Glanbia plc has lifted expectations for the year after a “strong performance” in the first half of 2021, the company has announced.
As a result, the group expects to deliver full year 2021 adjusted earnings per share (EPS) growth of 17% to 22% on a constant currency basis – revised upwards from its previous expectations of 6% to 12%.
The company made the announcement in a trading update for the six-month period ended July 3, 2021.
This update is based on preliminary results for the first half of 2021 (H1), with the group expected to publish its full results for the half year 2021 on August 12, 2021.
Glanbia performance
In a summary of performance to date, the company noted that, in the six months, wholly-owned revenues were up 20% on a constant currency basis (up 11% reported) versus the prior year.
This, it says, was due to very strong demand, in the second quarter in particular, across both Glanbia Performance Nutrition and Glanbia Nutritionals, Nutritional Solutions.
Both divisions delivered strong earnings before interest tax and amortisation (EBITA) margins in H1 2021 “due to positive operating leverage, mix and realisation of benefits from the GPN transformation programme”, the company says.
Joint Ventures delivered a “performance in line with prior year”, Glanbia adds.
Meanwhile, the group announced half Year 2021 adjusted earnings per share (EPS) of approximately 52c; versus the prior year this is up 82% on a constant currency basis (up 68% reported).
Company outlook
Previously Glanbia guided full year 2021 adjusted EPS growth to be in the upper end of 6% to 12% on a constant currency basis versus prior year.
As a result of the strong performance in H1 2021, Glanbia has raised its expectations for the year. Glanbia now expects to deliver full year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year.
While the group says it remains vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic, “strategic actions have enabled a strong recovery in the first half of 2021 from the comparative challenges of 2020”.
“The strong first half performance positions the group well to navigate expected cost inflation headwinds in the second half while also providing the opportunity to increase investment behind brand marketing and Nutritional Solutions capabilities, to drive long term sustainable growth,” the company concluded.