Glanbia plc has reported a decline in revenue of 5.5% for the first quarter (Q1 2024) of the year in its interim management statement for the three-month period ended March 30.
The statement, issued in conjunction with the plc’s annual general meeting AGM, which is being held today (Wednesday, May 1), said that the performance in the quarter, despite the decrease in revenue, is in line with expectations.
Volume growth in that period of 1.5% was more than offset by a price decline of 6.9%, driven largely by dairy market pricing, which resulted in the fall off in revenue on a constant currency basis.
Glanbia Performance Nutrition (GPN) saw like-for-like revenue decline by 1.9%, resulting from a volume growth of 1.4% but a price decline of 3.3%.
However, Glanbia said that Optimum Nutrition – the protein powder side of the Performance Nutrition business – “continues to strengthen its leadership position and delivered strong volume growth in the quarter, supported by increased brand investment”.
Revenue for GPN in the Americas fell back by 5.1% in Q1, while GPN international revenue increased by 4.7%, driven by good volume growth, with Optimum Nutrition gaining traction with consumers in “key markets”, Glanbia said.
Moving away from Performance Nutrition and looking at the Nutritional Solutions side of the business, like-for-like revenue declined by 1.7%, as a result of a price decline of 5.5%, despite volume growth of 3.8%.
The business said that volume trends in Nutritional Solutions “continue to improve”, with growth in the premix solutions business in the quarter.
A notable decrease was seen in Glanbia’s US Cheese business, which fell by 14.3% in the period, with volumes largely unchanged, which was aligned to the lower year-on-year cheese market pricing.
Glanbia said it made continued progress on its “strategic agenda” in the quarter, completing the acquisition of US flavour business Flavor Producers, which provides flavours and extracts to the food and beverage industries.
Glanbia made the transaction for €300 million, plus a potential deferred consideration.
A €100 million share buyback continued in the quarter and is on-going, with €29.8 million of the €50 million first tranche bought so far this year.
On foot of the Q1 results, Glanbia is reiterating its full-year guidance of 5% to 8% growth in adjusted earnings per share (EPS), based on the current market environment and expectations for the remainder of the year.
The group said its balance sheet “remains in a strong position”, with net debt at March 30 of the equivalent of €271.7 million, a decrease of around €296.1 million at the end of Q1 2023.