidance for the year despite lean sales for the firm’s SlimFast weight loss products as increased competition including Novo Nordisk’s Wegovy enters the market.

In an interim statement, Glanbia forecasted adjusted earnings per share to grow between 17% and 20% on a constant currency basis as the company’s Glanbia Performance Nutrition (GPN) division continues to be boosted by the outperformance of the Optimum Nutrition protein powder brand.

"The Group’s portfolio of better nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein,” said outgoing Glanbia managing director Siobhán Talbot.

GPN revenue increased by 2.7% in the first nine months of the year, driven by price increases of 8.9% implemented last year, which offset a volume decline of 6.2%.

However, the company’s separate Glanbia Nutritionals – Nutritional Solutions GN NS revenue declined by 17.2% by the end of September. This was driven by a 7.6% decline in price, a 6.4% drop in volume, and a lower number of acquisitions and disposals.

The price decline was driven by a fall in dairy market pricing and the volume decline was largely due to the anticipated customer supply chain rebalancing.

Glanbia has previously moved away from its dairy business after it sold its Glanbia Cheese joint ventures at the end of last April.

Group revenue dropped 9.1% on a constant currency basis with growth in GPN offset by decline in GN.

The GN NS division is expected to record a low double-digit decline in like-for-like revenue for the year driven by lower dairy market pricing and a volume decline.

Meanwhile, Glanbia completed its previously announced share buyback programme. Between March and September, Glanbia deployed €100m, repurchasing 7,215,827 ordinary shares on Euronext Dublin at an average price of €13.86.