Glanbia delivers "good results" for first nine months

1 Nov 2017

Glanbia has issued its Interim Management Statement for the nine month period ended 30 September 2017 with wholly owned revenue from continuing operations growing 6.6% for the period.

Glanbia delivers good results for first nine months

Glanbia has issued its Interim Management Statement for the nine month period ended 30 September 2017.

“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,” said Siobhán Talbot, Group Managing Director . “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.”

In the nine months ended 30 September 2017, wholly owned revenue from continuing operations increased 6.6% on a reported and constant currency basis when compared to the same period in 2016. On a constant currency basis, this was driven by volume growth of 2.4%, pricing growth of 0.9% and a contribution from acquisitions of 3.3%. Total Group Revenue, including Glanbia’s share of Joint Ventures and Associates, 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 a 5.0% contribution from acquisitions.

GPN delivered a satisfactory performance in the first nine months of the year. In that period, revenues increased by 9.0%. This was 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 year to date 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. The price decrease was primarily a function of brand investment and innovation support in the US with full year pricing expected to be broadly in line with year to date levels.

Innovation continues to be a driver of growth with a range of products focused on convenience formats and plant based ingredients performing well across the branded portfolio. The pipeline of new product launches will continue into the fourth quarter and will be broad based across channel, format and territory.

The full year 2017 outlook for GPN is good. GPN continues to expect delivery of like-for-like branded revenue growth in the mid-single digit range for the full year recognising a seasonal uplift in quarter four. Full year EBITA margins are expected to be in the mid teen range broadly in line with half year 2017 levels.

GN delivered a good performance in the first nine months of 2017 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.

Nutritional Solutions delivered good price and volume increases in the period. This was driven by increased sales of value added dairy and micro-nutrient solutions which continued to perform well with customers across developed and emerging markets.

US Cheese performance was somewhat challenged in the period with product mix adverse due to cheese market dynamics where supply has outpaced demand for certain formats. Overall, pricing was in line with prior year and volume declined marginally.

The full year 2017 outlook for GN is good. Revenue and EBITA growth is expected to be driven by volume and pricing growth in Nutritional Solutions.