Glanbia has upgraded its full-year EPS guidance after the nutrition group reported strong first-half results, which group managing director, Siobhán Talbot, said “exceeded” its plans.
The Ireland-based company now expects adjusted EPS in the range of 9% to 13% at constant currency.
Glanbia described its performance as ‘very solid’ despite unprecedented inflationary pressure across the business.
The company implemented several measures, including price increases, to mitigate cost inflation and achieved ‘better than expected’ response from consumers in key areas, with volume growth in both Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN).
Group revenue in the first half increased 26.8% year-on year in the first half, to €2.8 billion.
EBITA increased 7.4%, to €171.7 million, on a pre-exceptional basis.
Divisional Performance
GPN saw year-on-year revenue growth of 14.9% at constant currency (up 24.4% reported), driven by a 0.5% increase in volumes, favourable pricing of 13.6% and the positive impact of acquisitions (+0.8%).
The division saw good volume and consumption growth in performance nutrition, healthy lifestyle and direct-to-consumer (D2C) brands, which was offset by continuing headwinds in the diet category and the SlimFast brand.
Revenue at GN grew 32.2% at constant currency (up 44.9% reported) compared with the same period last year.
It was driven by volume increase of 5.1%, price increases of 25.4%, and the positive impact of the PacMoore and Sterling Technology acquisitions of 1.7%.
Volume growth in the business unit was largely driven by growth in the nutritional solutions non-dairy ingredient portfolio and US Cheese.
Outlook
The group is confident of its ability to navigate through uncertain conditions based on the resilience and momentum displayed by its core brands and nutritional solutions ingredients portfolio.
In the absence of any further major market disruption, Glanbia expects sustained revenue and earnings momentum in the second half, Glanbia added.
Talbot commented, “We will continue to monitor inflationary trends into the second half of the year, but are confident that further pricing action and operational efficiencies will deliver improving margins and strong year-on-year EBITA growth.”
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
