Glanbia in line with growth forecasts

Glanbia is on course to deliver on its 7%-10% growth forecast for 2017, with revenues for the year to September 6.6% higher than this time last year.

The global nutrition group’s nine-month interim management statement reports this performance was driven by volume growth of 2.4%, pricing growth of 0.9%, and a contribution from acquisitions of 3.3%. Total group revenue increased 13.5% on a reported basis and 13.7% on a constant currency basis. This was driven by 2.3% volume growth, 6.4% price improvement, and 5% contribution from acquisitions.

Glanbia’s net debt has been decreased by €144m compared to the end of September 2016, largely due to receiving €210m net cash proceeds relating to the sale of 60% of Dairy Ireland to Glanbia Co-op this year.

The company’s reduced debt position was somewhat offset by the overall €181m spent acquiring US plant nutrition company Amazing Grass and the Dutch direct-to-consumer channel Body & Fit, and increased working capital primarily due to acquisitions, higher activity levels, and higher commodity markets.

Group MD Siobhán Talbot said: “Glanbia delivered a good result in the first nine months of 2017 with wholly owned revenue from continuing operations growing 6.6% in the period. Glanbia Performance Nutrition (GPN) was the main driver of revenue growth with Glanbia Nutritionals (GN) continuing to perform well.

“Our joint ventures delivered strong revenue growth as a result of improved dairy markets. The outlook for the remainder of 2017 is positive and we reiterate our full-year guidance of 7% to 10% growth in pro forma adjusted earnings per share, constant currency, for the continuing group.”

GPN’s nine-month revenues increased by 9%, driven by a 2.7% increase in volume, 7.4% growth from the acquisitions of Amazing Grass, and Body & Fit offset by a 1.1% price decrease.

The overall volume movement this year reflected branded revenue growth offset by a decline in contract business. The drivers of growth have been a good performance in the online and mass channels in the US as well as a strong performance across the EMEA and LAAPAC markets.

GN delivered a good nine-month performance, with revenue growth of 4.6%. This was driven by a price increase of 2.5%, mainly as a result of improved dairy markets, versus prior year and volume growth of 2.1%, driven by Nutritional Solutions.

Stock market commentators and analysts have broadly endorsed the company’s 7%-10% growth forecasts for the year-end.


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