Glanbia posts drop in revenue following price reductions
“Optimum Nutrition, our flagship global brand, continues to strengthen its leadership position and delivered double-digit volume growth in the period, supported by increased marketing investment,” said Glanbia chief executive Hugh McGuire.
Irish nutrition giant Glanbia posted a marginal drop in revenue as price decreases offset volume growth in the first half of 2024.
The company, which makes Optimum Nutrition under its Glanbia Performance Nutrition (GPN) division, reported revenue declined $1.82bn (€1.6bn), a fall of 1% on the same period a year earlier.
The drop comes after price reductions were implemented and some promotional activity took place following a period of some price hikes in an inflationary environment.
The company also reported profits fell to $143m in the first six months compared to $193m on a constant currency basis a year earlier.
However, in an interim statement Glanbia also posted a 13% jump in earnings before the deduction of interest, tax, depreciation, amortisation and exceptional items to almost $262m, underpinned by sustained demand for its flagship protein powder product.
Optimum Nutrition, which represents 65% of GPN revenue, delivered revenue growth of 7.7% driven by volume growth of 12% which was impacted by negative pricing.
“Optimum Nutrition, our flagship global brand, continues to strengthen its leadership position and delivered double-digit volume growth in the period, supported by increased marketing investment,” said Glanbia chief executive Hugh McGuire.
Elsewhere, the company's SlimFast brand, which now represents 7% of the GPN global portfolio, continued to be impacted by headwinds in the weight management category as pharma giants cash in on this lucrative market with blockbuster drugs.
Mr McGuire was optimistic on his outlook for the firm and reiterated full year guidance of 5% to 8% growth in adjusted earnings per share.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
