Dairy giant Glanbia has posted a 30.2% decline in EBITA in its Performance Nutrition arm, at constant currency levels, in the first half of its financial year.
The performance of the division was due to a number of factors, including "business seasonality, consumer channel shift in Europe and difficult global trade dynamics in key international markets", said Glanbia group managing director Siobhán Talbot.
'Geopolitical Issues'
It also cited the 'negative effect of geopolitical issues', particularly in the Middle East, while deteriorating economic conditions in Latin America and tariff increases in India also affected the Performance Nutrition business.
Revenue at the division increased by 13.4% at constant currency levels, to €620.1 million, boosted by the acquisition of SlimFast, which delivered 24.3% of the growth, partially offset by volume decline of 8.2% and price decline of 2.7%, according to the company.
Elsewhere, Glanbia's Nutritional Solutions business, which encompasses whey protein, specialist vitamin and mineral blends, plant based ingredients and functional beverages, saw EBITA down 1.4% at constant currency levels, due to increased tariffs on raw materials, the company said.
Revenue at the division was up 27.0% to €369.6 million.
Its US Cheese business saw a 6.1% increase in EBTIA in the half year period, while revenue rose by 4.9% to €768.7 million. Joint ventures saw a 7.9% increase in revenue to €460.0 million.
Overall Performance
Overall, Glanbia saw its revenue rise by 12.0% at constant currency levels in the half year, to €1.76 billion, however EBITDA fell by 15.3% to €111.4 million.
“Glanbia grew wholly owned revenues by 12.0%, on a constant currency basis, in the first half of 2019," Talbot commented. "Adjusted earnings per share declined in the period by 10.8% on a constant currency basis. Our Nutritional Solutions, US Cheese and Joint Venture businesses had good results in the period. The recent acquisitions of SlimFast and Watson are performing very well."
Talbot noted that while there has been "positive momentum" across much of the group, "this has increased our caution for the remainder of the year. For full year 2019 Glanbia now expects to deliver adjusted earnings per share on a reported basis of between 88 cent to 92 cent, assuming foreign exchange rates remain at current levels".
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
