Nutritionals continue to drive revenue at Glanbia

Half-year revenue at Glanbia rose by 11.5 per cent to €2.05 billion on foot of a strong performance in the group's nutritionals division, which includes its US cheddar cheese and value-added dairy ingredients business. When euro/dollar currency moves are factored in, revenue grew by 9.9 per cent.

The Kilkenny-based food group said that following the recent sale of a majority stake in its dairy business, results from its Dairy Ireland division had now been classified as discontinued operations.

Glanbia is expected to earn around €200 million from the transaction, which will now see its consumer foods and agribusiness units operated as a separate business called Glanbia Ireland.

The company’s latest half-year results show group profit rose 4.6 per cent to €114.9 million.

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Revenue from the company’s fast-growing performance nutrition business rose 5.4 per cent on a constant currency basis.

Glanbia now controls up to 13 per cent of the world’s €10 billion global sports nutrition market, with best-selling brands such as Optimum Nutrition and BSN.

Glanbia’s nutritionals business performed even better, delivering revenue growth of 9 per cent on a constant currency basis while revenue from its joint ventures and associated businesses rose by 23 per cent.

The company also reiterated its full-year guidance for 7-10 per cent growth in adjusted earnings per share on a constant currency basis.

However, it warned that if the average euro/dollar exchange rate remains at similar levels for the remainder of 2017, pro-forma adjusted earnings per share growth from continuing operations would be marginally lower than the constant currency result.

Commenting on the results, Glanbia’s managing director Siobhán Talbot, said: “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.”