Glanbia plc has taken “significant action” across the group to offset inflationary pressures with a 17% increasing in pricing.
In its interim management statement for quarter one (Q1) of 2022, the global nutrition group reported that wholly-owned revenues rose by 25% on a constant currency basis up to April 2, 2022.
Along with the price increase, the other drivers of the revenue increase were volume growth of 6.9% and acquisitions representing 1.1%, according to Glanbia.
The company noted “good demand” across Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN).
GPN delivered revenue growth of 15.7% in the first quarter of 2022 compared to previous year.
This was driven by a price increase of 13%, a volume increase of 1.7% and the LevlUp acquisition adding 1%.
GN saw revenue growth of over 29% in Q1. The company cited a volume increase of 9.4%, a price increase of 18.8% and acquisitions delivering 1.1% revenue growth.
In March, GN acquired Sterling Technology, a bioactive ingredient company based in the US, for a purchase price of $60 million.
On April 1, 2022, Glanbia completed the disposal of its 40% interest in the Glanbia Ireland joint venture to Glanbia Co-operative Society Limited for €307 million.
The group said that it expects a “net exceptional gain” due to this transaction.
The company is raising its guidance and now expects to deliver 5% to 10% growth in adjusted earnings per share (EPS) on a constant currency basis.
It noted the “significant risks” of inflation, geopolitical tensions and continued Covid-19-related supply chain disruption, particularly in Asia.
Despite this, GPN expects to deliver double digit revenue growth while GN NS expects strong double digit revenue growth, which will be primarily driven by pricing.
Commenting on the financial results, Siobhán Talbot, group managing director, said the strong first quarter performance gives the company confidence for the remainder of the year.
“Glanbia continues to grow as a focused, purpose-led global nutrition company serving powerful consumer health and wellness trends,” she said.
“This strategy underpins our growth, which continued in first quarter of 2022 with revenues up 25.0%, on a constant currency basis, versus prior year.
“Inflation remains a key dynamic for Glanbia and we have taken significant mitigating actions across the Group by increasing prices by 17% in the first quarter and delivering volume growth of 6.9% while managing our cost base prudently,” Talbot said.
The company will hold its Annual General Meeting (AGM) this morning (Thursday, May 5) in Co. Kilkenny.