Irish nutrition company Glanbia has posted an 8.4% growth in revenue at constant currency rates in the first quarter of its financial year.
It was mainly driven by the performance of Glanbia Nutritionals, and particularly its Nutritional Solutions business.
Divisional Performance
Glanbia Nutritionals saw year-on-year revenue growth of 10.4% in the quarter, while Glanbia Performance Nutrition witnessed a 4.9% growth in the same period.
Revenue in the Nutritional Solutions business increased by 22.1% during the quarter, backed by a 16.1% growth in volume.
This growth has been attributed to a strong performance in value-added dairy solutions against a relatively weak first quarter in 2018.
Non-dairy solutions also witnessed good volume growth, particularly in the Asian region, the company reported.
Revenue growth in Glanbia Performance Nutrition was driven by a strong performance by the SlimFast brand, which the company acquired in 2018.
However, the division also witnessed a volume decline of 16.5% and a price decline of 3.4%.
The decline in volume has been attributed to the seasonality of the business, following a strong performance in the fourth quarter of 2018.
Specific supply chain initiatives during the quarter also impacted the phasing of sales in certain non-US markets.
Outlook
For full-year 2019, Glanbia has reiterated its guidance that adjusted earnings per share for the group are expected to grow between 5% and 8%, at constant currency rates.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
