Glanbia has reported a 25% increase in wholly owned revenues in the first quarter of its financial year, on a constant-currency basis.
The nutrition group’s Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN) businesses showed ‘good demand’ during the period, its latest financial results showed.
Revenue was up by 33.5% on a reported basis, while like-for-like revenues went up by 23.9% in the quarter, the group noted.
Commenting today, Siobhán Talbot, group managing director, said, “I am pleased to announce a strong 2022 first-quarter performance for Glanbia. Glanbia continues to grow as a focused, purpose-led global nutrition company, serving powerful consumer health and wellness trends. This strategy underpins our growth, which continued in the first quarter of 2022 with revenues up 25.0%, on a constant-currency basis, versus the prior year.”
Inflation Impact
Talbot noted that inflation remains a key dynamic for Glanbia, and the company has taken significant mitigating actions across the group by increasing prices by 17.0% in the first quarter and delivering volume growth of 6.9%, all while managing its cost base prudently.
“The GPN consumer-branded business has performed well, delivering volume growth across performance nutrition, healthy-snacking and plant-based brands, as consumer demand for our brands remains robust. Our NS [Nutritional Solutions] ingredients business delivered an excellent quarter, as customer demand across micronutrients, in particular, remains strong.
“We have maintained momentum on our strategic agenda in the period by completing the disposal of our interest in the Glanbia Ireland joint venture, as well as acquiring Sterling Technology, a bioactive ingredient company, which builds on our offering in immunity solutions in NS,” Talbot said.
“To date, in 2022, we have also invested €123.4 million in share buy-backs.”
Outlook
Glanbia highlighted that it is successfully growing year to-date revenue, despite a number of significant risks, including inflation, geopolitical tensions, and continued Covid-related supply chain disruption, particularly in Asia.
‘In the absence of any further major market disruption, the strong start to 2022 provides increasing confidence in the Group’s ability to stay close to the nutrition needs of consumers and navigate external challenges,’ the company noted.
Glanbia is now confident to raise its outlook. For full-year 2022, GPN expects to deliver double-digit revenue growth, while GN NS expects ‘strong’ double-digit revenue growth.
Revenue growth on both platforms will be ‘primarily driven’ by pricing, as previously noted by the company.
“The strong first quarter gives us confidence for the remainder of the year, and we have raised our expectations for full-year 2022 and now expect to deliver between 5% to 10% growth in adjusted EPS on a constant-currency basis,” Talbot added.
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