Glanbia sales up 10% after starting new joint venture

Earnings before interest, tax and amortisation were up 6.6%, in the six months to July 1, Glanbia reported today (August 10).

Growth was driven by its Nutritionals business, and its joint venture – Glanbia Ireland – which encompassed Glanbia Ingredients Ireland and Dairy Ireland, said the group’s md Siobhán Talbot.

“The sale of 60% of Dairy Ireland, and related assets, was completed on July 2,” said Talbot. “This business, together with Glanbia Ingredients Ireland, have formed a new joint venture named Glanbia Ireland.

‘Main drivers of growth’

“Glanbia Nutritionals and joint ventures were the main drivers of growth in the first half, and we believe second half earnings progression will also be driven by Glanbia Performance Nutrition where good organic growth is expected for the remainder of the year.”

Glanbia adjusted earnings per share increased 10.1% at constant currency across the six months, to 42p (46.09c). The group’s profit also increased 4.6% to £103.9M (€114.9M).

The Nutritionals business reported a 9% rise in revenue to £580.53M (€642.2M). Growth was driven by a 5.9% price rise, linked to higher dairy markets, Glanbia said.

Glanbia Performance Nutrition was boosted by the firm’s acquisition of Amazing Grass and Body & Fit in February. The business’s revenue increased 5.4% at constant currency to £491.3M (€543.3M).

New innovation centre

The nutrition firm invested £17.3M (€19.1M) across the six months. That included the construction of a new innovation centre in Illinois, US.

Glanbia expected full-year margins to be broadly in line with its first-half, it said. Joint ventures were expected to deliver an improved performance, compared with the previous year, due to improved dairy markets.

Talbot said: “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.”

Meanwhile, in February, Glanbia reported its seventh consecutive year of double-digit earnings growth.