Glanbia plc has seen a strong start to 2021, with revenues up and earnings per share expected to be “in the upper end” of the previously guided range, according to its quarterly statement for the first three months of the year.
In a statement issued ahead of the plc’s annual general meeting which is being held later today (Thursday, May 6), the company outlined its performance for the first quarter.
In a bounce-back from last year, it was noted that in the first quarter of 2021 wholly-owned revenues were up 10.5% on a constant currency basis versus the prior year due to “good demand” across both Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN).
Like-for-like wholly-owned revenue growth of 9.7% versus the prior year was reported for this time-frame.
GPN delivered revenue growth of 14.1% on a constant currency basis with like-for-like branded revenue growth of 17.6% largely driven by strong demand in North America and Asia Pacific, according to the firm.
GN Nutritional Solutions (NS) delivered volume growth in Q1 2021 of 10.3%, driven by “strong customer demand for vitamin and mineral premix and solid trends in dairy solutions”, the company says.
Meanwhile, GPN’s transformation programme is reported to be “on track and delivering revenue and margin improvements”.
Strong operating cash flow is reported for the plc, with net debt at the end of the first quarter of €498.5 million. This is a decrease of €191.6 million versus the net debt position in the prior year.
Following a strong first quarter, Glanbia expects the 2021 financial year’s adjusted EPS (earnings per share) to be in the upper end of the previously guided range of 6% to 12% growth on a constant currency basis.
Commenting today, Siobhán Talbot, group managing director said:
“Globally, as we emerge from the pandemic, health, wellness and nutrition are prominent consumer trends.
“In our portfolio, we saw in Q1 [first quarter] strong consumer demand for the Optimum Nutrition brand within GPN and for vitamin and mineral premix from customers of Nutritional Solutions with revenue growth also reflecting the reopening of certain markets and channels.
“While the strong underlying demand for Glanbia’s health and wellness focused portfolio is continuing into the second quarter we remain vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic.
“The strong first quarter gives us confidence for the remainder of the year and we expect FY 21 adjusted EPS growth to be in the upper end of the previously guided range of 6% to 12% on a constant currency basis.”