Glanbia has reported a 2.4% drop in group revenue for the first quarter of the year but based on the current market environment has upgraded its full year guidance from 7% to 11% growth.
In an interim management statement issued today (Thursday, May 4) the global nutrition company also announced plans to increase its shareback programme from €50 million to €100 million.
Siobhán Talbot, group managing director of Glanbia, said overall the first quarter of the year had “progressed largely as expected” for the group.
The latest update from Glanbia outlined that in the first quarter group revenue declined by 2.4% on a constant currency basis, pricing increased by 3.5% but volumes recorded a decline of 6.2%.
However the net impact of acquisitions and disposals delivered growth of 0.3%.
Talbot said:
“We are pleased to be upgrading our full year guidance for growth in adjusted EPS (earnings per share) to 7% to 11%, constant currency.
“We continued our portfolio evolution and recently completed the sale of the plc’s holding in the Glanbia Cheese joint ventures to our partner Leprino Foods”.
She also outlined why the group is upbeat about its full year prospects:
“While elements of the global environment remain challenging, the strength of our platforms in better nutrition, supported by the combination of pricing actions taken, operational efficiencies and reduced input costs in the second half of the year gives us continued confidence that we will deliver strong full year group EBITA (earnings before interest, taxes, depreciation and amortization) growth, which will be largely driven by GPN (Glanbia Performance Nutrition).”
Glanbia has two key business divisions – Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals Nutritional Solutions (GN NS) .
GPN – which includes the Optimum Nutrition brand – delivered growth of 4.6% in the first three months of 2023 according to the latest update which highlighted that revenue growth was driven by price growth of 14.1% however volumes fell by 9.5%.
The division’s full year year EBITA margins are expected to grow to between 12.5% and 13.5%.
Meanwhile at GN NS revenue plummeted by 14.8% as volumes nosedived by 17.4% and pricing showed a modest increase of 1%.
The outlook for the year for the division suggests that there will be a “decline in like-for-like revenue driven by lower dairy market pricing and a marginal volume decline”.
GN NS EBITA margins are expected to grow to between 12% to 13%.
According to Glanbia its group balance sheet remains in a “strong position”.
“Glanbia’s net debt at April 1, 2023 was $604.8 million which represents a decrease of $5.6 million versus the net debt position at the end of the first quarter of 2022,” it outlined in the interim management statement.
At the group’s annual general meeting (AGM) today in Kilkenny Glanbia will confirm a number of changes to its board of directors.
Gabriella Parisse will join Glanbia’s board from June 1, 2023 and in line with the relationship agreement with Tirlan, Patsy Ahern and John Murphy will retire at the AGM today, reducing Tirlan’s representation on the board to three directors.