Nutrition firm Glanbia has reiterated its full-year guidance after reporting a 'strong' first half, with adjusted EPS growth of 12.4% on a constant currency basis.
Group revenue at Glanbia fell 1.1% year on year, to $1.82 billion (€1.7 billion), in the first half, while group EBITDA increased 12.8% at constant currency to $261.6 million (€236.9 million).
Glanbia Performance Nutrition
Glanbia Performance Nutrition (GPN) reported a 0.8% fall in revenue on a like-for-like basis in the first half, with volume growth of 3.1% and a pricing decline of 3.9%.
The Optimum Nutrition brand delivered like-for-like revenue growth of 7.7%, driven by volume growth of 11.8%, the company added.
The business unit's EBITDA margin increased 420bps to 17.7% from 13.5% in the corresponding period last year.
According to Hugh McGuire [pictured], chief executive officer, the company's "strong performance" was driven by volume growth across both its Better Nutrition growth platforms.
"Optimum Nutrition, our flagship global brand, continues to strengthen its leadership position and delivered double-digit volume growth in the period, supported by increased marketing investment. Our earnings growth was driven by a strong performance in GPN, with volume growth, earnings and margin reflecting strong consumer demand," he said.
Glanbia Nutritionals
The Glanbia Nutritionals - Nutritional Solutions (GN NS) division reported volume growth of 3.1%, driven by good performance in the premix solutions business.
Pricing in the unit declined 3.9%, resulting in a 0.8% revenue decrease on a like-for-like basis, while the EBITDA margin fell 60bps to 17.7%.
McGuire added, "NS’s first half performance was on track, led by good customer demand for premix and protein solutions.
"Our strong operational and financial performance continues to support our capital allocation framework, with the interim dividend increased by 10%, and €50 million returned to shareholders via share buybacks."
The company also announced a further €50 million share buyback programme.
Outlook
Glanbia expects to report 5% to 8% growth in adjusted EPS for its full financial year.
McGuire stated, "Looking ahead, we continue to focus on driving growth across our portfolio of great brands and ingredients.
"The category trends remain positive, and with the continued consumer and customer demand for our Better Nutrition brands and ingredients we will see a sequential improvement in volumes across GPN and NS in the second half of the year."
