Dairy Firm Glanbia Posts 6.7% Increase In Volumes In First Nine Months

Dairy Firm Glanbia

Irish dairy and sports nutrition firm Glanbia has posted volume growth of 6.7% in the first nine months of its financial year, at its wholly-owned continuing operations.

The group said that it recorded 'good demand' across its Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN) businesses.

Pricing declined by 4.1% largely as a result of lower year-on-year dairy markets, the group said, and Glanbia expects full year margins at both GPN and GN to be 'in line' with the previous year.

Enhance The Portfolio

"We continue to execute our strategy and, in addition to growth in our core business, we recently announced the acquisition of SlimFast which will further enhance our portfolio," said Siobhán Talbot, Glanbia's group managing director.

"We reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, for the continuing Group in 2018.”

In terms of the group's main operating divisions, GPN delivered revenue growth of 4.7% in the first nine months of the year, with volume growth of 6.7% and acquisitions delivering 2.4% growth, offset by a pricing decline of 4.4%.

'Volume growth was broadly based and underpinned by successful innovation in key markets. Pricing decline reflected reinvestment of input cost savings in brand investment, foreign exchange headwinds, in certain non US markets, and innovation support,' the company said.

In its GN business, revenue was up 3.0% in the first nine months of the year, driven by a volume increase of 6.8% and offset by a price decline of 3.8%.

Its Nutritional Solutions business saw revenue increase by 0.7% in the period, while its US Cheese operation saw revenue rise by 4.8%.

SlimFast

The period saw the group acquire the SlimFast brand for $350 million.

On this transaction, Glanbia said, 'SlimFast is a good strategic fit for Glanbia as it participates in the growing $8 billion global weight management nutrition category which is incremental to performance nutrition and fulfils a key consumer motivation for GPN’s lifestyle consumers.'