Glanbia raises guidance on demand for protein

Hugh McGuire, chief executive officer, said Glanbia returned €100m to shareholders via its share buyback scheme

Hugh McGuire: 'We delivered volume and like-for-like revenue growth across all three segments, reflecting disciplined execution as we continue to navigate whey cost inflation within Performance Nutrition.'

Glanbia raised revenues across its three key segments in the first half of the year, with the Kilkenny-headquartered firm raising its guidance for the year.

The dairy and protein powder producer reported revenues of $2.08bn, up 7% year on year. 

Its key Performance Nutrition division, which includes the Optimum Nutrition brand, saw like-for-like revenues grow 16.9% with volumes increasing 9.3% and pricing up 7.6%. 

The Optimum Nutrition brand itself delivered like-for-like revenue growth of 25.2% with very strong volume and pricing growth.

Its Health & Nutrition division grew revenues by 12% while Dairy Nutrition reported strong volume and pricing growth.

“I am pleased to report that the group delivered a strong performance in the first half of the year with adjusted EPS of 81.24 cent, an increase of 30.0% on the prior year, resulting in an upgrade to our guidance for the full year to 17% to 20% growth in adjusted EPS," Hugh McGuire, chief executive officer, said.

"We delivered volume and like-for-like revenue growth across all three segments, reflecting disciplined execution as we continue to navigate whey cost inflation within Performance Nutrition. 

"Optimum Nutrition delivered double-digit volume growth in the period driven by accelerating category growth, increased distribution, ongoing innovation and the brand’s continued leadership within the category. 

"We also generated strong volume growth across Health & Nutrition and Dairy Nutrition, with good demand in H&N’s end-use markets and strong volume and pricing growth in protein solutions within DN."

McGuire said Glanbia returned €100m to shareholders via its share buyback scheme.

"As a protein powerhouse at the heart of better nutrition, Glanbia is uniquely positioned to meet the growing demand for nutrition that supports healthier and more active lives. 

"We now expect adjusted EPS growth of 17% to 20% which will be driven by category and end-use consumer market demand and a strong operating performance across all three segments," he said.

The Glanbia Board is recommending an interim dividend of 18.92 cents per share, up from 17.2 cents per share last year.

Tirlán Co-operative has agreed to reduce its representation on the board from two directors to one. In June, Tirlán sold 12 million shares in Glanbia delivering proceeds of approximately €257.6m. Tirlán continues to hold 31.5 million shares in Glanbia, or approximately 13.2% of the issued share capital.