Glanbia plc has today (Wednesday, November 6) reiterated its full year earnings guidance as it confirmed a restructuring of its nutritionals division.
The global nutrition company has published its interim management statement for the nine-month period ended October 5, 2024.
The financial results show that group performance year-to-date was “in line with expectations” with revenue growth of 6%.
The main drivers of this growth were a volume increase of 2.6%, a price decrease of 1.1%, the positive impact of the 53rd week of 2.7% and the net impact of acquisitions and disposals of 1.8%.
Based on the current market environment and expectations for the remainder of the year, the company reiterated its guidance and expects to deliver adjusted earnings per share (EPS) growth of 5% to 8% in 2024.
Glanbia has also confirmed that a €50 million share buyback programme will commence in early 2025.
A €100 million share buyback is ongoing, with €88.6 million bought in the year-to-date.
Glanbia
Glanbia has confirmed its intention to create a new operating model, separating its Glanbia Nutritionals (GN) business into two new segments – Health and Nutrition and Dairy Nutrition.
The health and nutrition segment will primarily incorporate the premix solutions and flavours platforms.
While the dairy nutrition segment will focus on cheese and dairy ingredients and will comprise the portfolios of protein solutions and US cheese.
This division will also be the commercial partner for Glanbia’s joint venture MWC-Southwest Holdings LLC.
The company said that this new structure is designed to further streamline the business, increase focus on end use markets and to provide greater insight into Glanbia’s value drivers and growth opportunities.
Glanbia expects the new operating model to be implemented during 2025 with further details will be provided in early next year.
Glanbia is commencing a group wide transformation programme “designed to fund and enable the next phase of growth”.
The company said this programme will focus on identifying opportunities to enhance productivity and drive efficiencies across operations, accelerating digital transformation and ensuring the group is well positioned to capitalise on future market growth opportunities.
Hugh McGuire, Glanbia chief executive, said the company “continued to deliver good momentum during the third quarter”, driven by revenue growth across its portfolio of better nutrition brands and ingredients.
“Volume growth was driven by our protein growth brands Optimum Nutrition and Isopure, as well as premix and protein solutions.
“Today, we are announcing the separation of our GN business into two new segments – Health & Nutrition and Dairy Nutrition.
“The new structure is designed to further streamline our business, sharpen our focus on our end use markets, and position ourselves for the next phase of growth.
“As part of this change in our operating model, we are commencing a group wide transformation programme which will allow us to fund and drive growth in our business, supporting our ambition to maximise long-term value for shareholders.
“We are also announcing an additional €50 million share buyback authorisation which reflects our strong cash flows and balance sheet position further increasing our returns to shareholders.
“Looking ahead to the remainder of 2024, we will continue to focus on delivering growth across our portfolio and we are reiterating our full year guidance of 5% to 8% growth in adjusted EPS,” he said.