Glanbia has reiterated its full-year guidance, as its interim management statement reported growth in line with expectations, the company noted on Wednesday.
It also announced a change to its operating model, separating Glanbia Nutritionals into two businesses.
In the nine months ending 5 October 2024, Glanbia reported revenue growth of 6.0% – in line with expected full-year adjusted EPS growth of 5-8%.
New Segments
Glanbia Performance Nutrition (GPN) reported revenue growth of 1.7%, as Optimum Nutrition and Isopure continued their growth momentum, delivering strong volume growth.
In addition to this, Glanbia Nutritionals (GN) – Nutrition Solutions (NS) saw revenue growth of 14.4% – 7.2% of which related to acquisitions.
Volume trends in these sectors continued to improve, with strong growth in its premixed and protein solution businesses.
Along with the results, Glanbia announced on Wednesday that it was separating its Glanbia Nutritionals business into two segments: Health & Nutrition and Dairy Nutrition.
The Health & Nutrition segment will primarily incorporate the premixed solutions and flavour platforms, while the Dairy Nutrition segment will focus on cheese and dairy ingredients.
Dairy Nutrition will comprise the portfolios of protein solutions – currently in NS – and US cheese, as well as being the commercial partner for the group’s joint venture with MWC-Southwest Holdings LLC.
The group expects to implement the new operating model during the 2025 financial year, and further deals will be provided in early 2025.
Share Buy-Back
On 14 August, the company commenced the second €50 million tranche of a €100 million share buy-back, originally announced on 28 February 2024.
Between 14 August and 5 October 2024, the group deployed €27.7 million through the scheme.
Glanbia has spent a total of €88.6 million on share buy-backs this year to date.
‘Good Momentum’
Commenting on the results, CEO Hugh McGuire said, “Glanbia continued to deliver good momentum during the third quarter, driven by revenue growth across our portfolio of better-nutrition brands and ingredients.
“Volume growth was driven by our protein growth brands, Optimum Nutrition and Isopure, as well as premix and protein solutions.
“Today, we are announcing the separation of our GN business into two new segments: Health & Nutrition and Dairy Nutrition.
“The new structure is designed to further streamline our business, sharpen our focus on our end use markets, and position ourselves for the next phase of growth.
“As part of this change in our operating model, we are commencing a group-wide transformation programme, which will allow us to fund and drive growth in our business, supporting our ambition to maximise long-term value for shareholders.
“We are also announcing an additional €50 million share buy-back authorisation, which reflects our strong cash flows and balance sheet position, further increasing our returns to shareholders.
“Looking ahead to the remainder of 2024, we will continue to focus on delivering growth across our portfolio, and we are reiterating our full-year guidance of 5% to 8% growth in adjusted EPS.”
Read More: Glanbia Reiterates Full-Year Guidance On Strong Volume Growth In First Half
