Glanbia delivered a solid performance in the first three months of 2015, according to Managing Director Siobhan Talbot, with the group benefiting from the positive translation effect of a strong US dollar.

In its interim management statement Glanbia says wholly owned revenue was up 10.5% on a reported basis in the three months to April 4, 2015.

However, on a constant currency basis wholly owned revenue declined 3.6% when compared to the same period in 2014.

This was comprised of 3.9% volume growth, a 2.5% increase from acquisitions and a pricing decline of 10% as a result of lower market prices for US cheese and dairy ingredients.

Total Group revenue, including Joint Ventures & Associates, was up 3.7% on a reported basis and declined 8.8% on a constant currency basis.

This was comprised of 2.2% volume growth, 2.2% growth from acquisitions and a 13.2% pricing decline as a result of reduced dairy market prices.

Commenting today, Siobhan Talbot, Group Managing Director said Glanbia reiterate its full year guidance of adjusted earnings per share growth of 9% to 11% on a constant currency basis with a reported result of over 20% if exchange rates remain at current levels for the rest of the year.

“We expect growth to be weighted to the second half of the year,” she said.

In its statement Glanbia said the outlook for the remainder of 2015 is positive as Glanbia continues to execute its growth strategy.

Full year guidance is reiterated for adjusted earnings per share growth of 9% to 11% on a constant currency basis with a reported result again of over 20% if current exchange rates remain at current levels throughout 2015.

It says underlying growth in the business is solid and is expected to be weighted to the second half of the year.

Financing

Glanbia’s net debt as at April 4 2015 was €616m, an increase of €106m from the 2014 year end position. The net debt increase was primarily driven by seasonal increases in working capital requirements and the effect of a weaker euro FX rate on the translation of US dollar debt to euro for reporting purposes somewhat offset by the proceeds from the Nutricima disposal.

The Group reiterates guidance on total 2015 capital expenditure being €120m to €130m.