Sales up 17% at Glanbia as it maintains earnings forecast

Glanbia, the global performance nutrition and ingredients group, saw its sales increase by 17 per cent in the three months to April 5th, compared to the same period in 2013. This is comprised of 7 per cent volume growth, 9 per cent pricing growth and enhanced product mix and 1 per cent related to acquisitions.

Siobhán Talbot, group managing director, said that the group had delivered “a good performance” in the first three months of 2014, with global performance nutrition performing “particularly well”, and reflecting very strong revenue growth in both the USA and internationally. Elsewhere however, results were “as expected”.

“Performance in global ingredients in the period was behind the prior year as lower milk throughput in Idaho reduced output of cheese and base whey; dairy Ireland continued to be challenged while joint ventures & associates’ performance was ahead year-on-year. Overall the outlook for the remainder of the year is positive and we maintain our guidance of 8 per cent to 10 per cent growth in adjusted earnings per share on a constant currency basis,” Ms Talbot said.

Revenues in global performance nutrition increased by 38 per cent for the first three months of the year, and Glanbia said that it expects global ingredients to be broadly in line with the prior year for the first six months of the year and ahead for the full year.

In the group’s Irish division, market conditions “ continued to be challenging”. Revenues in the period were broadly in line with the prior year reflecting 5 per cent volume growth and a 5 per cent decline in prices. “Performance is forecast to improve over the course of the year with positive year-on-year growth expected for the full year,” the company said.

Davy Stockbrokers said that the group remains “very well placed to deliver on its near- and long-term targets”.