Revenues for the half-year at Glanbia increased by more than a quarter (26.8%) year-on-year as the company saw sales rise slightly and benefited from price increases.
The Irish food and ingredients multinational brought in €2.8bn during the first six months of the year, compared to €2bn in the first-half of 2021, following price hikes across its performance nutrition (+13.9%) and nutritional solutions (+17.9%) divisions.
Like-for-like sales increased 1.9% in performance nutrition, and 1.6% in nutritional solutions, and group earnings of €171.7m represented an increase of 7.4% and a decline of 3.5% on a constant currency basis from the €159.9m profit made in H1 2021.
Adjusted earnings per share of 52.3 cent was ahead of expectations, 7.3% ahead of the same time last year (48.8 cent), but again down 3.8% on a constant currency basis.
Glanbia managing director Siobhán Talbot said she was pleased with the results, which demonstrated the impact of "a series of actions implemented since the latter part of last year in response to unprecedented inflation.
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"Revenues grew strongly with significant pricing initiatives and volume growth in all business segments in the period. Adjusted EPS1 at 52.31 cent, reflected improving momentum across the group, building on a strong 2021 comparator," Talbot added.
"We will continue to monitor inflationary trends into the second half of the year but are confident that further pricing action and operational efficiencies will deliver improving margins and strong year-on-year EBITA growth.
"Current expectations for improved EBITA growth in [performance nutrition] underpin the upgrade in full year guidance for the group, with growth in adjusted EPS1 now expected to be 9% to 13%, constant currency.
"Based on current foreign exchange rates, the reported adjusted EPS growth is expected to be 21% to 25%.”
Glanbia Performance Nutrition brought in revenues of €794.1m during the first half, up 24.4% from turnover of €638.4m a year prior, while earnings fell 8.8% from €90.2m to €82.3m, with prices being raised to offset cost inflation.
The division saw volume growth across its performance nutrition and lifestyle brand portfolios, but volumes of its SlimFast product declined 12.1%. Revenues rose 12% in the Americas and 19% in international markets.
Glanbia Nutritions brought in revenues of over €2bn between nutritional solutions (€589m) and its US cheese (€1.45bn) groups, representing year-on-year increases of 24.9% and 35.4%, respectively, again driven by single-digit sales increases and double digit price hikes.
During the period, Glanbia completed the disposal of its 40% stake in Glanbia Ireland and acquired US bioactive ingredient company Sterling Technology, and it also returned €127.1m to shareholders in buybacks. A subsequent €50m share buyback programme is ongoing.
Photo: Siobhán Talbot.
