Glanbia delivers ‘good results’ as its net debt falls by €144 million

Glanbia delivered a good result in the first nine months of 2017, according to group managing director Siobhan Talbot, as its net debt fell by €144 million.

Up until the end of September, Glanbia’s wholly-owned revenue from continuing operations grew by 6.6%, Talbot added.

Commenting on the release of an interim management statement, Talbot said: “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.

Glanbia indicated that the increase in wholly-owned revenue from continuing operations – on a constant currency basis – was driven by volume growth of 2.4%, pricing growth of 0.9% and a contribution from acquisitions of 3.3%.

An increase of 13.5% on a reported basis or a rise of 13.7% on a constant currency basis was recorded in relation to total group revenue – including Glanbia’s share of joint ventures and associates.

This was driven by 2.3% volume growth, 6.4% price improvement and a 5% contribution from acquisitions, according to Glanbia.

Revenues increased by 9% and 4.6% respectively for GPN and GN during the first nine months of this year.

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, Glanbia added.

Meanwhile, both revenue and EBITA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth for GN is set to be driven by volume and pricing growth in nutritional solutions.

Up until the end of September, Glanbia’s joint ventures “delivered a strong performance” in the first nine months of 2017 – with revenues increasing by 33.6% versus the same period in the previous year.

This was reportedly driven by: a price increase of 21.9% as a result of improved dairy markets; volume improvement of 2.3%; and acquisitions providing 9.4% revenue growth as a result of Glanbia Ireland’s acquisition of 60% of Dairy Ireland.

It is expected that joint ventures will deliver strong performances in 2017, as a result of improved dairy markets.

At the end of the third quarter of this year, Glanbia’s net debt was €482 million. This represents a decrease of €144 million versus the net debt position at the end of the third quarter of 2016.

This was primarily driven by the receipt of €210 million in net cash proceeds relating to the Dairy Ireland transaction and it was somewhat offset by the acquisition of ‘Amazing Grass’ and ‘Body & Fit’.

Increased working capital primarily due to acquisitions, higher activity levels and higher commodity markets also contributed to the decrease in the net debt level.

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