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Glanbia upgrades full year earnings projection despite 9% revenue decline

03-Nov-2023 - Last updated on 08-Nov-2023 at 11:07 GMT

Hugh McGuire, chief executive of Glanbia Performance Nutrition, and group managing director Siobhán Talbot. Credit: Glanbia

Irish nutrition firm Glanbia has upgraded its full year earnings projection from 17% to 20% growth in terms of adjusted earnings per share.

This projection is based on its earnings during the first nine months of 2023, where it maintained "continued momentum", and a “strong outlook” for the final quarter of the year.

Meanwhile, in the nine months to 30 September 2023, revenue declined 9.1% in constant currency compared to the same period in 2022. The drivers of the revenue decline were a volume decline of 2.5% and a price decline of 5.9%, with growth in the Glanbia Performance Nutrition (GPN) division offset by a decline for Glanbia Nutritionals (GN).

GPN revenue increased by 2.7% for the period, fuelled an 8.9% price increase and volume decline of 6.2%. For GN, there was a 13.9% revenue decline for period, with volumes and prices declining by 1.1% and 11.9% respectively.

Glanbia also completed a €100m (£87.1m) share buyback programme and acquired the B2B bioactive ingredients business of PanTheryx for $46m (£40.1m).

Looking to its result for the whole of 2023, GPN expects revenue growth of 5% on a constant currency basis, while GN expects a “low double-digit” decline in revenue.

“I am pleased to announce that Glanbia has continued to deliver good momentum during the third quarter which, together with a strong outlook for the remainder of the year, today results in an upgrade in expected growth in full year adjusted earnings per share to between 17% and 20% on a constant currency basis,” said Siobhán Talbot, group managing director.

“The Group’s portfolio of better nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein. The Optimum Nutrition brand within GPN, delivered strong revenue growth in the period while in GN Nutritional Solutions, overall volume trends have stabilised with volume growth in the third quarter driven by protein solutions.”

In other news, Cheshire-based manufacturer Roberts Bakery has announced plans to open a new site in Winsford and rebuild two of its existing sites.