Glanbia plc has today (Wednesday, August 14) reported group revenues of $1.82 billion in the first half (HY) of 2024, down 1.1% on a constant currency basis compared to the same period last year.
The global nutrition group, headquartered in Kilkenny, said the performance was based on a 1.8% increase in volume, 4% drop in pricing and a 1.1% increase from acquisitions.
In the six month period ended June 29, 2024, EBITDA pre-exceptional (earnings before interest, taxes, depreciation, and amortisation) increased by 12.8% on a constant currency basis to $261.6 million (HY 2023: $232.2 million).
Glanbia said that profit after tax stood at $143.3 million, down from $193.4 million on the same period last year.
The financial report shows adjusted earnings per share (EPS) grew by 12.4% on a constant currency basis.
The company has reiterated its full year guidance for adjusted EPS growth of 5% to 8% in for 2024 on a constant currency basis.
On February 28, 2024, Glanbia announced a €100 million share buyback programme, with an initial €50 million programme completed on June 26, repurchasing 2,785,366 ordinary shares on Euronext Dublin at an average price of €17.95.
The group has announced that it will launch the remaining €50 million share buyback programme today.
Glanbia
Glanbia Performance Nutrition (GPN) revenue was down by 0.8% to $882.1 million in HY 2024, compared to $888.9 million in the previous year.
The company said that this was driven by a 3.1% increase in volume, offset by a price decrease of 3.9%.
The volume growth was largely driven by a strong performance from the Optimum Nutrition brand and a good performance in the healthy lifestyle brand portfolio, but there were volume declines in the SlimFast brand.
Pricing was negative largely as a result of planned promotional activity, some tactical price reductions in the period and a strong comparative, Glanbia said.
Optimum Nutrition, which represents 65% of GPN revenue, delivered revenue growth of 7.7% driven by volume growth of 11.8% offset by planned promotions which decreased price by 4.1%.
GPN EBITDA increased by 30% on HY 2023 to $156.4 million and EBITDA margin increased by 420 basis points to 17.7%. This was mainly attributed to lower input costs and continued focus on revenue growth management initiatives.
Glanbia Nutritionals – Nutritional Solutions (GN NS) revenue increased by 3.5% to $469.4 million, due to a 3.1% increase in volume, a 3.9% decline in price and a 4.3% increase driven by the impact of acquisitions.
The company said that sales growth was driven largely by a strong performance in the premix solutions business.
The price decline was as a result of lower dairy market pricing and reduced input costs.
GN NS EBITDA was slightly down on the same period last year to $82.9 million. EBITDA margins decreased by 60 basis points versus prior year to 17.7% as a result of the impact of lower dairy pricing and business mix in the period.
Strong performance
Hugh McGuire, Glanbia chief executive officer, said that the group had delivered “a strong performance in the first half of the year”.
“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.
“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,” he said.
Looking to the future, McGuire said the company will continue to focus on driving growth across its portfolio of 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,” he said.