Glanbia on track for 2019 with 8.4% revenue growth for first quarter

Glanbia plc has seen its revenues grow by 8.4% for the three-month period ended March 30, 2019.

In the three months ended March 30, 2019, wholly-owned revenue increased 8.4%, constant currency.

On a reported basis, reflecting the stronger US dollar euro foreign exchange rate, revenue increased 16.2% when compared to the same period in 2018.

The drivers of revenue increase on a constant currency basis were volume growth of 1.4%, acquisitions of 9.7% offset by a price decline of 2.7%.

Glanbia reiterates its guidance that adjusted earnings per share for the continuing group is expected to grow between 5% – 8% constant currency for full year of 2019.

If the average euro US dollar foreign exchange rate for the full year remains at similar levels to the average rate for the first quarter of 2019 Glanbia expects the full year 2019 reported result to be 3% higher than the constant currency outlook, according to the group.

Ventures

Earlier this year, Glanbia completed the acquisition of US based non-dairy firm Watson LLC and Polymer Films LLC for $89 million in cash.

Watson is now part of the Nutritional Solutions business within Glanbia Nutritionals, the group has confirmed.

Revenues from joint ventures increased by 14.9% in the first three months of 2019.

This was driven by volume growth of 13.6%, mainly from Glanbia Ireland and the Southwest cheese joint venture, and a price increase of 1.3% as a result of improved year on year dairy markets.

Glanbia’s net debt on March 30, was €809.8 million, which represents an increase of €424.7 million versus the net debt position at the end of the first quarter of 2018; an increase primarily driven by the acquisitions of Watson and SlimFast.

The group’s balance sheet remains in a strong position, according to the plc.

Board changes

As previously covered in February, Glanbia announced changes to its board with Mary Minnick and Richard Laube to be appointed as independent non-executive directors on Wednesday, May 1.

Today, Glanbia is announcing that John Daly will be appointed to the board as an independent non-executive director also from May 1. Accordingly, Paul Haran will retire on the same day.

John Daly, aged 62, currently serves as chairman of both Britvic plc, a soft drinks company and Vivo Energy plc, a downstream petroleum company.

He is also a member of the board of G4S plc, a security services business, and has announced his intention to retire from this board on May 16.

In addition, from May 1, Dan O’Connor will take up the role of senior independent director on the board.

The company will announce changes to the composition of its board committees arising from these new appointments – which will continue to comprise only of independent non-executive directors – in due course.

Strategy

Commenting today, Siobhán Talbot, group managing director, said:

“Glanbia grew revenues by 8.4%, constant currency, in the first quarter of 2019 underpinned by growth in both Glanbia Nutritionals and Glanbia Performance Nutrition in the period.

Glanbia Nutritionals was the main driver of revenue growth with a good performance in particular from the Nutritional Solutions business.

“Glanbia Performance Nutrition revenue growth in the first quarter was driven by a strong performance from the recently acquired SlimFast brand.

“Our strategy remains on track and we reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, in 2019, with growth to be delivered in the second half of the year.”

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