Glanbia’s performance in the first quarter is in line with expectations, as the company experienced 1.5% volume growth, it was reported today.
Volume growth was offset by a price decline of 6.9%, driven largely by dairy market pricing.
This led to the group revenue for the period declining by 5.5% on constant-currency and pro-forma bases.
Glanbia Performance Nutrition
Glanbia Performance Nutrition’s (GPN’s) revenue decreased by 1.9% in the first three months of 2024.
Volume growth of 1.4% was offset by a price decline of 3.3%.
Overall momentum continued through the period, with Optimum Nutrition, Isopure and think! delivering good volume growth, offset slightly by a decline in SlimFast.
Optimum Nutrition – GPN’s global flagship brand, which represents over 60% of its revenue – experienced strong volume growth.
GPN’s international revenue grew by 4.7% in the period, driven by good volume growth, despite a 5.1% decline in the Americas.
Nutritional Solutions
Glanbia Nutritionals’ revenue declined by 8.8% in the first quarter.
This was driven by a 1.7% increase in volume and a 10.2% decrease in price.
There was also a decrease of 0.3%, driven by the net impact of acquisitions and disposals.
Nutritional Solutions’ (NS’s) revenue declined by 2.3% in the period.
This was driven by a 3.8% increase in volumes, a 5.5% decrease in price, and a decrease of 0.6% from the net impact of acquisitions and disposals.
The volume growth was driven by a strong performance in the premix solutions business.
This was partly offset by reduced volumes in dairy solutions, due to the timing of customer offtakes.
The price decline was largely driven by the decline in dairy market pricing.
Glanbia completed the acquisition of Flavor Producers on 26 April 2024, for an initial consideration of $300 million.
The transaction is consistent with Glanbia’s strategy of acquiring complementary businesses to grow its Better Nutrition platforms.
‘Strong Operating Performance’
The chief executive officer of Glanbia, Hugh McGuire, commented on the results, saying, “I am pleased to report that Glanbia delivered a good performance in the first quarter, which was driven by the continued strong global demand for our Better Nutrition brands and ingredients.
“Consistent with our strategy to acquire complementary businesses to grow our Better Nutrition platforms, we recently completed the acquisition of Flavor Producers.
“The acquisition significantly expands our flavours offering and brings new capabilities in the attractive and growing natural and organic flavours market, aligned with long-term customer trends.
“With the first quarter having progressed as planned, we reiterate our full-year guidance of 5% to 8% growth in adjusted earnings per share, which will be driven by a strong operating performance across both GPN and NS.”
Read More: Glanbia To Acquire Flavor Producers For Initial Consideration Of $300m
