Glanbia’s total revenue up 11.5% in the first 6 months of 2017

Glanbia has reported a good performance for the first half of the year, as total revenue amounted to €2.047 billion – up 11.5% on same period in 2016 (€1.837 billion).

The growth in revenue is reduced back to 9.9% when currency changes are taken into account (constant currency). The good performance in the first half of the year was reportedly driven by Glanbia Nutritionals.

Earnings (EBITA) of €192.8 million were recorded in the first six months of 2017. This figure was up €16.3 million, or 9.2%, on the prior half year (6.6% constant currency).

Meanwhile, the sale of 60% of Dairy Ireland and related assets was completed on July 2 of this year and a new joint venture – ‘Glanbia Ireland‘ – was established. This encompassed the businesses of Glanbia Ingredients Ireland and Dairy Ireland.

On a pro forma basis, adjusted earnings per share (EPS) grew by 13.2% (10.1% constant currency) in the first half of this year compared to 2016, according to Glanbia.

Wholly owned revenues from continuing operations amounted to €1,185.7 million, an increase of 10% on the prior half year (7.3% constant currency), it added.

An increase of 6.6% (3.5% constant currency) was witnessed with regards to Glanbia’s wholly owned EBITA from continuing operations, which totalled €148.3 million, compared to the prior half year.

Revenue growth of 7.6% (5.4% constant currency) and reported EBITA growth of 3.1% (0.2% constant currency) was recorded by Glanbia Performance Nutrition in the first six months of 2017.

This compared to reported revenue growth of 12.2% (9.0% constant currency) and reported EBITA growth of 11.6% (8.1% constant currency) delivered by Glanbia Nutritionals.

Joint Ventures and Associates delivered strong revenue and EBITA growth of 23.1% (23.2% constant currency) and 84.8% (83.8% constant currency) respectively, Glanbia added.

Main drivers

Glanbia Nutritionals and Joint Ventures were the main drivers of growth in the first half of this year, according to Glanbia’s Group Managing Director, Siobhan Talbot.

The company believes that second half earnings progression will also be driven by Glanbia Performance Nutrition, where good organic growth is expected for the remainder of the year, Talbot said.

“Glanbia delivered a good performance in the first six months of 2017, with wholly owned revenues from continuing operations growing 7.3%, constant currency, when compared to the same period in 2016.

“Pro-forma adjusted earnings per share was up 10.1%, constant currency. The sale of 60% of Dairy Ireland and related assets was completed on July 2 and this business together with Glanbia Ingredients Ireland have formed a new joint venture named Glanbia Ireland.

“Overall, we reiterate guidance for the full year of pro-forma adjusted earnings per share growth of 7% to 10% on a constant currency basis,” she concluded.