Glanbia has delivered ‘good momentum’ during the third quarter, which has resulted in an upgrade in expected growth in full-year adjusted earnings per share to between 17% and 20% on a constant-currency basis.
This is according to the company’s Third Quarter 2023 Interim Management Statement.
The better-nutrition company has reported that like-for-like branded revenue increased by 3.0%, reflecting a price increase of 8.9% and a volume decline of 5.9% during the period.
Health And Wellness
In its trading update, Glanbia noted that its group revenue for the period declined by 9.1% on a constant-currency basis, with growth in Glanbia Performance Nutrition (GPN) offset by a decline in Glanbia Nutritionals (GN).
Commenting, Siobhán Talbot, group managing director, said, “The group’s portfolio of better-nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein.
“The Optimum Nutrition brand within GPN delivered strong revenue growth in the period, while in GN Nutritional Solutions, overall volume trends have stabilised, with volume growth in the third quarter driven by protein solutions.
“Glanbia continues to generate strong cash flow, which has been allocated in the period to complete the return of €100 million to shareholders via a share buy-back programme and build strategic capabilities, with the acquisition of the B2B bioactive ingredients business of PanTheryx highly complementary to the capabilities in GN Nutritional Solutions.”
US
GPN Americas’ revenue declined by 1.8% in the period, with strong growth in the Optimum Nutrition and Isopure brands offsetting the declines in SlimFast, which was anticipated. Pricing was positive across all brands.
SlimFast, which now represents 10% of the GPN global portfolio, continues to decline, as ongoing challenges within the diet and weight management category have resulted in reduced shelf space and consumer demand.
US consumption in the 12 weeks to mid-September was down by 35.8%, the report showed.
US cheese revenue declined by 12.5% in the period, driven by a 13.6% decline in year-on-year dairy market pricing.
Volumes increased by 1.1%, reflecting robust end market demand and strong customer relationships.
International
According to Glanbia, GPN International revenue grew by 12.3% in the period, with strong volume growth.
Optimum Nutrition, GPN’s flagship brand, continues to gain traction with new consumers in key priority markets, supported by higher levels of marketing investment.
Pricing was positive across all regions, due to the execution of 2022 price increases.
Share Buy-Back
On 15 September 2023, Glanbia completed its previously announced share buy-back programme.
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