Glanbia has reiterated its full-year guidance of 5% to 8% growth in adjusted EPS following ‘strong’ volume growth in the first half.
In the six months to 29 June 2024, the group reported revenue of $1.82 billion.
This represents a decrease of 1.1% on a constant currency basis with volumes up 1.8%.
Speaking about the results, chief executive Hugh McGuire said, “I am pleased to report that Glanbia delivered a strong performance in the first half of the year with adjusted EPS growth of 12.4%.
“This was driven by volume growth of 3.1% across both our Better Nutrition growth platforms.”
Glanbia Performance Nutrition
Glanbia Performance Nutrition (GPN) saw volume growth of 3.1% as pricing decreased by 3.9%.
This resulted in a 0.8% revenue decrease on a like-for-like basis.
Glanbia Nutritionals – Nutritional Solutions (GN NS) saw similar results, driven by good volume growth in the premix solutions business.
GN NS’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 17.7%, a decrease of 60 bps.
Optimum Nutrition, on the other hand, delivered like-for-like revenue growth of 7.7%, driven by volume growth of 11.8%.
Its EBITDA margin of 17.7% signified an increase of 420 bps.
McGuire said, “Optimum Nutrition, our flagship global brand, continues to strengthen its leadership position and delivered double-digit volume growth in the period, supported by increased marketing investment.
“Our earnings growth was driven by a strong performance in GPN with volume growth, earnings, and margin reflecting strong consumer demand.
Capital Allocation
In capital allocation, the interim dividend increased by 10% to 15.64 cent (€) per share.
The group returned €50 million to shareholders in the first half as part of a €100 million share buyback authority,
Glanbia announced on Wednesday when publishing results that it was launching a buyback programme for the remaining €50 million under this authority as it reiterated its full-year guidance.
McGuire said, “Our strong operational and financial performance continues to support our capital allocation framework, with the interim dividend increased by 10% and €50 million returned to shareholders via share buybacks.
“Today, we are launching a further €50 million share buyback programme.
“Looking ahead, we continue to focus on driving growth across our portfolio of great brands and ingredients.”
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